Close Second Tranche of its Private Placement for Aggregate Proceeds of $8.46M, Increases Drill Program to 30,000 Metres at the Advanced N2 Gold Project
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Formation Metals Closes Second Tranche of its Private Placement for Aggregate Proceeds of
$8.46M, Increases Drill Program to 30,000 Metres at the Advanced N2 Gold Project
Vancouver, British Columbia / October 31, 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 ,
October 1, 2025 and October 15, 2025 , it has closed the second tranche of its private placement , raising
$8,456,619.81 in gross proceeds through the issuance of 17,837,838 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”).
Following the closing of the second tranche, 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 is also pleased to announce that it has expanded its planned drill program at its N2 Gold
Property (“N2” or the “Property”) to 30,000 metres, following the successful closing of the Offerings, and
the findings of its on-going maiden Phase 1 drill program.
The drilling at N2, which is 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 zone 2, 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.
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 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.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Figure 1 - PDDH design for the complete 30,000 metre Drill Program.
The Company closed $194,230.33 in gross proceeds through the issuance of 524,947 LIFE units as part of
the second tranche. The Company has raised total gross proceeds of $6,600,000 in both tranches of the
Offering of LIFE Units.
The 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 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 Warrant is
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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 Offering. The LIFE Units issued pursuant to the Offering
are not subject to a hold period in accordance with applicable Canadian securities laws. In connection with
the 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). No finder’s fees were paid in connection with the
Private Placement. The Company intends to use the net proceeds of the Offering as more particularly set
out in the Offering Document.
The Company is also pleased to announce that it has entered into a consulting agreement with Plutus Invest
and Consulting GmbH (“ Plutus”) (address: Buchtstr. 13, Bremen, 28195, Germany; e -mail:
[email protected], telephone: 49 -421-1754-0174), pursuant to which Plutus will provide the
Company with marketing and communications services for a twelve -month term commencing November
1st, 2025. The marketing services provided by Plutus will be in consulting with the Company's management
in building investor awareness of the Company through Plutus's network in Europe. The Company has
agreed to pay Plutus a consulting fee of up to €250,000 payabl e upon the commencement of services and
over the term. The Company will not issue any securities to Plutus as compensation for the services. As of
the date hereof, to the Company’s knowledge, Plutus does not own any securities of the Company and has
an arm’s-length relationship with the Company.
The Company is also pleased to announce that it has extended the marketing agreement for 1502656 B.C.
Ltd. (“ 1502656”) (address: 3849 154th St., Surrey, BC, Canada V3Z 0V3; e -mail:
[email protected]., telephone: 604-317-2952) for a further six months for a total budget of up to
$350,000 commencing November 1st, 2025. 1502656 is an independent company that will provide strategic
digital media services, marketing (including awareness campaigns) and data analytical services to the
company. The Company will not issue any securities to 1502656 as compensation for the servic es. As of
the date hereof, to the Company’s knowledge, 1502656 does not own any securities of the Company and
has an arm’s-length relationship with the Company.
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 (Figure 2) 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.
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). As say 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 at 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 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.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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 estimates 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 resource s, 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 V enture 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
of the drilling program at the Property; the C ompany’ 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 30,000-metre drilling program ; and statements respectin g the
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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 made 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 expressed or implied by such forward -looking statements. Readers are
cautioned that such forward -looking statements are neither promi ses nor guarantees and are subject to
known and unknown risks and uncertainties including, but not limited to, general business, economic,
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.