Formation Metals Intersects 0.98 g/t Au over 95.6 Metres Starting 7 Metres Below Surface,Including 3.14 g/t Au over the First 10 Metres, Extending the A-Zone Up to 50Metres North at N2
Gold starts in the first sample below a thin overburden cover and runs for 95.6metres. N2-26-033 extends the A-Zone’s northern auriferous horizon 25 metresnorth over the upper 100 metres of the hole and up to 50 metres north at depth.Drilling into this previously untested ground shows that the horizonpotentially remains open to the north.
Highlights
· Thick, continuousgold from 7 metres below surface. N2-26-033,drilled north of the A-Zone, returned 0.98 g/t Au over 95.6 metres beginning at8.4 metres downhole (7.1 metres vertical), including 3.14 g/t Au over 10.0 metresfrom 8.4 metres.
· New ground, open to thenorth. The hole extends mineralization beyond the northern limitof the historical wireframes and joins Phase 1 holes N2-25-005 (0.91 g/t Auover 42.3 metres from 9.9 metres vertical) and N2-25-012 (1.75 g/t Au over 30.4metres from 45.3 metres vertical) on the same northern horizon.
· The Company isundertaking a fully funded 75,000 metre drill program at its flagship N2Property in Quebec, host to a global historic resource of ~871,000ounces comprised of 18 Mt grading1.4 g/t Au (~810,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4.
· Across the A-Zone, 84% of historicaldrillholes intercepted gold, reflecting a highly continuous, low-variabilitysystem that this northward extension drilling is now confirming across strike.
· This hole sits beyond the northern edge ofthe western historic core of the A-Zone (historical resource of ~0.5 Moz at~1.5 g/t Au). Formation will continue steppingout north toward the main deformation zone, where the horizon remains open.
Figure 1 – Plan view of N2-26-033 along with the Phase1 and Phase 2 drillings on the northern horizon of the western core of theA-Zone. N2-26-033 extends the northern horizon approximately 25+ metres beyondits previously modelled limit.
The Company has workingcapital of ~C$26.3M5 with zero debt
· Thick, continuousgold from 7 metres below surface. N2-26-033,drilled north of the A-Zone, returned 0.98 g/t Au over 95.6 metres beginning at8.4 metres downhole (7.1 metres vertical), including 3.14 g/t Au over 10.0 metresfrom 8.4 metres.
· New ground, open to thenorth. The hole extends mineralization beyond the northern limitof the historical wireframes and joins Phase 1 holes N2-25-005 (0.91 g/t Auover 42.3 metres from 9.9 metres vertical) and N2-25-012 (1.75 g/t Au over 30.4metres from 45.3 metres vertical) on the same northern horizon.
· The Company isundertaking a fully funded 75,000 metre drill program at its flagship N2Property in Quebec, host to a global historic resource of ~871,000ounces comprised of 18 Mt grading1.4 g/t Au (~810,000 oz Au) across four zones (A, East, RJ-East, and Central)2,3and 243 Kt grading 7.82 g/t Au (~61,000 oz Au) across the RJ zone2,4.
· Across the A-Zone, 84% of historicaldrillholes intercepted gold, reflecting a highly continuous, low-variabilitysystem that this northward extension drilling is now confirming across strike.
· This hole sits beyond the northern edge ofthe western historic core of the A-Zone (historical resource of ~0.5 Moz at~1.5 g/t Au). Formation will continue steppingout north toward the main deformation zone, where the horizon remains open.
Figure 2 –Cross-section through N2-26-033 (azimuth 320°, 100 metre section width) showingmineralization starting directly below the overburden and the interpreted125-metre-wide mineralized envelope of the northern horizon of the western coreof the A-Zone.
TheNQ diamond drill holes drilled by Forage DCB Drilling and the collected drillcore have been transferred to the logging facility in Val d’Or, Quebec, wherethey completed core logging and split the core in half utilizing a water-cooleddiamond core saw. Samples were systematically collected in 0.5 metre to 1.5metre intervals down the holes where geological features identify specialintervals of interest and sample length. The collected core samples along withstandards and blanks were securely marked up and stored in the logging facilityuntil being dispatched to the AGAT Laboratories Ltd in Val d’Or, Quebec, Canada.
The Company’sdrilling campaign has exceeded expectations, confirming geological continuityand delivering robust and continuous gold intercepts including:
· N2-25-004: 0.83 g/t Au over 40.4metres beginning at 180.0 metres downhole, 147.4 metres vertical. Highlightinterval includes 1.36 g/t Au over 9.0 metres.
· N2-25-005: 0.91 g/t Au over 42.3 metres beginning at 14.0 metresdownhole, 9.9 metres vertical. Highlight intervals include 2.04 g/t Au over 8.1metres and 1.31 g/t Au over 11.4 metres.
· N2-25-006: 1.8 g/t Au over 21.9metres beginning at 154.4 metres downhole, 133.7 metres vertical. Highlightinterval includes 3.4 g/t Au over 4.8 metres.
· N2-25-007: 1.3 g/t Au over 22.2 metres beginning at 139.9 metresdownhole, 121.2 metres vertical. Highlight interval includes 2.36 g/t Au over10.5 metres·
· N2-25-008: 0.95 g/t Au over 61.1 metres beginning at 109 metresdownhole, 94.4 metres vertical. Highlight interval includes 1.68 g/t Au over26.5 metres.
· N2-25-009: 1.37 g/t Au over 24.0metres beginning at 168.9 metres downhole, 146.3 metres vertical. Highlightinterval includes 2.05 g/t Au over 13.3 metres.
· N2-25-010: 1.43 g/t Au over 19.4 metres beginning at 117.5 metresdownhole, 101.8 metres vertical. Highlight interval includes 2.23 g/t Au over7.0 metres.·
· N2-26-15A: 1.41 g/t Au over 20.6 metres beginning at 499.1 metresdownhole, 486.3 metres vertical. Highlight interval includes 2.63 g/t Au over5.5 metres and 1.78 g/t Au over 7.2 metres.
· N2-26-021: 1.05 g/t Au over 31.0 metres beginning at 243.0 metresdownhole, 203.8 metres vertical. Highlight interval includes 1.89 g/t Au over12.0 metres..
Basedon these results, the Company believes the A-Zone hosts a robust mineralizedveining system that fluctuates between 20 and 75 metres, is potentially 300metres wide, with a potential of up to 8 km in strike. The A-Zone remains open in multiple directions,specifically along strike (E-W) and down-plunge/depth (S).
Situated on the northernedge of the “A” Zone, N2-26-033 is Formation’s most productive northern drillhole to date. It was drilled to test whether the system continues beyond thenorthern boundary ofthe A-Zone’s historical estimate, and it returned gold from the first sample to104 metres downhole.
ProjectSummary
Comprising87 claims totaling ~4,400 ha within the Abitibi sub province of NorthwesternQuebec, Formation’s flagship N2 Property is an advanced gold
project witha global historic resource of ~871,000 ouncescomprised of 18 Mt grading 1.4 g/t Au (~810,000 oz Au)2,3and 243 Kt grading 7.82 g/t Au (~61,000 oz Au)2.
There are sixprimary auriferous mineralized zones in total, each open for expansion alongstrike and at depth. Compilation and geophysical work by Balmoral ResourcesLtd. (now Wallbridge Mining) from 2010 to 2018 generated numerous targets thatare being investigated for the first time by Formation with diamond drilling.
Historicalhighlights from the top two priority zones include:
· A Zone: a shallow, highly continuous, low-variability historicgold deposit with ~522,900 ounces identified at a grade of 1.52 g/t Au. ~15,000metres have been drilled historically across 1.65 km of strike, with 84% ofhistorical drillholes intersected auriferous intervals including up to 1.7 g/tover 35 metres..
· RJ Zone: a high-grade historic gold deposit with~61,100 ounces identified at a grade of 7.82 g/t Au, with high-grade interceptsfrom historical drill holes as high as 51 g/t Au over 0.8 metres and 16.5 g/tAu over 3.5 metres2. This zone was the target of the mostrecently drilling at the Property by Agnico-Eagle Mines in 2008, when the priceof gold was ~US$800/oz. Only ~900 metres of strike has been drilled, with 4.75+km of strike remaining to be tested.TheCompany’s internal view and evaluations suggest that N2 exhibits a stronggeological potential possessing favorable characteristics to support anear-surface, open-pit resource development. This optimism is driven by severalkey factors:
Figure 3 -Historic drillhole locations; Formation believes that there is over 15kilometres of strike to explore at the N2 property.
· Significant Undrilled Strike Length: The “A” Zone alone has >3.1 km of strike open (only ~35% drilled historically), while the RJ Zone has >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 (~350 m), leaving considerable vertical upside in a proven gold camp.
· Wide, Continuous Near-Surface Intercepts: Recent drilling has confirmed thick zones (100-200+ 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 multi-million-ounce deposits (e.g., Casa Berardi >2 Moz produced and 14.3 Mt @ 2.75 g/t Au P&P in reserve, Douay >3 Moz in resources (10 Mt @ 1.59 g/t Au indicated, and 76.7 Mt @ 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, 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 Mata gami, Quebec, the Property hasyear-round access via provincial highway and logging road, proximity to skilledlabour, power infrastructure and established mining services, in a district that has produced in excess of 200 million ounces of gold. The Property lies along the Casa Berardi mine trend, which hosts multiple million-ounce gold deposits, and sits approximately 1.5 kilometres east of the former-producing Vezza gold mine, which produced over 100,000 ounces of gold from 2013 to 2019 by underground methods.
Theregion’s robust infrastructure supports toll milling opportunities, withpotential access to nearby processing facilities such as those at Casa Berardior other Abitibi mills, enabling cost-effective development without the needfor on-site mill construction..
DeepakVarshney, CEO of Formation Metals, stated: “Gold from the first sample belowoverburden, for almost a hundred metres, is exactly what you want to see in anopen-pit setting. The best grades in this hole are at the very top: 3.14 g/t Auover 10 metres starting seven metres below surface. Gold this close to surface,this thick and this consistent is exactly what open-pit investors look for, andin our view it’s what sets N2 apart. This hole sits outside the boundary thehistorical work drew, the horizon is still open to the north, and we have afully funded 75,000-metre program to keep chasing it.”
Mr.Varshney continued: “We are drilling mineralized ground the historical estimatenever covered, and the horizon is still open to the north. The system is openat depth, along strike and across strike, and every direction we have tested sofar has returned gold. All of it feeds the maiden Mineral Resource Estimate weare working towards.”
Figure 4 -Property overview summarizing historical work completed at each of the sixmineralized zones and their respective historical resource.
The Company also believes that N2 has significant basemetal potential, where it recently completed a revaluation process whichrevealed significant copper and zinc intercepts within historic drillholesknown to have significant gold grades (>1 g/t Au). Assay results range from200 to 4,750 ppm and 203 ppm to 6,700 ppm, for copper and zinc, respectively,indicating strong potential for elevated base metal (Cu-Zn) concentrationsacross the property, specifically at the A and RJ zones. Property wide geologyat N2 features volcanic and sedimentary rocks formed in regional anticlinal andsynclinal flexures. Three principal deformation structures, oriented along theknown NW-SE to WNW-ESE structural trends typical of VMS deposits in theMatagami region, function as critical geologic controls for mineralization onthe property.
Qualified person
Thetechnical content of this news release has been reviewed and approved by Mr.Babak V. Azar, P.Geo., géo (OGQ#10876) an independent contractor and a qualified person as defined by NationalInstrument 43-101. Historical reports provided by the optionor were reviewed bythe qualified person.
QualityAssurance and Quality Control
Thequality assurance and quality control protocols include insertion of blank orstandard samples every 10 samples on average during the analytical process. Thegold analyses were completed by fire assay (FA) method with an ICP finish on 50grams of materials at the AGAT Laboratories Ltd in Val d’Or, Quebec, Canada.The repeats were carried out by FA followed by gravimetric testing on eachsample 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 goldcontents or the presence of visible gold.
About Formation Metals Inc.
FormationMetals Inc. is a North American mineral acquisition and exploration companyfocused on the development of quality properties that are drill-ready withhigh-upside and expansion potential. Formation’s flagship asset is the N2Property, an advanced gold project with a global historic resource of ~871,000ounces (18 Mt grading 1.4 g/t Au (~810,000 oz Au) across four zones (A,East, RJ-East, and Central)2,3 and 243 Kt grading 7.82 g/t Au(~61,000 oz Au) across the RJ zone2,4) and six mineralizedzones, each open for expansion along strike and at depth including the “A”zone, of which only ~35% of strike has been drilled (>3.1 km open), and the“RJ” zone, host to historical high-grade intercepts as high as 51 g/t Au over0.8 metres.
FORMATION METALS INC.
Deepak Varshney, CEO and Director.
For more information, please call 778-899-1780, email [email protected] or visit www.formationmetalsinc.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy oraccuracy of this release.
Notes and References:.
· The above referenced resource estimates do not have a category, are considered historical in nature, and are based on prior data prepared by a previous property owner, and do not conform to current CIM categories.
While the Company considers the estimates to be reliable, a qualified person has not done sufficient work to classify the historical estimates as current resources in accordance with current CIM categories and the Company is not treating the historical estimates as a current resource. A 0.5 g/t Au cut-off was used inthe preparation of the historical estimates with a minimum 2.5 metre mining width.
Significant data compilation,re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimates can be classified as current resources. There can be no assurance that any of the historical mineral resources, in whole or in part, will ever become economically viable. In addition, mineral resources are not mineral reserves and do not have demonstrated economicviability. The Company is not aware of any more recent estimates prepared forthe N2 Property.
. Needham,B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, NorthwayProperty; Cypress Canada Inc.; 492 pages.
. Guy K.(1991), Exploration Summary May 1, 1990 to May 1, 1991 Vezza Joint VentureNorthway Property; Total Energold; 227 pages.
· Workingcapital is calculated as current assets less current liabilities and is basedon the Company’s unaudited internal accounts as at August 31, 2026. It is not astandardized financial measure under IFRS and may not be comparable to similarmeasures disclosed by other issuers.
Forward-looking statements:
This news release includes “forward-looking statements” underapplicable Canadian securities legislation, including statements respecting:the Company’s plans for the Property and the expected timing and scope of thedrilling program at the Property; and the Company’s planned 75,000-metredrilling program. Such forward-looking information reflects management’scurrent beliefs and is based on a number of estimates and/or assumptions madeby and information currently available to the Company that, while consideredreasonable, are subject to known and unknown risks, uncertainties, and otherfactors that may cause the actual results and future events to differmaterially from those expressed or implied by such forward-looking statements.Readers are cautioned that such forward-looking statements are neither promisesnor guarantees and are subject to known and unknown risks and uncertaintiesincluding, but not limited to, general business, economic, competitive,political and social uncertainties, uncertain and volatile equity and capitalmarkets, lack of available capital, actual results of exploration activities,environmental risks, future prices of base and other metals, operating risks,accidents, labour issues, delays in obtaining governmental approvals andpermits, and other risks in the mining industry.The Company is presentlyan exploration stage company. Exploration is highly speculative in nature,involves many risks, requires substantial expenditures, and may not result inthe discovery of mineral deposits that can be mined profitably. Furthermore,the Company currently has no reserves on any of its properties. As a result,there can be no assurance that such forward-looking statements will prove to beaccurate, and actual results and future events could differ materially fromthose anticipated in such statements.