Formation Receives Air Permit Pre-Construction Authorization

VANCOUVER, BC - Formation Capital Corporation has been provided an update by its wholly owned subsidiary, Formation Capital Corporation, U.S. in regards to permitting, personnel and equipment procurement status for the 100% owned Idaho Cobalt Project (ICP) located near Salmon, Idaho.
An "Air Permit Pre-Construction Authorization" for the ICP has now been received from the Idaho Department of Environmental Quality (DEQ). "This permit," explains Preston Rufe, Environmental Manager of the Company, "will allow us to proceed with construction before the 'Permit to Construct' is finalized and issued, once we secure our Record of Decision (ROD) and other conditions are met." The Company has submitted copper loading demonstration plans and methyl-mercury plans to the DEQ for review, and, upon approval, the plans will become integral to the issuance of the DEQ's "Clean Water Act Section 401 Certification". A ROD for the ICP from the United States Department of Agriculture Salmon-Challis National Forest Service is still expected in January 2009.
The timely purchase of long lead time items in preparation for the commencement of construction is a critical factor in the procurement process. Specialized equipment for the Idaho Cobalt Project's mine and mill operations continues to arrive at the Salmon, Idaho staging areas and, in the past two months, items received include: flotation cells, structural steel for the tram discharge and loading terminals, tram power unit, main power transformer, mill hydro-cyclones, ball mill shell and trommel screen, concentrator bridge crane and the concentrate scale. The tram ore bucket and accessories are scheduled to arrive by year end in preparation for production start-up.
The company's address is Suite 1730 - 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.