Energizer Resources Well-Positioned To Be Major Supplier of a Critical Material In Short Supply

TORONTO, ONTARIO, Aug. 18, 2014 (GLOBE NEWSWIRE) -- Uptick Newswire discovers a world-class graphite project in Energizer Resources, Inc. (OTCQX:ENZR, TSX:EGZ), a mine development and mineral exploration company based in Toronto, Canada, that is rapidly developing its flagship Molo Flake Graphite Project in southern Madagascar to mine production.

There are currently over 200 daily applications that depend upon flake graphite. Incremental demand will be created by a number of green initiatives, including lithium ion batteries, fuel cells, solar energy, semi-conductors, and nuclear energy. Industry analysts say many of these applications have the potential to consume more graphite than all current uses combined. In fact, the average electric car uses approximately 100 pounds of flake graphite per vehicle.

Flake graphite is the most coveted form of graphite because it can be used in any application and commands the most premium price. China, who produces over 75% of the world's graphite, is in urgent supply of flake graphite for their own domestic markets and this has created supply concerns for the rest of the world. With limited exploration and potential development projects on the horizon, Energizer Resources and its Molo project are well positioned to supply both traditional and rapidly growing high-tech and clean-tech markets with the high quality and high purity, large-flake graphite that is in strong demand.

The Molo project is monstrous in size, ranked as one of the largest flaked graphite deposits globally, and possesses almost unlimited expansion capability. The Molo deposit comes with the assurance of the highest mining standard issued from the Canadian government: NI43-101. In fact, Energizer Resources released an economically robust Preliminary Economic Assessment Study of the Molo site in February 2013, verifying to the market it has the potential to be a profitable and low cost producer. Based on this Study, Energizer has now initiated a Full Feasibility Study - the last stage required to qualify the project for mine financing by chartered banks. The feasibility study is on track to be completed and released to the market by the fourth quarter of 2014. Energizer also completed a pilot plant, sending multiple-ton samples of finished graphite concentrate for the purposes of evaluation to leading steel, lithium-ion battery and consumer electronics companies who represent the world's largest buyers of graphite.

All results to date by the evaluating companies have been extremely positive, confirming through 3rd-party validation that Energizer's graphite is of superior quality and meets all the criteria for the largest demand markets for graphite both today and in the future. As a result, Energizer now has a senior management team stationed in Asia to continue advanced meetings with several of these world-leading companies regarding off-take and strategic alliances in order to ensure a seamless process to market - with the bonus of their Project being relatively close to these key Asian customers: Japan, China, Korea and India.

Energizer Resources'current intuitional investors are impressive. JP Morgan, along with two of Canada's largest investment banks, Dundee Resources and Power Corporation's Investors Group, are its largest shareholders. Energizer has also partnered up with Africa's leading mine engineering and construction firm, DRA Global, who have already been contracted to build and operate the mine, providing Energizer with a de-risked and turn-key solution for mine operation.

To the general public, both graphite's surging demand and Energizer's Molo Graphite Project remain largely unrecognized. Many know that graphite is in pencils, and as widely recognized as this particular application may be, today it accounts for a small fraction of the worldwide graphite demand. It is the steel industry that accounts for over 50% of worldwide graphite demand, and this well-established industrial demand for graphite has been growing at approximately 5% throughout the current decade due to ongoing industrialization in China, India, and other emerging markets. Based on the steel market alone, annual graphite demand is expected to increase from 1.1 million metric tons to 1.5 million metric tons by the year 2020, which reflects a growth potential of almost 50%. But what has been causing industry analysts lately to call graphite "black gold" is its use in batteries. Now the second largest demand driver for graphite at approximately 26%, lithium-ion batteries are poised to overtake the steel industry in the next 5 years as the top consumption market for flake graphite. Why? The answer is electric vehicles (EVs).

Few outside of the industry are aware of this fact; that a lithium-ion battery contains about 11 times more graphite than it does lithium. And it is this fact that has global buyers of graphite in a panic, and current producers of graphite in a frenzy when it comes to the potential demand for graphite from EVs. Every Tesla Model S has about 100 lbs of flake graphite in its battery. Tesla Motor Company's intent to produce the world's total lithium-ion production in one plant in the USA came closer to reality last month when it partnered with Panasonic to fund its "Gigafactory". At capacity, it would consume the entire amount of flake graphite used in the world today for batteries. This demand would require six brand new graphite mines to be brought online. And that's just for Tesla alone.

Energizer Resources' management team has consistently completed key project milestones as it progresses its Molo Project to mine development and is uniquely positioned to capitalize on both the current demand and future potential of graphite. While the Molo is one of the largest graphite deposits on the planet, it sits in less than 1 of over 200 miles of continuous graphite mineralization confirmed on Energizer's property in Madagascar. Energizers' Molo deposit has the size and economics to make it a significant barrier to entry in the graphite space, while being one of the most undervalued companies in the industry.

The stars are aligning for Energizer to supply one of the most innovative materials of our time - applicable in everything from EVs to energy storage to safe nuclear applications. The Molo Graphite Project represents one vital source of supply of a critical material and an undeniable opportunity for investors.

Energizer Resources trades on the OTCQX under the symbol "ENZR" and on the Toronto Stock Exchange (TSX) under the symbol "EGZ".

About Energizer Resources

Energizer Resources is an American-domiciled mineral exploration and mine development company based in Toronto, Canada, that is developing its 100%-owned, flagship Molo Graphite Project in southern Madagascar.

The Molo Graphite Project is one of the largest known crystalline flake graphite deposits in the world. The Molo Project hosts a NI 43-101 compliant indicated mineral resource of 84.04 million metric tons grading 6.36%C and an inferred resource grading 6.29% C of crystalline flake graphite.

Energizer has initiated a Full Feasibility Study, with results to be released to the market by Q4 2014. Results of the Company's recently completed pilot plant operation confirmed that 43.5% of the Molo deposit is classified as the premium-priced large and extra-large flake, with an average purity level in excess of 97%C achieved through standard flotation alone. The Company is targeting production in Q2/Q3 of 2016.

Safe Harbor: This 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.

The National Instrument 43-101 ("NI 43-101") compliant technical report, titled "Molo Graphite Project Fotadrevo Province of Toliara, Madagascar Preliminary Economic Assessment Technical Report Update and dated April 12, 2013, was prepared by DRA Mineral Projects Pty Ltd and authored by John Hancox, Pri.Sc.Nat, Desmond Subramani, Pri.Sc.Nat, Dave Thompson and Glenn Bezuidenhout, all Qualified Persons as defined by NI 43-101, and independent of Energizer Resources for the purposes of NI 43-101 requirements. The Technical Report is available on SEDAR at www.sedar.com and on the Company's website at www.energizerresources.com

The above resource estimates, or mention thereof, were calculated in accordance with NI 43-101 as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by the Staff of the SEC, applies different standards in order to classify mineralization as a reserve. Among other things, the terms "measured", "indicated" and "inferred" mineral resources are required pursuant to National Instrument 43-101, the U.S. Securities and Exchange Commission does not recognize such terms. Canadian standards differ significantly from the requirements of the U.S. Securities and Exchange Commission, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the U.S. Securities and Exchange Commission.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. The mineral resource estimates in this press release include inferred resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that the inferred mineral resource will be converted to the measured and indicated mineral resource categories through further drilling, or into a mineral reserve once economic considerations are applied.U.S. investors should understand that "inferred" mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of the Company's mineral resources constitute or will be converted into reserves. Cautionary Statement: Neither TSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT: Brent Nykoliation Senior Vice President Corporate Development +1.416.364.4911 bnykoliation@energizerresources.com

Source:Energizer Resources