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February 25, 2010

Formation Metals Begins Construction of Idaho Cobalt Project

Vancouver, B.C., February 25, 2010, Formation Metals Inc. (FCO-TSX) (“Formation”) announces that its 100% owned subsidiary, Formation Capital Corporation, U.S., (the “Company “) has commenced Stage I of construction for its 100% owned Idaho Cobalt Project (the “ICP”).

“Commencing Stage I of construction of the mine will keep the overall schedule on-track, with initial production expected in the first or second quarter of 2011”, stated Bill Scales, President of the Company. “The past several weeks have been spent assessing the project schedule, scope of work, budget and tendering requests for quotations for project contracts. We are pleased to announce that Dahle Construction, a local heavy construction contractor, has been awarded the contract for timber clearing. Work on the project is currently underway.”

“The first stage of construction consists of timber clearing for the crusher and concentrator site, tailings and waste rock storage facility, topsoil stock pile area and road areas around the mill site,” stated Guy Jeske, General Manager of the ICP. He continued, “Timber clearing in winter conditions is preferable since the frozen ground helps reduce environmental impacts.”

Stage II will see facility construction and mine development fully underway and is expected to begin in the second quarter of 2010. Stage III allows for mine development below the water table and is slated to commence later in the year.

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

Formation Metals Inc.
“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 Metals Inc., 1730 — 999 West Hastings Street, Vancouver, BC, V6C 2W2
Tel: 604-682-6229 - Email: inform@formationmetals.com — Web: formationmetals.com

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The statements contained in this news release in regard to Formation Metals Inc. that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Metals Inc.’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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