Formation Metals Inc. has decided not to proceed with the equity offering announced February 24, 2010.

A notice of withdrawal of the Company's Preliminary Short Form Prospectus dated February 23, 2010, has been filed with the British Columbia Securities Commission.

"The Company has determined that the uncertainty surrounding cobalt's recent listing on the London Metals Exchange together with the pressure on the Company's share price does not create favourable conditions in which to complete the equity portion of the Idaho Cobalt Project (ICP) mine finance," stated Mari-Ann Green, C.E.O. of Formation Metals Inc. "Positive things are happening within the Company which are not being reflected in the Company's share price." She continued, "The ICP continues to move toward production with phase one construction nearing completion and long lead time mining equipment purchased and delivered to the staging area. In addition, the Company continues to make progress in its discussions with banks for project debt financing, and continues its dialogue for off-take arrangements. These are very positive developments."

"A more viable option is to seek a smaller working capital equity financing during these negotiations and then, once the terms of the debt financing and off-take arrangements are clarified, we can continue with the equity portion of the ICP mine finance. This is exactly what we intend to do. We are confident we can get this project built and deliver the value that we have promised our shareholders," concluded Ms. Green.