Formation Metals Responds to BCSC Clarification Request and Technical Disclosure Review - Seite 2

ICP Update

As announced in the Company's July 9, 2014 news release, Requests for Proposals were solicited to various engineering firms to review internal optimization studies and economic assumptions applied on its ICP. Samuel Engineering, Inc. ("Samuel"), of Denver, Colorado, was awarded the independent engineering contract to conduct the internal studies review. Samuel has worked on projects worldwide and provides expert services at all stages of project development from feasibility studies to detail design, construction and commissioning.

The scope of work is to be conducted in stages, with each subsequent stage dependent on the outcome and recommendations of the previous stage. The purpose of the initial stage of work, currently underway, is to determine the viability of producing battery grade cobalt chemicals at its proposed CPF and to review a new mine plan and the internal economic assumptions applied by the Company's engineers, geologists and consultants.

The ICP remains the sole near term, fully permitted primary cobalt deposit in the United States.

This news release has been prepared, reviewed and approved by Vice President of the Company E.R. (Rick) Honsinger, P.Geo., the Qualified Person for the Company as defined by NI 43-101.

Formation Metals Inc.

J. Paul Farquharson, President & C.E.O.

This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology. Forward-looking statements are based on assumptions and address future events and conditions and are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Assumptions include that the Company will be able to file a new NI 43-101 compliant technical report before the end of February 2015 and the risks and uncertainties include that such a new technical report will not be filed by the end of February 2015 or at all. Further information regarding risks and uncertainties which may cause results to differ from those contained in forward-looking statements are included in filings by the Company with securities regulatory authorities and are available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.