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									  Introduction
December 2010
Disclaimer
THIS MANAGEMENT PRESENTATION (THE "PRESENTATION") WAS PREPARED AS A SUMMARY OVERVIEW ONLY OF THE CURRENT AFFAIRS OF
FORMATION METALS INC.("FORMATION") AND WAS NOT PREPARED FOR THE PURPOSE OF ASSISTING PROSPECTIVE INVESTORS IN MAKING A
DECISION TO INVEST IN FORMATION. FORMATION DOES NOT MAKE ANY REPRESENTATION AS TO THE COMPLETENESS, TRUTH OR ACCURACY
OF THE INFORMATION CONTAINED IN THE PRESENTATION. THE RECIPIENT IS CAUTIONED, THEREFORE, THAT IT IS INAPPROPRIATE TO USE THE
PRESENTATION, OR ANY PORTION THEREOF, TO ASSIST IN MAKING A DECISION TO INVEST IN FORMATION.

CONFIDENTIALITY
The Presentation is confidential and the contents are not to be reproduced or distributed to the public or the press. Securities legislation in all provinces and
territories prohibits such unauthorized distribution of information. Each recipient of the information contained in the Presentation will treat such information in a
confidential manner and will not, directly or indirectly, disclose or permit its affiliates or representatives to disclose such information to any other person or
reproduce the Presentation in whole or in part, without the prior written consent of Formation.

NOT FOR U.S. DISTRIBUTION
The Presentation is for use solely in Canada and is not to be provided by any means to anyone in the United States. The securities of Formation have not been
and will not be registered under the United States Securities Act of 1933 (the "U.S. Act") as amended, or the securities laws of any state and may not be offered or
sold in the United States or to "U.S. Persons" (as defined in Regulation S of the U.S. Act) unless an exemption from registration is available.

The Presentation contains forward-looking statements, including financial outlooks, which may not be based on historical fact. Such statements reflect Formation’s
current views with respect to future events and are subject to risks and uncertainties and are necessarily based upon a number of estimates and assumptions that,
while considered reasonable in the circumstances by the Company, are inherently subject to significant business, economic, competitive, political and social
uncertainties and contingencies. Many factors could cause the Company’s actual results, performance or achievements to be materially different from any future
results, performance, or achievements that may be expressed or implied by such forward-looking statements, including, among others: the timing of receiving
required approvals; the estimation or realization of mineral reserves and resources; the timing and amount of estimated future production; costs and timing of the
development of new deposits; requirements for additional capital; future prices of precious and base metals; possible variations in ore grade or recovery rates;
failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining
governmental approvals, permits or financing or in the completion of development or construction activities; currency fluctuations; and title disputes or claims
limitations on insurance coverage and the timing and possible outcome of pending litigation.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

The recipient can identify many of these forward-looking statements by looking for words such as “believe’’, “expects’’, “will’’, “intends’’, “projects’’, “anticipates’’,
“estimates’’, “continues’’ or similar words or the negative thereof. The material factors or assumptions used to develop forward-looking statements contained in the
Presentation are included, among other places, under the headings found in this corporate presentation. There can be no assurance that the plans, intentions or
expectations upon which these statements are based will occur.

The forward-looking statements contained in the Presentation are made as of December 13, 2010 and are expressly qualified in their entirety by this cautionary
statement. Undue reliance should not be placed on the forward-looking statements, which reflect management’s plans, estimates, projections and views only as of
such date. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances, except as
required by applicable law.

Any financial outlook contained in this Presentation was derived from the “Samuel Engineering Bankable Feasibility Study dated July 2007, the stated purpose for
which was the determination of the economic viability of ICP mining operations, the Technical Report for the stated purpose of satisfying the requirements of
National Instrument 43-101 and MTB Project Management Professionals Progress Report dated August 31, 2008 for the purpose of updating management on the
status of the Engineering and Procurement for the ICP and Hydrometallurgical Complex. The recipient is cautioned that any such financial outlooks may not be
appropriate for other purposes.
                                                                                                                                                                    1
Note: All dollar amounts quoted in the Presentation are in USD unless otherwise noted.
What is Cobalt?
                             Note:
                             High Purity Cobalt applications noted in red

                             Industrial & Medical 36%                           Strategic 22%
                             Drill bits                                             Jet engines
                             Ball bearings                                      Turbine blades
                             Paints                                         Propulsion systems
                             Cutting Steels
                             Inks                                          Environmental 33%
                             Radial tires                                    Oil de-sulfurization
                             Stove elements                                           Fuel cells
                             Animal feed                                           Solar panels
                             Supplements                                Re-chargeable batteries
                             Cancer treatments
                             Food preservation                                      New Uses
                             Permanent Magnets                                   Gas to Liquid
                             Prosthetics                                        Coal to Liquid
                                                                                    RFID tags
                             Electronics 9%                                          H storage
                             Cell phones                                   New battery types
                             Memory chips                                 Catalytic converters
                             Satellites                            Next Generation Electronics
                             Hard disk drives                                 Hybrid vehicles
                                                                             Electric vehicles

                                                        Cobalt:
                               One of the world’s most versatile metals and an essential
                                    element in the move towards “green “energy”.

                         Note: Curie Temp (1121°C) Boiling Point (3100°C) Melting Point (493°C)

                                                                                                    2
Source: after CRU, CDI
Cobalt Metal Type & Purity




                                                                                                 GRANULES                    CUT CATHODES
                                                                                                DLA 99.0% - 99.6%            Falconbridge 99.95%
                                                                                             Gecamines 99.3% - 99.6%




      BRIQUETTES                         POWDER                      GRANULES                      ROUNDS                      RONDELLES
       OM group 99.8%                  OM Group 99.8%           Norilsk Nickel (Russian”)          Inco 99.9%                  DLA 99.0% - 99.6%
         Sherritt 99.9%                 Sherritt 99.9%                 K1Ay 99.35%
 Minara (Murrin Murrin) 99.9%           Impala 99.9%




     BROKEN CATHODES                      INGOTS                   ALLIAGE BLANC              CUT CATHODES                    ROUNDS
         Chambishi 99.8%          Norilsk Nickel (“Russian”)         GRANULES                   Jinchuan 99.9%
         Gecamines 99.8%           K1Ay 99.35% K1A 99.3%                                                                Formation Metals Inc.
                                                               Gecamines & Other Congolese
          Kasese 99.9%              K1 99.25%     K2 98.3%               25-60%                                         Proposed Product for
       Mopani (MCM) 99.6%                                                                                              Superalloy Consumption
      Niquel Tocantins 99.9%
        CMBA (CTT) 99.8%                                                                                                     +99.9%

                                                                                                                                            3
Images Courtesy of SFP Metals (UK) Ltd.
 Cobalt Production

          Main supply in Americas is Sudbury (Vale, Xstrata) and majority imported
           via Europe

          The Americas produce only 15% of the world’s supply, mainly from
           Canadian nickel mines and majority refined in Europe


          Currently there is no primary production of cobalt in the US


                                                     2007 Cobalt Production
                                                   (The Cobalt Development Institute)

                                                                Asia,
                                                             As ia, 5% 5%

                                      Aus 15%
                                Australia, tralia, 15%




                                 Am e rica, 15%
                      Canada / Brazil, 15%
                                                                                        Africa, 65%
                                                                                            Africa, 65%


                                                                                                          4
Source: Roskill Information Services, Aerostrategy, The Cobalt Development Institute
 Global Cobalt Consumption by Sector

                                                        Other
                                      Organics           4%      Superalloys
                                        6%                          19%
                        Pigments
                           10%


        Catalysts                                                                         Hardmetal
           9%                                                                               14%




                                                                                     Magnets
                                                                                       7%
                 Batteries
              Chemical 13% ?                                              HS Steel
               Metal 14% ?                                                  4%


                   Global Consumption by End Use
                      Total Use: 60,000 mt (2007),
                    (approximate $3.0 billion market)
                              Source CRU                            Cobalt - Metal Applications

        Current Estimates: as high as 72,000 mt/year including      Cobalt - Chemical Applications
                China raw ore and concentrate imports


Source: CDI, CDI Conference 2009
                                                                                                      5
 Global Cobalt Consumption - Superalloy

                                                        Oil + Gas   Tools
                                                                     2%
           By Industry                       Automotive
                                                 6%
                                                           2%

           2007
                                      Land-Based
                                       Turbines
                                         26%




                                                                                           Aerospace
                                                                                              64%
    By Region
    2006
                                        Others                               Fastest growing sector is
                               Asia      7%
                               8%
                                                                                land based turbines
                                                                            for clean power generation

                                                                                     Superalloy:
                                                                            exhibits superior strength
                                                                               and is resistant to high
             Europe                                                          temperatures that would
              27%                                                           otherwise destroy metals
                                                                    USA
                                                                    58%       like steel and aluminum

                                                                                                       6
Source: Roskill, Aerostategy
Cobalt Consumption Exceeds Production
                                                                                                        Cobalt Consumption Exceeds
             120,000                                                                                             Production
             100,000
                                                                                                        High Purity Cobalt (HPC) is the most
                 80,000
                                                                                                         restricted supply with fewest
                                                                                                         producers
        Tonnes   60,000                                                                                 No Nickel laterite produces HPC
                                                                                                        Africa produces no HPC
                 40,000
                                                                                                        Except for FMI, no new HPC refining
                 20,000                                                                                  capacity anticipated next 5 years
                                                                                                        Around 20,000 tonnes of raw ore
                    -
                           2005   2006   2007         2008      2009       2010     2011   2012          and low grade intermediate cobalt
                                         Production          Consumption                                 units need to be replaced with new
                                                                                                         production to keep China supplied


                                                                                                               Historical Cobalt
   $50                                                                                                              Prices
   $40

                                                                                                        Brooke Hunt 1980-2005 historical
   $30
                                                                                                         average cobalt prices (2005
   $20$22.52                                                                                             constant dollars) = $19.93 / lb cobalt

   $10                                                                                                  Brooke Hunt 1980-2005 historical
                                                                                                         average cobalt prices updated and
   $0
                                                                                                         converted to 2009, 1980-2009
           1990                   1995                   2000                     2005       2009        constant dollars= $22.29 / lb. cobalt

                        Historical Cobalt Metal Prices from 1990 to 2009

Source: H. De Beer, SFP Metals
                                                                                                                                                  7
  Life Cycle of a Mining Company


                              Discovery                     Feasibility        Construction                 Production
                                  &                             &                   &
                             Exploration                    Permitting           Startup
Market Capitalization




                                                                                Formation
                             Dip in price due to:                               Metals Inc.
                           • Lack of exciting news
                         •“Cycling” of investor base


                                                                                                                     Sweet-Spot
                                                                                                              • $75-$400m market cap
                                                                                                                  • Defined resource
                                                                                                                 • Experienced team
                                                                                                                 • Low political risks
                                                                                                             • Large upside opportunity




                                            Project fails




                        Speculation                            Real Late Stage Projects               Cash Flow Positive
                        10 - baggers                           Less risk, greater awareness           High margins
                        Frequent failures                      Broader institutional awareness       “Leverage” to increasing
                        Small financings                       Larger financings, bigger exchanges    Commodity prices

Source: after Frank Holmes, U.S. Global Investors, Inc.                                                                                   8
Formation Metals Inc. (FMI) Overview

                                                                         Big Creek
    Future integrated cobalt producer                                    Hydro-
                                                                        Metallurgical
                                                                         Complex
    Developing a 100% owned Idaho
     Cobalt Mine (ICM) and Cobalt
     Production Facility in the U.S.
    The only high-purity cobalt metal
     producer in the U.S.
                                           Idaho
    U.S. consumes 60% of the world’s    Cobalt Mine
     high purity cobalt
    Production targeted for Q2 2012
    Infrastructure in place
    Well supported. Will create
     approx. 200 new jobs                 Location of Major
                                           Cobalt Metals
                                            Consumers



                                         Distance between ICM and Cobalt Production Facility ~ 200 miles
                                         Excellent infrastructure, roads, power and labor




                                                                                                    9
Company History

               Idaho Cobalt                                   Cobalt
                   MINE                                 PRODUCTION FACILITY


    Claims Staked - 1994                         Complex Purchased - 2002
    RAM deposit discovered - 1997                   Original construction costs $28 MM
                                                       (1984)
    Prefeasibility Study - 2001
                                                     Est. replacement Value: +$75 MM
    Bankable Feasibility - 2007
                                                     State of the art facility and all required
         Updated 2008 (and 2009 in-house)             land

    Total Expenditures to Date:                  Sunshine Precious Metals Refinery
         ~$55 MM including exploration,           restarted - 2004
          development and permitting
                                                  Bankable Feasibility - 2007
          (Mine together with the Production
                                                     Updated 2008 (and 2010 in-house)
          Facility)




                                                                                               10
FMI at a Glance




             TSX Stock Symbol                                                      FCO
             52 Week High / Low (1)                           CDN $2.76 - $0.65
             Estimated Project CAPEX (2)                            US $138.7 MM
             Basic Shares Outstanding (3)                                     36.1 MM
             Cash and Cash Equivalent (3)                                  C$6.2 MM
             Precious Metals Inventory (3)                                 C$3.0 MM




      (1)   As at Dec 10, 2010
      (2)   As per NI 43-101 Technical Report; US$16.6 MM has been spent to date
      (3)   As at Aug 31, 2010




                                                                                         11
 Objectives


          Achieve financing for construction of the Cobalt Mine and the Cobalt
           Production Facility


          Continue construction of the Cobalt Mine, concentrator, and retrofit the
           Cobalt Production Facility


          Become the foremost integrated domestic high purity cobalt producer in
           the U.S.


          Be the only domestic supply for the U.S. which consumes 60% of the
           world’s high purity cobalt


          Generate, on average, US$34 MM per year in Operating Cash Flows*




*Based on Samuel Engineering Bankable Feasibility Study July 2007 and NI 43-101 Technical Report dated Sept 14, 2007, revised
 May 19, 2008, amended and restated June 23, 2008 (study assumes US$22.52/lb Cobalt and US$2.30/lb Copper)
                                                                                                                                12
FMI – Experienced Management & Board
                                                             CEO & Chairman
                                                              Mari-Ann Green

                                                               President
                                                              Scott Bending

                                                 CFO                          Executive VP
                                           Paul Farquharson                    Bill Scales



             VP Metallurgy                                                 VP Corporate
                                         VP Risk Management                                              Corporate Secretary
               Mike Irish                                                 Communications
                                             Alan Vichert                                                    Jeff Fraser
                                                                           Rick Honsinger




               IDAHO COBALT PROJECT                                                               REFINERY/ HYDROMET
            Formation Capital Corporation U.S.                                                  Essential Metals Corporation®


                     BOD: Scott Bending                                                           BOD: Scott Bending
                          Bill Scales                                                                  Mike Irish
                          Paul Farquharson                                                             Paul Farquharson
                                                                Subsidiary
                                                                Companies
                          President                                                                     President
                          Bill Scales                                                                  Scott Bending


                        Environmental
                                                                                                     General Manager
                           Manager
                                                                                                        Mike Irish
                         Preston Rufe


     Annette               Bob Wilkins                                           Larry Hoven           Susan Shiplett
                                              Jason Smith                                                                       Mike Perry
    McFarland              Procurement                                             Operations         Human Resources           Comptroller
                                                Controller
  Project Engineer            Agent                                                Supervisor             Director


                                                                                                                                        13
FMI – Mine, Concentrator and Metal Production

                     Idaho Cobalt
                                                        Cobalt Production Facility
                         MINE


    Capacity:               800 tons / day ore   Capacity:        58 tons / day concentrate
    Cobalt Recovery: 93+%                        Benefication:    Cobalt (EW) Copper (SX-EW)
    Mill:                   Froth Flotation      Cobalt Prod/Yr: ~1500 mt High Purity Metal




             IDAHO COBALT PROJECT                  BIG CREEK HYDROMETALLURGICAL
                                                              COMPLEX
            Cobalt, Copper, and Gold Mine and       Cobalt Production Facility/ Copper SX-EW/
                      Concentrator                          Precious Metals Refinery

                                                                                                14
Idaho Cobalt Mine & Cobalt Production Facility: Summary

    Reserves                           Proven & Probable:
    (Ram Deposit):                     2.64 MM tons, 0.56% Co, 0.60% Cu, 0.014 Oz Au/ton*

    Resources                          Measured & Indicated 2.65 MM tons, 0.628% Co, 0.619% Cu, 0.016 Oz
    (includes Reserves):               Au/ton**
                                       Inferred: 1.12 MM tons, 0.585% Co, 0.794% Cu, 0.017 Oz Au/ton **
    Contained Metal:                   Measured & indicated: 33.3 MM lbs Co, 32.9 MM lbs Cu, 41,400 Oz Au **
                                       Inferred: 13.3 MM lbs Co, 17.8 MM lbs Cu, 19,000 Oz Au **
    CAPEX:                             $138.7 MM ($16.6 MM spent to date)
    Production Start-Up:               Q2 2012
    Annual Production:                 ~3.3 MM Co lbs, ~3.0+ MM Cu lbs, (4,000 – 5,000 Au Oz***)
    Operating Costs:                   $7.73/ lb Co ($70.39/ ton ore)****
    Projected Mine Life:               10+ years (upgrading the inferred resources could add 4 years of mine life)
                                       Reserves & Resources open along strike and depth



 • Based on Samuel Engineering Bankable Feasibility Study July 2007 and NI 43-101 Technical Report dated Sept 14, 2007, revised
   May 9, 2008, amended and restated June 23, 2008

 ** MDA 2006 NI 43-101 Report

 *** Not included in the Samuel Engineering Bankable Feasibility Study July 2007 and NI 43-101 Technical Report dated Sept 14, 2007,
     revised May 19, 2008, amended and restated June 23, 2008

 **** Not including Gold

                                                                                                                                       15
Big Creek Hydrometallurgical Complex

Three Plants in One:

          1. Cobalt Production Facility
                      Acid pressure leach hydrometallurgical plant; proven technology
                             High Purity Cobalt Metal: ~ 1,500 MT (3.3 MM lbs)

          2. Copper Refinery
                     SX-EW copper refining facility; ready for early start-up
                             Copper Cathode (SX-EW): ~ 3.0+ MM lbs

          3. Precious Metals Refinery
                     Major silver and gold refinery currently in operation
                     Produces high purity Gold and Silver bars in various sizes
                             High purity: 999.5




                                                                                        16
FMI – Environmentally Sound Design
     Underground Project - Small Environmental Footprint

     100% Reclaimable - Modest 135 Acre Disturbance

     No Tailings Pond - Dry Stacked Tailings

     Water Discharge - Will Meet Drinking Water Quality Standards

     Zero Discharge Facility - Hydrometallurgical Complex

 All Critical Environmental Permits In Place:

     NPDES: Received and upheld by the Environmental Protection Agency

     401 Certification: Received and upheld by the Idaho Department of Environmental Quality

     Water Rights: Obtained from the Idaho Department of Water Resources

     Air Quality Authority to Construct: Received from the Idaho Dept. of Environmental Quality

     Construction General Permit: Obtained from Lemhi County

     Record of Decision: Received and Upheld by the US Dept. of Agriculture - Forest Service

     Mine Plan of Operations: Fully Approved



                                                                                                   17
FMI Upside

           Idaho Cobalt Mine                        Cobalt Production Facility
 Optimization:                                 Optimization:
        CAPEX/ OPEX reduction through                CAPEX/ OPEX reduction during
         modified mining and milling methods           detailed engineering and start-up

 Increase Mine Life:                           Metallurgical Plant:
        Expansion of Ram proven and                  Additional revenue from higher cobalt
         probable reserves with additional             recovery rates (pilot plant testing
         drilling                                      97% to 99%)
                                                      Additional revenue from recovery of
        Expansion of Ram, Sunshine and
                                                       gold (4,000-5,000 Oz per year)
         East Sunshine resources
                                                      Custom processing of copper and
        Exploration of more than 15
                                                       cobalt feeds
         additional targets identified                Additional revenue from magnesium
        Additional 100%-owned cobalt                  products
         properties in the region could add           Additional revenue from cobalt
         mill feed in the future                       refinery by-products
        Drilling program completed to                       Ni hydroxide, Zn intermediate,
         optimize mine design and assess                      clean gypsum
                                                      Additional revenue from recovery of
         Rare Earth Elements
                                                       Rare Earth Elements




                                                                                               18
CAPEX and Development Schedule


 Mine and Concentrator:                             $75.0 MM              EXPENDITURES TO DATE:
 Direct Costs                       $37.6 MM
 Indirect Costs                     $13.2 MM
                                                                          Mine and Concentrator:
 Owners Costs                       $16.1 MM
                                                                          Engineering 78% complete
 Contingency                         $8.1 MM
                                                                          Actual Cost of Work Performed                   $13.8 MM

 Cobalt Production Facility:                       $63.7 MM
 Direct Costs                       $40.5 MM                              Cobalt Production Facility:
 Indirect Costs                     $14.1 MM                              Engineering 26% complete

 Owners Costs                        $3.1 MM                              Actual Cost of Work Performed                     $2.8 MM
 Contingency                         $6.0 MM     $138.7 MM                                                               $16.6 MM


 Project Construction Schedule:
         Site clearing completed
         Ground breaking Q2 2011
         First concentrate delivery Q2 2012
         Commissioning Q2 2012




Initial capital cost based on Samuel Engineering Bankable Feasibility Study July 2007 and NI 43-101 Technical Report dated Sep 14, 2007,
revised May 19, 2008, amended and restated June 23, 2008
                                                                                                                                      19
ICP – Long Lead Time Items Secured and On-Site




    Terminal Hoppers and Grizzly   Flotation Cells




    Aerial Tram Towers             Ball Mill




    Transformer                    Concentrator Building – 6 truckloads
                                                                          20
FMI – Metal Production Costs

 Per Pound of Cobalt:                                                  Per Ton of Ore:

                                             Average
      Total Life of Mine                     Cost per                                                           Average
      Operating Cost for Both                Pound of                                                           Cost per
      Facilities                              Cobalt                                                           Ton of Ore

      Hydrometallurgical Facility
                                                                         Mine and Mill Operating Cost
            Operations                            $2.81
                                                                                  Mining                          $45.37
            General and Administrative            $0.46
                                                                                  Processing                      $17.57
      Total Hydrometallurgical Facility           $3.27
                                                                                  General and Administrative       $7.45
      Mill and Mine                               $7.07
                                                                         Total Mine and Mill Operating Cost      $70.39
      Total Operating Cost                      $10.34

      Total LOM Operating Cost less             $7.73
      Copper Credits*




 Note: Base Case Scenario - Value of Ore at $22.52/lb Co, $2.30/lb
 Cu = $279.19 / Ton*




 Note: Reference Samuel Engineering Bankable Feasibility Study July 2007 and NI
 43-101 Technical Report dated Sep 14, 2007, revised May 19, 2008, amended and
 restated June 23, 2008

 *Gold credits not included
                                                                                                                            21
ICP - Production Cost Comparison

                                           Cobalt Production Costs - 2007

                                           LOM Average Cost/ Lb Co: US$7.73, Net of Copper Credits

                                      34
  Cash Costs , $/lb (Real US $2007)




                                                     Formation Metals Inc.
                                      27
                                                   Production Costs $7.73/lb*
                                                                                                                      Secondary producers
                                                                                           Marginal Cost Line
                                      20                Low Cost Cu/Co
                                                         producers and
                                                    traditional Ni producers                Ni laterite
                                      14                                 Current Average Costs

                                                                      African Cu/Co

                                      7



                                      0
                                           0   3    5   8   10   13   15   18    20   23    25   28   30   33   35   38   40   43   45   48   50

                                                                                Cumulative Output (‘000 t)


Source: After CRU. Based on 2007 market prices; for Co = $28/lb; for Ni = $16.89/lb; for Cu = 3.23/lb
                                                                                                                                               22
*Gold Credits not included
IRR, NPV & EBITDA Sensitivity

        Significant Upside to Cobalt Price Increases


                                          Cobalt Price           Cobalt Price          Cobalt Price             Cobalt Price
                                             $22.52 / lb            $27.52 / lb            $37.52 / lb             $47.52 / lb


  IRR                                             22.3%                 34.18%                55.95%                   76.40%


  NPV
      Discounted at 7.5%                  $87,291,107           $167,558,635          $328,093,691             $488,628,747


  EBITDA (Year 1-5)
      Year 1                              $43,923,085            $57,881,553            $85,798,491            $113,715,428
      Year 2                              $57,543,630            $74,386,651          $108,072,694             $141,758,736
      Year 3                              $59,201,294            $76,249,931          $110,347,206             $144,444,481
      Year 4                              $39,827,668            $52,963,504            $79,235,175            $105,506,845
      Year 5                              $31,764,993            $43,307,059            $66,391,192             $89,475,325



   Source: NPV & IRR Sensitivities Samuel Engineering Bankable Feasibility Study July 2007 and NI 43-101 Technical Report
   dated Sep 14, 2007, revised May 19, 2008, amended and restated June 23, 2008


                                                                                                                            23
Formation Metals: Reasons to Invest

        Compelling                 Fully                Low
        Economics                Permitted         Political Risk




                            Formation Metals:
                                 Primary
          Small                                     Experienced
  Environmental Footprint      High Purity          Management
                            Cobalt Production
                                in the U.S.



   Cobalt trades on the            Strong       Significant Reserves
 London Metal Exchange         Market Demand      Upside Potential




                                                                       24
Appendix
FMI – Company Structure

                                         FORMATION METALS INC.
                                   (Formerly: FORMATION CAPITAL CORPORATION)
                                      Incorporated June 13, 1988 – British Columbia




                 100%                                  100%                                              100%



                             CANADA                                                               MEXICO
                                                                                           Minera Terra Nova S.A. de
  Formation Holdings Corp.            Coronation Mines Limited                                       C.V.
      British Columbia              Incorporated In Saskatchewan,                                   Mexico
                                     Continued in British Columbia




                 100%
                                                     100%                       US Cobalt, Inc.
                                                                                    Idaho

           Formation Holdings US, Inc.
                     Idaho
                                                                              Formation Capital
                                                                              Corporation, U.S.
                                                     100%                             Nevada


                                                                                 100%
                                 USA
                                                                                Essential Metals
                                                                                 Corporation®
                                                                                    Idaho
                                                                                                                       26
Officers & Directors


              MARI-ANN GREEN, B.A., B.Ed. (Director, Chairman of the Board, CEO)
                     Co-founder
                     25+ years resource sector experience in finance, management and
                      corporate development
                     Responsible for successfully raising almost $90 million in equity
                      funding
                     Assembled and directed a team of exceptional industry professionals



              J. SCOTT BENDING, P.Geo., B.Sc. (Director, President)
                       Co-founder
                       25+ years experience international mineral exploration and development
                       15+ years experience in metal price forecasting and commodity analysis
                       Proven track record of acquiring and evaluating high quality metal projects
                       Current member Board of Directors with Northwest Mining Association




              WILLIAM G. (BILL) SCALES, B.Sc. Geol. (Director, Executive Vice President)
                     Co-founder
                     30+ years experience in project management including 20 years in
                      mineral exploration and development
                     Extensive knowledge of Idaho Cobalt Project


                                                                                              27
Officers & Directors


              J. PAUL FARQUHARSON, B.B.A. (Chief Financial Officer)
                    25+ years in financial management and regulatory compliance
                     with both private and public resource companies
                    16+ years financial and compliance matters for Formation Metals Inc.
                     and has been instrumental in raising capital and in managing
                     corporate affairs




              MICHAEL G. IRISH, P.Eng., M.S. Met. Eng. (Vice President Metallurgy)
                     20+ years experience metallurgical engineering
                     Metallurgical Superintendant, Chief Metallurgist, and Operations
                      Foreman with a number of companies and most recently was Senior
                      Metallurgical Engineer for Anglo Gold’s Cripple Creek Operation




               JAMES B. P. ENGDAHL, (Independent Director)
                     President, CEO and Director of Great Western Minerals Group Ltd.
                      (rare earth elements)
                     30+ years experience corporate finance, management, accounting
                      and administration with major financial institutions such as
                      Barclays and Bank of Montreal


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Officers & Directors


            DAVID M.R. STONE, Ph.D., M.B.A., P.E., P. Eng. (Independent Director)
                   Internationally recognized expert in mine backfilling
                   17+ years experience underground & surface mining in over 40 projects
                    in 17 countries
                   Due diligence team participant
                   Worldwide leader in mine scoping and feasibility studies for open pit
                    and underground projects


            ROBERT G. METKA, B.Sc., Eng., M.B.A. (Independent Director)
                   23+ years mineral production and engineering experience as VP of
                    Projects for Noranda Minerals and VP and GM of CEZinc.
                   Current principle of Hatch & Associates, worlds largest international
                    mining engineering company




            ROBERT J. QUINN, B.Sc., B.A., J.D. (Independent Director)
                   Lawyer and founding partner of Houston firm Quinn & Brooks LLP
                    specializing in international mining legal practice
                   27+ years legal and industry management experience including VP and
                    General Council for Battle Mountain Gold Company and Legal Council for
                    Hecla Mining Company
                   Extensive experience in due diligence, acquisitions and joint ventures
                   Extensive experience in permitting and development of major mining
                    projects
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Officers & Directors


            GOVERNOR CECIL D. ANDRUS, (Independent Director)
                  Previous four- term Idaho Governor and former U.S. Secretary of the
                   Interior
                  Served on Boards of Albertsons, Key Bank and Coeur d’Alene Mines Corp.
                  Chairman of Andrus Center for Public Policy at Boise State University
                  Currently “of council” to the Gallatin Public Affairs Group
                  Known for strong environmental stance on mining and believes the Idaho
                   Cobalt Deposit to be an environmentally conscious mining operation

            DR. CHARLES H. ENTREKIN, Ph.D M.B.A. M.S. B.S., (Independent Director)
                    Over 35 years experience in exotic metals industries, including cobalt
                    International consultant for numerous metal producers and financial houses
                    Sits on the Board of Directors for Coalcorp Mining Inc.
                    Previous executive positions include President and COO of Titanium Metals
                     Corporation, President and CEO of Timminco Ltd. and Managing Director of
                     London & Scandinavian Metallurgical Co. Limited




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