Formation Metals to Commence Maiden Mineral Resource Estimate Inclusive of Nearly 70,000 Metres of Drilling Following Completion of Ongoing Phase 1 Drill Program at the Advanced N2 Gold Project
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Formation Metals to Commence Maiden Mineral Resource Estimate Inclusive of Nearly 70,000 Metres
of Drilling Following Completion of Ongoing Phase 1 Drill Program at the Advanced N2 Gold Project
Estimate to Incorporate New Drilling Results and Extensive Historical Data, Targeting Significant
Resource Growth
Highlights:
• Formation is undertaking a fully funded 30,000-metre drill program at its flagship N2 Gold Project
in Quebec, 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.
• Formation’s Phase 1 drill program was expanded to approximately 14,000 metres based on the results
of the fieldwork to -date, which includes the following significant intervals that have material visually
comparable to long gold intervals in historical drilling including 245-91-151, which intercepted 1.7 g/t
Au over 35.0 metres:
o N2-25-008: 208.8 metres of target mineralization was intercepted beginning at 28.6 metres
downhole, with multiple intervals over 40 metres in width including up to 70.0 metres.
o N2-25-011: 166.8 metres of target mineralization was intercepted beginning at 60.0 metres
downhole, with multiple intervals over 20 metres in width including up to 70.6 metres.
• Following the completion of Phase 1, nearly 70,000 metres will have been drilled at N2, the majority
of which will be incorporated into Formation’s maiden mineral resource estimate. The Company is
targeting a conceptual open pit resource following the completion of all drilling.
• The Company has working capital of ~C$12. 1M with zero debt. Inclusive of provincial tax credits
from the Quebec government, Formation’s exploration budget for 2025-2026 is set at ~$8.1M.
Vancouver, British Columbia / January 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 its intention to initiate a maiden mineral resource estimate compliant with NI
43-101 standards at its flagship N2 Gold Property (“N2” or the “Property”) following the completion of its
ongoing expanded 14,000-metre Phase 1 drill program.
Thirteen holes have been advanced to-date as part of the Company's fully funded 30,000-metre campaign, with
the drilling successfully demonstrating:
• Substantial widths of target mineralization are present: 10 drillholes have each intercepted over 80
cumulative metres of target mineralization, including N2-25-008 and N2-25-011, where 208.8 and 166.8
metres were intercepted, respectively.
• Mineralization is shallow: 9 drillholes have intercepted target mineralization within the first 25 metres.
• Strong potential for grade improvement : A 30.8 metre interval was intercepted in N2-25-013 with
visible gold (see press release dated November 26, 2025).
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Figure 1 - Visible gold discovered in the mineralized interval within N2-25-013.
With over 55,517 metres drilled historically yielding 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)2,4, these results,
combined with historical data, confirm excellent continuity of mineralization and support the Company's
conceptual open-pit resource.
The N2 Project is particularly well-suited for open-pit mining due to its near-surface mineralization (starting as
shallow as 15 metres downhole), thick and continuous zones (often exceeding 100 -200 metres in width),
repeatable intercepts across long strikes, low variability in grades, and potential for a low strip ratio.
Historically significant drill results include:
• “A” Zone: 1.7 g/t Au over 35 metres, 1.48 g/t Au over 13.7 metres, 1.41 g/t Au over 14.3 metres and
2.02 g/t Au over 15 metres.
• “RJ” Zone: 48.4 g/t Au over 0.5 metres, 24.5 g/t Au over 0.9 metres, 16.5 g/t Au over 3.6 metres, 11.14
g/t Au over 3 metres, and 8.94 g/t Au over 5.1 metres.
This bulk -tonnage style deposit, combined with shallow depths and favorable geology in the Taibi Group
metasedimentary rocks (similar to nearby producers like Vezza and Casa Berardi) interbedded by several
volcanic flows of mafic to intermediate composition (basalt to andesitic basalt), positions N2 for efficient, large-
scale open-pit development with significant economic advantages.
Strategically located 25 km south of the mining town of Matagami, Quebec, N2 comprises 87 claims totaling
approximately 4,400 hectares in the prolific Abitibi Greenstone Belt (Casa Berardi Deformation Zone). 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 gold mine operated
by Nottaway Resources from 2013 to 2019 producing over 100,000 ounces of gold via underground methods.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Other notable nearby operations include Hecla Mining's Casa Berardi mine 1 (approximately 120 km to the
northwest, with over 2 million ounces produced historically and 14.3 Mt @ 2.75 g/t Au P&P in reserve) and
Maple Gold Mines' Douay project 1 (30 km to the east, hosting 10 Mt @ 1.59 g/t Au indicated, and 76.7 Mt @
1.02 g/t Au inferred). 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 m ills, enabling cost -effective
development without the need for on-site mill construction.
Why N2 Has Strong Potential to Host an Open Pit Resource
The Company's internal view is that the N2 Project has the potential to host a potential 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 six 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 inferred) , 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.
These elements collectively support the potential to advance beyond the historic ~871,000 oz base toward a open
pit deposit through successful expansion drilling and resource delineation.
“We are excited to advance to this critical next step at N2 following the impressive outcomes from our maiden
drill program,” said Deepak Varshney, CEO of Formation Metals Inc. “The wide intercepts of near -surface
mineralization, coupled with the project's historic resource base from decades of work by reputable operators
like Agnico-Eagle and others, and significant underexplor ed strike potential, position us well to delineate a
substantial NI 43-101 compliant resource. Our internal target and view of potential for N2 reflects the substantial
upside we see as we integrate these new data points and continue to unlock value in this advanced Abitibi gold
asset.”
The maiden resource estimate will be prepared by an independent qualified person in accordance with National
Instrument 43-101 guidelines. It will incorporate advanced geological modeling, updated metallurgical data, and
geostatistical analysis of both rec ent and historical drilling. Completion is anticipated by Q3 2026, with
opportunities identified for further resource expansion through ongoing and future drilling.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
Figure 2 – Historic drillhole locations; Formation believes that there is over 15 kilometres of strike to explore at the N2 property.
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) 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
(Fig. 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.
The drilling at N2 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 min eralization. The program will also focus on high -priority
infilling and expansion targets in these zones to significantly enhance the auriferous zones identified to -date
(Fig. 2).
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 to 1.7 g/t over 35 metres.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
• 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.
Figure 3 - 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,
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 2026 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 2026 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 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.
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
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
flagship asset is the N2 Gold Project, an advanced 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
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 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 30,000-metre drilling program. 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 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.
Suite #400 – 1681 Chestnut Street, Vancouver, BC V6J 4M6
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.