Formation Metals Announces Closing of Upsized $22.4 Million Non-Brokered Private Placement to Increase Drill Program to 75,000 Metres
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DISSEMINATION IN THE UNITED STATES
FORMATION METALS ANNOUNCES CLOSING OF UPSIZED $22.4 MILLION NON-BROKERED
PRIV ATE PLACEMENT TO INCREASE DRILL PROGRAM TO 75,000 METRES
Vancouver, British Columbia / ACCESS Newswire / May 22, 2026 – 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 dated April 29, 2026 and May 18, 2026, the
Company has closed its previously announced non-brokered private placement (the “Offering”) for aggregate gross
proceeds of approximately $22,439,577 through the issuance of an aggregate of 49,821,291 units of the Company
(the “Units”).
Following the closing of the Offering, the Company has working capital of ~$30.7M with zero debt.
The Company now intends on expanding its on-going 30,000 metre drill program to 75,000 metres at its flagship N2
Gold Project in Quebec (the “Property”), host to a global historic resource of ~871,000 ounces comprised of 18 Mt
grading 1.4 g/t Au (~810,000 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.
Deepak V arshney, President and Chief Executive Officer of Formation Metals, commented: “The closing of this
strategic financing marks a significant milestone for Formation Metals and further validates the quality and long-term
potential of the N2 project. We are pleased to welcome new cornerstone strategic investors and thank our existing
shareholders for their support as we continue to advance one of the most compelling gold development stories in
Quebec. With nearly $31-million in working capital and a fully funded 75,000-metre drill program under way, the
company is exceptionally well positioned to accelerate exploration and unlock further value across the N2 system.
Supported by a strong balance sheet, an experienced technical team and a premier mining jurisdiction, we remain
focused on building a leading metals company within the prolific Abitibi greenstone belt.”
The Company’s maiden campaign has exceeded expectations to-date, confirming geological continuity and delivering
robust and continuous gold intercepts in holes drilled within the northern corridor of the A-Zone, including:
• N2-25-006: 1.8 g/t Au over 21.9 metres beginning at 154.4 metres downhole, 133.7 metres vertical. Highlight
interval includes 3.4 g/t Au over 4.8 metres with total metal index of 79.56.
• N2-25-008: 0.95 g/t Au over 61.1 metres beginning at 109 metres downhole, 94.4 metres vertical. Highlight
interval includes 1.68 g/t Au over 26.5 metres with total metal index of 67.97.
• N2-25-009: 1.37 g/t Au over 24.0 metres beginning at 168.9 metres downhole, 146.3 metres vertical.
Highlight interval includes 2.05 g/t Au over 13.3 metres with total metal index of 81.89.
• 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 with total metal index of
62.43.
The Company’s drill strategy for the remainder of 2026 will focus on extensional drilling to the east and west of the
A-zone along strike where it believes up to 8 km may be mineralized in total, and to the south, where it recently
identified visible gold in a 400 metre step-out in drillhole N2-26-24, located south of N2-25-007, N2-25-008 and N2-
25-010.
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Figure 1 - Visible gold discovered in the mineralized interval within N2-26-24.
The Company will also advance its base metals exploration program at N2, 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). A ssay 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, 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.
The Offering was closed in two tranches. The first tranche of the Offering closed on May 19, 2026, pursuant to which
the Company issued an aggregate of 31,141,021 Units, comprised of 16,412,113 hard dollar units (“HD Units”) at a
price of $0.37 per HD Unit, 13,024,363 flow-through units (“FT Units”) at a price of $0.44 per FT Unit, and 1,704,545
Quebec flow-through units (“Quebec FT Units”) at a price of $0.44 per Quebec FT Unit, for aggregate gross proceeds
of approximately $12,553,201. The second tranche of the Offering closed on May 21, 2026, pursuant to which the
Company issued an aggregate of 18,680,270 Units, comprised of 2,040,540 HD Units at a price of $0.37 per HD Unit,
3,610,000 FT Units at a price of $0.44 per FT Unit, 4,640,468 charity flow-through units (“Charity FT Units”) at a
price of $0.548 per Charity FT Unit, and 8,389,262 Quebec charity flow-through units (“Quebec Charity FT Units”)
at a price of $0.596 per Quebec Charity FT Unit, for aggregate gross proceeds of approximately $9,886,376.
Each HD Unit consists of one common share in the capital of the Company (a “HD Share”) and one transferable non-
flow-through common share purchase warrant of the Company (a “Warrant”). Each FT Unit consists of one flow -
through common share in the capital of the Company (a “FT Share ”), which qualifies as a “flow -through share”
within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the “T ax Act”), and one Warrant. Each
Quebec FT Unit consists of one flow-through common share in the capital of the Company (a “Quebec FT Share”),
which qualifies as a “flow -through share” within the meaning of subsection 66(15) of the Tax Act and subsection
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359.1 of the Taxation Act (Quebec) (the “ Quebec Act”), and one Warrant. Each Charity FT Unit consists of one
charity flow-through common share in the capital of the Company (a “Charity FT Share ”), which qualifies as a
“flow-through share” within the meaning of subsection 66(15) of the Tax Act, and one Warrant. Each Quebec Charity
FT Unit consists of one charity flow-through common share in the capital of the Company (a “Quebec Charity FT
Share”, and collectively with the HD Shares, FT Shares, Quebec FT Shares and Charity FT Shares, the “Shares ”),
which qualifies as a “flow -through share” within the meaning of subsection 66(15) of the Tax Act and subsection
359.1 of the Quebec Act, and one Warrant. Each Warrant entitles the holder thereof to acquire one additional non -
flow-through common share of the Company at an exercise price of $0.596 per common share for a period of 36
months from the applicable closing date of the Offering.
The Company intends to renounce such qualifying expenditures in favour of the subscribers of the FT Units, Quebec
FT Units, Charity FT Units and Quebec Charity FT Units with an effective date of no later than December 31, 2026,
in the aggregate amount of not less than the total gross proceeds raised from the issuance of such flow -through
securities, and to incur such qualifying expenditures on or before December 31, 2027.
In connection with the Offering, the Company paid aggregate cash finders’ fees of $816,767.88 to nine arm’s length
finders and issued an aggregate of 1,490,695 finder warrants (the “Finder Warrants”). Each Finder Warrant entitles
the holder thereof to acquire one common share of the Company at an exercise price of $0.596 per common share for
a period of 36 months from the applicable closing date of the Offering.
The net proceeds of the Offering will be used to advance exploration at the Company’s flagship N2 Gold Project in
Quebec and for general working capital purposes.
The Units were offered: (a) by way of private placement in all of the provinces of Canada pursuant to applicable
exemptions from the prospectus requirements under applicable Canadian securities laws; and (b) in jurisdictions
outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with
all applicable laws, provided that no prospectus, registration statement or other similar document is required to be
filed in such jurisdiction. The securities issued pursuant to the Offering to purchasers in Canada will be subject to a
four-month and one day hold period in Canada pursuant to applicable Canadian securities laws. The Units offered to
purchasers outside of Canada pursuant to an exemption from the prospectus requirements in Canada available under
OSC Rule 72-503 – Distributions Outside Canada and, accordingly, the securities issued pursuant to the Offering to
purchasers outside of Canada are not subject to a four month and one day hold period in Canada. The securities offered
have not been registered under the U.S. Securities Act, as amended, and may not be offered or sold in the United
States absent registration or an applicable exemption from the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State
in which such offer, solicitation or sale would be unlawful.
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 ~871,000 ounces
comprised of 18 Mt grading 1.4 g/t Au (~810,000 oz Au)2,3 and 243 Kt grading 7.82 g/t Au (~61,000 oz Au)2.
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 are being investigated for the first time by Formation with diamond drilling.
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 84% of historical drillholes intercepted auriferous intervals including up to 1.7 g/t over 35
metres.
• 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-
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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.
The Company's internal view is that the N2 Project has the potential to host an open pit resource. This optimism
is driven by several key factors:
• Significant Undrilled Strike Length: The "A" Zone alone has >3.1 km of strike open (only ~35%
drilled historically), while the RJ Zone has >4.75 km remaining untested — offering substantial room
for lateral expansion of known mineralization.
• Open at Depth and Along Strike : All zones remain open, with historical drilling limited to shallow
depths (~350 m), leaving considerable vertical upside in a proven gold camp.
• Wide, Continuous Near-Surface Intercepts: Recent drilling has confirmed thick zones (100-200+ m)
of target mineralization starting near surface, ideal for bulk -tonnage open-pit scenarios with low strip
ratios and high tonnage potential.
• Regional Analogy and Pedigree : Located in the Casa Berardi trend, which hosts multiple multi -
million-ounce deposits (e.g., Casa Berardi >2 Moz produced and 14.3 Mt @ 2.75 g/t Au P&P in reserve,
Douay >3 Moz in resources (10 Mt @ 1.59 g/t Au indicated, and 76.7 Mt @ 1.02 g/t Au inferre d), N2
shares similar geology and structural controls. Nearby Vezza produced from higher-grade underground
mining, but N2's shallower, wider zones suggest superior open-pit economics.
• Untested Targets: Compilation work identified numerous geophysical anomalies (IP , EM, VTEM) that
remain undrilled, providing discovery potential beyond known zones.
• Rising Gold Prices and Economic Viability: At current gold prices, lower-grade bulk-tonnage deposits
become highly attractive, enhancing the project's upside.
Strategically located 25 km south of the mining town of Matagami, Quebec, this prime location provides year -
round access via provincial highways and logging roads, proximity to skilled labor, power infrastructure, and
established mining services in a jurisdiction known for its gold production exceeding 200 million ounces
historically. The project lies along the Casa Berardi mine trend, which hosts multiple million -ounce gold
deposits, and is situated approximately 1.5 km east of the former -producing Vezza g old mine operated by
Nottaway Resources from 2013 to 2019 producing over 100,000 ounces of gold via underground methods.
The region's robust infrastructure supports toll milling opportunities, with potential access to nearby processing
facilities such as those at Casa Berardi or other Abitibi mills, enabling cost- effective development without the
need for on-site mill construction.
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Figure 2 - Historic drillhole locations; Formation believes that there is over 15 kilometres of strike to explore at the N2 property.
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Figure 3 - Property overview summarizing historical work completed at each of the six mineralized zones and their respective
historical resource.
Qualified person
The technical content of this news release has been reviewed and approved by Mr. Babak V . Azar, P.Geo., géo
(OGQ#10876) 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.
Quality Assurance and Quality Control
The quality assurance and quality control protocols include insertion of blank or standard samples (accredited
by Canadian Resource Laboratories) every 10 samples on average during the analytical process. The gold
analyses were completed by fire assay (FA) method with an atomic absorption and ICP finish on 50 grams of
materials at the Laboratoire Expert Inc. in Rouyn-Noranda, Quebec, Canada and AGAT Laboratories Ltd in Val
d’Or, Quebec, Canada. The repeats were carried out by FA followed by gravimetric testing on each sample
containing 10.0 g/t gold or more. Total gold analyses (metallic sieve) were carried out on the samples which
presented a great variation of their gold contents or the presence of visible gold.
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 adva nced gold project with a global historic resource of ~871,000
ounces (18 Mt grading 1.4 g/t Au (~810,000 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 2,4) 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
N2 Gold Project – Target Summary
Five key mineralized zones, offering significant exploration potential
• A Zone: 55 drillholes, 14,693 m, 84% intercepted Au up to
1.7 g/t over 35 m with a metal factor of 93; 1.65 km strike
drilled, 3.1 km+ strike open
• RJ Zone: 82 drillholes, 20,875 m, 76% intercepted Au up to
48 g/t over 0.5 m / 16.5 g/t over 3.6 m; metal factor 60;
900 m strike drilled, 4.75 km+ strike open
• Central Zone: 29 drillholes, 6,090 m, 62% intercepted Au up to
1.35 g/t over 18.5 m; 1.1 km strike drilled, 5 km+ strike open
• RJE Zone: 17 drillholes, 3,816 m, 76% intercepted Au up to
51.26 g/t over 0.8 m; 300 m strike drilled, 1.7 km+ strike open
• East Zone: 14 drillholes, 2,474 m, 93% intercepted Au up to
11.3 g/t over 0.6 m; 300 m strike drilled, 1.95 km+ strike open
OuncesAu GradeTon nag eZone
522,9001.5210.7 MtA
102,6251.142.8 MtCentral
190,2042.042.9 MTRJE
30,3831.89500 KtEast
61,0957.82243 KtRJ
Notes: 1) 0.5 g/t c utoff; 2) 2.5 metre mining width, 3 ) historical resource estimate
CSE: FOMO | OTCPK: FOMTF | FSE: VF1
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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 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 certain “forward-looking statements” under applicable Canadian securities legislation,
including, without limitation, statements regarding the use of proceeds of the Offering, the Company’ s plans for the
N2 Gold Project and the expected timing and scope of the drilling program at the N2 Gold Project, the incurrence
and renunciation of qualifying expenditures, the expiry of the hold period, and the receipt of final regulatory approval
of the Canadian Securities Exchange in respect of the Offering.
Forward-looking statements are based on management’ s current expectations, estimates, projections and assumptions
as of the date of this news release. Such statements are subject to known and unknown risks, uncertainties and other
factors that may cause ac tual results, performance or achievements to differ materially from those expressed or
implied by such forward-looking statements, including but not limited to: the proposed drilling program at the N2
Gold Project; the risk that final regulatory approvals may not be obtained in a timely manner or at all; market
conditions; changes in commodity prices; availability of financing; exploration results; and general economic,
market, business, political and social conditions.
Readers are cautioned that forward-looking statements are neither promises nor guarantees and that actual results
may differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance
on forward-looking statements. Except as required by applicable law, the Company undertakes no obligation to update
or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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, the 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 such statements.
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