Essential Power…Infinite Possibilities

July 29, 2011

Formation Metals Receives Commitment for Financing of Idaho Cobalt Project

Vancouver, B.C., July 29, 2011, Formation Metals Inc. (FCO-TSX) (“Formation”) is pleased to announce that it has received and accepted a commitment (the “Commitment”) from BNP Paribas for the financing of its 100% owned Idaho Cobalt Project (“ICP”).

The Commitment contemplates a US$79,500,000 Senior Secured Letter of Credit Facility (the “Facility”) consisting of a US$58.5 million project financing letter of credit in support of the Lemhi County Recovery Zone Facility Revenue Bonds (the “Lemhi Bonds”) and a $21 million financial letter of credit in support of the Shoshone County Recovery Zone Facility Revenue Bonds (the “Shoshone Bonds”) issued for the construction and development of the greenfield cobalt mine located in Lemhi County Idaho, and the related hydrometallurgical plant located in Shoshone County, Idaho, and together constituting the ICP.

Under the terms of the Commitment, negotiated between BNP Paribas and Formation through its financial advisor, Auramet Trading, LLC, BNP Paribas has, subject to certain terms and conditions, agreed to act as mandated lead arranger, sole and exclusive book-runner, sole issuing bank and administrative agent for the entire Facility in support of the Lemhi and Shoshone Bonds. Having completed extensive technical, legal and cobalt market due diligence, BNP Paribas is preparing to launch the syndication of the Facility.

“Signing of this Commitment brings us one step closer to bringing this exciting and important project into production,” said Mari-Ann Green, CEO of Formation Metals, Inc. “Equipment is on site and construction is underway.”

About Formation Metals Inc.

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.

About BNP Paribas

BNP Paribas (www.bnpparibas.com) is one of the strongest banks in the world (rated AA by Standard & Poor’s i.e. 3rd rating level on a scale of 22.) The Group has a presence in more than 80 countries and more than 200,000 employees, including more than 160,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across the Europe-Mediterranean zone and boasts a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia.

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.
“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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July 26th, 2011, Formation Metals Begins Earthworks Construction at Idaho Cobalt Project Mine Site
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August 29th, 2011, Formation Metals Signs Agreement for Underground Mining Operations and Provides Construction Update on Idaho Cobalt Project