Formation closes $8.45M second tranche of financing

Mr. Deepak Varshney reports FORMATION METALS CLOSES SECOND TRANCHE OF ITS PRIVATE PLACEMENT FOR AGGREGATE PROCEEDS OF $8.46M, INCREASES DRILL PROGRAM TO 30,000 METRES AT THE ADVANCED N2 GOLD PROJECT Further to its news releases of Sept. 30, 2025, Oct. 1, 2025, and Oct. 15, 2025, Formation Metals Inc. has closed the second tranche of its private placement, raising $8,456,619.81 in gross proceeds through the issuance of 17,837,838 LIFE (listed issuer financing exemption) units at 37 cents per LIFE unit and 4,528,341 flow-through units at 41 cents per flow-through unit. Following the closing of the second tranche, the company has working capital of approximately $12.7-million with zero debt. Inclusive of provincial tax credits from the Quebec government, Formation's exploration budget for 2025/2026 is set at approximately $8.1-million. The company is also pleased to announce that it has expanded its planned drill program at its N2 gold property to 30,000 metres following the successful closing of the offerings and the findings of its continuing maiden phase 1 drill program. The drilling at N2, which is 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 grams per tonne gold (approximately 61,000 ounces gold) across the RJ zone, 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 -- 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 kilometres of strike remaining to be tested. Eighty-four per cent of historical drill holes intercepted auriferous intervals, including up 1.7 grams per tonne over 35 metres. 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. The company closed $194,230.33 in gross proceeds through the issuance of 524,947 LIFE units as part of the second tranche. The company has raised total gross proceeds of $6.6-million in both tranches of the offering of LIFE units. The offering was conducted pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106, Prospectus Exemptions, as amended and supplemented by Coordinated Blanket Order 45-935, Exemptions from Certain Conditions of the Listed Issuer Financing Exemption. Each LIFE unit issued in the offering comprises one common share in the capital of the company and one common share purchase warrant. Each LIFE warrant is exercisable to acquire one additional common share of the company at an exercise price of 54 cents for a period of 36 months from the date of closing of the offering. The LIFE units issued pursuant to the offering are not subject to a hold period in accordance with applicable Canadian securities laws. In connection with the offering, the company filed an offering document dated Sept. 30, 2025, as amended and restated on Oct. 14, 2025, which is available on the company's SEDAR+ profile and on the company's website. No finders' fees were paid in connection with the private placement. The company intends to use the net proceeds of the offering as more particularly set out in the offering document. The company is also pleased to announce that it has entered into a consulting agreement with Plutus Invest and Consulting GmbH (address: Buchtstr. 13, Bremen, 28195, Germany; e-mail: [email protected], telephone: 49-421-1754-0174), pursuant to which Plutus will provide the company with marketing and communications services for a 12-month term commencing Nov. 1, 2025. The marketing services provided by Plutus will be in consulting with the company's management in building investor awareness of the company through Plutus's network in Europe. The company has agreed to pay Plutus a consulting fee of up to 250,000 euros payable upon the commencement of services and over the term. The company will not issue any securities to Plutus as compensation for the services. As of the date hereof, to the company's knowledge, Plutus does not own any securities of the company and has an arm's-length relationship with the company. The company is also pleased to announce that it has extended the marketing agreement for 1502656 B.C. Ltd. (address: 3849 154th St., Surrey, B.C., Canada, V3Z 0V3; e-mail: [email protected], telephone: 604-317-2952) for a further six months for a total budget of up to $350,000 commencing Nov. 1, 2025. 1502656 is an independent company that will provide strategic digital media services, marketing (including awareness campaigns) and data analytical services to the company. The company will not issue any securities to 1502656 as compensation for the services. As of the date hereof, to the company's knowledge, 1502656 does not own any securities of the company and has an arm's-length relationship with the company. Project summary 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. 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 company also believes that N2 has significant base metal potential, where it recently completed a revaluation process that 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 parts per million 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-northeast 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. 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.