Energizer Resources Enters Into Industrial Minerals Joint Venture With Australia's Malagasy Minerals

Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) ("Energizer" or
the "Company") is pleased to announce that it has entered into a binding Heads
Of Agreement ("HOA") for an industrial minerals exploration and development
joint venture with Australian company Malagasy Minerals Limited ("Malagasy")
(ASX:MGY). 


Under the HOA, a new joint venture company ("JV Co") will be formed and owned
75% by Energizer and 25% by Malagasy. The JV Co will have the right to explore
for a defined group of industrial minerals (listed in full below) and in
particular vanadium, within specifically defined permits on the newly expanded
land position. The new land position covers an area comprising of 2,119 claims
and totals 827.7 square kilometers, which is about 3.5 times the size of the
Green Giant property.


Malagasy has a large and highly prospective land portfolio in Madagascar, much
of which is adjacent to the south and east of Energizer's Green Giant property.
While delineating Energizer's current NI 43-101 compliant vanadium resource, the
geological data strongly indicated that the main vanadium trend continued
immediately beyond the southern boundary (Jaky Zone) of its Green Giant vanadium
deposit. Malagasy has already confirmed, through exploration results, extensive
zones of vanadium mineralization on its tenements located immediately south and
adjacent to Energizer's land position. 


With the confidence the Company has in the metallurgical optimization process
currently being conducted as part of its Preliminary Economic (PEA) Study,
Energizer capitalized on this strategic opportunity to significantly expand its
current vanadium resource, thus securing its potential market-leading position
in vanadium. 


The new joint venture represents a 'win-win' proposition for both companies, as
it is expected to expand the vanadium resource and accelerate the search for
other strategic and industrial minerals in Madagascar. 


Kirk McKinnon, Chairman and CEO, commented, "With the very significant Malagasy
land position, we have now secured a new source of vanadium along with the high
potential of discovering other strategic minerals. With Malagasy as a partner,
who has a well-established tenure in Madagascar, Energizer is well-positioned to
build on its exploration success."


Joint-Venture Agreement Details

For the purposes of obtaining the right to explore for and subsequently
conducting all required exploration and development activities for Industrial
Minerals, the JV Co will enter into sub-leasing arrangements with Malagasy and
its Madagascar subsidiaries. Malagasy will retain title to its tenement permits
until Energizer or the JV Co has notified Malagasy of its intention to proceed
with a mining operation. Upon such notification, Energizer and Malagasy have
agreed to use every commercial effort to complete all the requirements to obtain
the relevant mining permit(s) to allow the JV Co to undertake mining operations
in the defined area.


The HOA provides Malagasy with a free carried interest in the joint venture
until the delivery by the JV Co of a Bankable Feasibility Study ("BFS"). Upon
the delivery of a BFS on any discovery, Malagasy will then be required to
contribute to ongoing development and mining operations in accordance with the
agreement and its 25% interest in the joint venture. 


The HOA contains a standard dilution clause for non-participation whereby a
party's interest will convert to a 2% net smelter return royalty should their
participating interest fall below 10%.


Energizer will manage all operations undertaken by the JV Co.

Terms of Agreement

The HOA is subject to Energizer being satisfied with the outcome of its due
diligence enquiries in relation to Malagasy and its Madagascan subsidiaries that
hold the permits. Under the terms of the HOA, Malagasy will receive:




--  A non-refundable deposit of US$250,000 on execution of the HOA; 

--  US$2,000,000 in cash and 7,500,000 Energizer shares upon signing of
    definitive agreements and the successful completion of the due diligence
    review. 



The HOA - and any transactions contemplated by the HOA - remain subject to
Energizer and Malagasy obtaining any and all applicable regulatory approvals,
including those of the TSX.


Throughout the duration of the HOA, Malagasy will retain access to its
properties to carry out any exploration and development it chooses for all other
minerals including base metals, precious metals, platinum-group elements,
excluding only the vanadium and industrial minerals specified in the list below.


List of Industrial Minerals

The following constitutes the industrial minerals as defined in the Agreement
with Malagasy:


Vanadium, Lithium, Aggregates, Alunite, Barite, Bentonite, Vermiculite,
Carbonatites, Corundum, Dimensional stone (excluding labradorite), Feldspar
(excluding labradorite), Fluorspar, Granite, Graphite, Gypsum, Kaolin, Kyanite,
Limestone / Dolomite, Marble, Mica, Olivine, Perlite, Phosphate, Potash
-Potassium minerals, Pumice Quartz, Staurolite, Zeolites


About Energizer Resources

Energizer Resources Inc. is a mineral exploration and development company based
in Toronto, Canada, which is developing its 100%-owned Green Giant Vanadium
Project located in Madagascar. The Green Giant vanadium deposit is one of the
largest known vanadium deposits in the world. In addition to the Toronto Stock
Exchange (TSX:EGZ), the Company's common shares trade on the U.S.
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.

Safe Harbour Statement: 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.


Forward-looking statements include, receipt of regulatory approval, statements
on the proposed use of proceeds; completion of financing on terms proposed; the
ability to raise additional funds as required; the development potential and
timetable of the Company's properties and minerals; the current and future price
of minerals the Company explores; the estimated size of mineral deposits on the
Company's properties; the realization of those mineral deposit estimates; the
timing and amount of estimated future exploration, development and production;
costs of future exploration, development and production activities; success of
exploration activities; government regulatory matters; discussion of political
and environmental risks.


Forward-looking statements are based on the opinions and estimates of management
of the Company. Forward-looking statements are subject to known and unknown
risks that may cause actual results to be materially different from stated
opinions and estimates of management. Some of the Company's more material risks
are: availability and timing of external financing; unexpected events and delays
during exploration; receipt of government and stock exchange approvals; results
of current exploration activities; future price of minerals; political risks in
the locations of the Company's properties; appreciation/depreciation of foreign
currencies relative to the United States Dollar (the Company's functional
currency) and other risks inherent in the mining and exploration industry.


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.