Essential Power…Infinite Possibilities

May 22, 2008

Biological Opinion Completed on Idaho Cobalt Project, Formation Hires Environmental Manager

Vancouver, B.C., May 22, 2008 - Formation Capital Corporation (“Formation”, FCO-TSX,) is pleased to announce that its wholly owned subsidiary, Formation Capital Corporation, U.S. (the “Company”) has been advised that the Biological Opinions for its Idaho Cobalt Project (“ICP”) have been completed by National Oceanic and Atmospheric Administration and U.S. Fish and Wildlife Service. The finalized reports are expected to be received by the Company in a matter of days. The Biological Opinions are the last documents required to finalize the Environmental Impact Statement and Record of Decision for the ICP. The Company is developing the ICP, a primary cobalt mine in Lemhi County, Idaho, and is currently operating the Sunshine Refinery, part of the Big Creek Hydrometallurgical Facility in Shoshone County, Idaho.

In addition, the Company is pleased to announce the appointment of Mr. Preston F. Rufe as Environmental Manager for the Company’s ICP. Mr. Rufe brings exceptional leadership and technical abilities to the Company with a wide range of professional experience in environmental, geotechnical and civil engineering with the United States Air Force (“USAF”), and recently managed a branch of a top 100 ranked engineering consulting firm. During his eight-year career with the USAF, he served at bases in Alaska, Maryland, Ohio and Iraq. He held a variety of progressively more responsible operational and technical positions, including Deputy Chief, Environmental Planning & Integration, Readiness Flight Chief, responsible for installation of emergency management functions, and as second in command of a construction engineer unit repairing damaged roads in Iraq. He has worked with government and environmental agencies to administer the National Environmental Policy Act (NEPA), which governs the permitting process of the Company’s ICP, and has designed and integrated technical environmental air, water and soil project plans.

He is a licensed Professional Engineer and holds a Bachelor of Science in Civil Engineering from the United States Air Force Academy, and a Master of Science in Engineering Management of Applied Environmental Science, from the USAF Institute of Technology. Mr. Rufe has further education in the areas of Environmental Management Systems, Environmental Planning, Programming and Budgeting, Writing NEPA Documents, and Soil and Erosion Control.

Mr. Rufe will develop, direct and manage environmental programs, monitoring and compliance activities and will represent the Company with government agencies and in legislative activities. He will provide technical guidance on environmental issues, develop and monitor budgets and respond to developing regulatory and compliance issues. “Management is extremely pleased to welcome Mr. Rufe to Formation’s team”, commented Mari-Ann Green, Chairman and CEO of Formation Capital Corporation, “His addition to our team is a testament of our commitment to the environment and our long held belief that, with the right people and policies in place, environmental stewardship and mining can co-exist”, she continued.

Formation Capital’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, high temperature gas to liquid technology, and batteries used in hybrid and electric cars. The Company 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:
E.R. (Rick) Honsinger, P.Geo., V.P. Corporate Communications

Formation Capital Corporation, 1510 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Head Office: 604-682-6229, Investor Relations: Email: inform@formcap.com - Or visit our Web site at: 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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May 1st, 2008, Detailed Design and Procurement of Idaho Cobalt Project Mine & Concentrator 65% Complete
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May 29th, 2008, Biological Opinions Grant Endangered Species Act Exemption Permit for Idaho Cobalt Project