Formation Metals Drills to Optimize Mine Design and Assess Rare Earth Elements on Cobalt Project (ccnm)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2010) - Formation Metals Inc. (TSX:FCO) ("Formation") is pleased to announce that its 100% owned subsidiary, Formation Capital Corporation, U.S., (the "Company") has reported the commencement of a 5,000 foot diamond drill program in a previously untested area on the Idaho Cobalt Project. Pursuant to the approved Plan of Operations (mine permit), this verification drilling program will provide information needed to optimize mine design and production plans with the primary goal of maximizing ore production as early in mine life as possible.

The program will also provide material for initial metallurgical test work to assist in determining the economic viability of extracting the heavy Rare Earth Elements ("REE's") that are known to occur on the property. Additional material for follow-up metallurgical testing can also be obtained once underground operations commence. REE's, as well as gold, were not included in the Company's bankable feasibility study.

"The (diamond drill) program is exciting for us as we can now obtain the data needed to optimize the mine design," commented Bill Scales, President of Formation Capital Corporation, U.S. He continued, "Mine design optimization, along with new information on the REE's, could have a positive impact on the overall economics of the project."

The 100% owned Idaho Cobalt Project is a unique, fully permitted primary cobalt deposit that will be capable of producing high purity cobalt metal. Cobalt is used in a wide variety of environmental and high-tech applications that include the re-chargeable battery and aero-space sectors.

Formation Metals Inc. is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation trades on the Toronto Stock Exchange under the symbol FCO.

Formation Metals Inc