Re: Formation Metals Inc.

News Release Wednesday, May 02, 2012 Formation Begins Processing Silver & Gold Concentrates - SUNSHINE Silver now Good Delivery on COMEX To: tsx Vancouver, B.C.

May 02, 2012 - Formation Metals Inc.

("Formation" or the "Company"), FCO-TSX, announces today that it has received notice that it has been placed on the Approved Refiners and Brands official list of the Commodity Exchange Inc.

(COMEX).

Effective April 30, 2012 the "SUNSHINE" silver brand will be deliverable against the Exchanges Silver futures contract.

Quality silver has been consistently produced for at least five years at the Companys Sunshine Precious Metals Refinery which is one of the criteria for the listing.

The Refinery is part of the Companys Big Creek hydrometallurgical complex, located in the Coeur dAlene mining district in the Silver Valley area of northern Idaho.

COMEX is a division of the New York Mercantile Exchange, a commodity futures exchange.

"The COMEX listing will attract a wider range of customers", stated Mari-Ann Green, CEO of Formation Metals Inc.

"In anticipation of the listing, we have also been preparing the hydromet plant to accept silver/copper and gold concentrates.

As we gear up and have both facilities in operation the hydromet plant will serve to provide additional feed for the refinery.

We are expecting a significant positive impact on revenue generation." The Sunshine Silver Refinery refines silver and gold dor�, high grade silver residues and other high content silver materials into high quality silver and gold bullion for customers.

This provides the Company with a steady positive operating margin.

Over the past few years however, there have been significant changes to refining and concentrate processing capabilities around the world.

Formation therefore, has received numerous requests from local mines and mines across North and South America to process their concentrate.

Interestingly, the Big Creek hydrometallurgical plant type of concentrate processing is not presently available in the United States, and for certain types of concentrates not available in the western hemisphere.

In addition, the hydrometallurgical plant can operate as a low emission, zero liquid discharge facility and can process materials that traditional smelters find difficult or impossible to process under modern strict environmental standards.

After review of the material specifications and analysis of the hydrometallurgical plants capability, the Companys technical staff and market consultants concluded that the operating margin at the complex could be greatly improved by processing copper/silver and gold concentrates in addition to refining dor� and other materials.

It was also determined that this could be accomplished with minimal capital costs.

Mr.

Michael Irish, General Manager of Formation Metals U.S., commented "The plant has processed locally sourced concentrates under previous ownership with great success at considerably lower silver prices than todays.

Since that time, there have been significant upgrades, inspections and modifications made, including a gold concentrate treatment system.

We will be excited to once again see this facility process concentrate materials.

The facility has been shown to be a value added alternative to other process options for our customers." Mr.

Irish concluded, "This is a great opportunity to work with our neighboring mines and mines from around the world".

Earlier in the year, the Company entered into an agreement to process silver concentrates from the Crescent Mine located three miles from the Refinery.

The first delivery of concentrate from the Crescent Mine for pilot runs was delivered last week.

In addition, gold concentrate is being delivered weekly for processing, and other contracts are currently being negotiated.

Research and testing of various concentrate materials is ongoing and the Company expects to process an increasing variety of concentrates with a wider range of acceptable impurities in the future. Formation Metals Inc. "Mari-Ann Green" Mari-Ann Green, C.E.O. For further information please contact: E.R.

(Rick) Honsinger, P.Geo.

V.P.

Corporate Communications Formation Metals Inc. 1730 - 999 West Hastings Street Vancouver, BC, V6C 2W2 Tel: 604-682-6229 Email: Web: formcap.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.
You can also view this News Release on our website at: http://www.formationmetals.com/s/News.asp?ReportID=522502 ======================================================================= Copyright (c) 2009 FORMATION METALS INC.

(FCO) All rights reserved.

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