Thanks to David Morgan of


8:51p ET Tuesday, October 29, 2002

Dear Friend of GATA and Gold:

The Gold Anti-Trust Action Committee Inc.
welcomes another corporate sponsor, Formation
Chemicals Inc. of Vancouver, B.C., Canada, a
subsidiary of Formation Capital Corp. A
description of the company is appended here.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *


Formation Chemicals Inc. (, a
wholly owned subsidiary of Formation Capital
Corporation, listed as FCO on the Senior TSX
exchange, provides investors with ground-
floor exposure to silver and cobalt and a
unique opportunity to participate in the
development of the sole integrated cobalt
miner and metals refiner in the United
States. Cobalt is a strategic and critical
metal used in many diverse commercial,
industrial, and military applications. The
United States is the largest consumer of
cobalt and has no domestic production.

Formation Capital Corp., through its wholly
owned subsidiaries, is a well-established
mineral exploration company led by a highly
qualified board of directors and technical
team of geologists, metallurgists, permitting
specialists, mining engineers, and

Its subsidiary, Formation Chemicals Inc.
recently completed the purchase of the
permitted Big Creek Hydrometallurgical
Complex in northern Idaho at a significant
discount to its replacement cost, estimated
at US$50 million. With minimal startup
expense, the complex could produce 15 million
ounces of silver, four million pounds of
copper, and 42,000 ounces of gold.

Initially the company plans to restart the
silver refinery and generate cash flow that
could be used to retro-fit the complex to
handle outside feed and cobalt concentrate
from its 100-percent-owned Idaho Cobalt
Project (ICP). The company intends to
produce value-added cobalt chemicals from the
concentrate to increase profits and reduce
exposure to raw materials price

The ICP is a unique primary cobalt deposit
with a net present value of more than US$62
million (discounted 8 percent and an
internal rate of return of 39.91 percent
(using US$9/lb cobalt producing chemicals).
The ICP is in the mine-permitting stage of
development, with production slated for 2004.

Formation Capital Corp., through its
subsidiaries, also has significant silver,
gold, and uranium holdings in Mexico, the
United States, and Canada.