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September 8, 2011

Formation Metals Provides Construction Update on Idaho Cobalt Project

Vancouver, B.C., September 8, 2011, Formation Metals Inc. (FCO-TSX) (“Formation”) announced today that its 100% owned subsidiary, Formation Capital Corporation, U.S., (the “Company”) has been provided an update on the progress of construction being managed by JDS Energy & Mining (JDS) on its 100% owned Idaho Cobalt Project (“ICP”).

Pursuant to Formation’s news release dated August 29, 2011, earthworks at the ICP mine site have progressed well and planning is underway for future execution of key milestones such as grid power establishment, concrete pouring and construction of the portal bench to allow for the commencement of underground mining.

The Power line contractor has been mobilized and has started demolishing the existing line and clearing the right of way for the new line. New power line poles are secured at the Company’s staging area outside the town of Salmon awaiting transportation to the mine site. The concrete supply and construction contract has been awarded with construction kick-off meetings scheduled for later this week. Dahle Construction is on site with the portal bench, concentrator and crusher pad under construction in preparation for concrete pouring. The topsoil stripping and storage stage of construction is complete at the Tailing Waste Storage Facility (“TWSF”), water management ponds, and wetland mitigation areas with construction continuing on these structures.

Construction is advancing at the Cobalt Production Facility located outside of Kellogg, Idaho, where the cobalt concentrate will be processed into high purity end product metals. Foundations of a pre-existing structure have been demolished. The concrete curb and pad demolition and concrete removal was done in preparation for the laying out of footing excavations for the new Cobalt Production Facility building on the old site. As they become available, additional construction photos will be posted on the company’s websites at www.FormationMetals.com and www.IdahoCobalt.com.

Natural forest fires at this time of year in the Salmon—Challis National Forest are a common occurrence as evidenced by the Clear Creek fire that burned through the ICP project area in 2000. Currently, the Salt Fire is burning approximately 12 miles south east of the ICP mine site and, as a precaution, the Idaho Cobalt Mine construction crews have been temporarily evacuated from the mine site. The evacuation order, issued by the Lemhi County Sheriff, is currently not expected to cause any significant delays in construction of the Idaho Cobalt Mine.

“Our first priority is the safety of our crews”, commented Preston Rufe, Environmental Manager for the Company. He continued, “The fire is not expected to reach the project and is not considered a threat to any structures or equipment at this time. We are more concerned about the access roads to the project that lie at lower elevations and are more susceptible to fire exposure which could create a safety issue for workers using the limited ingress and egress to the mine site. Regardless, as an additional safeguard, heavy equipment has been moved to safe areas that include the center of the TWSF, which is a large cleared area encompassing tens of acres with no vegetation to act as fuel.”

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:
August 29th, 2011, Formation Metals Signs Agreement for Underground Mining Operations and Provides Construction Update on Idaho Cobalt Project
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September 14th, 2011, Formation Metals' Idaho Cobalt Project Construction Crew Resume Operations