W October 08 www. bus- ex. com 107 Adanac Molybdenum ith steadily accelerating global demand for alloying elements to make steel, and a worldwide shortage of molybdenum ( moly), Vancouver, British Columbia- based Adanac Molybdenum is constructing an open pit mine in northern British Columbia at Ruby Creek, near the town of Atlin, about 75 miles southeast of Whitehorse, Yukon. Molybdenum is a soft, lustrous silver grey fl aky metal ( easily confused with graphite) commonly associated in porphyry copper deposits as a by- product. Molybdenite ( MoS2) is the natural mineral sulfi de form of the metal. With a very high melting point, moly is primarily used as an alloy agent in steel; in fact, 75 percent of the moly This junior mining company is plowing ahead with the fi rst major new molybdenum mine in almost 30 years Holymoly

Supreme Group has major fabrication facilities across western Canada and the US combined with the ability to provide in- house design/ build, detailing, erection and mechanical contracting services to our clients. Our history with the mining community includes signifi cant involvement in Shell AOSP, Cory Red, Rocanville, Lanigan, and Allan Mines for PotashCorp, and all of Canada's major diamond mines. Recent awards include the Ruby Creek Molybdenum Mine and Tulsequah Chief Projects in northern British Columbia. Supreme Group MAN Diesel SE is the world's leading designer, manufacturer and licensor of large bore diesel engines for marine and stationary applications, with engine outputs ranging from 500kW to 97,300kW. We build turnkey power plants from 1MW up to 300MW for operation on diesel, heavy fuels, natural gas and biofuels, and we offer comprehensive service support plus operation & maintenance contracts from a worldwide network of wholly owned MAN ' PrimeServ' centers and authorized dealerships. MAN Diesel is a wholly owned subsidiary of the Munich, Germany based MAN AG Group. MAN Diesel consumed globally is used in steel production in one form or another, such as stainless steel and high strength, low alloy steel. It's also used as a catalyst to remove sulfur from hydrocarbon streams, such as oil, gas or coal liquids. The commodity price of molybdenum has risen from $ 25 in early 2007 to $ 33 per pound today, and Ruby Creek boasts an NI43- 101 resource calculation of over 212,000,000 tonnes. Adanac's state- of- the- art concentrator has a capacity for throughput of 20,000 tonnes per day, and is expected to produce 12– 14 million pounds of molybdenum per year during the initial four years of operation. The mine is expected to have a life of at least 20 years. Adanac received its environmental assessment certificate from the government of British Columbia in September 2007. The BC Mines Act Permit followed in June this year allowing work to begin on site preparation, earthworks, steel erection, mill construction and assembly, and open pit development. Adanac had previously ordered long delivery mining and processing equipment to allow site construction to start in February 2009 and production to start in Q4 2010. " Our project is the most advanced large scale open pit primary molybdenum mine in the world today and we are on track for a Q4 2010 production start," said Peter Jones, Adanac President and CEO. " We plan to complete project funding this year and then start site construction in early 2009." Supreme Steel Ltd. of Edmonton, Alberta has been contracted for the fabrication of the power plant building, crusher building, process building and maintenance building, for approximately $ 26 million. The order includes building steel frames, interior platforms, doors and cladding, which will be fabricated at Supreme's Edmonton and Delta shops. Transportation to the Ruby Creek site is scheduled to start in June 2009. Project equipment and material orders to date total approximately $ 137 million. On May 30, 2008, the company announced the completion of an $ 80 million bridge fi nancing. Ruby Creek will be an open pit mine using conventional equipment and processes— drill and blast the rock to it break up, load it using a front- end shovel into haul trucks with a 150- 200 ton capacity, take the waste to the dump, take the ore to a crusher, then through a secondary crusher, then through high pressure grinder rolls, then into a ball mill to produce sand- size particles which are sent to a froth fl otation circuit, which bubbles air through a slurry. The moly particle, which is hydrophobic ( Greek for water- fearing) globs onto the air bubble and fl oats to the surface where it's skimmed off and collected. The processed product is dewatered, dried, packaged, and shipped for roasting, to produce technical grade or ferro- moly, for industrial uses. AMEC Americas Limited has been contracted for the detail engineering and procurement aspects of the project and Klohn Crippen Berger Limited has prepared the detailed design for the tailing storage facility and site water management. Since Ruby Creek lies in the traditional territory of the Taku Tlingit First Nation, Adanac held careful, critical talks with them to build a mutually benefi cial working relationship for the long term. The relationship between the mining industry and native peoples has been a sore point in the past. Some companies assumed that offering them jobs at a decent wage and a fair share of the revenue stream was enough, but today mining entities realize they have to be more sensitive to social and environmental issues. That can mean restrictions on particular activities at certain times of the year, and restoring the acreage as closely as possible to its original condition once the mining operation is complete and the company moves on. Adanac 108 October 08 www. bus- ex. com