Essential Power…Infinite Possibilities

March 2, 2006

2006 Exploration Program Commences on Virgin River Project

Vancouver, B.C., March 2, 2006 - Formation Capital Corporation (the “Company”, FCO-TSX,) is pleased to announce the commencement of the 2006 Virgin River Uranium Exploration program, as reported to the Company by project operator, Cameco Corporation. The project, located within the south-central portion of the Athabasca Basin in northern Saskatchewan, is a joint venture formed in 1998 between Formation Capital Corporation’s wholly owned Canadian subsidiary, Coronation Mines Limited and UEM, jointly owned by Cameco Corporation and by Areva subsidiary Cogema Resources Inc. Coronation Mines Limited owns 2% of the project with the first right to acquire up to 10% of the project and is carried on the project through to $10 million worth of exploration and development. Approximately $6.44 million has been spent on the project to date.

The 2006 program, budgeted for $2 million, is designed to further explore the area of previously reported mineralization initially discovered in DDH VR-18 drilled in 2004 and further drill tested in 2005 (Table 1). The program consists of a diamond drill program with supporting borehole and ground TEM surveying. Field work to date consists of the completion of all planned grid preparation work and the completion of 12.2 km of linecutting and grid refurbishing. As a consequence of meetings with Saskatchewan Environment and the Clearwater First Nation, all required camp and work permits were approved, including a permit for the proposed western drill access trail. The awarding of the contract for geophysical surveying was recently completed and that geophysical survey is to begin shortly. Evaluation of airborne gravity and radiometric data is ongoing.

Although construction of the winter access road is underway, the Company has been advised by Cameco that, due to record high winter temperatures hampering ice and land access routes, drill mobilization may be delayed.

Table 1: Previously Released Select Higher Grade Uranium Results from the 2004 & 2005 drill Programs


Grade Calculation Method From To True Thickness Maximum Grade Average Grade GT


(m) (m) (m) (%U3O8) (%U3O8) (mX%)
DDH VR-18 Equivalent U 3O 8 Gamma - HF Probe 789.1 795.7 6.6 22.22 4.71 31.09
2004 Geochemical - assay U 3O 8 (ICP) 789.1 795.5 6.4 17.80 5.58 35.71

Geochemical - assay U 3O 8 (DNC) 789.1 795.5 6.4 18.20 5.99 38.33

Average Geochemical Assay (U3O8) 789.1 795.5 6.4 18.00 5.79 37.02
DDH VR-18W2 Equivalent U 3O 8 Gamma - HF Probe 791.7 795.4 3.7 28.99 9.35 34.59
2005 Geochemical - assay U 3O 8 (ICP) 791.5 795.4 3.9 24.80 8.15 31.80

Geochemical - assay U 3O 8 (DNC) 791.5 795.4 3.9 26.40 8.64 33.70

Average Geochemical Assay (U3O8) 791.5 795.4 3.9 25.60 8.39 32.75
DDH VR-21W1 Equivalent U3O8 Gamma - HF Probe 798.6 804.6 6.0 16.37 2.33 13.98
2005 Geochemical - assay U3O8 (ICP) 798.6 804.4 5.8 21.60 2.85 16.54

Geochemical - assay U3O8 (DNC) 798.6 804.4 5.8 23.30 3.01 17.45

Average Geochemical Assay (U3O8) 798.6 804.4 5.8 22.45 2.93 17.00

Previous drilling of what is now known as the Centennial Zone, tested a prominent electromagnetic anomaly in the footwall of the Dufferin Lake fault and encountered three separate zones of uranium mineralization. The uranium intersections in the Centennial Zone display a minimum apparent strike length of 100 m and are open along strike to the north and south. The Centennial Zone also displays a minimum across strike width of 12 m and contains significant uranium contents (up to 8.39% U3O8) over appreciable widths (up to 6.4 m) yielding grade-thickness (GT) products of up to 37.02 (see Company news releases dated February 7, 2005 and January 6, 2006).

All uranium assays were carried out by the Saskatchewan Research Council (SRC) of Saskatoon, Saskatchewan. Mr. Dan Jiricka, P.Geo., P.Eng, Senior Geologist for Cameco Corporation is the Qualified Person working directly on the project.

Excellent uranium exploration potential is indicated in this area. Cameco considers the uranium intersections obtained in the “Centennial Zone” the most significant ever encountered along the entire Dufferin / Virgin River Trend in more than 25 years of exploration.

Formation is looking forward to another rewarding season of uranium exploration on the Virgin River project. Additional results and updates will be released when available.

Formation Capital Corporation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation Capital Corporation trades on the Toronto Stock Exchange under the symbol FCO.

Formation Capital Corporation
“Mari-Ann Green”

Mari-Ann Green
C.E.O.

For further information please contact:
Formation Capital Corporation
1510 — 999 West Hastings Street
Vancouver, B.C. V6C 2W2
604-682-6229

Investor Relations: Contact Encompass Communications toll free 877-566-6592
Email: info@formcap.com - Or visit our Web site at: www.formcap.com

The statements contained in this news release in regard to Formation Capital Corporation that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Capital Corporation’s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.
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