Engineering And Procurement Status At Cobalt

VANCOUVER, BC - Formation Capital Corporation has been provided an update by its wholly owned subsidiary, Formation Capital Corporation, U.S. regarding the Engineering and Procurement status of its 100% owned Idaho Cobalt Project (ICP) located near Salmon, Idaho.
In July 31, 2007 the Company announced the results of a positive feasibility study on the ICP with a recommendation from Samuel Engineering, Inc. to continue with the detailed engineering of the project as well as the ordering of certain long lead equipment items. This process is well underway and to date is not showing any escalation in the capital costs from those reported in the July feasibility study. Engineering and Procurement for the ICP is being conducted by Samuel with Construction Management under the joint direction of Samuel and MTB Project Management Professionals, Inc. (MTB). In addition civil design for roads etc, is being conducted by Telesto Solutions, Inc.
Samuel is reporting detailed design, engineering and procurement for the Surface Facilities is 65% complete as at the end of March 2008. Completion of work is pending receipt of vendor information for purchased equipment.
Samuel is also reporting that all of the major equipment, with the exception of the tailings filter and paste system, has been purchased. The remaining items are out to bid or recommended for purchase and are under review for approval for purchase by the Company.
Telesto is providing civil design for mine access roads and tailings and waste rock storage facility and is reporting that design is essentially complete and preparation of requests for proposals for construction may now proceed. Design of the road upgrade through the adjacent property is underway and is scheduled for completion in 4-6 weeks.
Telesto also reports that design work on the mine portal bench is 75% complete, is ready for review by the regulatory agencies and is ready for requests for proposal for construction. Final design is awaiting detailed geotechnical work scheduled to be completed as soon as snow cover and access can be provided for drilling equipment.
At the Company's hydrometallurgical facility near Kellogg, Idaho, considerable time has been spent to date optimizing the process and evaluating equipment selection. The result of this work has been a simplification of the process and a reduction in capital cost. This work is now substantially complete. Samuel is reporting ongoing engineering tasks are 15% - 20% complete. Design specifications for the equipment are underway and approval of final design has been issued on many items.
The company's address is Suite 1510, 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.