Formation Completes Modified Mine Plan of Operations

VANCOUVER, BC - Formation Capital Corporation reported that its wholly owned subsidiary, Formation Capital Corporation, U.S., has completed and submitted a modified Mine Plan of Operations (Mine Plan) for its 100% owned Idaho Cobalt Project (the "ICP") to the United States Department of Agriculture Salmon Challis National Forest in accordance with the requirements set forth in the Record of Decision (the "ROD") issued in June 2008.
"We are very happy to see this important milestone completed," commented Bill Scales, President of Formation Capital Corporation, U.S. "The ROD issued last month clearly outlined how the Mine Plan needed to be modified - this allowed us to focus on what needed to be done to get the job finished quickly and efficiently."
Modifications to the Mine Plan included using a different water treatment system minimizing the need for water treatment waste residue disposal, co-mingling the waste rock and tailings in the Tailings and Waste Rock Storage Facility (the "TWSF"), increasing the soil cover on the TWSF, increasing the alkalinity of the underground waste rock, upgrading of project access roads and reclamation of certain unused site roads.
Providing a final Mine Plan of Operations to the Forest Service is a very significant step for us," stated Guy Jeske, Mine Manager, ICP from his office in Salmon, Idaho. "We have worked very hard in conjunction with the Forest Service over the last 6 years to create a sustainable and responsible Mine Plan that was both economically feasible and designed to achieve the highest possible level of environmental responsibility."
Upon the Forest Service's approval of the modified Mine Plan after completion of the appeal process, placement of a reclamation bond, and the receipt of a National Pollution Discharge Elimination System Permit (NPDES), the Company will be permitted to commence construction of the Idaho Cobalt Project, expected this fall.
Once in production, Formation's Idaho Cobalt Project will provide the United States with high purity super alloy grade cobalt metal required for critical applications such as the construction of jet airplane engines, land based turbines, catalysts for gas to liquid technology, and batteries used in hybrid and electric cars.
The company's address is Suite 1510 - 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.