Formation Metals receives drill permits for N2

Mr. Deepak Varshney reports FORMATION METALS RECEIVES FINAL PERMITS, MOBILIZES TO SITE TO BEGIN 10,000 METRE DRILL PROGRAM AT THE ADVANCED N2 GOLD PROJECT Formation Metals Inc. is now in receipt of all necessary permits for drilling, including the authorization to intervene (ATI) and forestry intervention permits, and it has mobilized to the site to commence its fully financed 10,000-metre drill program at its N2 gold property, an advanced gold project with a global historic resource of approximately 870,000 ounces comprising 18 million tonnes grading 1.4 grams per tonne gold (approximately 809,000 ounces gold) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 grams per tonne gold (approximately 61,000 ounces gold) across the RJ zone. The company has working capital of approximately $4.9-million with zero debt, putting it in a very strong financial position to execute its exploration programs. Inclusive of provincial tax credits from the Quebec government, Formation's exploration budget for 2025 to 2026 is set at approximately $5.7-million. Formation is fully financed to complete the $5-million work commitment required to earn in to 100 per cent of the N2 gold project within two years, four years ahead of schedule. Phase 1 will focus on two primary targets: The A zone, a shallow, highly continuous, low-variability historic gold deposit with approximately 522,900 ounces identified at a grade of 1.52 grams per tonne gold: Approximately 15,000 metres have been drilled historically across 1.65 kilometres of strike, with over 3.1 km of strike remaining to be tested. Eighty-four per cent of historical drill holes intercepted auriferous intervals, including up 1.7 grams per tonne gold over 35 m. The RJ zone, a high-grade historic gold deposit with approximately 61,100 ounces identified at a grade of 7.82 grams per tonne gold, with high-grade intercepts from historical drill holes as high as 51 grams per tonne gold over 0.8 metre and 16.5 grams per tonne gold over 3.5 metres: This zone was the target of the most recently drilling at the property by Agnico-Eagle Mines in 2008, when the price of gold was approximately $800 (U.S.) per ounce. Only approximately 900 metres of strike have been drilled, with more than 4.75 kilometres of strike remaining to be tested. Deepak Varshney, chief executive officer of Formation Metals, stated: "Being fully permitted for our planned 20,000-metre drill program is an incredible milestone for Formation Metals. With nearly [$5-million] in working capital, Formation is positioned to commence on the most aggressive drill program our company has embarked on, with 10,000 metres fully funded for 2025." Mr. Varshney continued: "Given the scale of the property, the compelling geological data and the Abitibi greenstone belt's established history as a hot bed for gold mining, we are hopeful that the program will deliver our goal of delivering a near-surface, multimillion-ounce deposit at N2. "We see the potential for a significant gold deposit at N2, and our maiden 10,000-metre drilling program will mark the beginning of Formation's pursuit of that goal. Our maiden program will focus on building on the successes of our predecessors. The drilling discoveries made by Agnico-Eagle and Cypress show the potential at N2. With gold at over $3,700, 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." Comprising 87 claims totalling approximately 4,400 hectares within the Abitibi subprovince of northwestern Quebec, Formation's flagship N2 gold project is an advanced gold project with a global historic resource of 877,000 ounces: 18.2 million tonnes grading 1.48 grams per tonne gold (approximately 809,000 ounces gold) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 grams per tonne gold (approximately 61,000 ounces gold) across the RJ zone. There are six primary auriferous mineralized zones in total, each open for expansion along strike and at depth. Compilation and geophysical work by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 generated numerous targets that have not yet been investigated with diamond drilling. The drill program is designed to focus on discovery drilling at new high-potential targets along the mineralization strikes at the A, RJ and Central zones in the northern part of the property in order to discover new auriferous trends and unlock new zones of gold mineralization. The program will also focus on high-priority infilling and expansion targets in these zones to significantly enhance the auriferous zones identified to date. The company also believes that N2 has significant base metal potential, where it recently completed a revaluation process, which revealed significant copper and zinc intercepts within historic drill holes known to have significant gold grades (greater than one gram per tonne gold). Assay results range from 200 to 4,750 parts per million and 203 to 6,700 ppm for copper and zinc, respectively, indicating strong potential for elevated base metal (copper-zinc) concentrations across the property, specifically at the A and RJ zones. Property-wide geology at N2 features volcanic and sedimentary rocks formed in regional anticlinal and synclinal flexures. Three principal deformation structures, oriented along the known northwest-southeast to west-northwest-east-southeast structural trends typical of VMS (volcanogenic massive sulphide) deposits in the Matagami region, function as critical geologic controls for mineralization on the property. For the 2025 exploration season, Formation plans to concentrate its efforts on the northern part of N2, targeting gold deposit expansion and discovery along identified zones and fault systems associated with the main deformation features (specifically west-northwest-east-southeast trend), with IP (induced polarization) surveys and drilling planned to model mineralized zones that will hopefully contribute to an updated National Instrument 43-101-compliant resource. Formation will also look to further review historic base metal assays from older drill core and undertake additional work in 2025 to assess the property's copper and zinc potential. The company is also pleased to announce that it has arranged a non-brokered private placement of up to 1,891,892 flow-through units of the company at a price of 37 cents per unit to raise aggregate gross proceeds of up to $700,000. Each unit will consist of one flow-through common share of the company, and each flow-through share shall qualify as a flow-through share (as defined in Section 66(15) of the Income Tax Act (Canada)), and one transferable common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at an exercise price of 60 cents per warrant share for a period of two years from the date of closing of the private placement. The company may pay finders' fees to eligible finders, in accordance with applicable securities laws and the policies of the Canadian Securities Exchange. The private placement is subject to approval of the CSE, and all securities issued under the private placement will be subject to statutory hold periods expiring four months and one day from the date of closing of the private placement. The company intends to use the net proceeds of the private placement for fieldwork at the company's exploration projects. Qualified person The technical content of this news release has been reviewed and approved by Babak Vakili Azar, PGeo, an independent contractor and a qualified person as defined by NI 43-101. Historical reports provided by the optionor were reviewed by the qualified person. The information provided has not been verified and is being treated as historic. About Formation Metals Inc. Formation Metals is a North American mineral acquisition and exploration company focused on the development of quality properties that are drill ready with high upside and expansion potential. Formation's flagship asset is the N2 gold project, an advanced gold project with a global historic resource of approximately 870,000 ounces (18 million tonnes grading 1.4 grams per tonne gold (approximately 809,000 ounces gold) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 grams per tonne gold (approximately 61,000 ounces gold) across the RJ zone) and six mineralized zones, each open for expansion along strike and at depth, including the A zone, of which only approximately 35 per cent of strike has been drilled (greater than 3.1 kilometres open), and the RJ zone, host to historical high-grade intercepts as high as 51 grams per tonne gold over 0.8 metre. We seek Safe Harbor.