VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 13, 2011) - Formation Metals Inc. (the "Company") (TSX:FCO) announced today that it has the conditional approval of the Toronto Stock Exchange to extend the Expiry Date, from May 2, 2011 to May 2, 2012, subject to the Acceleration Right defined below, of 2,493,447 outstanding share purchase warrants issued on April 29, 2009 (the "Warrants"). None of the Warrants are listed and, except for the non-arms' length holders of 29,646 Warrants, all of the holders of the Warrants are at arm's length to the Company. Each Warrant entitles the purchase, at $2.80 per share, of one common share of the Company. No change in the exercise price of the Warrants is proposed. The extension of the Expiry Date of the 29,646 Warrants held by insiders of the Company is subject to shareholder approval.

If, at any time following August 30, 2009, the volume weighted average trading price of the shares on the Toronto Stock Exchange for any ten (10) consecutive trading days is CDN$5.25 or more, the Company may give notice to the holder that the expiry date for exercise of the Warrants has been accelerated (the "Acceleration Right"), in which event the expiry date for the exercise of the Warrants will be the twentieth (20th) Business Day following the date of such notice (the "Accelerated Expiry Date"). All Warrants not exercised by the expiration of the Accelerated Expiry Date shall be deemed cancelled without further notice to the holder.

"In May 2009 we completed a non-brokered private placement with long-term retail shareholders. Along with large institutional shareholders these smaller shareholders are important to us," commented Mari-Ann Green, CEO of Formation Metals Inc. She continued, "These shareholders are all too aware that the recent successful closing of the $80 million financing did not happen overnight and we wanted to offer them the opportunity to be warrant holders during the construction stage of development over the next year."

Formation Metals Inc.

Mari-Ann Green, C.E.O.

About Formation Metals Inc.

Formation Metals Inc. is a well established, mineral exploration, development and refining company that is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation trades on the Toronto Stock Exchange under the symbol FCO.


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