ICP IC Potash Corp.

Formation Metals Inc. (TSX:FCO) ("Formation") announced today that its 100%
owned subsidiary, Formation Capital Corporation, U.S., (the "Company") has
provided Formation with an update on its 100% owned Idaho Cobalt Project
("ICP"). Pursuant to Formation's news release dated April 6, 2011, the Company's
Project and Construction Managers JDS Energy & Mining Inc. ("JDS"), have now
been fully integrated into the Company's management, in-house and out-sourced
engineering, technical and administrative teams at both the ICP's mine site in
Salmon, Idaho, and Cobalt Production Facility ("CPF") in Kellogg, Idaho. The
pre-construction activities on the ICP are continuing with site earth works
scheduled to begin in late May, 2011. 


In preparation for the commencement of site earth works, JDS has concentrated
its efforts over the last several weeks on finalizing budgets, engineering and
procurement tasks involving several areas at the mine, concentrator and cobalt
production facilities. These tasks are broken down and summarized as follows:


ENGINEERING:

Detailed engineering is underway with a number of sub-contracted firms involved
in design finalization of the portal bench pad, paste backfill, tailings waste
storage facility ("TWSF"), concentrator site, buildings, equipment and tram
foundations, powerline layout and site roads.


--  Transportation & Roads: 

The transportation road improvements Scope of Work was completed by the Company
utilizing design specifications from contract engineers and the lead permitting
agency, and has been sent out to contractors for bid.


--  Site Work: 

The site roads engineering package was completed at the end of April.
Geo-technical drilling and test pit excavations were completed around the
proposed portal bench area for geo-technical evaluation. Final TWSF design is
progressing well and the application for the dam was completed and submitted to
Idaho State government agencies. 


--  Tram: 

Engineers coordinated the design effort of the tram re-alignment to accommodate
the optimized portal pad location. As a result, the concentrator site area
layout was also modified to accommodate updated engineering plans for the tram. 


--  Concentrator: 

Plant civil and structural engineering progress included the finalization of
ball mill design and crusher foundation design. This included paste backfill
design coordination and review of the current electrical instrumentation and
load study for the plant and underground as well as a review of electrical bid
packages.


--  Paste Backfill Design 

Engineers have completed the design criteria including a hydraulic analysis of
the paste backfill system, pumps and piping. Equipment specifications for the
pump, mixer, and cement silo have been reviewed and approved and engineers are
finalizing bid documents for cement and backfill equipment.


-- Cobalt Production Facility (Kellogg, Idaho) 

Engineering emphasis continued on flowsheet development and refinements to the
heat and water balances. Specifications for the CPF have begun as well as
initial equipment sizing and layout design. The planned CPF building and the
existing refinery collectively comprise the Big Creek Hydrometallurgical
Complex.


PROCUREMENT:

A number of Purchase Orders ("PO") were executed over the past several weeks
with numerous bid quotations having been received. 


--  Site Works: 

The contract PO's for geo-technical drilling and snow removal were executed and
the work is now complete. In addition, numerous quotations for construction
equipment were received. 


--  Concentrator: 

All electrical equipment has been quoted and purchase orders will be finalized
once underground electrical mine loads have been confirmed. PO's for the pumps,
crusher and thickener have been awarded. Additional PO's expected to be awarded
include those for dust collector equipment, conveyors and electrical equipment.


CONSTRUCTION:

The Company and JDS conducted pre-bid qualification meetings that were held with
approximately 20 separate contractors over the course of several days. Each
contractor made a presentation outlining their safety program, skills and
availability to commence work on schedule. The results of these evaluations are
currently under review. 


Over the course of the next several weeks, it's expected that several additional
sub-contracts will be awarded. These include the portal bench construction and
concentrator site earth work and underground mining contracts. 


The above engineering, procurement and construction efforts also included
project engineers working closely with the engineering due diligence team of the
Company's mandated lead arranger for a senior secured debt facility. The
mandated lead arranger (see November 30, 2010 Company news release) is expected,
in due course, to provide a form of credit facility supporting the tax exempt
recovery zone facility bonds held in trust for the Company (see December 31,
2010 news release). The due diligence process is expected to conclude over the
course of the next several weeks.


"We are very pleased with the development of the project to date and are eager
to commence earth works on the ICP," commented Mari-Ann Green, CEO of Formation
Metals Inc. She continued, "The $80 million raised in March of this year has put
construction plans into high gear and we expect to make very good progress over
the spring and summer."


Formation Metals Inc.

Mari-Ann Green, C.E.O.

About the Idaho Cobalt Project

The 100% owned Idaho Cobalt Project is a unique, fully permitted primary cobalt
deposit that will be capable of producing high purity cobalt metal. Cobalt is
used in a wide variety of environmental and high-tech applications that include
the re-chargeable battery and aerospace sectors.


About Formation Metals Inc.

Formation Metals Inc. is a well established, mineral exploration, development
and refining company that is dedicated to the principles of environmentally
sound mining and refining practices, and believes that environmental stewardship
and mining can co-exist. Formation trades on the Toronto Stock Exchange under
the symbol FCO.


About JDS Energy & Mining Inc. 

JDS has extensive experience with successful large-scale resource developments
in Canada, including a diamond mine in the Arctic, major oil sands projects in
Alberta and a copper mine in Yukon, among many other projects throughout the
world. Their team consists of about 25 full-time specialists and four industry
associates who work together on a project-specific basis. They extract maximum
value from their projects while balancing guiding management principles.


This press release contains "forward-looking statements" within the meaning of
applicable Canadian securities legislation. Generally, forward-looking
statements can be identified by the use of forward- looking terminology.
Forward-looking statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, performance or achievements
of the Company to be materially different from those expressed or implied by
such forward-looking statements. Although the Company has attempted to identify
important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. There can be no
assurance that such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. The Company does not undertake to update any forward-looking
statements that are contained herein, except in accordance with applicable
securities laws. Further information on the Company is available at
www.sedar.com.


The statements contained in this news release in regard to Formation Metals Inc.
that are not purely historical are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including Formation
Metals Inc.'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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