Contractor Mobilizing Equipment For Idaho Cobalt Mine Construction 

VANCOUVER, BC - Formation Metals Inc. reported that its 100% owned subsidiary, Formation Capital Corporation, U.S., has provided Formation with an update on its 100% owned Idaho Cobalt Project. Dahle Construction LLC of Salmon, ID has been awarded the contract to commence transportation route earthworks construction on the ICP. Dahle is currently in the process of mobilizing heavy equipment to commence construction on the Idaho Cobalt Project, which includes the establishment of a crusher facility to produce aggregate required for road upgrades.

"We've gotten a bit of a late start due to excessive snow conditions at the higher elevations of the project area this year," commented Mari-Ann Green, CEO of Formation Metals Inc. She continued, "There is still some snow remaining at the higher elevations above the 7,000 foot level, but we don't expect that to linger for much longer. In the mean time, Dahle has begun the process of mobilizing equipment and widening the access roads in preparation for the commencement of earthworks at the mine site." In addition to site works contractor mobilization, the Company's Project and Construction Managers, JDS Energy & Mining Inc. ("JDS"), has reported continued progress on engineering, procurement and construction at the ICP's mine site and cobalt production facility. Progress included the finalization of various engineering contracts and the receipt of additional site earthwork, tailings & waste rock storage facility and concentrator site package bids with bid walks with contractors scheduled for later this week. In addition, the Power Transmission Line Installation bid package has been released to contractors with a bid walk scheduled for later this month. As a result of advancements in engineering, procurement and construction on the ICP, JDS, in conjunction with the Company's in-house operations team, has updated and revised the estimated capitalization expenditures for the ICP from *US$138.7 million to US$141.9 million. The new figure takes into account post reclamation financial assurance bonding requirements for both surface disturbance reclamation and long-term water treatment as well as previous equipment purchases. The revised estimate has not materially changed capital costs but has made the operation more streamlined. The Mine Plan has been re-engineered and optimized to maximize the extraction of the highest grade ore material in the shortest possible time frame in order to provide an optimized cash flow scenario in the early years of mine life. This has resulted in a re-positioning of the portal bench and other engineering modifications associated with this re-positioning. The company's address is Suite 1730, 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.