Essential Power…Infinite Possibilities

October 3, 2005

Cobalt Project Schedule & Decline Update

Vancouver, B.C., October 3, 2005 Formation Capital Corporation (FCO-TSX) (the Company) announces today that the United States Department of Agriculture, Salmon - Challis Nation Forest (USFS) has informed the Company that it has prepared a revised schedule for the Idaho Cobalt Project’s (ICP) Draft Environmental Impact Study (DEIS) and Record of Decision (ROD) for the Mine Plan of Operations (MPO). The revised schedule is to appear in the Salmon-Challis National Forest fourth quarter Schedule of Proposed Actions (SOPA) by October 7, 2005 and will be made available to the public on the Internet at www.fs.fed.us/sopa.

The revised schedule estimates the availability of the DEIS as January of 2006, with an estimated ROD of May 2006. This reflects a two month delay from the Forest Service’s previous estimates of November 2005 and March 2006 for the DEIS and ROD respectively. The Company is hopeful it can work with the Forests Service to expedite the DEIS and ROD.

Additionally, in a letter received Friday, September 30, 2005, the USFS informed the Company that its proposed Exploration Decline Plan of Operations (EDPO) cannot be approved until the completion of the Environmental Impact Statement for the MPO. The letter states, among other things, that the regulations of the council of Environmental Quality provide that connected actions should be addressed in the same environmental impact statement if they are interdependent parts of a larger action. The EDPO fits the USFS criteria for being a “connected action” with the approval of the Mine Plan of Operations on the ICP.

The EDPO was to cover the construction and reclamation of an exploration adit only and was submitted as a separate and distinct operation and approval process from the Idaho Cobalt Project MPO. The USFS’s determination that it is a “connected action” does not delay or impair the Company’s previously submitted MPO.

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. 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:
Formation Capital Corporation
1510 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Head Office: 604-682-6229
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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