Essential Power…Infinite Possibilities

June 28, 2007

Bankable Feasibility Study Update

NOTE: This update was sent to the Company’s list of shareholders and interested parties via email on June 28, 2007.

This is Not an Official Company News Release - For the Information of Shareholders & Interested Parties Only


Dear Shareholder / Interested Party,

In response to numerous enquiries regarding the Bankable Feasibility Study, the Company is providing an informal update on the status of this study. A forward looking statement made in our news release dated May 02, 2007 indicated the Company was expecting to receive the document before the end of this June. The bankable feasibility study is progressing well and is expected over the course of the next two or three weeks. There are no “fatal flaws” or material changes that have pushed it into July, but rather it is a result of some 70 odd multi-disciplinary engineers and technical personnel working together to complete a single document. Aside from Formation’s Management, these individuals and firms include:

MTB Project Management Professionals, Inc. (MTB) - Manager of Bankable Feasibility Study
Samuel Engineering, Inc. - Feasibility Study Engineer and Document Writer
Mine Development Associates - Mine Plan of Operations & Reserve Resource Calculations
Bill Scales, B.Sc., Project Manager
Mike Irish, P.Eng., M.S. Met. Eng - Manager of Metallurgy
Joseph A. Scheuering, Eng. of Mines - Mine Manager
Conrad Parrish, P.Eng., M.B.A. - Environmental Manager
Mr. John Allen - Metallurgical and Environmental Consultant
Patrick M. Fadyshen, B.A. - V.P. Marketing and Sales
Grenvil Dunn with Hydromet Pty. Ltd. - Hydrometallurgical Laboratory Testing
Telesto Solutions, Inc. - Geotechnical Engineering and Environmental Impact Assessment
MineFill Services, Inc. - Mine Backfill design
SGS Lakefield Research- Metallurgical Testing
Hannelie de Beer - Cobalt Market Study
Mintek - Mineral and Metallurgical Technology Specialists

As one may well imagine it is impossible to predict all the outcomes of the interactions between this multi-disciplinary team and predict with certainty when the document will be signed off and finalized by all parties. Although we try to predict as accurately as possible when we expect certain milestones to be completed based on information available to us at the time (as shareholders insist we do this), this is one of the reasons for the disclaimer regarding forward looking statements at the bottom of our news releases. Management is looking forward to receiving this document and will provide its shareholders with a summary of its contents upon receipt.

Sincerely,

E.R. (Rick) Honsinger, P.Geo.
VP Corporate Communications
View the Previous News Release:
May 22nd, 2007, Formation Secures Over $20 Million to Advance Cobalt Project
View the main News Releases page.
View the Next News Release:
July 3rd, 2007, Public Support Overwhelming for Idaho Cobalt Project - Final EIS and ROD expected in October