Formation Metals Mobilizes Second Rig to Accelerate 14,000 Metre Drill Program at its Advanced N2 Gold Project

Executive Summary

• Formation Metals mobilized a second drill rig to accelerate its fully funded 30,000 m N2 Gold Property program.
• Working capital stands at ~C$12.1 M (zero debt) with an exploration budget of ~$8.1 M for 2025‑2026.
• To date the company has completed 16 holes (4,743 m), reporting several wide, near‑surface gold intercepts and high‑grade historic results.

Key Details

• Second rig deployment: Added to test priority targets in “A” and “RJ” zones across >8 km of strike, speeding Phase 1 (14,000 m) execution.
• Financial position: C$12.1 M cash on hand; exploration budget ~$8.1 M inclusive of Quebec provincial tax credits.
• Historic resource context: ~871,000 oz Au (18 Mt @ 1.4 g/t) plus 243 kt @ 7.82 g/t Au in the RJ zone.
• Phase 1 objectives:
• Infill shallow gaps to boost confidence in near‑surface mineralization.
• Test down‑dip extensions and strike step‑outs beyond historic limits.
• Collect core for metallurgy verification.
• Target timeline: Aim to release a maiden mineral resource estimate (MRE) post‑Phase 1, expected Q3 2026, after ~70,000 m of drilling.
• Drill results to date (selected holes):
• N2‑25‑008 – 208.8 m of target mineralization starting at 28.6 m depth; multiple >40 m intervals, up to 70 m continuous.
• N2‑25‑011 – 166.8 m of target mineralization beginning at 60 m depth; several >20 m intervals, up to 70.6 m continuous.
• Overall intercept statistics: 9 of 13 holes intersected target mineralization within the first 25 m; 10 holes each delivered >80 m cumulative target mineralization.
• Historical high‑grade highlights (for context):
• “A” Zone – 1.48 g/t Au over 13.7 m, 1.41 g/t Au over 14.3 m, 2.02 g/t Au over 15 m.
• “RJ” Zone – 48.4 g/t Au over 0.5 m, 24.5 g/t Au over 0.9 m, 16.5 g/t Au over 3.6 m, 11.14 g/t Au over 3 m, 8.94 g/t Au over 5.1 m.
• Base‑metal potential: Recent re‑valuation shows Cu assays 200–4,750 ppm and Zn 203–6,700 ppm in historic gold‑bearing drill holes, indicating possible Cu‑Zn by‑product value.
• CEO comment: Deepak Varshney noted strong visual continuity of mineralization and justified the accelerated drilling with a second rig.

Notable Quotes

“Momentum continues to build at N2… accelerating Phase 1 with a second rig was an easy decision to make…” – Deepak Varshney, CEO

Materiality Assessment: Non‑Material – Positive (operational update providing encouraging drill intercepts and clear path toward a maiden resource estimate).