Formation begins 10,000-metre drill program at N2

Executive Summary

• Formation Metals Inc. has commenced a fully funded, 10,000-metre multiphase drill program at its flagship N2 gold project in Quebec, targeting the expansion and discovery of gold mineralization in the A, RJ, and Central zones.
• The company holds a strong financial position with approximately $5 million in working capital, zero debt, and an exploration budget of $5.7 million for 2025-2026, inclusive of provincial tax credits.
• The N2 project hosts a global historic resource of approximately 870,000 ounces of gold across six zones, with significant exploration upside remaining, particularly in the A zone (35% drilled) and RJ zone (only 900m of strike drilled).

Key Details

• Drill Program Scope: Fully financed 10,000-metre program designed to focus on discovery drilling at new high-potential targets and high-priority infilling/expansion targets in the A, RJ, and Central zones.
• Historic Resource Estimates:
  • Global historic resource of ~870,000 ounces comprising 18 million tonnes grading 1.5 g/t Au (~809,000 oz) across four zones (A, East, RJ-East, Central).
  • Additional 243,000 tonnes grading 7.82 g/t Au (~61,000 oz) across the RJ zone.
  • Total historic resource cited in "About" section: 877,000 ounces.
• Zone-Specific Details:
  • A Zone: Shallow, continuous deposit with ~522,900 ounces at 1.52 g/t Au. Only ~35% of strike (1.65 km) has been drilled; >3.1 km remains open. Historical intercepts include up to 1.7 g/t over 35 m.
  • RJ Zone: High-grade deposit with ~61,100 ounces at 7.82 g/t Au. Historical high-grade intercepts include 51 g/t Au over 0.8 m and 16.5 g/t Au over 3.5 m. Only ~900 m of strike drilled; >4.75 km remains open. Last drilled by Agnico Eagle in 2008.
• Financial Position:
  • Working capital: ~$5 million.
  • Debt: Zero.
  • 2025-2026 Exploration Budget: ~$5.7 million (inclusive of Quebec provincial tax credits).
• Base Metal Potential: Recent revaluation of historic core revealed significant copper (200–4,750 ppm) and zinc (203–6,700 ppm) intercepts within historic gold-bearing holes, suggesting VMS-style potential.
• Future Plans: 2025 season focuses on northern N2 property, utilizing IP surveys and drilling to model mineralized zones for an updated NI 43-101 compliant resource. Additional work planned to assess copper/zinc potential.
• Technical Review: Content reviewed by Babak Vakili Azar, PGeo, Qualified Person under NI 43-101. Historical data treated as historic; not classified as current resources.

Notable Quotes

• "Drilling N2 is a enormous milestone for Formation. With the price of gold accelerating through all-time highs weekly, the timing could not be better for Formation to be drilling such a large high-quality historical gold deposit." — Deepak Varshney, CEO
• "Building on the success of our predecessors, this fully funded, 10,000-metre drill program will be critical in our goal of developing N2 into a near-surface multimillion-ounce deposit. With gold breaking $3,800, over four times the price in 2008 when Agnico last drilled the project, we believe that the timing is perfect for N2 and look forward to a very busy upcoming field season." — Deepak Varshney, CEO