Essential Power…Infinite Possibilities

November 30, 2010

Formation Metals Mandates BNP Paribas to Arrange Idaho Cobalt Project Debt

Vancouver, B.C., November 30, 2010, Formation Metals Inc. (FCO-TSX) (“Formation”) is pleased to announce it has signed an Engagement Letter with BNP Paribas Securities Corp. (“BNP Paribas”) to act as sole Mandated Lead Arranger and bookrunner for a senior secured debt facility (the “Facility”) for the construction and operation of Formation’s 100% owned Idaho Cobalt Project (the “ICP”). Based on an indicative term sheet negotiated between BNP Paribas and Formation through its financial advisor, Auramet Trading, LLC (“Auramet”), the Facility may take the form of an amortizing construction / term loan or Letter of Credit supporting the issuance of tax exempt industrial bonds. The establishment of the Facility remains subject to, amongst other things, customary due diligence by the lenders and credit approval. All parties are excited at working toward the execution of the Facility as an integral part of the mine financing.


About BNP Paribas

BNP Paribas (www.bnpparibas.com) is one of the six strongest banks in the world (rated AA by Standard & Poor’s i.e. 3rd rating on a scale of 22) and the largest bank in the eurozone by deposits. With operations in 85 countries BNP Paribas provides a full range of product and distribution capabilities, including a dedicated group specializing in providing debt solutions to the energy, metals and mining industries for project and structured finance. BNP Paribas is perennially a highly ranked market leader in global project finance and mine project finance, respectively, with a global syndication capability.

About Auramet Trading, LLC

Auramet is a global physical precious metals merchant run by experienced professionals providing a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption. Auramet prides itself on building strong and loyal relationships and provides physical metal merchant, merchant banking and structured finance and advisory services for its clients.

Formation Metals Inc.

Formation is a well established mineral exploration, development and refining company who, through its 100% owned subsidiary, Formation Capital Corporation, U.S. is developing the ICP. Through its wholly owned subsidiaries, Formation has additional interests in base, precious metal and uranium projects in Canada, the United States and Mexico. Formation 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.

About the Idaho Cobalt Project

The 100% owned ICP is a unique, “shovel ready” and fully environmentally permitted primary cobalt deposit and refining facility that will be capable of producing high purity cobalt metal. Cobalt is used in a wide variety of environmental and high-tech applications, including re-chargeable batteries and superalloys required in the aerospace sectors. Currently, the United States is the world’s second largest consumer of cobalt and is totally reliant on foreign sources for this essential metal.

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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November 5th, 2010, Continued Positive Results from Formation Metals' Cobalt Mine Optimization Drilling
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December 16th, 2010, Formation's Stimulus Act Recovery Zone Bond Allocation Increased to US $77.7 Million by State of Idaho