Formation hires Forage DCB Drilling for N2 drilling

Mr. Deepak Varshney reports FORMATION METALS FINALIZES TEAM FOR FULLY FUNDED 10,000 METRE DRILL PROGRAM AT THE ADVANCED N2 GOLD PROJECT, PREPARES TO COMMENCE DRILLING Formation Metals Inc. has engaged the services of Forage DCB Drilling of Rouyn-Noranda (DCB) to complete the near-term drill program for its N2 gold property, located 25 kilometres south of Matagami, Que., ahead of its fully financed maiden 10,000-metre drill program. Highlights: Formation has planned a 20,000-metre multiphase drill program at its flagship N2 gold project near Matagami, Que., host to 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 g/t Au (approximately 61,000 ounces gold) across the RJ zone. Phase 1 is a fully financed 10,000-metre program focusing on targets in the A zone, a shallow, highly continuous, low-variability historic gold deposit with approximately 522,900 ounces, of which only approximately 35 per cent of strike has been drilled (greater than 3.1 kilometres open), and the RJ zone, host to high-grade intercepts from historical drill holes as high as 51 g/t Au over 0.8 metre, which was expanded by Agnico Eagle Mines in 2008 in the most recent drilling at the property. Formation has selected Forage DCB Drilling of Rouyn-Noranda to complete the drilling and anticipates commencing its drill program in early September. Its technical team has mobilized to N2 to verify access roads and drill pad areas for accessibility prior to the commencement of drilling. The company has working capital of approximately $5.3-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 now 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. The company anticipates commencing on the program shortly, with an initial 10,000 metres planned comprising phase 1 as part of its planned 20,000-metre multiphase drill program at N2, an advanced gold project with a global historic resource of approximately 870,000 ounces comprising 18 million tonnes grading 1.4 g/t Au (approximately 809,000 ounces gold) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold) across the RJ zone. Deepak Varshney, chief executive officer of Formation Metals, stated: "We are thrilled to partner with DCB and bring a top-notch team together for the maiden drill program at the advanced N2 gold project. As we launch the first phase of a fully funded 10,000-metre drill program, the selection of the right drilling contractor is critical. Our pursuit of an accurate mineral resource estimate requires expertise and precision and DCB's commitment to excellence is second to none as a firm that operates at the highest standards. We look forward to mobilizing in the coming days and commencing the advanced exploration drill program shortly after mobilization." Mr. Varshney continued: "With over five 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. "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 $3,400, 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 g/t Au (approximately 809,000 ounces gold) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 g/t Au (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. Historical highlights from the top two priority zones include: A zone: With a historical resource of approximately 522,900 gold ounces (10.7 million tonnes at 1.52 g/t Au), the A zone is a shallow, highly continuous, low-variability historic gold deposit with approximately 15,000 metres of drilling across 55 drill holes, 84 per cent of which intercepted gold mineralization. The best historical intercept includes up to 1.7 g/t over 35 metres. Approximately 1.65 km of strike have been drilled, more than with 3.1 kilometres of strike to be tested as part of the 20,000-metre program. RJ zone: With a historical resource of approximately 61,100 gold ounces (243,000 tonnes at 7.82 g/t Au), the RJ Zone is a high-grade target that was expanded upon in the last drill program in 2008 by Agnico Eagle when gold was approximately $800 per ounce. Historically, 20,875 metres have been drilled over 82 drill holes, with best intercepts of 48 g/t over 0.5 metre and 16.5 g/t over 3.6 metres. Approximately 900 metres of strike have been drilled, with more than 4.75 kilometres of strike to be tested as part of the 20,000-metre program. 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 g/t Au). 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 pleased to announce that it has closed its final tranche of its non-brokered private placement raising gross proceeds of $15,050 through the issuance of 43,000 flow-through units at 35 cents per flow-through unit. Each flow-through unit consists of one share and one common share purchase warrant, with each flow-through warrant exercisable to acquire one additional share at an exercise price of 60 cents for a period of two years from the closing date of the flow-through unit offering. Each flow-through share qualifies as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada). The company paid finders' fees of $1,053.50 cash and 3,010 finder warrants to an arm's-length party in connection with the flow-through unit offering. The finder warrants are non-transferable and exercisable at 60 cents per finder warrant for a period of two years from the closing date. All securities issued are subject to a statutory hold period of four months following the date of issuance in accordance with applicable Canadian securities laws. The company intends to use the net proceeds of the flow-through unit offering 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 g/t Au (approximately 809,000 ounces gold) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 g/t Au (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 g/t Au over 0.8 metre. We seek Safe Harbor.