Essential Power…Infinite Possibilities

January 25, 2005

Successful Final Results Conclude 2004 Idaho Cobalt Project Drilling

Vancouver, B.C., January 25, 2005, Formation Capital Corporation (FCO-TSX) (the Company) is pleased to provide the final drill results from its 25,000 foot, 28 hole drill program on the Idaho Cobalt Project owned 100% by its subsidiary Formation Capital Corporation, U.S.

The 2004 drill program was designed to develop additional reserves and resources along strike and downdip on the Ram deposit and has demonstrated an increase in the measured and indicated resource. Quantification of these results is in progress and will be provided by Mine Development Associates, an independent mine engineering firm out of Reno, NV. Upon completion, this updated reserve / resource audit will in turn be used by Hatch Engineering in the definitive feasibility study.

As previously released, the 2004 drill program has been successful in confirming the downdip extension of mineralization along a strike length of 2,200 feet of a known 2,400 feet of strike between sections 8+00S and 14+00N on the RAM deposit. The RAM deposit represents one of over twenty target zones previously defined by surface exploration. In addition to extending downdip mineralization, the program was successful in extending the strike length of the mineralized horizon an additional 200 feet south to section 8+00S. Significantly, the mineralization on this section, the furthest section drilled to the south, appears to increase in grade and width when compared to previous drill intercepts (table 2). Mineralization continues to remain open along both north (N) and south (S) strike directions and at depth.

In total 24,871 feet were drilled in 28 drill holes. Assay results for drill holes R04-01 through R04-22 have been previously released (table 2). Significant new drill results are outlined in table 1.

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The bulk of the final drill holes were drilled to test the downdip extension of previously discovered mineralization. Drill hole R04-22 was abandoned at a depth of 368 feet prior to reaching the target down-dip extension of mineralization encountered in R-04-01 on Section 8+00N. This target was successfully tested in R04-23 which intersected cobaltiferous mineralization in the main mineralized horizon and the footwall horizon. The down-dip extension of mineralization encountered in R-04-21 on Section 2+00S was successfully tested in drill hole R04-24. Significantly, portions of the encountered mineralization exhibited similar style to that encountered in R-04-10 and 13 on Section 8+00S that exhibits an apparent thickening in width and increase in grade from other intersections typically encountered further up dip.

On Section 6+00N, drill Hole R04-25 was successful in intersecting downdip mineralization between that encountered in previous drilling. On Section 4+00S, drill holes R04-26 and R04-28 successfully tested approximately 400 feet of additional down dip mineralization encountered in R-99-06. R-04-27, drilled on Section 6+00S for the purpose of testing mineralization similar to that encountered on Section 8+00S, was successful in encountering ore grade mineralization similar in grade to that encountered on Section 8+00S in drill holes R04-10 and 13.

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Mr. George King, B.Sc., P.Geo., is the Qualified Person working directly on the project. Drill core samples were sent to ALS Chemex Labs in Vancouver, B.C. for assay. A current list of drill holes, intersections and location map is available from the Company directly.

To ensure validity of results, Formation employs a regimented sampling procedure, including the submittal of different standard samples of known grade, blank samples and random duplicate samples to ensure results can be replicated.

Formation Capital Corporation

“Mari-Ann Green”

Mari-Ann Green

For further information please contact:

Formation Capital Corporation
1510 - 999 West Hastings Street
Vancouver, BC, V6C 2W2
Head Office: 604-682-6229

Email: - Or visit our Web site at:

The statements contained in this news release in regard to Formation Capital Corporation that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Capital Corporation’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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