Close $8.26M First Tranche of its Private Placements, Fully Funding 20,000 Metre Drill Program at the Advanced N2 Gold Project
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Formation Metals Closes $8.26M First Tranche of its Private Placements, Fully Funding 20,000
Metre Drill Program at the Advanced N2 Gold Project
Highlights:
• Formation has closed $8,262,389.48 in gross proceeds, fully funding its planned 20,000
metre total multi-phase drill program at its flagship N2 Gold Project in Quebec, host to a
global historic resource of ~870,000 ounces comprised of 18 Mt grading 1.4 g/t Au
(~809,000 oz Au) across four zones (A, East, RJ -East, and Central) 2,3 and 243 Kt
grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4.
• Phase 1, consisting of 10,000 metres, commenced on September 25, 2025. Phase 1 will
target the “A” zone, a shallow, highly continuous, low-variability historic gold deposit with
~522,900 ounces of which only ~35% of strike has been drilled (>3.1 km open), and the
“RJ” zone, host to high-grade intercepts from historical drill holes as high as 51 g/t Au over
0.8 metres2, which was expanded by Agnico Eagle Mines in 2008 in the most recent drilling
at the Property.
• The Company has working capital of ~C$12.7M with zero debt. Inclusive of provincial
tax credits from the Quebec government, Formation’s exploration budget for 2025-2026 is
set at ~$8.1M. The Company will close the balance of its private placements in the coming
weeks.
Vancouver, British Columbia / October 15 , 2025 – Formation Metals Inc. (“Formation” or the
“Company”) (CSE:FOMO) (FSE:VF1) (OTCQB:FOMTF), a North American mineral acquisition and
exploration company, is pleased to announce that, further to its news releases of September 30, 2025 and
October 1, 2025, it has closed the first tranche of its private placement, raising $8,262,389.48 in gross
proceeds through the issuance of 17,312,891 units (each a “LIFE Unit”) at $0.37 per LIFE Unit (the “LIFE
Offering”) and 4,528,341 flow-through units (the “ FT Units”) at $0.41 per FT Unit (the “ FT Offering”
and together with the LIFE Offering, the “Offerings”).
Deepak Varshney, CEO of Formation Metals, stated, “We are incredibly grateful for the support Formation
has received from new and past shareholders. With nearly thirteen million in working capital, Formation is
now funded through 2027 to complete 20,000 metres of drilling at N2.”
Mr. Varshney continued: “Building on the success of our predecessors, this 20,000 metre drill program will
be critical in our goal of developing N2 into a near-surface multi-million-ounce deposit. With gold breaking
$4,200, over 5 times the price in 2008 when Agnico last drilled the project, we believe that the timing is
perfect for N2 and look forward to a very busy upcoming field season.”
The LIFE Offering was conducted pursuant to the listed issuer financing exemption under Part 5A of
National Instrument 45 -106 – Prospectus Exemptions (“NI 45-106”), as amended and supplemented by
Coordinated Blanket Order 45-935 – Exemptions from Certain Conditions of the Listed Issuer Financing
Exemption.
Each LIFE Unit issued in the LIFE Offering is comprised of one common share in the capital of the
Company (a “LIFE Share”) and one common share purchase warrant (a “ LIFE Warrant”). Each LIFE
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Warrant is exercisable to acquire one additional common share of the Company at an exercise price of $0.54
for a period of 36 months from the date of closing of the LIFE Offering.
The LIFE Units issued pursuant to the LIFE Offering are not subject to a hold period in accordance with
applicable Canadian securities laws.
In connection with the LIFE Offering, the Company filed an offering document dated September 30, 2025,
as amended and restated on October 14, 2025, which is available on the Company’s SEDAR+ profile
at www.sedarplus.ca and on the Company’s website (www.formationmetalsinc.com).
Each FT Unit issued in the FT Offering is comprised of one flow-through common share (a “FT Share”)
of the Company, and each FT Share qualif ying as a “flow-through share” as defined in section 66(15) of
the Income Tax Act (Canada), and one transferable common share purchase warrant (a “ FT Warrant”).
Each FT Warrant entitles the holder to purchase one additional common share at an exercise price of $0.62
for a period of 24 months from the date of closing of the FT Offering.
All securities issued under the FT Offering are subject to a hold period in accordance with applicable
Canadian securities laws.
The Company paid finder’s fees totaling $150,079.90 cash and 127,573 finder’s warrants (the “ Finder’s
Warrants”) to arm’s length parties in connection with the Offering. The Finder Warrants are non -
transferable and 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.
Project Summary
Comprising 87 claims totaling ~4,400 ha within the Abitibi sub province 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 in
order 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 (Figure 1).
Historical highlights from the top two priority zones include:
• A Zone: A shallow, highly continuous, low-variability historic gold deposit with ~522,900
ounces identified at a grade of 1.52 g/t Au. ~15,000 metres have been drilled historically
across 1.65 km of strike, with over 3.1 km of strike remaining to be tested. 84% of historical
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
drillholes intercepted auriferous intervals including up 1.7 g/t over
35 m.
• RJ Zone: a high-grade historic gold deposit with ~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 metres and 16.5 g/t Au over 3.5 metres2. 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
~US$800/oz. Only ~900 metres of strike has been drilled, with 4.75+ km of strike
remaining to be tested.
Figure 1 - PDDH design for the complete 20,000 metre Drill Program.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Figure 2 - Property overview summarizing historical work completed at each of the six mineralized zones and their respective
historical resource.
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 drillholes known to have significant gold grades (>1 g/t Au). Assay results range from 200
to 4,750 ppm and 203 ppm to 6,700 ppm, for copper and zinc, respectively, indicating strong
potential for elevated base metal (Cu-Zn) concentrations across the property, specifically at the A
and RJ zones. Property wide geology a t N2 features volcanic and sedimentary rocks formed in
regional anticlinal and synclinal flexures. Three principal deformation structures (Figure 1),
oriented along the known NW-SE to WNW-ESE structural trends typical of VMS 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 WNW-ESE trend), with IP surveys and
drilling planned to model mineralized zones that will hopefully contribute to an updated NI-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 Mr. Babak Vakili
Azar, P.Geo., an independent contractor and a qualified person as defined by National Instrument
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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 Metals Inc. 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 ~870,000
ounces (18 Mt grading 1.4 g/t Au (~809,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3
and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4) and six mineralized zones, each
open for expansion along strike and at depth including the “A” zone, of which only ~35% of strike has been
drilled (>3.1 km open), and the “RJ” zone, host to historical high-grade intercepts as high as 51 g/t Au over
0.8 metres.
FORMATION METALS INC.
Deepak Varshney, CEO and Director
For more information, please call 778 -899-1780, email [email protected] or visit
www.formationmetalsinc.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for
the adequacy or accuracy of this release.
Notes and References:
1. Readers are cautioned that the geology of nearby properties is not necessarily indicative of the geology of
the Property.
2. The above referenced resource estimates do not have a category, are considered historical in nature, and are
based on prior data prepared by a previous property owner, and do not conform to current CIM categories.
While the Company considers the estimates to be reliable, a qualified person has not done sufficient work to
classify the historical estimates as current resources in accordance with current CIM categories and the
Company is not treating the historical est imates as a current resource. A 0.5 g/t Au cut -off was used in the
preparation of the historical estimates with a minimum 2.5 metre mining width.
Significant data compilation, re -drilling, re-sampling and data verification may be required by a qualified
person before the historical estimates can be classified as current resources. There can be no assurance that
any of the historical mineral resources, in whole or in part, will ever become economically viable. In addition,
mineral resources are not mineral reserves and do not have demonstrated economic viability. The Company
is not aware of any more recent estimates prepared for the N2 Property.
3. Needham, B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, Northway Property; Cypress
Canada Inc.; 492 pages.
4. Guy K. (1991), Exploration Summary May 1, 1990 to May 1, 1991 Vezza Joint Venture Northway Property;
Total Energold; 227 pages.
Forward-looking statements:
This news release includes "forward-looking statements" under applicable Canadian securities legislation,
including statements respecting: the Company’ s plans for the Property and the expected timing and scope
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
of the drilling program at the Property; the Company’ s goal of delivering a near-surface multi-million-
ounce deposit the Property; the Company’ s view that the Property has the potential for over three million
ounces of gold ; the Company’ s planned 20,000-metre drilling program ; and statements respecting the
Offerings, the timing thereof and the expected use of proceeds therefrom. Such forward-looking information
reflects management's current beliefs and is based on a number of estimates and/or assumptions ma de by
and information currently available to the Company that, while considered reasonable, are subject to known
and unknown risks, uncertainties, and other factors that may cause the actual results and future events to
differ materially from those express ed or implied by such forward -looking statements. Readers are
cautioned that such forward -looking statements are neither promises nor guarantees and are subject to
known and unknown risks and uncertainties including, but not limited to, general business, e conomic,
competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of
available capital, actual results of exploration activities, environmental risks, future prices of base and
other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and
permits, and other risks in the mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in nature,
involves many risks, requires substantial expenditures, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermore, t he Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such forward -looking statements will prove to be
accurate, and actual results and future events could differ materially from those anticipated in suc h
statements.
No Offer or Solicitation to Purchase Securities in the United States
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe
for securities in the United States. The securities referred to herein have not been and will not be registered
under the Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory
authority of any state or other jurisdiction in the United States, and may not be offered or sold, directly or
indirectly, within the United States or to, or for the account or benefit of, U.S. persons, as such term is
defined in Regulation S under the Securities Act (“Regulation S”), except pursuant to an exemption from
or in a transaction not subject to the registration requirements of the Securities Act.
Not for distribution to United States newswire services or for dissemination in the United States. This news
release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have n ot been and will not be registered under the United States Securities
Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or
sold within the United States or to U.S. persons unless registered under the U. S. Securities Act and
applicable state securities laws or an exemption from such registration is available. This news release shall
not constitute an offer to sell or the solicitation of an offer to buy in the United States or to, or for the
account or ben efit of, persons in the United States or U.S. Persons nor shall there by any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.