Essential Power…Infinite Possibilities

November 3, 2011

Idaho Cobalt Project Senior Debt Facility Not Proceeding

Vancouver, B.C., November 3, 2011, Formation Metals Inc. (FCO-TSX) (the “Company”) announced today that the commitment (the “Commitment”) received by the Company from BNP Paribas (“BNP”), (see news release dated July 29, 2011) has terminated without the closing of the subject financing.

The Commitment provided for a US$79,500,000 Senior Secured Letter of Credit Facility in support of the Recovery Zone Facility Revenue Bonds issued for the construction and development of the Company’s 100% owned Idaho Cobalt Project (the “ICP”). Notwithstanding extensive and positive technical, legal and cobalt market due diligence undertaken by BNP, BNP was unable to conclude the financing and the Company has decided to consider alternative financing options.

Mari-Ann Green, C.E.O. of Formation Metals, said: “It is disappointing that the Company has expended so much time and energy on the BNP facility only to come to this decision. However, the Company remains in a strong financial position with a current cash balance at the end of the last quarter of approximately $54.7 million.” She concluded, “We will carefully consider alternative financing options.”

Construction has been advancing on the ICP since the spring and significant progress has been made with engineering, procurement and construction. The Company will continue to advance the project and is reviewing the construction schedule. The Company will provide an update on construction when available.

The 100% owned ICP is a unique, fully permitted primary cobalt deposit that will be capable of producing high purity cobalt metal. Cobalt is used in a wide variety of environmental and high-tech applications that include the re-chargeable battery and aero-space sectors.

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 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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October 20th, 2011, Formation Metals Enhances Management Team
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November 22nd, 2011, Formation Metals Secures Letter of Credit to Support Low Interest Bonds for Idaho Cobalt Project Construction