Highest Grade-Thickness Intervals At Virgin River Uranium Project

VANCOUVER, BC - Formation Capital Corporation reported on its Virgin River Uranium Project, as provided to the Company by project operator, Cameco Corporation. Located within the south-central portion of the Athabasca Basin in northern Saskatchewan, the project is a joint venture formed in 1998 between Formation Capital Corporation's wholly owned Canadian subsidiary, Coronation Mines Limited, Cameco Corporation and by AREVA Resources Canada Inc. Coronation Mines Limited owns 2% of the project with a right to increase its ownership of the project up to 10% under certain circumstances.
The 2008 diamond-drilling program consisted of 10,537.4 m in seven pilot holes and eleven follow-up wedge holes on the Centennial Deposit. The objective of the program was to complete in-fill drilling along the entire strike length, determine the across strike width, and ascertain whether additional high-grade zones are present within the deposit. Significant mineralization (greater than 5.0m% GT equals Grade thickness equals metres multiplied by % U308) was intersected in 14 of the 18 drill holes, namely in diamond drill holes VR-031, VR-031W1, VR-032R, VR-032RW1, VR-033, VR-033W1, VR-033W2, VR-034, VR-035, VR-035W2, VR-036W1, VR-036W2, VR-037 and VR-037W1 (see table below). Favourable alteration and structural disruption, as well as elevated radioactivity ranging to weak mineralization were intersected in all of the remaining drill holes completed during the 2008 drilling program on the Centennial Deposit (DDH's VR-035W1, VR-035W3, VR-036 and VR-032RW2).
The highest GT intervals were attained on the project to date. The Centennial Deposit has now been traced over a known 650 m of strike length and appears to remain open to both the north and the south. Follow-up wedge off-cuts suggest the deposit has a minimum across strike width ranging from 5 m to 27 m and is currently open to the east and west on most sections.
Significant mineralization was intersected in five of seven pilot holes; DDH VR-031, 032R, 033, 034 and 037 and has confirmed the continuity of mineralization within the northern portion of the deposit between sections 9+00N and 12+50N. Two wedge holes, DDH VR-031W1 (section 10+50N) and DDH VR-033W1 (section 9+50N), were successful in intersecting high grade mineralization. DDH VR-031W1 returned an average grade of 7.62% U308 over a thickness of 17.8 metres resulting in a grade thickness of 135.6m% while DDH VR-033W1 returned an average grade of 7.51% U308 over a thickness of 17.9 metres resulting in a grade thickness of 134.5m%. The average geochemical assays reported refer to the average of Inductively Coupled Plasma geochemical ("ICP") and Delayed Neutron Count ("DNC") method assays.
The remaining two pilot holes; DDH VR-035 and 036 and associated wedge holes identified local structural complexities associated with the extreme north and south portions of the deposit. All drill holes returned anomalous alteration, structure and locally significant mineralization.
A 2009 diamond drilling program is currently in progress on the Centennial Deposit with a budget of $4.0 million. To date, over $19.5 million has been spent on the project exploring for a large unconformity-type deposit that has resulted in the discovery of the Centennial Deposit. Project representatives are pleased with the success of the program and are looking forward to the winter / summer 2009 drill program.
The company’s address is Suite #1730, 999 West Hastings Street, Vancouver, BC V6C 2W2, (604) 682-6229, fax: (604) 682-6205.