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December 21, 2011

Formation Metals' Idaho Cobalt Project Geotechnical Drilling Complete

Vancouver, B.C., December 21, 2011 Formation Metals Inc. (FCO-TSX) (the “Company”) has concluded its minesite portal bench geotechnical core drilling on its 100% owned Idaho Cobalt Project (“ICP”). The ICP, is comprised of a primary cobalt mine in Lemhi County near the town of Salmon, Idaho, and the Cobalt Production Facility in Shoshone County, near Kellogg, Idaho, U.S.A. The geotechnical drilling was conducted to acquire data for rock stability studies around the portal bench area.

At the ICP mine site, Radford Langston, P.E. with Langford & Associates, Geological and Mining Engineers, out of Red Lodge, Montana was recently employed to provide a final design for the portal bench that includes a global stability analysis, recommendations for rock bolting on the high wall and recommendations for ground control to ensure and maintain portal bench stability. Additional structural data is now being acquired from the three HQ sized, oriented core holes totaling 575 feet that were recently drilled adjacent to the portal locations. The drilling was performed by A&K Drilling of Butte, Montana and the core was logged by Mr. Langston.

At the Cobalt Production Facility located near Kellogg, Idaho, work on the copper Solvent Extraction Electrowinning circuits continued with the replacement of liners in two large recirculation tanks. Additional new liners are being installed in the copper electrowinning cells, expected to be completed by mid-January. The concrete in the basement of the facility housing the electrowinning circuits is also in the process of being refurbished and re-sealed.

As described in the Company’s news release dated December 6, 2011, construction activities at both the cobalt minesite and at the cobalt production facility will continue with those construction activities which are least affected by winter conditions. These include ongoing detailed engineering design which are now over 90% complete at the minesite. This work includes the development of a 3D block model for the underground mine. At the Cobalt Production Facility, the finalization of operating plans are expected to conclude this week. This will allow for the ramping up of efforts by the engineering firm to complete the detailed engineering for the facility. Further updates will be provided when available.

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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December 6th, 2011, Formation Metals' Idaho Cobalt Project Construction Update
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