Mr. Deepak Varshney reports

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

Formation Metals Inc. intends to initiate a maiden mineral resource estimate compliant with National Instrument 43-101 standards at its flagship N2 gold property following the completion of its continuing expanded 14,000-metre phase 1 drill program.

Thirteen holes have been advanced to date as part of the company's fully financed 30,000-metre campaign, with the drilling successfully demonstrating:

• Substantial widths of target mineralization are present: Ten drill holes 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: Nine drill holes 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 Nov. 26, 2025).

With over 55,517 metres drilled historically yielding a global historic resource of approximately 871,000 ounces comprising 18 million tonnes grading 1.4 grams per tonne (approximately 810,000 ounces gold) and 243,000 tonnes grading 7.82 grams per tonne gold (approximately 61,000 ounces gold) 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 to 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 grams per tonne gold 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 metre, 24.5 g/t Au over 0.9 metre, 16.5 g/t Au over 3.6 metres, 11.14 g/t Au over three metres and 8.94 g/t Au over 5.1 metres.

This bulk-tonnage-style deposit, combined with shallow depths and favourable 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 kilometres south of the mining town of Matagami, Que., N2 comprises 87 claims totalling approximately 4,400 hectares in the prolific Abitibi greenstone belt (Casa Berardi deformation zone). This prime location provides year-round access through provincial highways and logging roads, proximity to skilled labour, 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 kilometres east of the former-producing Vezza gold mine operated by Nottaway Resources from 2013 to 2019 producing over 100,000 ounces of gold by underground methods.

Other notable nearby operations include Hecla Mining's Casa Berardi mine (approximately 120 kilometres to the northwest, with over two million ounces produced historically and 14.3 million tonnes at 2.75 g/t Au P&P (proved and probable) in reserve) and Maple Gold Mines' Douay project (30 km to the east, hosting 10 million tonnes at 1.59 g/t Au indicated and 76.7 million tonnes at 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 mills, 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 greater than 3.1 km of strike open (only approximately 35 per cent drilled historically), while the RJ zone has greater than 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 (approximately 350 m), leaving considerable vertical upside in a proven gold camp.
• Wide, continuous near-surface intercepts: Recent drilling has confirmed thick zones (100 to more than 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 multimillion-ounce deposits (for example, Casa Berardi -- greater than two million ounces produced and 14.3 million tonnes at 2.75 g/t Au P&P in reserve, Douay -- greater than three million ounces in resources (10 million tonnes at 1.59 g/t Au indicated and 76.7 million tonnes at 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 (induced polarization, electromagnetic, VTEM (versatile time-domain electromagnetic)) 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 approximately 871,000 ounces 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, chief executive officer of Formation Metals. "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 underexplored 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 modelling, updated metallurgical data, and geostatistical analysis of both recent and historical drilling. Completion is anticipated by Q3 2026, with opportunities identified for further resource expansion through continuing and future drilling.

Project summary

Comprising 87 claims totalling approximately 4,400 hectares within the Abitibi subprovince of northwestern Quebec, Formation's flagship N2 gold project is an advanced gold project with a global historic resource of approximately 871,000 ounces comprising 18 million tonnes grading 1.4 g/t Au (approximately 810,000 ounces gold) across four zones (A, East, RJ East and Central) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold) across the RJ zone.

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 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 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 approximately 522,900 ounces identified at a grade of 1.52 g/t Au: Approximately 15,000 metres have been drilled historically across 1.65 km of strike, with over 3.1 km of strike remaining to be tested. Eighty-four per cent of historical drill holes intercepted auriferous intervals, including up to 1.7 g/t over 35 metres.
• RJ zone -- a high-grade historic gold deposit with approximately 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 metre and 16.5 g/t Au over 3.5 metres: 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 approximately $800 (U.S.) per ounce. Only approximately 900 metres of strike have been drilled, with more than 4.75 km of strike remaining to be tested.

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 drill holes known to have significant gold grades (greater than one g/t Au). Assay results range from 200 to 4,750 parts per million and 203 to 6,700 ppm for copper and zinc, respectively, indicating strong potential for elevated base metal (copper-zinc) 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 northwest-southeast to west-northwest-east-southeast structural trends typical of VMS (volcanogenic massive sulphide) 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 west-northwest-east-southeast 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 Babak V. Azar, PGeo, Geo (OGQ No. 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 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 approximately 871,000 ounces (18 million tonnes grading 1.4 g/t Au (approximately 810,000 ounces gold) across four zones (A, East, RJ East and Central) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold) across the RJ zone) and six mineralized zones, each open for expansion along strike and at depth, including the A zone, of which only approximately 35 per cent of strike has been drilled (greater than 3.1 km open), and the RJ zone, host to historical high-grade intercepts as high as 51 g/t Au over 0.8 metre.

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