Due Diligence Completed on The Frio Draw Prospect

FORMCAP Corp. (FRMC - OTCBB_Pink_Sheets), announced today that it has completed its Due Diligence of the Frio Draw Prospect located in Curry County, New Mexico. FormCap's management team and consultants completed a thorough review of all legal, technical and geological information available on the Frio Draw Prospect. All of the mineral leases, which make up the prospect, have been properly recorded and the lease bonus payments, all of which are for a five year term, have been verified. A drill site visit was conducted, meetings were held with the Driller, Landsat Data Consultant and the Geologist responsible for generating the prospect. "We are very pleased with level of detailed geological interpretation and well control that was available on this prospect. Core and log data from Stratagraphic wells completed by Shell in the late 1960's indicate good structure and porosity, which we found to be very compelling." stated FormCap President Graham Douglas.

Based on these conclusions, FormCap today advanced funds to begin the permitting process for the Nitz#1, the initial drill hole in the Frio Draw Prospect. The Company anticipates that all permitting and pre-drilling activity will be completed to accommodate a spud date sometime in October.

Under the terms of the Option Agreement, FormCap can acquire up to 50% Working Interest (40.75% Net Revenue Interest) in the 13,252 acre Frio Draw Prospect by drilling two wells; 25% Working Interest from drilling the first well and an additional 25% Working Interest from drilling the second well. Thereafter, FormCap and Morgan Creek will fund additional drilling on a heads-up basis. A total of 180 wells potentially can be drilled on the Frio Draw Prospect acreage.

About FormCap Corp.:

FORMCAP is a fully reporting issuer with the shares traded on the "Pink Sheets". FORMCAP's mandate is to seek out developing oil & gas development and exploration opportunities for acquisition.

Safe-Harbor Statement: Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act''), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company's financing plans; (ii) trends affecting the Company's financial condition or results of operations; (iii) the Company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may,'' "would,'' "will,'' "expect,'' "estimate,'' "anticipate,'' "believe,'' "intend,'' and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors

Condominium 6

118 Calle Hortencia

Col. Amapas

Puerto Vallarta, Mexico 48380

Contact email: gdouglas@formcapcorp.com

Phone: 1-206-619-8900

Source: FORMCAP Corp. (OTCBB Pink Sheets: FRMC)

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