Essential Power…Infinite Possibilities

March 4, 2010

Formation Metals Receives First Term Sheet for Project Finance Bank Debt Facility

Vancouver, B.C., March 4, 2010, Formation Metals Inc. (FCO-TSX) (“The Company”) is pleased to announce that it has received a non-binding term sheet and expressions of interest from a number of banks with respect to a senior secured project finance debt facility.

The term sheet outlines the general terms and conditions for the loan during the construction phase and the post-completion phase, conditions precedent to closing and drawdown as well as general covenants and other customary terms and conditions that can be expected for a financing of this nature.

The Company, over the last few months has been in general discussions with several banks and is very pleased to have started receiving term sheets. Bank debt financing, together with the proceeds from the current equity financing announced last week, will be used for development of the Idaho Cobalt Project. The Company is unyielding in its commitment to its shareholders to negotiate project finance under the most favourable terms possible and remains confident that all necessary funding can be secured in a timely manner to keep it on the critical path to production.

Formation Metals Inc. is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation Metals 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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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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February 25th, 2010, Formation Metals Begins Construction of Idaho Cobalt Project
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March 16th, 2010, Formation Metals Withdraws Current Prospectus