Mr. Deepak Varshney reports

FORMATION METALS RESPONDS TO OTC MARKETS REQUEST ON RECENT PROMOTIONAL ACTIVITY

Formation Metals Inc. has been requested by OTC Markets Group Inc. to issue this statement regarding recent promotional activity concerning the company's common shares traded on the OTCQB market.

On April 16, 2026, OTC Markets informed the company that it became aware of certain promotional activities concerning the company and its common shares, including the distribution of digital marketing materials by Steller Media Group LLC. These materials discussed the company's projects, its business model and the gold industry in general. The marketing materials also contained publicly available information and summaries of recent press releases and certain technical information issued by the company.

Stellar is an arm's-length third party marketing firm that was engaged by Emerging Markets Consulting LLC, an arm's-length third party marketing firm, that was engaged by 1502656 B.C. Ltd. (Wagner Media), which is also an arm's-length third party marketing firm. 1502656 B.C. Ltd. was engaged by the company to provide investor relations and public awareness services. The engagement was publicly disclosed in a press release dated Oct. 31, 2025. Under this agreement, 1502656 B.C. was compensated $350,000 for a six-month term to provide strategic digital media services, marketing (including awareness campaigns) and data analytical services to the company. The media disseminated are generated using publicly available information. 1502656 B.C. engaged EMC to assist it with providing its services to the company. Stellar and EMC were not paid by the company.

Management reviewed the marketing materials disseminated by EMC prior to their dissemination. The company does not believe any statements in the materials were materially false or misleading. However, the company acknowledges that all investments, including investing in the company's securities, involve certain risks and uncertainties which investors should review prior to making any investment decision. Investors are encouraged to conduct their own thorough due diligence before making any investment decisions. The company directs potential investors to rely solely on its filings and disclosures made with the Canadian Securities Administrators, available under the company's profile on SEDAR+.

The company understands that certain promotional activities may have coincided with an increase in trading volume of its shares; however, it believes that its press releases of Feb. 12, Feb. 19, Feb. 24, April 7 and April 16 garnered interest from investors, and may have been a potential catalyst for the increase in trading volume commencing April 16, 2026. The company has no opinion on whether the promotional activity was the primary cause of this increase, as multiple factors influence trading volume, including broader market conditions, industry trends and the aforementioned corporate developments recently announced by the company.

Following an internal inquiry of its officers, directors, any control person and any third party service providers, the company is not aware of any purchases or sales of its common shares in the past 90 days by such persons except for Deepak Varshney, the president, chief executive officer and a director of the company, purchased 100,000 shares on April 16, 2026. Investors are reminded that all insider transactions, including the aforementioned purchase by Mr. Varshney, are publicly disclosed in accordance with Canadian regulatory requirements and can be accessed by SEDI.

In the previous 12 months, the company has directly engaged the following third party service providers for corporate marketing, investor relations and/or promotional services: Altura Media Co. Inc. (February, 2026), 1502656 B.C. Ltd. (October, 2025), and Plutus Invest and Consulting GmbH (October, 2025). Additionally, the company engaged RMK Marketing Inc. in March, 2025.

Other than previously disclosed transactions in its public filings (which are available for viewing on SEDAR+), the company has not issued shares or convertible securities at a discount to market prices. To the knowledge of the company, all security issuances comply with applicable regulations and are detailed in the company's regulatory filings.

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 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 g/t Au (approximately 61,000 oz Au) 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 kilometres 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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