Mr. Deepak Varshney reports

FORMATION METALS MOBILIZES SECOND RIG TO ACCELERATE 14,000 METRE DRILL PROGRAM AT ITS ADVANCED N2 GOLD PROJECT

Formation Metals Inc. has mobilized a second drill rig to its flagship N2 gold property to accelerate its fully financed 30,000-metre drill program.

The company has working capital of approximately $12.1-million with zero debt. Inclusive of provincial tax credits from the Quebec government, Formation's exploration budget for 2025/2026 is set at approximately $8.1-million.

N2 is host to a global historic resource of approximately 871,000 ounces comprising 18 million tonnes at grading 1.4 grams per tonne gold (approximately 810,000 ounces gold) across four zones (A, East, RJ East and Central) and 243,000 tonnes grading 7.82 grams per tonne gold (approximately 61,000 ounces gold) across the RJ zone.

Phase 1, comprising 14,000 metres, is designed to:

• Resource confidence and conversion: infill shallow gaps to improve confidence in near-surface mineralization;
• Resource growth: test downdip extensions and stepouts along strike to the west beyond the historic resource limits;
• Metallurgy: collect representative core for confirmatory test work to validate recoveries.

Targeting a conceptual open-pit resource, Formation is aiming to deliver a maiden mineral resource estimate after phase 1 in Q3, incorporating nearly 70,000 metres of drilling. The second rig will be deployed to systematically test priority targets at the A and RJ zones across over eight kilometres of strike, accelerating its program while evaluating multiple discovery targets across the corridor.

Over the coming months, the company plans to outline a focused and exciting exploration program at N2, reflecting the broader depth of opportunities across the project and supporting sustained, disciplined exploration activity beyond the current drilling phase.

Deepak Varshney, chief executive officer of formation, commented: "Momentum continues to build at N2. Drilling at the A zone is progressing well, and we are very encouraged by what we are seeing in the core to date. Given the visual continuity of mineralization, accelerating phase 1 with a second rig was an easy decision to make and we look forward to sharing updates as we progress with our winter campaign."

Assay results from the initial holes advanced are expected to be announced shortly. The company will provide continuing updates as drilling progresses.

Highlights of the program to date:

The company has completed 16 drill holes totalling 4,743 metres to date. Significant intervals identified to date include:

• N2-25-008: 208.8 metres of target mineralization intercepted beginning at 28.6 metres downhole, with multiple intervals over 40 metres in width, including up to 70.0 metres;
• N2-25-011: 166.8 metres of target mineralization intercepted beginning at 60.0 metres downhole, with multiple intervals over 20 metres in width, including up to 70.6 metres.

The mineralization intercepted to date has been shallow and wide, with nine out of 13 drill holes intercepting target mineralization within the first 25 metres and 10 drill holes each intercepting over 80 cumulative metres of target mineralization.

The intense quartz-carbonate veining and sulphide mineralization observed visually is directly comparable with the material that yielded long gold intervals in historical drilling, including 245-91-151, which intercepted 1.7 g/t Au over 35.0 metres.

Other historically significant drill results from similar material include:

• A zone: 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.

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) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold).

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.

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'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.

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.

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.

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.

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 hosting a global historic resource of approximately 871,000 ounces. This includes approximately 810,000 ounces gold (18 million tonnes grading 1.4 g/t Au) across the A, East, RJ East and Central zones and a high-grade component of approximately 61,000 ounces gold (243,000 tonnes grading 7.82 g/t Au) at the RJ zone.

N2 features six mineralized zones, each open for expansion along strike and at depth. Key targets include the A zone, where only approximately 35 per cent of the strike has been drilled (greater than 3.1 kilometres open), and the RJ zone, which hosts historical high-grade intercepts as high as 51 g/t Au over 0.8 metre.

We seek Safe Harbor.