Formation Metals Inc. - Form 7- Monthly Progress Report for February 2026
FORM 7
MONTHLY PROGRESS REPORT
Name of Listed Issuer: FORMATION METALS INC. (the “Issuer” or “Formation”).
Trading Symbol: FOMO
Number of Outstanding Listed Securities: 97,127,458 common shares (as at February 28, 2026)
Date: March 5, 2026
This Monthly Progress Report must be posted before the opening of trading on the fifth trading day of each month. This report is not intended to replace the Issuer’s obligation to separately report material information forthwith upon the information becoming known to management or to post the forms required by Exchange Policies. If material information became known and was reported during the preceding month to which this report relates, this report should refer to the material information, the news release date and the posting date on the Exchange website.
This report is intended to keep investors and the market informed of the Issuer’s ongoing business and management activities that occurred during the preceding month. Do not discuss goals or future plans unless they have crystallized to the point that they are "material information" as defined in the Policies. The discussion in this report must be factual, balanced and nonpromotional.
General Instructions
(a) Prepare this Monthly Progress Report using the format set out below. The sequence of questions must not be altered nor should questions be omitted or left unanswered. The answers to the items must be in narrative form. State when the answer to any item is negative or not applicable to the Issuer. The title to each item must precede the answer.
(b) The term “Issuer” includes the Issuer and any of its subsidiaries.
(c) Terms used and not defined in this form are defined or interpreted in Policy 1 – Interpretation and General Provisions.
Report on Business
1. Provide a general overview and discussion of the development of the Issuer’s
business and operations over the previous month. Where the Issuer was inactive disclose this fact.
Formation Metals Inc. is a mineral exploration company focused on the acquisition and exploration of mineral property assets. It owns the Nicobat Property, a nickel copper cobalt project in Ontario, Canada, and has an option to earn 100% of the advanced N2 Gold Project located near Matagami, Quebec.
During the month of February, the Issuer continued with its general and corporate activities of the business.
2. Provide a general overview and discussion of the activities of management.
During the month of February, the Issuer continued overseeing corporate and administrative activities.
On February 1, 2026, the Issuer announced the initial results for the first four drillholes of its on-going fully funded drill program at its flagship N2 Gold Property ("N2" or the "Property"), located 25 km south of Matagami, Quebec.
Highlights:
- N2-25-005: 0.91 g/t Au over 42.3 metres beginning at 14.0 metres downhole, 9.9 metres vertical. Highlight intervals include 2.04 g/t Au over 8.1 metres and 1.31 g/t Au over 11.4 metres.
- N2-25-012: 1.75 g/t Au over 30.4 metres beginning at 64.1 metres downhole, 45.3 metres vertical. Highlight intervals include 3.51 g/t Au over 10.5 metres and 19.2 g/t Au over 0.51 metres.
On February 19, 2026, the Issuer announced it had appointed Roger Rosmus to the Issuer's newly formed advisory board. Mr. Rosmus, currently the founder and chief executive officer of Goliath Resources, serves as the inaugural appointment to this board. Mr. Rosmus brings over 25 years of experience in investment banking, corporate finance and executive management within the resource sector. As the driving force behind Goliath Resources, he has a proven record of building and leading successful exploration companies, particularly in precious metals. Under his leadership, Goliath Resources has advanced the flagship Golddigger project in British Columbia's prolific Golden Triangle, delivering multiple high-grade gold discoveries and attracting significant institutional investment. His expertise will be instrumental as Formation Metals scales its operations and enhances its strategic positioning in the junior mining sector.
On February 24, 2026, the Issuer announced results from drillholes N2-25-007, N2-25- 008 and N2-25-010 at N2.
Highlights:
- N2-25-005: 0.91 g/t Au over 42.3 metres beginning at 14.0 metres downhole, 9.9 metres vertical. Highlight intervals include 2.04 g/t Au over 8.1 metres and 1.31 g/t Au over 11.4 metres.
- N2-25-012: 1.75 g/t Au over 30.4 metres beginning at 64.1 metres downhole, 45.3 metres vertical. Highlight intervals include 3.51 g/t Au over 10.5 metres and 19.2 g/t Au over 0.51 metres.
The Issuer engaged Altura Media Co. Inc., of Maple Ridge, B.C., to provide certain marketing and investor awareness services in accordance with the policies of the Canadian Securities Exchange and applicable legislation. Under the terms of the agreement, Altura will deliver strategic advertising, public relations and investor communications services to the Issuer for an initial six-month term commencing effective immediately. These services will be focused on enhancing the Issuer's visibility and engagement within domestic and foreign markets, and include a full suite of services, including digital advertising, content creation and shareholder communications support.
The Issuer has agreed to pay Altura a fee of up to $250,000, based on the scope of services provided during the term of the engagement. The agreement includes provisions for fee adjustments, early termination and extension of the engagement, should it be determined to be in the best interests of the Issuer. Altura (including its directors and officers) is an arm's-length party to the Issuer, and, to the best of the Issuer's knowledge, neither Altura nor any related parties hold or have the right to acquire securities of the Issuer, and the Issuer will not issue any securities to Altura as compensation for its services. Altura has a business address at 1055 West Georgia St., Suite 1500, Vancouver, B.C., V6E 4N7, and may be contacted via e-mail at [email protected] or by telephone at 778-988-5503.
The Issuer’s news releases referred to above can be accessed under the Issuer’s profile on SEDAR+ (www.sedarplus.ca). The news releases can also be found on the Issuer’s disclosure page on the Canadian Securities Exchange website at https://thecse.com/listings/formation-metals-inc/.
3. Describe and provide details of any new products or services developed or offered.
For resource companies, provide details of new drilling, exploration or production programs and acquisitions of any new properties and attach any mineral or oil and gas or other reports required under Ontario securities law.
During the month of February, the Issuer did not complete any new drilling, exploration or programs, however it did announce the initial results for the first seven drillholes of its ongoing drill program at its flagship N2 Gold Property.
See Item #2 for further details.
4. Describe and provide details of any products or services that were discontinued.
For resource companies, provide details of any drilling, exploration or production programs that have been amended or abandoned.
None to report during the month of February.
5. Describe any new business relationships entered into between the Issuer, the
Issuer’s affiliates or third parties including contracts to supply products or services, joint venture agreements and licensing agreements etc. State whether the relationship is with a Related Person of the Issuer and provide details of the relationship.
During the month of February, the Issuer appointed Roger Rosmus to the Issuer's newly formed advisory board.
Mr. Rosmus is not considered to be a Related Person to the Issuer.
In addition, the Issuer engaged Altura Media Co. Inc., of Maple Ridge, B.C., to provide certain marketing and investor awareness services to the Issuer.
Altura Media Co. is not considered to be a Related Person to the Issuer.
See Item #2 for further details on the appointment of Roger Rosmus and Altura Media Co.
6. Describe the expiry or termination of any contracts or agreements between the
Issuer, the Issuer’s affiliates or third parties or cancellation of any financing arrangements that have been previously announced.
None to report during the month of February.
7. Describe any acquisitions by the Issuer or dispositions of the Issuer’s assets that
occurred during the preceding month. Provide details of the nature of the assets acquired or disposed of and provide details of the consideration paid or payable together with a schedule of payments if applicable, and of any valuation. State how the consideration was determined and whether the acquisition was from or the disposition was to a Related Person of the Issuer and provide details of the relationship.
None to report during the month of February.
8. Describe the acquisition of new customers or loss of customers.
None to report during the month of February.
9. Describe any new developments or effects on intangible products such as brand
names, circulation lists, copyrights, franchises, licenses, patents, software, subscription lists and trade-marks.
None to report during the month of February.
10. Report on any employee hirings, terminations or lay-offs with details of anticipated
length of lay-offs.
None to report during the month of February.
11. Report on any labour disputes and resolutions of those disputes if applicable.
None to report during the month of February.
12. Describe and provide details of legal proceedings to which the Issuer became a
party, including the name of the court or agency, the date instituted, the principal parties to the proceedings, the nature of the claim, the amount claimed, if any, if the proceedings are being contested, and the present status of the proceedings.
None to report during the month of February.
13. Provide details of any indebtedness incurred or repaid by the Issuer together with
the terms of such indebtedness.
None to report during the month of February.
14. Provide details of any securities issued and options or warrants granted.
| Security | Number Issued | Details of Issuance | Use of Proceeds(1) |
|---|---|---|---|
| Common Shares | 150,000 | Common Shares issued pursuant to exercise of stock options at $0.30 | $45,000; General working capital |
| Stock Options | 200,000 | Stock Options issued February 6, 2026 at $0.37 in connection with the Issuer’s equity incentive plan | N/A; Stock Options issued in connection with the Issuer’s equity incentive plan |
| Stock Options | 100,000 | Stock Options issued February 6, 2026 at $0.37 in connection with the Issuer’s equity incentive plan | N/A; Stock Options issued in connection with the Issuer’s equity incentive plan |
| RSUs | 500,000 | RSUs issued February 9, 2026 in connection with the Issuer’s equity incentive plan | N/A; RSUs issued in connection with the Issuer’s equity incentive plan |
| RSUs | 200,000 | RSUs issued February 9, 2026 in connection with the Issuer’s equity incentive plan | N/A; RSUs issued in connection with the Issuer’s equity incentive plan |
| Common Shares | 500,000 | Common Shares issued pursuant to exercise of stock options at $0.20 | $21,000; General working capital |
| Common Shares | 100,000 | Common Shares issued pursuant to exercise of stock options at $0.21 | $21,000; General working capital |
| RSUs | 500,000 | RSUs issued February 24, 2026 in connection with the Issuer’s equity incentive plan | N/A; RSUs issued in connection with the Issuer’s equity incentive plan |
| RSUs | 200,000 | RSUs issued February 24, 2026 in connection with the Issuer’s equity incentive plan | N/A; RSUs issued in connection with the Issuer’s equity incentive plan |
(1) State aggregate proceeds and intended allocation of proceeds.
15. Provide details of any loans to or by Related Persons.
None to report during the month of February.
16. Provide details of any changes in directors, officers or committee members.
None to report during the month of February.
17. Discuss any trends which are likely to impact the Issuer including trends in the
Issuer’s market(s) or political/regulatory trends.
Trends and risks which may impact the Issuer are detailed in the Issuer’s Form 2A Listing Statement dated October 15, 2024.
The Remainder of This Page Intentionally Left Blank.
Certificate Of Compliance
The undersigned hereby certifies that:
1. The undersigned is a director and/or senior officer of the Issuer and has been duly authorized by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.
2. As of the date hereof there were is no material information concerning the Issuer which has not been publicly disclosed.
3. The undersigned hereby certifies to the Exchange that the Issuer is in compliance with the requirements of applicable securities legislation (as such term is defined in National Instrument 14-101) and all Exchange Requirements (as defined in CNSX Policy 1).
4. All of the information in this Form 7 Monthly Progress Report is true.
Dated: March 5, 2026
Deepak Varshney Name of Director or Senior Officer
“Deepak Varshney”
Signature Chief Executive Officer, Secretary and Director Official Capacity
| Issuer Details Name of Issuer FORMATION METALS INC. | For Month Ended February 2026 | Date of Report YYYY / MM / DD 2026 / 03 / 05 |
| Issuer Address Unit 1245 – 300 Granville Street | ||
| City/Province/Postal Code Vancouver, BC V6C 1V4 | Issuer Fax No. N/A | Issuer Telephone No. 604-251-6320 |
| Contact Name Deepak Varshney | Contact Position CEO, Secretary and Director | Contact Telephone No. 604-251-6320 |
| Contact Email Address [email protected] | Web Site Address https://formationmetalsinc.com/ |