Mr. Craig Scherba reports

ENERGIZER RESOURCES PROVIDES CORPORATE UPDATE

Energizer Resources Inc. has provided an update on its recent corporate developments and upcoming milestones.

Filing of Molo project feasibility study technical report

Further to the company's news release of Feb. 5, 2015, titled, "Energizer Resources Inc. Announces Positive Results of its Feasibility Study," the full Molo graphite project National Instrument 43-101 technical report relating to the company's feasibility study has been filed on SEDAR. The report is also accessible on Energizer's website under investors, then technical reports.

With the FS report available, the company is now able to move forward on three key fronts:

• Mining permit: The application for the environmental permit has been submitted and accepted by the government of Madagascar, which is the catalyst for the application of the mining permit as the environmental and mining permit approval process run concurrently. The company's expectation is to have the mining permit in place by the fourth quarter of 2015.
• Off-take and strategic partners: Discussions with potential strategic partners concerning both project financing and off-take agreements can now be significantly advanced, as several interested parties that have entered into confidentially agreements with Energizer have informed the company that the delivery of the FS report is a mandatory requirement in their process of negotiating a binding agreement.
• The company can now actively begin engaging both the debt and equity financing channels as part of the capital raise process for mine development. The delivery of the FS was also a mandatory requirement for the project debt providers to even consider a financing initiative.

Battery-grade samples

To date, the company has received only 100-per-cent-positive feedback from the companies evaluating the quality of the Molo graphite concentrate for anode use. This validates that the concentrate is of very high quality based upon independent end-user analyses. The pilot-plant-produced samples analyzed to date have been of varying quantities and the company believes it is an accurate representation of the graphite concentrate that would be produced at the Molo graphite project.

In February of this year, the company had a large quantity of graphite concentrate upgraded to battery-grade purity of 99.975 per cent carbon. This purified concentrate was then shipped to potential off-takers in Asia, North America and Europe that had requested purified samples as part of their continuing evaluation process for the use of Molo concentrate in battery applications. Many of these evaluating parties also spherically cut the purified Molo concentrate to meet their product specifications. On the heels of this latest round of advanced product testing, the company plans to conduct follow-up visits with several end-users and looks forward to reporting test results as they become available.

FS optimization study under way

The company was pleased to report in its news release of Feb. 5, 2015, the positive results of its FS, confirming that the Molo project is economically viable with a planned mine design that the company believes is both conservative and realistic. The FS indicated robust project economics and in particular, an operating cost (ex mine) of $352 (U.S.) per tonne, which positions Energizer in the lowest cost quartile of graphite producers.

Further, the company believes that there may be opportunities to reduce both the operating expenditures and capital expenditures of the project. In an effort to quantify these potential reductions, the company has initiated portions of a detailed engineering review to further optimize the FS.

Some of the key aspects of the optimization study will include the following:

1. The engagement of two engineering consultants to review the design and construction plan anticipated in the current FS model:
   1. As part of this review, the company will consider other execution strategies such as constructing a large percentage of the mine processing facility off site, which would then be disassembled, shipped and reassembled on site in a plug-and-play-type scenario. The company believes that the potential benefits for this type of build plan could be lower capex costs, shorter construction timelines to production and improved management and quality of build process to help ensure the project would be remain on budget and on time.
2. Issuing of requests for proposal regarding a possible renewable energy solution for the Molo site:
   1. Based on preliminary discussions and feedback from several energy storage system solution providers, this could provide an overall reduction in energy costs, which would then translate into further OpEx savings as compared with what has been modelled in the FS. An option being investigated is a five-to-eight-megawatt solar PV/diesel hybrid off-grid power facility that may be able to reduce project power costs, which are calculated on 100-per-cent diesel generation in the current FS. An international environmental agency is currently in Madagascar conducting a comprehensive analysis of the country's wind and solar characteristics. The agency has begun mapping the entire island to record wind and solar data, with the Molo site being fast-tracked in the process and will be mapped over the next two weeks.
   2. The climate and geographical location of the Molo graphite project provides an ideal setting for a renewable energy power solution and could minimize the effect of possible escalating costs of diesel in relation to continuing power needs at site. A solar and/or wind powered option is very appealing to Energizer, whose corporate environmental goals are to operate as clean and green as possible and to minimize the carbon footprint of the project. This may also provide the company with the opportunity to participate in the trade of international carbon credit units.

Upgrading of main arterial roadway close to Molo project

Energizer has reconfirmed that the European Union has reinstated civil infrastructure development projects in Madagascar, beginning with the allocation of funds for the upgrading of the main arterial roadway, Route Nationale 13. The road work is being completed by Sara SRL, a recognized engineering construction company in Madagascar. Representatives from both Sara SRL and the EU have independently confirmed the allocation of tenders in Madagascar for the road rehabilitation work.

This roadway connects the capital city of Antananarivo to the state-of-the-art deepwater port of Ehoala in Fort Dauphin, which is the port that Energizer plans to utilize for shipping its Molo graphite. The Ehoala port was constructed for and being utilized by Rio Tinto/QMM's ilmenite sands project in the southeastern region of the country. The upgrade of the RN13 has begun with the portion closest to the Molo project and will eventually end at the port, which currently has both excess capacity and power.

It is expected that this first portion of the road upgrade will be completed by the end of spring 2015, with the second portion of the works program expected to begin immediately after to extend the road to Ambavombe, where it will intersect with the EU's 2016 program to rehabilitate the third section, which is the coastal road out to the ocean port at Fort Dauphin.

The upgrading of RN13 has the potential to positively impact the company's projected mine economics that were used in the FS report by reducing the transportation costs from the Molo site to the port, and subsequently the total transportation costs to customer destination resulting in lower overall operational costs.

Financing

The company can now begin actively engaging both the debt and equity financing channels as part of the capital raise process for mine development. In February of this year, Energizer's senior management attended Mining Indaba, Africa's largest mining conference, and met with over 15 individual banks and private equity firms for discussions on arranging project debt and equity financing. Numerous debt providers are interested in assisting the company, and are currently at various stages of their due diligence processes. Meetings also included those with international financial institutions specifically focused on investment in African projects.

All discussions regarding project financing with chartered banks, private equity groups and strategic partners are being conducted in parallel with those concerning off-take agreements and the company looks forward to providing regular updates as they become available.

In regard to the private placement previously announced on March 12, 2015, the company is continuing to work with the agents in the marketing of the transaction and hopes to close the financing in the coming two weeks.

Qualified person

Craig Scherba, PGeo, president and chief operating officer, is the qualified person for the technical information provided in this release.

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