Energizer Resources Receives Buy Recommendations from Investment Institutions

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| Source: Energizer Resources

TORONTO, ONTARIO, Aug. 25, 2014 (GLOBE NEWSWIRE) -- Energizer Resources, Inc. (OTCQX: ENZR, TSX: EGZ), has received a "BUY" recommendation from two prominent Canadian investment institutions. The first was on June 9, 2014 from investment bank, GMP Securities L.P. The second "BUY" recommendation was issued on August 25, 2014 by Stormcrow Capital Ltd.  Both reports can be accessed here: Stormcrow CapitalGMP Securities

The importance of graphite and how crucial the commodity is to industry was outlined in the coverage released by UPTICK Newswire on August 18, 2014 (Energizer Resources Well-Positioned To Be Major Supplier of a Critical Material In Short Supply). In a short summary, graphite has over 200 essential applications, with "flake" being the most coveted form of graphite that buyers and producers look for in order to produce lithium ion batteries for mobile applications and electric cars, fuel cells, flat-panel televisions, solar panels , and consumer  electronic components to only name a few applications. Moreover, Graphite is not only a critical resource but is also vital in manufacturing steel. Currently the manufacturing of steel consumes approximately 50% of the global production for graphite. The importance of this critical commodity, coupled with surging worldwide demand and constrained supplies is still not fully evident to the general public. As mentioned earlier, steel alone will increase annual graphite demand from 1.1 million to 1.5 million metric tons by the year 2020, this reflects a growth potential of almost 50%.

The analyst equity reports issued by GMP Securities and Stomcrow Capital represent the lucrative market position Energizer has gained in its flagship "Molo Flake Graphite Project". In addition to it being ranked as one of the largest all-flake graphite deposits in the world, verified using the highest mining standards under the Canadian government, the "National Instrument 43-101", this undervalued project located in southern Madagascar, retains more than 200 miles of continuous graphite mineralization. The sheer size of the project ensures that Energizer can easily expand its graphite resource as market demand requires and be a significant barrier to entry to other competing projects.  It is predicted that by 2020, 6 brand new flake graphite mines will be needed just to meet the demand for electric vehicles alone, and Energizer's Molo deposit is capable of fulfilling that entire demand.  Energizer has completely de-risked the project from a metallurgy standpoint by already having its graphite successfully tested by leading battery and consumer electronics manufacturers. The Company is now engaged in securing long-term off take contracts and securing mine financing with global purchasers and manufacturers of graphite based products.

In February of 2013 Energizer Resources released a Preliminary Economic Assessment Study of the Molo Project, verifying to the market it has the potential to be a very profitable and low cost producer. Based on the Study's robust results, Energizer initiated a Full Feasibility Study, which is the last stage required in respect to qualifying the Molo project for mine financing by chartered banks. The feasibility study is slated to be completed and released by the fourth quarter of 2014.

One of the unique advantages of the Molo Flake Graphite Project is its geographical location. Located in southern Madagascar, the Molo Graphite Project is ideally situated within the hub of the top purchasing and processing markets for graphite - Japan, South Korea, China and India.

U.S and Canada Identify Madagascar as 'Priority Growth Market'; Keen to Establish Trade

On June 26, U.S. President Obama reinstated Madagascar to the African Growth and Opportunity Act, or AGOA. This Act provides free-trade status and other tangible incentives to Madagascar. The benefits of the AGOA are of critical importance to Madagascar's economy, as it is predicted that the reinstatement could increase exports to the United States by as much as 70 percent and create thousands of local jobs.

The United States' decision to reinstate Madagascar's eligibility as a preferred trading partner is in recognition of the nation's return to democratic rule and of the potential importance of the country's vast mineral wealth.

Meanwhile, the Government of Canada has officially engaged Madagascar's new government to rebuild economic and strategic resource ties.  Madagascar is identified as a priority market in the Canadian government's Global Markets Action Plan, with the two countries are eagerly working towards an agreement to prevent double taxation of corporations working in both regions in the mining, textile and agricultural industries.

A spokesperson from Canada's Department of Natural Resources said that two-way trade between Canada and Madagascar is "moderate", however Canadian investments in the mining sector in Madagascar are significant. Both Sheritt International's $8 billion Ambatovy Project and Energizer Resources' Molo Graphite Project were cited as the most notable mining operations in the country.

Several G8 countries view Madagascar as "strategic" in terms of its mineral wealth and geographic proximity to critical trade markets. It is no coincidence that the largest building in the entire country is the U.S. Embassy, followed by the Chinese and Russian Embassies.

The realization of "flake graphite" being a critical commodity has sparked enormous interest in domestic markets. Energizer Resources and its Molo project are well positioned to supply Flake graphite to traditional and rapidly growing markets while maintaining both high quality and purity, large-flake graphite that is in strong demand.

Energizer Resources a publicly traded company trades under (OTCQX: ENZR) and, closed on Aug. 22 at 0.13. The company is also on the Toronto Stock Exchange (TSX) under the symbol (EGZ).  For more information on Energizer Resources and its Molo Graphite Project, please visit www.energizerresources.com or call 1.416.364.4911

About Energizer Resources

Energizer Resources is a 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 is one of the largest known all-flake graphite deposits in the world and hosts a NI 43-101 compliant Measured resource of 23.62 million tonnes (MT) grading 6.32% carbon (C), an Indicated resource of 76.75 MT grading 6.25% C and an Inferred resource of 40.91 MT at 5.78% C, for a combined total of 141.28 MT at 6.13%C.

Energizer is at the full feasibility stage, with the Study to be released by the fourth quarter of

 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.

Energizer's total land package in southern Madagascar encompasses approximately 320 kilometres (198 miles) of continuous graphitic trends, where all graphite mineralization is immediately at surface.

In addition to the Molo Graphite Project, Energizer has also identified through drilling, trenching and geological mapping at least six other zones that could be potential stand-alone graphite deposits.

For more information on the Molo Graphite Project, please refer to the Company's technical report entitled "Molo Graphite Project, Fotadrevo, Province of Toliara, Madagascar, Preliminary Economic Assessment Technical Report Update" dated April 12, 2013 available under the Company's profile at www.sedar.com for a discussion in respect of certain key assumptions, parameters and methods in respect to the mineral resource disclosure, or our visit our website at www.energizerresources.com.

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.