Andrew Redleaf and Whitebox Advisors, LLC Holdings in Adanac Molybdenum Corporation

MINNEAPOLIS, MINNESOTA--(Marketwire - March 18, 2011) - Between March 3, 2011 and March 16, 2011 certain limited partnerships managed by Whitebox Advisors, LLC (the "Whitebox LPs") sold an aggregate of 152,500 common shares (the "Common Shares") of Adanac Molybdenum Corporation (the "Issuer").

The Whitebox LPs are managed by Whitebox Advisors, LLC, such that, for purposes of applicable Canadian securities laws, Andrew Redleaf and Whitebox Advisors, LLC (together, the "Whitebox Filers") may be considered to have control or direction over the Common Shares sold by the Whitebox LPs. As a result, after completion of the sales giving rise to this release, for purposes of applicable Canadian securities laws, the Whitebox Filers may be considered to have control or direction over 4,272,089 Common Shares of the Issuer which constitute approximately 16.78% of the outstanding Common Shares, calculated in accordance with applicable Canadian securities laws. For purposes of Canadian securities laws, each of the Whitebox LPs may be presumed to be acting jointly or in concert with Mr. Redleaf, Whitebox Advisors LLC and the other Whitebox LPs. 

The shares were sold at prices in the range of $1.76 - $4.67 per share. 

The Common Shares were sold in the ordinary course of business of the Whitebox LPs. The Whitebox Filers expect to evaluate on an ongoing basis the Issuer's financial condition, business, operations and prospects, the market price of the securities of the Issuer, conditions in the securities markets generally, general economic conditions and industry conditions and other factors. Depending on such review, the Whitebox Filers may make purchases or may sell or transfer Common Shares or other securities of the Issuer over which they may be considered to have control or direction from time to time in public or private transactions and/or may enter into privately negotiated derivative transactions with institutional counterparties to hedge the market risk of some or all of their positions in the Common Shares or other securities. In addition, the Whitebox Filers may cause any of the Whitebox LPs to distribute in kind to their respective partners or shareholders, as the case may be, Common Shares or other securities. Any such transactions may be effected at any time or from time to time subject to applicable law. Other than as described above, none of the Whitebox Filers has any plan or proposal relating to or that would result in: (a) an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries; (b) a sale or transfer of a material amount of assets of the Issuer or any of its subsidiaries; (c) any material change in the present capitalization or dividend policy of the Issuer; (d) any other material change in the Issuer's business or corporate structure; (e) any changes in the Issuer's charter, by-laws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Issuer by any person; (f) a class of securities of the Issuer being delisted; (g) a class of equity securities of the Issuer becoming eligible for termination of registration; or (h) any action similar to those enumerated above.

Andrew Redleaf is the managing director and controlling shareholder of Whitebox Advisors LLC, which is the managing director of the general partners of each of the Whitebox LPs that directly own the Common Shares. As a result of the foregoing relationships, the Whitebox Filers may be considered to exercise control or direction over the Common Shares that are the subject of this release. However, the Whitebox Filers disclaim any beneficial ownership over the Common Shares held by the Whitebox LPs, except to the extent of their pecuniary interest, if any, therein.

The Whitebox LPs that hold the Common Shares that are the subject of this release are the Whitebox Multi-Strategy Partners, L.P., Whitebox Concentrated Convertible Arbitrage Partners, L.P. Whitebox Credit Arbitrage Partners, L.P., IAM Mini Fund 14 Limited, Whitebox Small Cap Long Short Equity Partners, L.P. and Whitebox Special Opportunities Fund Series B Partners, L.P.

The filing of this release is not an admission that any entity named in this release owns or controls any securities described in this release or is a joint actor with another named entity.

The Whitebox Filers no longer intend to file reports under Part 4 of NI 62-103 in respect of the Issuer, to be consistent in their Canadian reporting practices.

A copy of the early warning report to be filed by Mr. Redleaf and Whitebox Advisors, LLC in connection with the transactions referred to in this press release may be obtained from Mark Strefling, Chief Legal Officer of Whitebox Advisors, LLC at (612) 253-6018.