Mr. Deepak Varshney reports

FORMATION METALS ANNOUNCES CLOSING OF UPSIZED $22.4 MILLION NON-BROKERED PRIVATE PLACEMENT TO INCREASE DRILL PROGRAM TO 75,000 METRES

Further to its news releases dated April 29, 2026 and May 18, 2026, Formation Metals Inc. has closed its previously announced non-brokered private placement for aggregate gross proceeds of approximately $22,439,577 through the issuance of an aggregate of 49,821,291 units of the company.

Following the closing of the offering, the company has working capital of approximately $30.7-million with zero debt.

The company now intends on expanding its continuing 30,000-metre drill program to 75,000 metres at its flagship N2 gold project in Quebec, host to a global historic resource of approximately 871,000 ounces comprising 18 million tonnes grading 1.4 grams per tonne gold (approximately 810,000 ounces gold) across four zones (A, East, RJ East and Central) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold) across the RJ zone.

Deepak Varshney, president and chief executive officer of Formation Metals, commented: "The closing of this strategic financing marks a significant milestone for Formation Metals and further validates the quality and long-term potential of the N2 project. We are pleased to welcome new cornerstone strategic investors and thank our existing shareholders for their support as we continue to advance one of the most compelling gold development stories in Quebec. With nearly $31-million in working capital and a fully funded 75,000-metre drill program under way, the company is exceptionally well positioned to accelerate exploration and unlock further value across the N2 system. Supported by a strong balance sheet, an experienced technical team and a premier mining jurisdiction, we remain focused on building a leading metals company within the prolific Abitibi greenstone belt."

The company's maiden campaign has exceeded expectations to date, confirming geological continuity and delivering robust and continuous gold intercepts in holes drilled within the northern corridor of the A zone, including:

• N2-25-006: 1.8 g/t Au over 21.9 metres beginning at 154.4 metres downhole (133.7 metres vertical); highlight interval includes 3.4 g/t Au over 4.8 metres with total metal index of 79.56;
• N2-25-008: 0.95 g/t Au over 61.1 metres beginning at 109 metres downhole (94.4 metres vertical); highlight interval includes 1.68 g/t Au over 26.5 metres with total metal index of 67.97;
• N2-25-009: 1.37 g/t Au over 24.0 metres beginning at 168.9 metres downhole (146.3 metres vertical); highlight interval includes 2.05 g/t Au over 13.3 metres with total metal index of 81.89;
• N2-25-012: 1.75 g/t Au over 30.4 metres beginning at 64.1 metres downhole (45.3 metres vertical); highlight intervals include 3.51 g/t Au over 10.5 metres and 19.2 g/t Au over 0.51 metre with total metal index of 62.43.

The company's drill strategy for the remainder of 2026 will focus on extensional drilling to the east and west of the A zone along strike, where it believes up to eight kilometres may be mineralized in total, and to the south, where it recently identified visible gold in a 400-metre stepout in drill hole N2-26-24, located south of N2-25-007, N2-25-008 and N2-25-010.

The company will also advance its base metals exploration program at N2, where it recently completed a revaluation process, which revealed significant copper and zinc intercepts within historic drill holes known to have significant gold grades (greater than one g/t Au). Assay results range from 200 to 4,750 parts per million and 203 ppm to 6,700 ppm for copper and zinc, respectively, indicating strong potential for elevated base metal (Cu-Zn) concentrations across the property, specifically at the A and RJ zones. Property-wide geology at N2 features volcanic and sedimentary rocks formed in regional anticlinal and synclinal flexures. Three principal deformation structures, oriented along the known northwest-southeast to west-northwest-east-southeast structural trends typical of VMS (volcanogenic massive sulphide) deposits in the Matagami region, function as critical geologic controls for mineralization on the property.

The offering was closed in two tranches. The first tranche of the offering closed on May 19, 2026, pursuant to which the company issued an aggregate of 31,141,021 units, comprised 16,412,113 hard-dollar (HD) units at a price of 37 cents per HD unit, 13,024,363 flow-through (FT) units at a price of 44 cents per FT unit and 1,704,545 Quebec flow-through units at a price of 44 cents per Quebec FT unit, for aggregate gross proceeds of approximately $12,553,201. The second tranche of the offering closed on May 21, 2026, pursuant to which the company issued an aggregate of 18,680,270 units, comprised 2,040,540 HD units at a price of 37 cents per HD unit, 3.61 million FT units at a price of 44 cents per FT unit, 4,640,468 charity flow-through units at a price of 54.8 cents per charity FT unit, and 8,389,262 Quebec charity flow-through units at a price of 59.6 cents per Quebec charity FT unit, for aggregate gross proceeds of approximately $9,886,376.

Each HD unit consists of one common share in the capital of the company and one transferable non-flow-through common share purchase warrant of the company. Each FT unit consists of one flow-through common share in the capital of the company, which qualifies as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada), and one warrant. Each Quebec FT unit consists of one flow-through common share in the capital of the company, which qualifies as a flow-through share within the meaning of Subsection 66(15) of the tax act and Subsection 359.1 of the Taxation Act (Quebec), and one warrant. Each charity FT unit consists of one charity flow-through common share in the capital of the company, which qualifies as a flow-through share within the meaning of Subsection 66(15) of the tax act, and one warrant. Each Quebec charity FT unit consists of one charity flow-through common share in the capital of the company, which qualifies as a flow-through share within the meaning of Subsection 66(15) of the tax act and Subsection 359.1 of the Quebec act, and one warrant. Each warrant entitles the holder thereof to acquire one additional non-flow-through common share of the company at an exercise price of 59.6 cents per common share for a period of 36 months from the applicable closing date of the offering.

The company intends to renounce such qualifying expenditures in favour of the subscribers of the FT units, Quebec FT units, charity FT units and Quebec charity FT units with an effective date of no later than Dec. 31, 2026, in the aggregate amount of not less than the total gross proceeds raised from the issuance of such flow-through securities and incur such qualifying expenditures on or before Dec. 31, 2027.

In connection with the offering, the company paid aggregate cash finders' fees of $816,767.88 to nine arm's-length finders and issued an aggregate of 1,490,695 finder warrants. Each finder warrant entitles the holder thereof to acquire one common share of the company at an exercise price of 59.6 cents per common share for a period of 36 months from the applicable closing date of the offering.

The net proceeds of the offering will be used to advance exploration at the company's flagship N2 gold project in Quebec and for general working capital purposes.

The units were offered: (a) by way of private placement in all of the provinces of Canada pursuant to applicable exemptions from the prospectus requirements under applicable Canadian securities laws; and (b) in jurisdictions outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction. The securities issued pursuant to the offering to purchasers in Canada will be subject to a four-month-and-one-day hold period in Canada pursuant to applicable Canadian securities laws. The units offered to purchasers outside of Canada pursuant to an exemption from the prospectus requirements in Canada available under OSC Rule 72-503, Distributions Outside Canada, and, accordingly, the securities issued pursuant to the offering to purchasers outside of Canada are not subject to a four-month-and-one-day hold period in Canada.

Project summary

Comprising 87 claims totalling approximately 4,400 hectares within the Abitibi subprovince of northwestern Quebec, Formation's flagship N2 gold project is an advanced gold project with a global historic resource of approximately 871,000 ounces composed of 18 million tonnes grading 1.4 g/t Au (approximately 810,000 ounces gold) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold).

There are six primary auriferous mineralized zones in total, each open for expansion along strike and at depth. Compilation and geophysical work by Balmoral Resources Ltd. (now Wallbridge Mining) from 2010 to 2018 generated numerous targets that are being investigated for the first time by Formation with diamond drilling.

Historical highlights from the top-two priority zones include:

• A zone: a shallow, highly continuous, low-variability historic gold deposit with approximately 522,900 ounces identified at a grade of 1.52 g/t Au; approximately 15,000 metres have been drilled historically across 1.65 kilometres of strike, with 84 per cent of historical drill holes intercepting auriferous intervals including up to 1.7 g/t over 35 metres;
• RJ zone: a high-grade historic gold deposit with approximately 61,100 ounces identified at a grade of 7.82 g/t Au, with high-grade intercepts from historical drill holes as high as 51 g/t Au over 0.8 metre and 16.5 g/t Au over 3.5 metres; this zone was the target of the most recently drilling at the property by Agnico Eagle Mines in 2008, when the price of gold was approximately $800 (U.S.) per oz; only approximately 900 metres of strike has been drilled, with 4.75-plus km of strike remaining to be tested.

The company's internal view is that the N2 project has the potential to host a potential open-pit resource. This optimism is driven by several key factors:

• Significant undrilled strike length: The A zone alone has greater than 3.1 km of strike open (only approximately 35 per cent drilled historically), while the RJ zone has greater than 4.75 km remaining untested -- offering substantial room for lateral expansion of known mineralization.
• Open at depth and along strike: All zones remain open, with historical drilling limited to shallow depths (approximately 350 m), leaving considerable vertical upside in a proven gold camp.
• Wide, continuous near-surface intercepts: Recent drilling has confirmed thick zones (100 to 200-plus metres) of target mineralization starting near surface, ideal for bulk-tonnage open-pit scenarios with low strip ratios and high tonnage potential.
• Regional analogy and pedigree: Located in the Casa Berardi trend, which hosts multiple multimillion-ounce deposits (for example, Casa Berardi greater than two million ounces produced and 14.3 million tonnes of 2.75 g/t Au proven plus probable in reserve, and Douay greater than three Moz in resources (10 million tonnes of 1.59 g/t Au indicated, and 76.7 million tonnes of 1.02 g/t Au inferred)), N2 shares similar geology and structural controls. Nearby Vezza produced from higher-grade underground mining, but N2's shallower, wider zones suggest superior open-pit economics.
• Untested targets: Compilation work identified numerous geophysical anomalies (induced polarization, electromagnetic and versatile time-domain electromagnetic) that remain undrilled, providing discovery potential beyond known zones.
• Rising gold prices and economic viability: At current gold prices, lower-grade bulk-tonnage deposits become highly attractive, enhancing the project's upside.

Strategically located 25 km south of the mining town of Matagami, Que., this prime location provides year-round access through provincial highways and logging roads, proximity to skilled labour, power infrastructure and established mining services in a jurisdiction known for its gold production exceeding 200 million ounces historically. The project lies along the Casa Berardi mine trend, which hosts multiple million-ounce gold deposits, and is situated approximately 1.5 km east of the former-producing Vezza gold mine operated by Nottaway Resources from 2013 to 2019 producing over 100,000 ounces of gold through underground methods.

The region's robust infrastructure supports toll milling opportunities, with potential access to nearby processing facilities, such as those at Casa Berardi or other Abitibi mills, enabling cost-effective development without the need for on-site mill construction.

Qualified person

The technical content of this news release has been reviewed and approved by Babak V. Azar, PGeo, geo (OGQ No. 10876), an independent contractor, a qualified person as defined by National Instrument 43-101. Historical reports provided by the optionor were reviewed by the qualified person.

Quality assurance and quality control

The quality assurance and quality control protocols include insertion of blank or standard samples (accredited by Canadian Resource Laboratories) every 10 samples on average during the analytical process. The gold analyses were completed by fire assay method with an atomic absorption and ICP finish on 50 grams of materials at the Laboratoire Expert Inc. in Rouyn-Noranda, Que., Canada, and Agat Laboratories Ltd. in Val d'Or, Que., Canada. The repeats were carried out by FA followed by gravimetric testing on each sample containing 10.0 g/t gold or more. Total gold analyses (metallic sieve) were carried out on the samples, which presented a great variation of their gold contents or the presence of visible gold.

About Formation Metals Inc.

Formation is a North American mineral acquisition and exploration company focused on the development of quality properties that are drill-ready with high upside and expansion potential. Formation's flagship asset is the N2 gold project, an advanced gold project with a global historic resource of approximately 871,000 ounces (18 million tonnes grading 1.4 g/t Au (approximately 810,000 ounces gold) across four zones (A, East, RJ East and Central) and 243,000 tonnes grading 7.82 g/t Au (approximately 61,000 ounces gold) across the RJ zone) and six mineralized zones, each open for expansion along strike and at depth including the A zone, of which only approximately 35 per cent of strike has been drilled (greater than 3.1 km open), and the RJ zone, host to historical high-grade intercepts as high as 51 g/t Au over 0.8 metre.

We seek Safe Harbor.