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September 25, 2006

Sunshine Precious Metals Refinery Approved as Dubai Good Delivery

Vancouver, B.C., September 25, 2006 - Formation Capital Corporation (the “Company”, FCO-TSX), is pleased to announce that its 100% owned Sunshine Precious Metals Refinery (Sunshine) in Kellogg, Idaho was accepted for membership in the Dubai Multi Commodities Centre (DMCC) on September 18, 2006. This means that silver produced by the refinery is now accepted for good delivery on both the DMCC and the Dubai Gold and Commodities Exchange (DGCX).

The DMCC was created by the Dubai government to establish a commodity market place in Dubai. Rated ‘A’ by Standard & Poor’s, it provides industry-specific market infrastructure and a full range of facilities for the gold & precious metals, diamonds & coloured stones, energy and other commodities industries.

The DGCX, the world’s newest online commodities derivatives exchange, commenced trading on 22nd November 2005. It is the first international commodities derivatives market in the Middle East region and, therefore, the first in the critical time zone between the markets of Europe and the Far East. The DGCX is a joint venture between the Dubai Multi Commodities Centre (DMCC) — Government of Dubai, Financial Technologies (India) Limited and Multi Commodity Exchange of India Limited (MCX).

Sunshine regards this as an important step forward. The company expects that its first acceptance on an international precious metals exchange will be followed in due course by memberships in other major exchanges. Because the LME and COMEX require their members to have been in production for at least three and five years respectively we will need to wait before making application to those exchanges.

Since starting production in 2004, Sunshine has become firmly established as a refiner and has shipped approximately 135 tons of bullion grade 99.95 or better silver, all of which has met or exceeded required specifications.

Formation Capital Corporation
“Mari-Ann Green”
Mari-Ann Green
Chairman and C.E.O.

For further information please contact:
Formation Capital Corporation
1510 — 999 West Hastings Street
Vancouver, B.C. V6C 2W2
604-682-6229
Investor Relations: Contact Encompass Communications toll free 877-566-6592
Email: info@formcap.com - Or visit our Web site at: www.formcap.com

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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September 21st, 2006, Updated Resource Estimate Completed on Idaho Cobalt Project
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October 4th, 2006, Formation Agrees to Sell Big Creek Tailings Facility for US $4.5 million