Commitment For Financing Of Idaho Cobalt Project 

VANCOUVER, BC - Formation Metals Inc. has received and accepted a commitment from BNP Paribas for the financing of its 100% owned Idaho Cobalt Project ("ICP").

The Commitment contemplates a US$79,500,000 Senior Secured Letter of Credit Facility (the "Facility") consisting of a US$58.5 million project financing letter of credit in support of the Lemhi County Recovery Zone Facility Revenue Bonds (the "Lemhi Bonds") and a $21 million financial letter of credit in support of the Shoshone County Recovery Zone Facility Revenue Bonds (the "Shoshone Bonds") issued for the construction and development of the greenfield cobalt mine located in Lemhi County, Idaho, and the related hydrometallurgical plant located in Shoshone County, Idaho, and together constituting the ICP.

Under the terms of the Commitment, negotiated between BNP Paribas and Formation through its financial advisor, Auramet Trading, LLC, BNP Paribas has, subject to certain terms and conditions, agreed to act as mandated lead arranger, sole and exclusive book-runner, sole issuing bank and administrative agent for the entire Facility in support of the Lemhi and Shoshone Bonds. Having completed extensive technical, legal and cobalt market due diligence, BNP Paribas is preparing to launch the syndication of the Facility. "Signing of this Commitment brings us one step closer to bringing this exciting and important project into production," said Mari-Ann Green, CEO, "Equipment is on site and construction is underway." The company's address is Suite 1730, 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.