Mr. Deepak Varshney reports

FORMATION METALS ANNOUNCES NON-BROKERED OFFERING OF UP TO $15 MILLION FULLY ALLOCATED

Formation Metals Inc.'s proposed non-brokered private placement for aggregate gross proceeds of up to $15-million has been fully allocated.

Deepak Varshney, chief executive officer of the company, commented: "We are very pleased with the strong response to our financing, which has been fully allocated. We believe that the support from new and existing investors is a strong endorsement of N2 and strategy. We look forward to completing the close in the coming weeks and putting this capital to work to add 50,000 metres to our 2026 drill program ahead of our maiden resource in the fall. We are very excited to for the upcoming drill season and will share regular updates as we continue to advance N2."

Upon closing of the offering, the company intends on increasing its 2026 drill program to a fully financed 50,000 metres at the its flagship N2 gold project in Quebec, host to a global historic resource of approximately 871,000 ounces composed of 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.

The company is currently undertaking a fully financed 30,000-metre drill program, which has exceeded expectations, confirming geological continuity and delivering robust and continuous gold intercepts in holes drilled within the northern corridor of the A-Zone, including:

• N2-25-006: 1.8 g/t Au over 21.9 metres beginning at 154.4 metres downhole, 133.7 metres vertical; highlight interval includes 3.4 g/t Au over 4.8 metres with total metal index of 79.56;
• N2-25-008: 0.95 g/t Au over 61.1 metres beginning at 109 metres downhole, 94.4 metres vertical; highlight interval includes 1.68 g/t Au over 26.5 metres with total metal index of 67.97;
• N2-25-009: 1.37 g/t Au over 24.0 metres beginning at 168.9 metres downhole, 146.3 metres vertical; highlight interval includes 2.05 g/t Au over 13.3 metres with total metal index of 81.89;
• N2-25-012: 1.75 g/t Au over 30.4 metres beginning at 64.1 metres downhole, 45.3 metres vertical; highlight intervals include 3.51 g/t Au over 10.5 metres and 19.2 g/t Au over 0.51 metres with total metal index of 62.43.

The company's drill strategy for the rest of 2026 will focus on extensional drilling to the east and west of the A-zone along strike where it believes up to eight km may be mineralized in total, and, to the south, where it recently identified visible gold in a 400-metre stepout in drill hole N2-26-24, located south of N2-25-007, N2-25-008 and N2-25-010.

The company will also advance its base metal exploration program at N2, 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 concentrations across the property, specifically at the A and RJ zones. Property-wide geology at N2 features volcanic and sedimentary rocks formed in regional anti-clinal and synclinal flexures. Three principal deformation structures, oriented along the known northwest-southeast to west/northwest-east/southeast structural trends typical of volcanogenic massive sulphide deposits in the Matagami region, function as critical geologic controls for mineralization on the property.

Completion of the offering remains subject to a number of customary closing conditions.

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 composed of 18 million tonnes grading 1.4 g/t Au (approximately 810,000 oz Au) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 oz Au).

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 are being investigated for the first time by Formation 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 kilometres of strike, with 84 per cent of historical drill holes intercepting 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 oz; only approximately 900 metres of strike has been drilled, with 4.75-plus 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 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 200-plus metres) 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 Mt of 2.75 g/t Au proven plus probable in reserve, and Douay greater than three Moz in resources (10 Mt of 1.59 g/t Au indicated, and 76.7 Mt of 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 and 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.

Strategically located 25 km south of the mining town of Matagami, Que., 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 km east of the former-producing Vezza gold mine operated by Nottaway Resources from 2013 to 2019 producing over 100,000 ounces of gold through 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.

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, a qualified person as defined by National Instrument 43-101. Historical reports provided by the optionor were reviewed by the qualified person.

Quality assurance and quality control

The quality assurance and quality control protocols include insertion of blank or standard samples (accredited by Canadian Resource Laboratories) every 10 samples on average during the analytical process. The gold analyses were completed by fire assay method with an atomic absorption and ICP finish on 50 grams of materials at the Laboratoire Expert Inc. in Rouyn-Noranda, Que., Canada, and Agat Laboratories Ltd. in Val d'Or, Que., Canada. The repeats were carried out by FA followed by gravimetric testing on each sample containing 10.0 g/t gold or more. Total gold analyses (metallic sieve) were carried out on the samples, which presented a great variation of their gold contents or the presence of visible gold.

About Formation Metals Inc.

Formation 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 Mt grading 1.4 g/t Au (approximately 810,000 oz Au) 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 km open), and the RJ zone, host to historical high-grade intercepts as high as 51 g/t Au over 0.8 metre.

We seek Safe Harbor.