Formation Capital Corporation

Formation Capital Corporation

June 25, 2009 08:00 ET

Conceptual Studies Commence on Formation Capital's Virgin River Uranium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 25, 2009) - Formation Capital Corporation (the "Company") (TSX:FCO) is pleased to provide its shareholders with an update on its Virgin River Uranium Project, as provided to the Company by project operator, Cameco Corporation ("Cameco"). Located within the south-central portion of the Athabasca Basin in northern Saskatchewan, the project is a joint venture formed in 1998 between Formation Capital Corporation's wholly owned Canadian subsidiary, Coronation Mines Limited, Cameco and AREVA Resources Canada Inc. Coronation Mines Limited owns 2% of the project with a right to increase its ownership of the project up to 10% under certain circumstances.

The 2009 exploration program was designed to further outline the across strike width of mineralization along the currently defined 650 m strike length of the Centennial deposit. Four wedge holes were completed totaling 1,268 metres on two sections spaced 50 m apart during the winter program. Two holes (DDH's VR-027W3 and 027W4) were drilled on Section 11+00N while two holes (VR-031W2 and 031W3) were completed on Section L10+50N. In summary, all holes were mineralized, therefore extending the width of the mineralization 16 m on Section 11+00N and 13 m on Section 10+50N, resulting in the width of the mineralized zone on the sections now being 27 m and 24 m respectively. See the Company website posting of this news release for a drill hole location map.

The highlight of the winter program was hole VR-031W3, which intersected a high-grade mineralized section defined by core logging and down hole radiometric analysis. Certified assay results of this drill hole and remaining drill holes of the program are pending, with approximately 40% of the check assays complete.

Planned exploration activities for the summer 2009 program will consist of the continuation of the diamond drilling on the Centennial Deposit. Two drills will continue to outline the width extent of the mineralization along strike and at least one pilot hole will be dedicated to a target immediately adjacent to the deposit.

In addition to drilling the deposit, a conceptual study is planned for the summer of 2009 to assist in determining the potential economic viability of a uranium deposit in this region of the Athabasca Basin.

Cameco advised that the conceptual study will be undertaken in-house and within the current budget. The study will attempt to determine the minimum deposit size required for a stand-alone milling operation versus hauling ore to the existing Key Lake mill and is not expected to result in a resource calculation at this time.

To date, over $20 million has been spent on the project exploring for a large unconformity-type deposit that has resulted in the discovery of the Centennial Deposit. Project representatives are pleased with the success of the program and are looking forward to the summer 2009 drill and conceptual study programs.

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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