Formation Metals Expands Phase 1 Drill Program to 14,000 Metres at its Advanced N2 Gold Project

Highlights:

• The Company is undertaking a fully funded 30,000 metre drill program at its flagship N2 Gold Project in Quebec, host to a global historic resource of ~871,000 ounces comprised of 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 zone^2,4.

• Phase 1 has been expanded to approximately 14,000 metres based on the results of the fieldwork to-date, which includes the following significant intervals:

  • N2-25-008: 208.8 metres of target mineralization was intercepted beginning at 28.6 metres downhole, with multiple intervals over 40 metres in width including up to 70.0 metres.

  • N2-25-011: 166.8 metres of target mineralization was intercepted beginning at 60.0 metres downhole, with multiple intervals over 20 metres in width including up to 70.6 metres.

• 13 drillholes totalling 3,879 metres have been completed to-date, with mineralization starting within the first 10 metres in 4 drillholes and the first 25 metres within 6 drillholes. In addition to the above, long mineralized intervals were observed in each of the other drillholes, with a further 3 drillholes returning over 100 cumulative metres of target mineralization, and 4 greater than 80 metres.
  
  Assays will be released shortly following final compilation and interpretation.
  
  The intense quartz-carbonate veining and sulfide mineralization (pyrite/arsenopyrite) in sheared and brecciated zones observed visually is directly comparable to the material that yielded long gold intervals in historical drilling including 245-91-151, which intercepted 1.7 g/t Au over 35.0 metres.

• The Company has working capital of ~C$12.3M with zero debt. Inclusive of provincial tax credits from the Quebec government, Formation's exploration budget for 2025-2026 is set at ~$8.1M.

VANCOUVER, BC / ACCESS Newswire / January 15, 2026 / Formation Metals Inc. ("Formation" or the "Company") (CSE:FOMO)(FSE:VF1)(OTCQB:FOMTF), a North American mineral acquisition and exploration company, is pleased to provide an update from the fully funded 30,000 metre drill campaign underway at its flagship N2 Gold Property ("N2" or the "Property"), located 25 km south of Matagami, Quebec, where the Company is targeting a multi-million ounce conceptual open-pit resource.

The Company has finished drilling the first thirteen holes of its Phase 1 drill program, and based on the findings to-date, has elected to expand Phase 1 to 14,000 metres following the identification of the following multiple stand-out intervals where target mineralization was identified in greater than 100 metre intervals downhole, including the following:

• N2-25-003: 152.9 metres of target mineralization was intercepted beginning at 23.1 metres downhole, with multiple intervals over 30 metres in width up to 37.9 metres.

• N2-25-006: 102.6 metres of target mineralization was intercepted beginning at 15.3 metres downhole, with multiple intervals over 10 metres in width including up to 23.4 metres.

• N2-25-008: 208.8 metres of target mineralization was intercepted beginning at 28.6 metres downhole, with multiple intervals over 40 metres in width including up to 70.0 metres.

• N2-25-009: 135.7 metres of target mineralization was intercepted beginning at 23.3 metres downhole, with multiple intervals over 30 metres in width including up to 43.4 metres.

• N2-25-011: 166.8 metres of target mineralization was intercepted beginning at 60.0 metres downhole, with multiple intervals over 20 metres in width including up to 70.6 metres.

• N2-25-013: 121.7 metres of target mineralization was intercepted beginning at 51.6 metres downhole, with multiple intervals over 10 metres in width including an interval of up to 30.8 metres with visible gold (see press release dated November 26, 2025).

In addition to the above, long mineralized intervals were observed in each of the other drillholes, with each of N2-25-01, N2-25-04, N2-25-07 and N2-25-10 returning total mineralized intervals cumulatively exceeding 80 metres, with mineralization starting within the first 10 to 20 metres.

Deepak Varshney, CEO of Formation Metals, stated, "The consistency of this deposit observed within this drill campaign has been spectacular. Building a bulk tonnage open-pit resource requires finding repeatable mineralization across long strikes and widths, and the target mineralization we are observing fits what Formation is focused on its maiden drill campaign."

Mr. Varshney continued: The thick continuous zones of mineralization observed significantly expand the potential for a large-scale, low-strip multi-million ounces open pit development. With 30,000 metres fully funded and just over C$12 million in working capital, Phase 1 is the first step on our journey to realizing this conceptual model and we look forward to sharing further updates in the coming weeks."

To-date, the Company's maiden drill program has focused on assessing the first three hundred metres vertical, with 3,879 metres of drilling completed on near surface targets at the "A" and "RJ" zones where historic drill database reveals auriferous composite intervals up to 35 metres at 1.7 g/t gold. (Table 1).

The drilling in the "A" zone was particularly successful, where a significant correlation was identified in terms of lithological intervals and sequences, alteration products and mineralization forms and variety between the geological features along these holes and those of surrounding historic drill holes. The Company is finalizing its data compilation and interpretation and will shortly release assays. The expanded drill program will focus on testing further along strike and within large gaps of the historical block model within the "A" zone.

Table 1 summarizes the drilling completed to-date. The drill holes were designed and oriented perpendicular to the identified historic auriferous strikes in both the "A" and "RJ" zones correlated with and controlled by main deformation zones and associated with EM conductivity anomalies which successfully intersected targeted geological structures and notable mineralization in both zones, consistent with the project's historic geological model (Figures 1 and 2).

The NQ diamond drill holes drilled by Forage DCB Drilling and the collected drill core have been transferred to the Technominex facility in Rouyn-Noranda, Quebec, where they completed core logging and split the core in half utilizing a water-cooled diamond core saw. Samples were systematically collected in 0.5 metre to 1.5 metre intervals down the holes where geological features identify special intervals of interest and sample length. The collected samples were securely marked up and stored in the logging facility until being dispatched to the Laboratoire Expert Inc. in Rouyn-Noranda.

Qualified person

The technical 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 National Instrument 43-101. Historical reports provided by the optionor were reviewed by the qualified person. The information provided has not been verified and is being treated as historic.

Quality Assurance and Quality Control

A comprehensive Quality Assurance and Quality Control (QA/QC) program was implemented during the drilling program to ensure the integrity, reliability, and representativeness of all collected samples. This program strictly adhered to industry best practices, encompassing the development and adherence to detailed Standard Operating Procedures (SOPs) for core handling, logging, and sampling. Quality control measures included the insertion of certified reference materials (standards), barren blanks, and field duplicates into the sample stream at a rate of 10% of the total samples. A rigorous chain-of-custody was maintained throughout the sampling process, from the drill site to the independent analytical laboratory, Laboratoire Expert Inc.

Project Summary

Comprising 87 claims totaling ~4,400 ha within the Abitibi sub province of Northwestern Quebec, Formation's flagship N2 Gold Project is an advanced gold project with a global historic resource of ~871,000 ounces comprised of 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,

There are six primary auriferous mineralized zones in total, each open for expansion along strike and at depth (Figure 3) Compilation and geophysical work by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 generated numerous targets that have not yet been investigated with diamond drilling.

The drilling at N2 is designed to focus on discovery drilling at new high-potential targets along the mineralization strikes at the "A", "RJ" and "Central" zones in the northern part of the Property in order to discover new auriferous trends and unlock new zones of gold mineralization. The program will also focus on high-priority infilling and expansion targets in these zones to significantly enhance the auriferous zones identified to-date (Fig. 6).

Historical highlights from the top two priority zones include:

• A Zone: A shallow, highly continuous, low-variability historic gold deposit with ~522,900 ounces identified at a grade of 1.52 g/t Au. ~15,000 metres have been drilled historically across 1.65 km of strike, with over 3.1 km of strike remaining to be tested. 84% of historical drillholes intercepted auriferous intervals including up to 1.7 g/t over 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 intercepts from historical drill holes as high as 51 g/t Au over 0.8 metres and 16.5 g/t Au over 3.5 metres². 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 ~US$800/oz. Only ~900 metres of strike has been drilled, with 4.75+ km of strike remaining to be tested.

The Company also believes that N2 has significant base metal potential, where it recently completed a revaluation process which revealed significant copper and zinc intercepts within historic drillholes known to have significant gold grades (>1 g/t Au). Assay results range from 200 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) concentrations across the property, specifically at the A and RJ zones. Property wide geology at N2 features volcanic and sedimentary rocks formed in regional anticlinal and synclinal flexures. Three principal deformation structures, oriented along the known NW-SE to WNW-ESE structural trends typical of VMS deposits in the Matagami region, function as critical geologic controls for mineralization on the property.

For the 2026 exploration season, Formation plans to concentrate its efforts on the northern part of N2, targeting gold deposit expansion and discovery along identified zones and fault systems associated with the main deformation features (specifically WNW-ESE trend), with IP surveys and drilling planned to model mineralized zones that will hopefully contribute to an updated NI 43-101 compliant resource. Formation will also look to further review historic base metal assays from older drill core and undertake additional work in 2025 to assess the property's copper and zinc potential.

Property Shares

The Company also announces that, further to its news release of January 24, 2025, it has issued 1,000,000 common shares (the "Shares") at a deemed price of $0.33 per Share to Wallbridge Mining Company Limited ("Wallbridge Mining"), pursuant to its property option agreement (the "Option Agreement") entered with Wallbridge Mining on January 15, 2025 respecting N2. This issuance of Shares represents the first anniversary payment owing to Wallbridge under the Option Agreement. The Shares are subject to a hold period in accordance with applicable Canadian securities laws.

About Formation Metals Inc.

Formation Metals Inc. 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 ~871,000 ounces (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 zone^2,4) and six mineralized zones, 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 over 0.8 metres.

FORMATION METALS INC.

Deepak Varshney, CEO and Director

For more information, please call 778-899-1780, email dvarshney@formationmetalsinc.com or visit www.formationmetalsinc.com.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Notes and References:

1. Readers are cautioned that the geology of nearby properties is not necessarily indicative of the geology of the Property.

2. 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 in the 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 economic viability. The Company is not aware of any more recent estimates prepared for the N2 Property.

3. Needham, B. (1994), 1993 Diamond Drill Report, Northway Joint Venture, Northway Property; Cypress Canada Inc.; 492 pages.

4. Guy K. (1991), Exploration Summary May 1, 1990 to May 1, 1991 Vezza Joint Venture Northway Property; Total Energold; 227 pages.

Forward-looking statements:

This news release includes "forward-looking statements" under applicable Canadian securities legislation, including statements respecting: the Company's plans for the Property and the expected timing and scope of the drilling program at the Property; the Company's goal of delivering a near-surface multi-million-ounce deposit the Property; the Company's view that the Property has the potential for over three million ounces of gold; the Company's planned 30,000-metre drilling program; and statements respecting the Offerings, the timing thereof and the expected use of proceeds therefrom. Such forward-looking information reflects management's current beliefs and is based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Readers are cautioned that such forward-looking statements are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, 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 and permits, and other risks in the mining industry.

The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the 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 be accurate, and actual results and future events could differ materially from those anticipated in such statements.

SOURCE: Formation Metals