Essential Power…Infinite Possibilities

July 19, 2005

Formation Commences Drill Program to Facilitate Mine Design

Vancouver, B.C., July 19, 2005, Formation Capital Corporation (FCO-TSX) (the Company) announced today the commencement of a 7000 foot (approx 2,130 metre) diamond drill program on the Company’s 100% owned Idaho Cobalt Project (ICP), a unique primary cobalt deposit located in east central Idaho in the permitting and feasibility stages of development. The drill rigs are expected to be mobilized to the site by the end of the week. The diamond drill program, as recommended by Mine Development Associates (MDA), is designed to gain geotechnical data to optimize mine stope design, particularly for the early years of mine production on the ICP. The geotechnical data will also be used to optimize the mine ground support design by providing additional data on rock structure, which is expected to downgrade the ground support requirements as outlined in MDA’s Pre-feasibility report.

In addition, the drill program is intended to further delineate the open-ended mineralization discovered in last years drilling on the southern portion of the Ram deposit where some of the widest drill intercepts with the highest grades were encountered. This, along with mine design facilitation, is designed to improve the overall economics of the deposit and increase the existing mine life.

The drill program will concentrate on the southern portion of the Ram deposit where the 2004 drill program was successful in extending the strike length of the mineralized horizon an additional 200 feet south to section 8+00S. The mineralization on this section, the furthest section drilled to the south, appears to increase in grade and width when compared to previous drill intercepts. Mineralization continues to remain open along both north and south strike directions and at depth. The 2004 drill program was also successful in confirming the downdip extension of mineralization along a strike length of 2,200 feet between sections 8+00S and 14+00N. This downdip mineralization was encountered well below its previously defined vertical depth and remains open.

MDA’s National Instrument 43-101 compliant report, based on the 2004 drill results, (see March 31, 2005 Company News Release) estimate undiluted measured and indicated resources on the Ram deposit at a 0.2% cut-off grade total 1,916,442 tons (1,344,447 tons in the measured category) grading 0.605% cobalt, 0.57% copper and 0.014 ounces per ton gold with inferred resources of 952,200 tons grading 0.714% cobalt, 0.79% copper and 0.016 ounces per ton gold. An updated reserve report from MDA is expected in the fall with the completion of the Bankable Feasibility Study.

The Idaho Cobalt Project is a unique high-grade, primary cobalt deposit that is metallurgically favourable for the production of high purity cobalt products. The U.S.A. is one of the largest world consumers of this environmental and strategic metal but currently has no primary cobalt production and is dependent on imported sources.

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
Investor Relations: Contact Encompass Communications
toll free 877-566-6592
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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