FFM Announces Convertible Debenture Financing and Changes to Board of Directors

Formation Fluid Management Inc. (TSX VENTURE:FFM) ("Formation Fluid" or "the
Company") is pleased to announce a brokered private placement of convertible
notes (the "Notes") for up to a maximum aggregate principal amount of $750,000
(the "Private Placement").


The Notes will have a twelve month term and will yield an interest rate of 10%
per annum due on maturity. The Notes will be convertible into common shares (the
"Common Shares") of the Company at a conversion price of $0.10 per Common Share.
The Company will have the right to repay all of the outstanding principal and
interest of the Notes upon notice to the holders of the Notes. The Notes will be
secured, subordinated only to any bank debt. 


Formation Fluid has appointed Union Securities Ltd. (the "Agent") as its
non-exclusive agent for the Private Placement. In consideration for its services
the Agent will receive an 8% cash commission on the total gross proceeds of the
Private Placement placed by the Agent and a number of warrants (the "Agent's
Warrants") equal to 10% of the number of Common Shares which would be issued
upon conversion of the Notes placed by the Agent. Each Agent's Warrant will
entitle the Agent to purchase one Common Share of the Company at a price of
$0.10 per Common Share for a period of one year.


Formation Fluid will apply to the TSX-V for up to 825,000 Common Shares to be
reserved for listing on the TSX Venture Exchange (the "TSX-V") as the maximum
number of Common Shares issuable upon conversion of the Notes and the Agent's
Warrants. Pursuant to applicable securities laws, the Common Shares issued upon
conversion of the Notes, if any, will be subject to a four-month hold period
from the date of issuance.


The closing of the Private Placement is expected to occur as soon as possible
and is subject to the approval of the TSX-V. Proceeds from the Notes will be
used by the Company for general working capital.


Formation Fluid also announced today the appointment of Chance Radford to its
board of directors. Mr. Radford currently serves as the Company's Chief
Operating Officer.


Minaz Devji is stepping down as a director and as the Chairman of the Company's
board of directors. The Board would like to thank Mr. Devji for his commitment
and assistance to the Company over the past years.


About Formation Fluids

Formation Fluid Technology has developed a waste water treatment plant that uses
a proprietary process to clean waste water. The system is mobile and can be
scaled to process required volumes. This system treats water to meet or exceed
CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in
reusable water that can be used for: Boilers, Frac Water, Water Floods, and
Drilling Operations. Formation Fluids is seeking to service a significantly
underdeveloped segment within the oil and gas industry; its waste water
treatment system is intended to cost effectively deal with produced water while
satisfying the need to reuse and recycle an increasingly valuable resource.


On behalf of the Board of Directors

Wayne Smith, Chief Financial Officer

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning
of certain securities laws, and is subject to important risks, uncertainties and
assumptions. This forward-looking information includes, among other things,
information with respect to the Company's beliefs, plans, expectations,
anticipations, estimates and intentions. The words "may", "could", "should",
"would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect",
"intend", "plan", "target" and similar words and expressions are used to
identify forward-looking information. The forward-looking information in this
news release describes the Company's expectations as of the date of this news
release.


The results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or events. Material
factors which could cause actual results or events to differ materially from
such forward-looking information include, among others, risks arising from
general economic conditions and adverse industry events, risks arising from
operations generally, reliance on contractual rights such as licenses and leases
in the conduct of its business, reliance on key personnel, market acceptance of
the Company's products and services, the need to protect intellectual property
and other proprietary rights, possible failure of the business model or business
plan or the inability to implement the business model or business plan as
planned, fluctuations in the cost of materials, competition, environmental
matters, and insurance or lack thereof.


The Company cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking information to make
decisions, investors and others should carefully consider the foregoing factors
and other uncertainties and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that the material
factors referred to in the previous paragraph will not cause such
forward-looking information to differ materially from actual results or events.
However, the list of these factors is not exhaustive and is subject to change
and there can be no assurance that such assumptions will reflect the actual
outcome of such items or factors.


THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE
EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE
UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.