EDITOR: | April 3rd, 2013

Energizer Resources Announces Positive Sensitivity Analysis for Green Giant Molo Graphite Project and Closes Private Placement

| April 03, 2013 | No Comments

April 3, 2013 (Source: Marketwire) Toronto, ON — Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) (“Energizer” or the “Company”) is pleased to report the results of a graphite grade and operating cost (“OpEx”) sensitivity analysis for its Molo graphite deposit (“Molo” or the “Project”), located in Madagascar. The objective of the analysis was to evaluate the impact of different graphite sale prices and OpEx costs on the project’s IRR (Table 1) and NPV (Table 2) projections. The high level viability financial model was prepared independently by Cresco Project Finance, (‘Cresco’) a project finance advisory boutique in Centurion, South Africa, based on the technical advisor inputs and client assumptions. The results of this analysis will be included in the Preliminary Economic Analysis Technical Report Update (“PEA”), currently being compiled by DRA Mineral Projects (“DRA”) of Johannesburg, South Africa.

The baseline graphite price used to calculate the PEA results released in the Company’s press release dated 26th February 2013, was $1564 per tonne. The Company believes this number to be conservative, as it does not reflect optimization of flake size distribution through pilot plant test work. Similarly, the baseline OpEx cost of $523.45 per tonne of graphite is believed to be conservative as it assumes all power for the Project will be supplied by containerized diesel power generation and all-road maintenance for the transport corridor to the port will be assumed 100% by Energizer. This OpEx cost includes FOB ship (graphite transportation from the plant to the port and onboard cargo ship), as opposed to just FOB plant (i.e. no transportation costs).

OpEx costs are expected to decrease with the development of the neighbouring Sakoa Coal Field projects which the Company anticipates will result in the ability to purchase ‘over the fence’ power from the coal-fired power generation facility, as well as OpEx savings due to infrastructure sharing and accelerated port development. Synergies with the Sakoa Coal Field projects may be realized sooner than initially believed, as there will be coal test shipments to the port of Soalara commencing later this year.

Craig Scherba, President & COO commented, “The sensitivity analysis utilized conservative baseline graphite pricing and OpEx costs, yet still illustrates the robust nature of the Project. If the graphite price falls off by 25% and there is a 20% OpEx cost over-run, the project still has very positive IRR and NPV values.”



The table above indicates change in the assumptions ranges (both up and down) for both operating costs (USD/T) and graphite sales price (USD/T) with the associated impact on the IRR and NPV as calculated by the high level financial viability model.

A key point to note is that the calculated project sensitivity IRRs & NPVs are not very sensitive to reasonable changes in the underlying assumptions, compared to other similar operations indicating the robust nature of the project based on the current level of assumptions.

Qualified Persons

The information pertaining to the high level financial analysis and relating to the PEA has been reviewed by Mr. Robert Futter of Cresco Project Finance and is deemed to be a true reflection of the financial indicators derived from the PEA level study.

The sensitivity table detailed above is for indication purposes based on the level of the capex and operating cost estimates considered in the PEA study. Other non-mining related operating costs or other overhead expenses have not been determined at this stage but will be confirmed during the Bankable feasibility based on appropriateness for a Project in Madagascar.

Energizer Closes $2.35 Million Financing

The Company has closed a CAD$2,358,000 non-brokered private placement by issuing 12,350,000 Common Shares.

In connection with the closing, Energizer paid compensation consisting of a cash fee of CAD$86,000 and issued 270,000 broker warrants. Each broker warrant entitles the holder to acquire one Common Share of Energizer at a price of CAD$0.20 for a period of 12 months from the date of issue.

The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. persons unless an exemption from registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

All securities issued in connection with the Offering will also be subject to a four-month hold period from the date of issuance as required by Canadian authorities and a six month hold period as required by U.S. authorities. Completion of the Offering remains subject to final approval of the applicable regulatory authorities, including the Toronto Stock Exchange.

Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is focused on developing the Molo flaked graphite deposit in Fotodrevo, southern Madagascar. The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the Project.

Safe Harbour: This press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from expectations and projections set out herein.



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