Formation Metals Drills To Optimize Mine Design  

VANCOUVER, BC - Formation Metals Inc. reported that its 100% owned subsidiary, Formation Capital Corporation, U.S., has reported the commencement of a 5,000 foot diamond drill program in a previously untested area on the Idaho Cobalt Project. Pursuant to the approved Plan of Operations, this verification drilling program will provide information needed to optimize mine design and production plans with the primary goal of maximizing ore production as early in mine life as possible.

The program will also provide material for initial metallurgical test work to assist in determining the economic viability of extracting the heavy Rare Earth Elements ("REE's") that are known to occur on the property. Additional material for follow-up metallurgical testing can also be obtained once underground operations commence. REE's, as well as gold, were not included in the Company's bankable feasibility study.

"The program is exciting for us as we can now obtain the data needed to optimize the mine design", said Bill Scales, President. "Mine design optimization, along with new information on the REE's, could have a positive impact on the overall economics of the project."

The company's address is Suite 1730, 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.