Essential Power…Infinite Possibilities

October 20, 2011

Formation Metals Enhances Management Team

Vancouver, B.C., October 20, 2011, Formation Metals Inc. (FCO-TSX) (“Formation”) announced today that it has appointed Mr. Michael G. Lee as General Manager of its 100% owned Idaho Cobalt Project (“ICP”). Mr. Lee will oversee all operations for the ICP.

Mr. Lee is a graduate of Mining Engineering from the Montana College of Mineral Science and Technology with over 33 years of mining related experience, specifically in the Pacific North West. He brings a wealth of knowledge and expertise in developing and operating both underground and open pit mines and milling and concentrating facilities through to closure and reclamation. He has a proven track record of developing and running safe, profitable mines and mineral processing plants.

Mr. Lee has previously held the roles of Vice President and General Manager of the Coeur - Galena Silver Mine as well as several management positions with ASARCO’s projects including Mine Superintendent and Manager of Development Projects and Services. Prior to joining the Company, Mr. Lee held the position of Mine Superintendent for Montana Resources’ copper and molybdenum Continental Mine in Butte, MT, and Vice President and General Manager for Apollo Gold’s Montana Tunnels. His focus on quality control and his proven and proactive mine safety initiatives are aligned with the Company’s dedication to environmentally sound and safe mining practices.

Formation also announces the appointment of Ken Mayer at the Hydrometallurgical Facility, who will be acting as Senior Accountant assisting the Comptroller and General Manager for the ICP. Mr. Mayer is a Certified Public Accountant and a Bachelor of Science graduate from Boise State University and an MBA graduate from Regis University in Denver Colorado. He has over 30 years of diverse experience in public accounting, forecasting, and income tax auditing with a number of firms in both Idaho and Alaska. His last public position was with Native American Services Corporation in Idaho acting as Senior Accountant and Financial Analyst.

Formation Management welcomes the addition of these skilled individuals to their team which continues to grow in step with progress on the financing and construction of the ICP.

Formation’s second quarter condensed interim consolidated financial statements were SEDAR filed on Oct 17th and exhibit a strong cash position of $54.7 million (as at August 31, 2011). The second quarter financial statements are also available at the company website at www.formationmetals.com.

Formation Metals Inc. is a well established, mineral exploration, development and refining company that is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation 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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This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward- looking terminology. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on the Company is available at www.sedar.com.

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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October 6th, 2011, Formation Metals' Bond Issuers Extend Date For Idaho Cobalt Project Credit Facility
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November 3rd, 2011, Idaho Cobalt Project Senior Debt Facility Not Proceeding