Formation Capital and Idaho Conservation League Reach Agreement on Environmental Enhancement Initiative

VANCOUVER, BRITISH COLUMBIA–(EMWNews – Aug. 14, 2008) – Formation Capital Corporation (“Formation”) (TSX:FCO) is pleased to announce that its wholly owned subsidiary, Formation Capital Corporation, U.S. (the “Company”) and the Idaho Conversation League, have entered into a Memorandum of Understanding which will outline a series of initiatives to enhance the environment in the upper Salmon River watershed. The Company’s Idaho Cobalt Project (ICP) is located in the basin. As such, the Idaho Conservation League, Idaho’s largest membership private non-profit conservation organization, is not challenging the Forest Service Record of Decision or the Environmental Impact Statement for the ICP. Details of the Memorandum of Understanding will be disseminated in a news release in conjunction with a press conference to be held in Boise, ID, on Monday morning, August 18, 2008.

Formation Capital Corporation is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. The Company trades on the Toronto Stock Exchange under the symbol FCO.

Formation Capital Corporation

Mari-Ann Green, C.E.O.

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