Energizer Resources Inc.
Energizer Resources Announces US$15 Million Non-Brokered Private Placement
Energizer Resources Inc. / Key word(s): Miscellaneous Energizer Resources Announces US$15 Million Non-Brokered Private Placement; Releases Updated NI 43-101 Report on Green Giant Project NEWS RELEASE TORONTO, ON – January 20, 2011 Energizer Resources Inc. (TSX.V: EGZ) (OTCBB: ENZR) (FWB: YE5) (‘Energizer’ or the ‘Company’) announces its intention to complete a non-brokered private placement offering (the ‘Offering’) for gross proceeds of up to US$15,000,000 plus a 20% over-allotment option. Units are offered at US$0.45 per Unit. Each Unit entitles the subscriber to receive one common share of the Company and one-half of one common share purchase warrant. Each whole Purchase Warrant is exercisable for one common share of the Company at an exercise price of US$0.75 for a period of 24 months from the date of closing of the Offering. Building on the Company’s achievements in 2010, the net proceeds of the Offering will be used by the Company to complete a National Instrument 43-101 preliminary economic assessment, including advanced metallurgical test work to optimize the process flow sheet, for additional exploration and for general working capital requirements. The Company intends to close this offering during the month of January 2011. All securities to be issued in connection with this Offering will be subject to a statutory six-month hold period as required by the U.S. authorities from the date of issue. Completion of the Offering remains subject to approval of the applicable regulatory authorities, including the TSX Venture Exchange. Finders’ fees may be payable in connection with the Offering. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the ‘U.S. Securities Act’) or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Updated National Instrument 43-101 Report Now Available The updated NI 43-101 Technical Report (‘Report’) for the Green Giant project is now available on SEDAR at www.sedar.com and on the Company’s website at www.energizerresources.com. This Report outlines in detail the Company’s updated mineral resource estimate, which confirms the Green Giant project as one of the largest known vanadium deposits in the world. This Report also includes details of the drilling carried out by Energizer during the period of May to June 2010 on the Green Giant project and also an updated metallurgical study conducted by Mintek in South Africa and SGS Lakefield Research in Ontario, Canada. About the Green Giant Vanadium Project The Green Giant vanadium project, located in Madagascar, is 100% owned by Energizer. The Company has a National Instrument 43-101 compliant indicated resource estimate of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide (‘V2O5’) containing 756.3 million pounds of V2O5 and an inferred resource of 9.7 million tonnes at an average grade of 0.632% V2O5 containing 134.5 million pounds of V2O5. With this resource estimate, the Green Giant deposit currently ranks as the third largest known vanadium deposit in the world, with 75% of the 21-kilometre (18 mile) stratigraphic trend of vanadium remaining open for drilling. About Energizer Resources Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada. The Company’s common shares are traded on the TSX Venture Exchange under the symbol EGZ, on the Over-The-Counter Bulletin Board under the symbol ENZR, and on the Frankfurt Exchange under the symbol YE5. For more information, please visit our website at www.energizerresources.com Or contact: Cautionary Statement: The above resource estimates were calculated in accordance with National Instrument 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.
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