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December 6, 2011

Formation Metals' Idaho Cobalt Project Construction Update

Vancouver, B.C., December 6, 2011 Formation Metals Inc. (FCO-TSX) (the “Company”) is providing an update on the progress of construction on its 100% owned Idaho Cobalt Project (“ICP”), managed by JDS Energy & Mining. The ICP is comprised of a primary cobalt deposit in Lemhi County near the town of Salmon, Idaho, and the Cobalt Production Facility in Shoshone County, near Kellogg, Idaho, U.S.A.

Subsequent to the Company’s news release dated September 8, 2011, considerable construction progress has been made at the minesite and at the Cobalt Production Facility. These areas include the Crusher and Concentrator Pads, Tailings Waste Storage Facility (“TWSF”), Portal Bench, Powerline, Tram Right of Way and Discharge Terminal at the minesite, as well as pad preparation and concrete pouring at the Cobalt Production Facility. Photographs documenting the construction progress are available at the Company’s website at www.FormationMetals.com.

Pad earthwork construction at the Concentrator, Crusher, Tram Discharge Terminal, and Miner’s Dry are complete and additional equipment has been procured including the crusher, the administration building, and the back-up generator. At the TWSF the construction of all berms and the Wetlands Mitigation Pond has been completed. The south side of the TWSF has been excavated and the subdrain installed. Roadwork on the associated infrastructures to and from these facilities is nearing completion and transportation route improvements to Williams Creek Road, Panther Creek Road and Meadow Creek Road are complete. Portal Bench excavation has commenced. Geotechnical drilling has commenced to assist in the further evaluation of engineering parameters for surface and underground work at the mine.

At the Cobalt Production Facility, the pouring of concrete for the foundations of the new building is complete. Renovation of the exisiting ball mill and copper circuits are ongoing and will continue throughout the winter. Final engineering for the Cobalt Production Facility is continuing.

Over the course of the next several months, the Company intends to continue with those construction activities at the minesite which are least adverse to winter conditions. These activities include the drilling of surface monitoring wells and the preparation of the work areas adjacent to the mine. Plowing of snow and maintenance of access roads and building sites is ongoing and will continue throughout the winter months.

“Limiting construction over the winter months will affect the schedule for initial production, but at this point, we expect it will be minimal”, stated Mari-Ann Green, CEO of Formation Metals Inc. She continued, “Right now the Company is concentrating its efforts on securing the credit support necessary for the Recovery Zone Facility Bonds [see Company News Release dated November 22, 2011]. Once this is in place, the Company intends to prepare an updated construction and production schedule.”

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.

View the Previous News Release:
November 22nd, 2011, Formation Metals Secures Letter of Credit to Support Low Interest Bonds for Idaho Cobalt Project Construction
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View the Next News Release:
December 21st, 2011, Formation Metals' Idaho Cobalt Project Geotechnical Drilling Complete