Re: News - Thursday, April 02, 2009
Formation's Idaho Cobalt Project Permitting Process Expected to
Conclude by Month's End
====================================...

Vancouver, B.C., April 02, 2009 - Formation Capital Corporation
("Formation", FCO-TSX) is pleased to announce that its 100% owned
subsidiary, Formation Capital Corporation, U.S. (the Company) has
provided an update on the status of permitting for its 100% owned Idaho
Cobalt Project (ICP), indicating the lengthy permitting process is
expected to conclude by the end of this month.

"The entire permitting process initiated in 2001 is rapidly coming to
an end", commented Preston Rufe, the Company's Environmental Manager.
"We're 99% there." He continued, "The remaining permits, such as the
Air Quality Permit and various building permits from Lemhi County are
either being finalized by the responsible agency or are primarily
administrative in nature requiring no input from the public and
therefore are not subject to a lengthy appeal process. Obtaining the
NPDES [National Pollutant Discharge Elimination System] discharge
permit for the ICP was essentially the last of the major hurdles to
cross - and it became effective yesterday. At this point we are
waiting on the Forest Service to uphold the ROD [Record of Decision],
which is expected by the end of this month."

The ROD outlined conditions necessary for approval of a Plan of
Operations (Plan) that included making the necessary changes to the
Plan to be consistent with the selected alternative. Within weeks of
receiving the affirmative ROD in January 2009, Formation submitted the
revised Plan for the ICP to the Forest Service. Today, the Company
received comments back from the Forest Service on its Plan for the ICP
and the required revisions are easily implemented.

"There are no surprises here.", commented Guy Jeske, General Manager
for the ICP, adding, "The comments received are relatively minor and
Formation is confident that edits to the Plan necessary for compliance
can be made promptly for final Plan approval. After that, it is a
matter of submitting a reclamation bond acceptable to the Forest
Service - again nothing new there."

Once in production, Formation's Idaho Cobalt Project will provide the
United States with high purity super alloy grade cobalt metal required
for critical applications such as the construction of jet airplane
engines, land based turbines, catalysts for coal and gas to liquid
technology, and batteries used in hybrid and electric cars. It will
also provide close to 200 well paying jobs in Lemhi and Shoshone
Counties in Idaho, and generate over US$8 million in tax revenues for
the County, State and Federal governments. The Company trades on the
Toronto Stock Exchange under the symbol FCO.

Formation Capital Corporation

"Mari-Ann Green"

Mari-Ann Green, C.E.O.