Formation arranges $6-million in private placements

Mr. Deepak Varshney reports FORMATION METALS ANNOUNCES $6,000,000 PRIVATE PLACEMENT Formation Metals Inc. has arranged a non-brokered private placement (the listed issuer financing exemption offering) for up to 10,810,810 units of the company at 37 cents per LIFE unit, 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), for gross proceeds of up to $4-million. Each LIFE unit will be composed of one common share in the capital of the company and one common share purchase warrant. Each LIFE warrant will be 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. The LIFE units issued pursuant to the LIFE offering will not be subject to a hold period in accordance with applicable Canadian securities laws. There is an offering document relating to the LIFE offering that can be accessed under the company's profile at SEDAR+ and on the company's website. Prospective investors in the LIFE offering should read the offering document before making an investment decision. Concurrent with the LIFE offering, the company intends to complete a non-brokered private placement of up to 4,878,049 flow-through units of the company at a price of 41 cents per FT unit to raise aggregate gross proceeds of up to $2-million. Each FT unit will consist of one flow-through common share of the company, and each FT 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 62 cents per warrant share for a period of two years from the date of closing of the FT private placement. All securities issued under the FT private placement will be subject to statutory hold periods expiring four months and one day from the date of closing of the FT private placement. Closing of the offerings may take place in one or more tranches as determined by the company, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including approval of the Canadian Securities Exchange. The company may pay certain eligible finders a cash fee of up to 7 per cent of the gross proceeds raised in respect of the offerings from subscribers introduced by such finders to the company. The company may also issue to eligible finders such number of finder warrants as is equal to 7 per cent of the number of LIFE units or FT units sold under the offerings to subscribers introduced by such finders to the company. The finder warrants, to the extent they are issued, will match the terms of the LIFE warrants and FT warrants, respectively. The company intends to use the net proceeds of the offerings for fieldwork at the company's exploration projects and, in the case of the net proceeds from the LIFE offering, as more particularly set out in the offering document. The company also wishes to announce that it has cancelled its previously announced flow-through offering on Sept. 22, 2025. 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 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 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 km of strike remaining to be tested; 84 per cent of historical drill holes intercepted auriferous intervals including up 1.7 g/t over 35 m; RJ zone: a high-grade historic gold deposit with approximately 61,100 ounces identified at a grade of 7.82 g/t Au, with high-grade intercepts from historical drill holes as high as 51 g/t Au over 0.8 metre and 16.5 g/t Au 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 has been drilled, with 4.75-plus km of strike remaining to be tested. 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 ppm 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 anti-clinal and synclinal flexures. Three principal deformation structures, oriented along the known northwest-southeast to west-northwest/east-southeast structural trends typical of 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 induced polarziation 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, a qualified person as defined by National Instrument 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 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 Au) across four zones (A, East, RJ-East and Central) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 oz Au) 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 km 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.