🕐21.10.10 - 14:27 Uhr

Formation Drills Cobalt Project to Optimize Mine Design



Re: Formation Metals Inc.

News Release Thursday, October 21, 2010 Formation Drills Cobalt Project to Optimize Mine Design To: tsx Vancouver, B.C., October 21, 2010 Formation Metals Inc.

(FCO-TSX) ("Formation")Z is pleased to announce that its 100% owned subsidiary, Formation Capital Corporation, U.S., (the "Company") has reported the successful conclusion of its diamond drill program with favourable initial assay results from its 100% owned Idaho Cobalt Project, located in Lemhi County, Idaho. The diamond drill program was conducted in a previously untested area on the project along the southern extension of the Ram deposit.

A total of 5,727.5 feet were drilled in six drill holes between Sections 12+00 South and 16+00 South.

The results from DDH-R10-01, tabulated below, demonstrates the continuity of economic cobalt mineralization 200 feet down dip and 100 feet along strike from previous drilling at the southern extension of the Ram deposit.

Core logging results from the remaining five drill holes indicates favourable cobalt mineralization was intersected for an additional 400 feet along strike to the south.

This drilling has extended the previously defined strike length of the Ram deposit an additional 14% from 2,800 to 3,200 feet. In addition, the drill program has provided material for initial metallurgical test work to determine the economic viability of extracting the Rare Earth Elements ("REEs") that are known to occur on the property.

Values of total rare earth oxides from previous Formation core drilling on the property are reported as high as 1.92%, (noting that the average value reported is 0.10%) while values for light rare earth oxides and heavy rare earth oxides have been reported up to 1.63% and 0.52% respectively.

Once all final data is returned from the laboratory, more REE values will be compiled and reported by the Company. Initial indications suggest the REEs are closely associated with the cobalt mineralized horizons, and as such, provisions for these horizons to be mined, milled and concentrated are already included in the existing approved mine plan.

Thus, any potential future REE production would be considered by-product production. Table 1: Ram 2010 drill results to date: As expected, this verification drilling program is providing information needed to optimize mine design and production plans with the primary goal of maximizing ore production as early in mine life as possible.

Results from the program are expected to have a positive impact on the overall economics of the project. Mr.

George King, B.Sc., P.Geo., is the Qualified Person working directly on the project and has reviewed the contents of this release.

Cut drill core samples were sent to ALS Chemex Labs Ltd in North Vancouver, B.C.

for assaying.

The Company will announce further results of the program when available.

The 100% owned Idaho Cobalt Project is a unique, fully environmentally 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 aerospace 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. You can also view this News Release on our website at: http://www.formationmetals.com/s/News.asp?ReportID=424231 ======================================================================= Copyright (c) 2009 FORMATION METALS INC.

(FCO) All rights reserved.

For more information visit our website at http://www.formationmetals.com/ or send mailto: ----------------------------------------------------------------------- To Unsubscribe from this email list, click here: http://www.formationmetals.com/s/Unsubscribe.asp? =======================================================================



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