Completed Biological Assessment At Idaho Cobalt Project

VANCOUVER, BC - Formation Capital Corporation reported that its wholly owned subsidiary, Formation Capital Corporation, U.S. located in Salmon, Idaho, reports the United States Department of Agriculture Forest Service (USFS) has completed the Biological Assessment and Biological Evaluation (BA) of the effects of the Idaho Cobalt Project (ICP) on listed or regionally sensitive species under the Endangered Species Act.

"What we were happy to find is that the determination in the report states that the ICP (including the transportation route) would have "no effect" on federally endangered Snake River sockeye salmon or its critical habitat", said Bill Scales, President of Formation Capital US. "The report also states that the ICP is not likely to result in the destruction or adverse modification of designated Critical Habitat or Essential Fish Habitat for salmon or trout," he continued.

In reference to threatened species of salmonids the report states that a hazardous material in transit associated with the ICP is only "likely to adversely affect" ESA listed salmonids if (1) an accident occurs near a stream, (2) the shipping container ruptures, (3) the amount of material reaches toxic concentration, and (4) the salmonids are resident in the stream. A table in the report indicates that the accident probability analysis shows that the majority of the materials transported would have a probability of an accident occurring near a stream once in less than 1,000 years and only a few have a risk of once in less than 100 years.

"Why this is so significant", said Bill Scales from his Salmon Idaho office, "is that there is only one more document, the Biological Opinion, to come before the USFS can finalize the Environmental Impact Statement and issue the Record of Decision. It is a welcomed advance in the process."

The company's address is Suite 1510 - 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.