Company Information for Formation Capital Corp

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Company Statement

Statement by the C.E.O.: Mari-Ann Green

Formation Capital Corporation (FCO-TSX) is an established, well financed Toronto Stock Exchange listed mining exploration and development company lead by a highly qualified technical team of mining engineers, geologists, metallurgists, administrative personnel and environmental and permitting specialists.  With the development of its 100% owned Idaho Cobalt Project and the ownership of a unique hydrometallurgical refining complex that includes the fully operational Sunshine Precious Metals Refinery, the Company is poised to become the Western Hemisphere's sole integrated cobalt miner and chemical refiner capable of producing super alloy grade, high purity cobalt metal.

The Company's flagship property, the 100% owned Idaho Cobalt Project (ICP), received a positive bankable feasibility study in July of 2007 and is in the late stages of permitting while its 100% owned  Sunshine Precious Metals Refinery continues to produce 999.5 minimum fineness silver bullion for its expanding client base.

With cobalt shortages looming, most recent estimates are for a per annum deficit of between 7-9 thousand tons between 2005-2010, most industry experts are anticipating upward pressures on the commodity price.

The Company owns the Big Creek Hydrometallurgical Complex, (the "Complex") located some 200 miles north of the Idaho Cobalt Project, near Kellogg, Idaho.  Essential Metals, Inc., a wholly owned subsidiary of Formation Capital Corporation, purchased the Complex at a significant discount to its estimated US$70 million replacement cost.  The fully permitted 36,000 square foot Complex collectively refers to the integrated facilities of the hydrometallurgical plant, precious metals refinery, SX-EW circuits, storage structures and the surrounding land.

When the cobalt mine is in production, slated for Q2 of 2009, and is sending cobalt/copper/gold concentrate to the retro-fitted complex, the Company will become a fully integrated cobalt mine-to-market operation unique to North America.

Through three wholly owned subsidiaries - Formation Capital Corporation U.S., Minera Terranova S.A. de C.V. and Coronation Mines Ltd. - Formation holds has additional interests in gold, silver and uranium projects in Idaho, Mexico, and Canada.

Company Diagram

Formation Capital already ships silver bars from the unique 100% owned Big Creek Hydrometallurgical Complex, which includes the Sunshine Precious Metals Refinery located a few miles East of Kellogg, Idaho, near the famous Sunshine Mine in Idaho’s Silver Valley.

Current Operations

The Company's Idaho Cobalt Project, located in a pro-mining district in the heart of the USA, received a positive bankable feasibility study in July of 2007 and is nearing completion of the permitting process.  At current metal prices (cobalt US$48.25/lb), using the economic model developed for the feasibility study, the NPV discounted 7.50% would be US$515 million with an IRR of 80.0%.

The project encompasses a series of unique high-grade, primary cobalt deposits that are metallurgically favourable for the production of a high purity super alloy grade cobalt product suitable for critical application, super-alloy grade production.  The project is forecast to produce approximately 1,600 tonnes of high purity cobalt per year, representing about 20% of the world’s output of super alloy grade cobalt metal.  This would offer the United States, estimated to consume 60% of critical application super alloy grade cobalt, an alternative, reliable domestic source of this strategic metal.  The United States has no current domestic supply of cobalt and largely depends on overseas countries such as Zambia, Democratic Republic of Congo and Russia for most of their cobalt needs.

Other assets include the 100% owned El Milagro Project located in the central plain of Tamaulipas State in Mexico, where silver grades reach bonanza levels often in excess of 2 kilograms per tonne and combined lead-zinc grades usually exceed 10%.

On the Virgin River uranium project in the Athabasca Basin of northern Saskatchewan, over $12 million has been spent to date in the exploration for a large unconformity-type uranium deposit by joint venture partners Cameco & Areva.  Very significant drill intercepts included grades of 5.83% U308 over 6.4m (21ft), including 13.86% U308 over 2.5m (8ft).  Cameco considers this discovery, known as the "Centennial Zone", the most significant uranium discovery ever encountered along the entire Dufferin/Virgin River Trend in more than 25 years of exploration.  Exploration expenditures are continuing with a budgeted $5.5 million diamond drill program planned for 2008.

Geographical Spread

United States
Idaho Cobalt Project (Co/Cu/Au)
Black Pine (Cu/Co/Au)
Morning Glory (Au)
Queen of the Hills (Au)
Badger Basin (Cu/Co/Au)
Tinkers Pride (Au/Co/Cu)
Bonanza Copper (Cu/Co/Au)
Canada
Virgin River (U)
Kernaghan Lake (U)
Compass Lake (Au)
Mexico
Milagro (Ag/Zn/Pb)

Board of Directors and Key Management

Mari-Ann Green	Director - Chairman & CEO
J. Scott Bending	Director - President
W.G. (Bill) Scales	Director - Executive VP
Robert Metka	Director
James B. Engdahl	Director
Robert J. Quinn	Director
Cecil D. Andrus	Director
David stone	Director
Jeffrey Fraser	Corporate Secretary
J. Paul Farquharson	Senior VP / CFO
E.R. (Rick) Honsinger	VP Corporate Communications
Alan D. Vichert	VP Risk Management

Company Address Suite 1510 - 999 West Hastings Street Vancouver, British Columbia, Canada V6C 2W2 Telephone: 604 682 6229 Facsimile: 604 682 6205 Email: inform[at]formcap.com Website: http://www.formcap.com

Additional Address/Key Contact Idaho Exploration Office 812 Shoup Street Salmon, Idaho, U.S.A. 83467 Tel: 208 756 4578 Fax: 208 756 2573 Emails: infoUS@formcap.com, info@sunshinerefinery.com questions@idahocobalt.com inform@formcap.com

Capital 203 million shares issued and outstanding

Annual General Meeting June, Vancouver, B.C

Year End February 28

Broker/Analyst Reports

31/03/08 - Grandich Letter
08/01/08 - Jennings Capital Inc - Analyst Report
06/12/07 - Jennings Capital Inc - Analyst Report
15/11/07 - Fundamental Research Corp.
06/11/07 - Jennings Capital Inc - Analyst Report Summary
15/06/07 - An Emerging Strategic Super Alloy Cobalt Producer

Major Shareholders

Management & Insiders:	~8%
Institutions:	~75%
Retail:	~17%

Related News

23/07/08 - Formation Capital Focuses On Getting Approval
21/02/08 - Construction Set to Begin at Formation Capital’s Cobalt Mine In Idaho
24/05/07 - Formation Capital Poised To Become The Only Producer Of Primary Cobalt In The States

Most Recent Statement

26/08/08 - Idaho Cobalt Project Appeal Resolution Process Underway
18/08/08 - Formation Capital and Idaho Conservation League Reach Agreement on Conservation Program
14/08/08 - Formation Capital and Idaho Conservation League Reach Agreement on Environmental Enhancement Initiative
07/08/08 - Formation Capital Completes Modified Mine Plan of Operations on Idaho Cobalt Project in Accordance With Record of Decision
25/07/08 - Formation's Idaho Cobalt Project's Record of Decision Outlines Measures to Enhance Environmental Stewardship
15/07/08 - Clarifying News Release - Continuous Disclosure Review