Formation Capital Corporation

Formation Capital Corporation

September 15, 2009 08:00 ET

Permanent Access Across Blackbird Mine Site Authorized for Formation's Cobalt Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 15, 2009) - Formation Capital Corporation (TSX:FCO) has been informed by its wholly owned subsidiary, Formation Capital Corporation, U.S. ("the Company") that the Seventh District Court of the State of Idaho received a report from the Commissioners (see September 09, 2008 Company News Release) and issued a formal Notice of Report of Commissioners and Award. This Notice, followed by the tender of the award, gives the Company the Right of Way to proceed with access across the historic Blackbird Mine Site for the purpose of mining cobalt from its 100% owned Idaho Cobalt Project, in accordance with State of Idaho Statute 47-902, Rights of Way and Easements for Development of Mines. The Blackbird Mine Site is indirectly owned by Swiss based Xstrata PLC through its subsidiaries Noranda Mining Inc. and the Blackbird Mining Company.

The Commissioners' letter to the district court Judge stated they had unanimously determined a dollar value for the easement payable to the land owners in the amount of US $52,500. As with any legal proceeding this determination may be subject to appeal. Notwithstanding, payment in full of this one time compensation has been tendered thus satisfying the State of Idaho Statute 47-908, which states;

"Upon the payment of the sum assessed as (compensation) as aforesaid, to the persons to whom it is awarded,... then the person petitioning... may immediately proceed to occupy the same and erect thereon such works and structures, and make therein such excavations, as may be necessary to the use and enjoyment of the right of way so awarded.

"Although not unexpected, to have this behind us is very welcome news," stated Bill Scales, President of Formation Capital Corporation, U.S. He continued, "This will allow us to move quickly to begin road upgrades necessary to move mine equipment to the mine site after we have posted the reclamation bond and sorted out the last few details." The Company has already stored mine equipment in staging areas near the mine site that include the ball mill, flotation cells, vibratory feeders, grizzly and hoppers, crusher and concentrator buildings, power transformer and parts for the aerial tram that will deliver ore to the mill.

Formation Capital Corporation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. The Company trades on the Toronto Stock Exchange under the symbol FCO.

Formation Capital Corporation

Mari-Ann Green, C.E.O.

The statements contained in this news release in regard to Formation Capital Corporation that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Formation Capital Corporation's beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that actual outcome and the actual results could differ from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative, corporate, commodity price and marketplace changes.

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