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Energizer Retains SGS to Optimize Metallurgical Process for Molo Graphite Deposit in Madagascar

Energizer Resources Inc. ("Energizer" or the "Company") is pleased to announce it has retained the services of SGS Canada Inc. ("SGS"), in Lakefield Ontario to optimize its metallurgical process for the Molo graphite deposit ("Molo" or the "Project"), located in Madagascar.

The Company is confident that flake size distribution and graphite purity levels can be further optimized by SGS due to the lab's experience in graphite metallurgical management. The test work to be conducted by SGS will be completed in three phases, with the results being integrated into the Company's full feasibility study as well as the Company's Preliminary Economic Analysis ("PEA") study. It is anticipated that the results of the SGS study will positively impact the Molo PEA study which reported an NPV of $421 million (10% discount rate), an IRR of 48%, and a payback of 3.0 years.

Phase 1 - Flowsheet Optimization and Variability Analysis

SGS will begin work by conducting a variability analysis on the two zones of mineralization (with head grades of 10.5% C and 6.5% C respectively) found within the Molo deposit. A flowsheet will then be developed to maximize the recovery of graphite into a flotation concentrate grading at least 95% C, while also looking to maximize the preservation of large flakes. In addition, the program will deliver a mineralogical characterization of the sample.

Phase 2 - High Purity Concentrate Analysis

Phase 2 of the SGS program will involve the purification of graphite flotation concentrate grading at least 95% C from Phase 1 of the test program, to a concentrate grade >99.5% C. Initial test work conducted by Mintek of Johannesburg, South Africa, demonstrated that graphite concentrates were easily upgraded to purities between 98% and 98.6% C, and SGS believes purities of >99.5% C should be easily obtainable.

Phase 3 - Pilot Plant

Following the optimization of the flotation concentrate flowsheet, SGS will design and construct a pilot plant to process roughly 200 tonnes of Molo graphite ore. The pilot plant is anticipated to begin processing in August, and will result in the production of 6-10 tonnes of graphite concentrate which the Company will use to further off-take discussions.

Qualified Persons

The technical data, economic indicators and information relating to the PEA have been reviewed and approved by Mr. Robin Borley, DRA Mining Director (Mining QP) and Mr. Glenn Bezuidenhout, DRA Process Director (Process QP) and is deemed to be a true reflection of the design parameters and financial indicators derived from the PEA study.

Source: http://www.energizerresources.com/

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