Formation Capital Corporation

Formation Capital Corporation

March 18, 2005 09:15 ET

Formation Appoints Mine Manager & Bankable Feasibility Study Manager


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FORMATION CAPITAL CORPORATION

TSX SYMBOL: FCO

MARCH 18, 2005 - 09:15 ET

Formation Appoints Mine Manager & Bankable Feasibility
Study Manager

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 18, 2005) - Formation
Capital Corporation (Formation) (TSX:FCO) (the "Company") is pleased to
announce the appointment of Mr. Joseph A. Scheuering of Missoula,
Montana as Mine Manager of the Company's 100% owned Idaho Cobalt Project
located in Lemhi County, Idaho. The project is currently in the bankable
feasibility and permitting stages.

A graduate of the Colorado School of Mines, Mr. Scheuering brings to the
Company over 35 years experience gained with several major mining
companies. He has held such positions as Mine Planning Engineer, General
Mine Foreman, Mine Superintendent, General Superintendent, Project
Manager and General Manager. His responsibilities have included all
aspects of mine operation and development including preparation of
feasibility studies, upgrading of ore reserves, project permitting,
contractor selection and project administration, as well as reclamation
and closure. He held the position of General Superintendent with Noranda
for the Blackbird Mine from November 1980 to March 1983 when it was
refurbished and permitted and most recently as General Manager with
Noranda. The Blackbird mine is located in the same geological
environment and is adjacent to the Company's Idaho Cobalt Project.

Mr. Scheuering will assist the Company as it progresses through the
feasibility and permitting process and be responsible for the day to day
operation of the cobalt mine. Mr. Scheuering offers the Company a
distinguished career gained through his experience with such companies
as Asarco, Magma Copper and Noranda. Management is very pleased to
welcome him as Mine Manager of the Idaho Cobalt Project.

The Company is also pleased to announce the appointment of MTB Project
Management Professionals, Inc. (MTB) as Manager of the Company's
Bankable Feasibility Study. MTB is a well established consulting firm
that provides comprehensive project management services to the mining,
power, environmental and commercial construction industries in North
America and abroad. MTB helps owners and developers manage entire
projects from initial concept and pre-feasibility, through design and
construction, to commissioning and startup. In addition to being experts
in project management techniques and methodologies, MTB's cumulative
backgrounds include extensive experience in engineering, mineral
processing, environmental remediation, field construction management,
construction safety, contract administration, procurement and logistics,
litigation support, banking and finance, community and government
relations and training. The company culture centers on management of
details, open communication, teamwork, accountability, aggressive
management of contractors, and the continuous pursuit of excellence.
Formation is looking forward to working closely with MTB to see the
Idaho Cobalt Project through to production.

Formation Capital would like to take this opportunity to familiarize its
shareholders with the depth and scope of the permitting, feasibility and
development teams working in concert to bring the Idaho Cobalt Project
to production. These teams are comprised of numerous talented
individuals spanning a number of organizations and disciplines sharing
the common goal of ensuring the data and science collected for the
permitting and bankable feasibility studies is as accurate, detailed and
comprehensive as possible. Management appreciates their dedication to
the project and their continued efforts. On March 8, 2005 a successful
Idaho Joint Review Process Meeting was held in Boise, Idaho, where
representatives from various Government Agencies as well as the majority
of the permitting, feasibility and development teams were in attendance.

Idaho Cobalt Project Feasibility Consultants

Hatch - Feasibility Study Engineer and Document Writer

Hatch is one of the world's leading professional firms providing mining
and metals companies with complete facilities and process design,
business consulting, information systems, technology transfer, and
project and construction management services. Hatch has more than 4,000
skilled employees in 60 permanent offices on six continents. Hatch's
Vancouver office has completed the detailed design, engineering, and
construction for a number of significant international mineral
processing projects over the last five years. Consequently, Hatch's
up-to-date knowledge of key success factors for international mining
projects will play an essential role in ensuring that the Idaho Cobalt
Project implementation is a success.

Mine Development Associates - Reserve/Resource Estimation and Mine Design

Mine Development Associates (MDA) was formed in 1987 as a full-service
mine engineering company. Their staff and specialized associates offer
an expanse of knowledge encompassing every aspect of mining, from
original prospect through feasibility, project development and
production. MDA's engineers and geologists are registered professionals
and have considerable experience in mineral exploration and mine
operations. MDA conducts business worldwide and works with all varieties
of clients, from the largest mining company to the smallest prospector,
banking institutions, and other consulting companies. Their background
in the industry includes all varieties of metals and minerals. MDA
produced two pre-feasibility studies for the Idaho Cobalt Project. Their
past experience with the project makes them ideally suited to continue
on with the reserve/resource estimate and mine design.

Telesto Solutions, Inc. - Geotechnical Engineering and Environmental
Impact Assessment

Telesto, an environmental science and engineering consulting firm,
offers a full range of professional services related to water resources,
civil engineering, environmental compliance and remedial engineering.
The technical staff at Telesto has experience in all phases of solid and
liquid materials handling including design and implementation of field
investigations, data analysis, data management, geochemical
characterization and evaluation, development and application of ground
water flow and contaminant transport models, geotechnical and civil
engineering, evaluation and implementation of remedial alternatives,
remediation system design and construction, and litigation support.
Telesto has developed the site wide water balance for the Idaho Cobalt
Project as well as the conceptual design for the tailings/waste disposal
facility, reservoirs and site access roads.

Cascade Earth Sciences Ltd. - Land Application Feasibility and Design

Cascade Earth Sciences (CES) is a subsidiary of Valmont Industries Inc.
Valmont currently operates from 34 facilities located in fourteen
countries around the world. The Company is headquartered in Omaha,
Nebraska, and employs over 5,200 highly trained personnel worldwide,
with approximately 1,500 located in Nebraska. CES has an international
reputation in land-based, water reuse system design and operations. CES
has successfully completed hundreds of wastewater land application
projects for a variety of municipalities, and food, agricultural,
electrical generation, coal bed methane, chemical, textile, electronic,
pulp and paper and mining industries. CES has produced an environmental
study on the use of a land application system to dispose of excess water
at the Idaho Cobalt Project and will be responsible for the feasibility
level design and engineering of this system.

MineFill Services, Inc. - Mine Backfill design

Minefill Services, Inc. provides specialist technical services in rock
mechanics and mine backfilling to mining clients worldwide. Services
include fill assessments for paste, hydraulic or rockfill systems; mix
designs and optimization; and basic engineering designs for backfill
plants and delivery systems. They also provide a range of specialist
services in rock mechanics, ranging from rockmass characterizations
studies, through to detailed geotechnical designs for open pit slopes
and underground excavations. Most clients are operating mines. Dr. David
Stone, internationally recognized as an expert in mine backfilling, is a
Director of Formation Capital Corporation and the Principal of Minefill
Services, Inc.

SGS Lakefield Research- Metallurgical Testing

Founded over half-a-century ago SGS Lakefield Research (Lakefield) has
since built upon its unique capabilities in grinding and flotation to
emerge as an industry leader in a full range of metallurgical testing
services. Lakefield is recognized as a world leader in the development
and demonstration of bankable flowsheets and pilot plant programs. The
metallurgists, hydrometallurgists and chemical engineers at Lakefield
are experienced in all of the major physical and chemical separation
processes utilized in the recovery of precious, base and light metals
from ores, concentrates, waste products and secondary feeds. Lakefield
will be providing data from test work on ore samples for the flotation
mill and hydrometallurgical circuit design.

Hannelie de Beer - Cobalt Market Study

Dr. de Beer is currently a Director of Moruo Minerals and Metals. She
received her PhD in Chemistry from Rand Afrikaans University in 1994,
and spent the next decade with Anglovaal Mining Limited where she filled
a series of technical management positions with particular focus on the
cobalt industry. She is the author of a number of academic and
professional publications and is a member of the SA Chemical Institute
and the Geological Society of South Africa. Dr. de Beer is writing the
ICP cobalt market study for the bankable feasibility.

Mintek - Mineral and Metallurgical Technology Specialists

Mintek is a mineral and metallurgical technology specialist based out of
South Africa with operations around the world. They have a reputation
for high quality development work and have developed an established
credibility within the mining community. They are known for their
history of technological innovation and environmental technologies
specially engineered to extract the maximum value from ore concentrates.
They are responsible for the development of the hydrometallurgical flow
sheet for cobalt chemical production.

Idaho Cobalt Project Permitting Consultants

Hydrometrics, Inc. - Independent Environmental Impact Statement
Contractor

Hydrometrics, Inc., a Helena, Montana based consulting firm is comprised
of a multidisciplinary team of engineers, hydrologists and environmental
scientists. Hydrometrics and its team which includes a number of
independent consultants: Schafer Ltd. - geochemistry, Water Engineering
Technologies - Storm Water, BioAnalysts - Aquatic Biology, Big Sky
Acoustics LLC - sound & acoustics, Monarch & Associates - wildlife,
Northwest Resource Consultants - socioeconomics, Legacy Consulting
Services - heritage resources, have conducted many environmental
baseline studies and prepared permits and impact documents for a wide
variety of hard rock mining and other resource projects in the United
States. These projects have ranged from small to world-class
developments and have included many environmentally and culturally
sensitive areas. Environmental impact statement documents (EISs) are
complex public documents required as part of the federal decision making
process. Hydrometrics and its EIS team have extensive experience in the
preparation of impact documents that satisfy federal and state
requirements, including all necessary baseline environmental studies,
public scoping and impact analysis, identification of appropriate
mitigation measures, and interagency coordination required for federal
EISs.

Hydrometrics was contracted by Formation to work directly for the
U.S.D.A. Forest Service and interact with Formation Capital's EIS team
that includes a number of independent consultants as follows: Telesto
Solutions, Inc. - Environmental Manager & EIS coordinator, Cascade Earth
Sciences - land application, Meteorologist Jim Gelhaus - air quality,
Baird Hanson Williams - attorney, Formation's Metallurgist Mike Irish -
Manager of Metallurgy, Intermountain Resources - soils, vegetation &
wetlands, Mine Development Associates - mine design, Shaw Environmental
& Infrastructure - surface water / ground water, Minefill Services, Inc.
- geotechnical services, and KK Consulting - Aquatic Biology.

Additional agencies involved in the permitting process include State and
Federal representatives from the United States Forest Service, the Idaho
Department of Environmental Quality, the Environmental Protection
Agency, the Idaho Department of Fish & Game, the U.S. Fish & Wildlife
Service, National Oceanic and Atmospheric Administration and the Idaho
Department of Water Resources.

Idaho Cobalt Project Management & Development Team

Wm. G. Scales - Project Manager

Mr. Scales has over 27 years experience in project management including
17 years in mineral exploration and development and is a member of the
Society of Economic Geologists. Recently Mr. Scales has overseen all
aspect of the exploration, planning and design for the Company's Idaho
Cobalt Project. In this capacity he has supervised the development of
the Plan of Operations for the project providing the coordination
between the engineers, metallurgists and environmental experts. His
extensive knowledge of the Idaho Cobalt Project gives him a solid
background from which to oversee and review its development.

John L. Allen - Mill Design and Operations Manager

Mr. Allen served in various operating and project development capacities
with Sunshine Mining and Refining Company. He is a member of the Society
for Mining, Metallurgy, and Exploration, Inc. and is an "Industrial
Fellow" with The Center for Advanced Mineral and Metallurgical
Processing, Montana Tech of the University of Montana. His most recent
assignments were Vice President and Manager of Metallurgy with Sunshine
Argentina and Sunshine Precious Metals, Inc. Mr. Allen is the President
and General Manager for Formation Chemicals, Inc. which owns and
operates the Sunshine Precious Metals Refinery and V.P. of Operations
for Formation Capital Corporation.

Mike Irish - Manager of Metallurgy

Mr. Irish graduated in 1981 from the University of Idaho with a Bachelor
of Science in Metallurgical Engineering and received his Masters in
Metallurgical Engineering in 1983. He is also a licensed Professional in
Environmental Engineering. He has over 20 years of metallurgical
engineering experience and has held various positions including Senior
Metallurgical Engineer, Metallurgical Superintendent and Chief
Metallurgist with a number of companies including Anglo Gold NA. Mr.
Irish was instrumental in the design, engineering, construction and
start up of the Big Creek Hydrometallurgical Complex and Sunshine Silver
Refinery in the mid-eighties. Mr. Irish is the Manager of Metallurgy for
Formation Chemicals Inc.

Joe Scheuering - Mine Manager

As discussed above, Mr. Scheuering offers the Company a distinguished
career with over 30 years of experience gained with several major mining
companies holding such positions as Mine Planning Engineer, General Mine
Foreman, Mine Superintendent, General Superintendent, Project Manager
and General Manager.

Conrad Parish - Environmental Manager

Conrad Parrish is a mining environmental professional with over 25 years
of experience who has provided expertise to clients throughout the
Americas. He is known for the breadth of his experience in the
technical, regulatory, business and governmental relations aspects of
environmental work and has assisted both private and public clients with
environmental issues ranging from the very simple to the highly complex.
Mr. Parrish has provided expertise to projects or agencies in: Arizona,
Alaska, Washington, California, Idaho, Nevada, Utah, Montana, Colorado,
New Mexico, Mexico, and the Dominican Republic. He has worked with
agencies at the local, state, and federal level. This broad exposure has
given him an unsurpassed understanding of technical and regulatory
matters in a variety of settings. Mr. Parrish holds an MBA from the
University of Phoenix and a B.S. Mining Engineering from the Colorado
School of Mines.

Formation Capital Corporation is a mineral exploration and development
and precious metals refining company with assets concentrated in the
state of Idaho. It owns the Idaho Cobalt Project, a unique high grade,
primary cobalt deposit in the bankable feasibility and final permitting
stage near Salmon, ID. The Company also owns 100% the Big Creek
Hydrometallurgical Complex in the world renowned Silver Valley of
northern Idaho that contains the Sunshine Precious Metals Refinery which
commenced accepting feed material in June of 2004.

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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