Formation Metals Receives Final Permits, Mobilizes to Site to Begin 10,000 Metre Drill Program at the Advanced N2 Gold Project
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Formation Metals Receives Final Permits, Mobilizes to Site to Begin 10,000 Metre Drill
Program at the Advanced N2 Gold Project
Vancouver, British Columbia / September 22, 2025 – Formation Metals Inc. (“Formation” or
the “Company”) (CSE:FOMO) (FSE:VF1) (OTC QB:FOMTF), a North American mineral
acquisition and exploration company, is pleased to announce that the Company is now in receipt
of all necessary permits for drilling, including the Authorization to Intervene (ATI) and Forestry
Intervention permits, and that is has mobilized to site to commence its fully funded 10,000 metre
drill program at its N2 Gold Property (“N2” or the “Property”), an advanced gold project with 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.
The Company has working capital of ~C$4.9M with zero debt, putting it in a very strong financial
position to execute its exploration programs. Inclusive of provincial tax credits from the Quebec
government, Formation’s exploration budget for 2025-2026 is set at ~$5.7M. Formation is fully
funded to complete the $5M work commitment required to earn-in to 100% of the N2 Gold Project
within two years, four years ahead of schedule.
Phase 1 will focus on two primary targets:
• the “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.
• the “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 metres 2. 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.
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Figure 1 - Summary of the “A” Zone.
Figure 2 - Summary of the "RJ" Zone.
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Deepak Varshney, CEO of Formation Metals, stated, “Being fully permitted for our planned 20,000
metre drill program is an incredible milestone for Formation Metals. With nearly five million in
working capital, Formation is positioned to commence on the most aggressive drill program our
company has embarked on, with 10,000 metres fully funded for 2025.”
Mr. Varshney continued: “Given the scale of the property, the compelling geological data, and the
Abitibi Greenstone Belt's established history as a hotbed for gold mining, we are hopeful that the
program will deliver our goal of delivering a near-surface multi-million-ounce deposit at N2.
We see the potential for a significant gold deposit at N2, and our maiden 10,000- metre drilling
program will mark the beginning of Formation's pursuit of that goal. Our maiden program will
focus on building on the successes of our predecessors. The drilling discoveries made by Agnico-
Eagle and Cypress show the potential at N2. With gold at over $3,700, over 4 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.”
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: 18.2 Mt grading 1.48 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.
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 zone s to significantly
enhance the auriferous zones identified to-date (Figure 3).
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Figure 3 - PDDH design for 20,000 metre Drill Program
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Figure 4 - 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.
The Company is also pleased to announce that it has arranged a non- brokered private placement
of up to 1,891,892 flow -through units of the Company (“Units”) at a price of $0.37 per Unit to
raise aggregate gross proceeds of up to $700,000 (the “Private Placement’). Each Unit will consist
of one flow-through common share (each a “FT Share”) of the Company, and each FT Share shall
qualify as a “flow -through share” as defined in section 66(15) of the Income Tax Act (Canada),
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
and one transferable common share purchase warrant (each a “Warrant”), with each Warrant
entitling the holder to purchase one additional common share (a “Warrant Share”) at an exercise
price of $0.60 per Warrant Share for a period of two (2) years from the date of closing of the Private
Placement. The Company may pay finders’ fees to eligible finders, in accordance with applicable
securities laws and the policies of the Canadian Securities Exchange (“CSE”). The Private
Placement is subject to approval of the CSE, and all securities issued under the Private Placement
will be subject to statutory hold periods expiring four months and one day from the date of closing
of the Private Placement. The Company intends to use the net proceeds of the Private Placement
for fieldwork at the Company’s exploration projects.
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.
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 zone 2,4) and six mineralized z ones, 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.
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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 of the 2025 drilling program at the Property; the Company’ s goal of
delivering a near -surface multi-million-ounce deposit the Property; the Company’ s anticipated
timeline with respect to the Application for Autorisation de Travaux d’exploration à Impacts (ATI)
to the Ministère des Ressources naturelles et des Forets (MERN); the Company’ s view that the
Property has the potential for over three million ounces of gold; the 10,000-metre drilling program
marking the beginning of the Company’ s pursuit of that goal ; and statements respecting the
Offerings 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 promises 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 equi ty 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 such statements.
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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
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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 benefit 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.