Building North America's Next Primary Cobalt Mine

April 28, 2011

Formation Metals' Mexican Subsidiary Acquires Central Core Land Position on El Milagro Silver Project

Vancouver, B.C., April 28, 2011 Formation Metals Inc. (FCO-TSX) (“Formation”) is pleased to announce that its 100% owned Mexican subsidiary, Minera Terranova, S.A. de C.V. (the “Company”) has recently acquired a central core land package that is surrounded by its 100% owned Mexican silver / lead / zinc El Milagro Project. The Company has been working towards gaining control of the entire land package for over five years and its acquisition is fortuitous considering current silver prices. Initial stages of review are now in progress and existing data is being compiled to develop a systematic surface sampling and mapping program which will delineate future potential drill targets. 

The El Milagro Project is located 60 kilometers northwest of the city of Tampico, in the southeast portion of the state of Tamaulipas, Mexico. The project is located within the southernmost portion of the Chihuahua Trough, where alkaline dikes and sills along the caldera ring fracture of the Trough carry semi-massive sulphide stockwork zones in altered intrusive rocks. 

The primary target defined within the Milagro property is the Santa Maria Vein, a 1-4 meter wide tabular subvertical NNE trending breccia vein that has been mapped over a strike length of 450 meters, with a lead-rich polymetallic assemblage that carries silver grades often in excess of 1,500 grams per tonne (43.8 ounces per ton) and combined lead-zinc grades that often exceed 10%. This target remains open along both strike directions. The new claims are considered a strategic acquisition as they cover a portion of both the northern and southern strike extensions of the Santa Maria Vein. 

Previous work by an independent consultant working for the Company returned silver values across the host dike in the Santa Maria workings that vary from 800 to 3,800 grams per tonne (23.4 - 111.0 ounces per ton) over 4 metres. The Santa Maria vein was a relatively recent discovery and as such it is considered probable that other silver-rich veins and replacement zones exist within the area covered by the El Milagro property. Accompanying base metal values include lead assays ranging from 10.3% to 12.3% and zinc assays from 2.8% to 6.8%. Anomalous copper values are also associated with the mineralization. Mineralization is very low in arsenic, mercury and cadmium and only slightly elevated in antimony. 

Mr. Eric (Rick) Honsinger, P.Geo., of Formation Metals Inc., is the Qualified Person who has reviewed and approved the content of this news release which is based on historical information. 

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.

“Mari-Ann Green”
Mari-Ann Green, 

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: - Web:

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

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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