VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2008) - Formation Capital Corporation (TSX:FCO) has been provided an update by its wholly owned subsidiary, Formation Capital Corporation, U.S. ("the Company"), regarding the engineering and procurement status of its 100% owned Idaho Cobalt Project (ICP) located near Salmon, Idaho.

Engineering and procurement for the ICP is being conducted by Samuel Engineering, Inc. (Samuel) with construction management under the joint direction of Samuel and MTB Project Management Professionals, Inc. (MTB). In addition, civil design for roads and portal bench is being conducted by Telesto Solutions, Inc. (Telesto).

Samuel reports detailed design, engineering and procurement for the surface facilities is steadily progressing with 78% completed as at July 31, 2008. Engineering activities include: concrete and steel design, piping and instrumentation diagrams, paste backfill plant design, piping system design, electrical one-line diagrams, and instrumentation work.

Samuel also reports that almost all major equipment has been purchased and is either under fabrication or has arrived at the Company's staging area in Salmon, Idaho. Equipment secured at staging area includes: the crusher and concentrator buildings, tram track cables, tram bull wheel, tram towers, ore and rock hoppers, vibratory feeders and batch loader. Equipment in fabrication / storage / transit includes: ball mill rubber liners, tram components, bridge crane, flotation cells, ball mill shell and other components, concentrator filter, main transformer and mine dewatering sump pump.

After much process optimization and process and equipment evaluation, detailed engineering on the modifications at the Company's hydrometallurgical facility near Kellogg, Idaho is now 25% complete. Engineering activities include: process flow diagrams final revision and process design (complete), piping and instrumentation diagrams, mass balance (being finalized), equipment specifications (70% complete), magnesium hydroxide and nickel hydroxide circuit design (finalized).

Management is pleased with the progress of the engineering and procurement for the ICP and hydrometallurgical facility and continues to work closely with Samuel Engineering, Inc. and MTB Project Management Professionals Inc. to advance the project.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Formation Capital Corporation
E.R. (Rick) Honsinger, P.Geo.
V.P. Corporate Communications
(604) 682-6229
(604) 682-6205 (FAX)
Email: inform@formcap.com
Website: www.formcap.com