> Figure 1, Property location Mouse over to zoom, Click to enlarge.

> Figure 2, Land Position: 2155 licences, 1052.7 km2 Mouse over to zoom, Click to enlarge.

> Figure 3, Infrastructure Mouse over to zoom, Click to enlarge.

Project Description: 

The 100% owned Green Giant Vanadium Project, located in Madagascar, is one of the largest vanadium deposits in the world. Energizer is the only company actively targeting to produce a battery-grade vanadium as a primary product. Currently Energizer is targeting production by the end of 2014.

Energizer’s deposit is unique from other known Vanadium deposits because it is sediment-hosted and not magnetite-hosted like the majority of other known Vanadium deposits.  As a result, Energizer expects to produce a clean liquor requiring less processing to produce the high purity (99.5%), battery-grade vanadium.

Primary Product: Vanadium (V₂O₅ or Vanadium Pentoxide) in high-purity form (99.5%).

Property Location: South Central Madagascar, 145 km SE of the city of Toliara, Tulear Region (Figure 1).

Land Position: 2155 licences, 1052.7 km2 (36 licences 100% owned, 2119 JV licences 75% owned) (Figure 2).

Current Status: A National Instrument 43-101 compliant Preliminary Economic Assessment (PEA) has been initiated with South Africa’s DRA Mineral Projects.  The Company is pleased to announce it has signed a formal agreement with DRA, a world-leading process engineering and mining project development management firm, for the development of Industrial Mineral Projects in Madagascar.   As a provider of full Engineering, Procurement and Construction Management (EPCM) services, DRA will act as Energizer’s technical partner and offers Energizer the ability to both build and then operate a mining operation, thus providing a complete solution.

With this expertise, key DRA personnel will have direct roles in the development of the Project in Madagascar and will be responsible for facilitating discussions and interfaces with the Madagascar Government and key stakeholders in the Sakoa Coal project regarding infrastructure development and the identification of any synergistic opportunities.

DRA’s engineering group has already begun to layout the mine facility, which will include a residential village to support the future mine, with accommodations and infrastructure for a full 550 personnel.

PEA Progress To Date

•   Building Layouts are 98% complete with minor adjustments required for the laboratory, Canteen/Shop and an additional building added for the Power Plant Offices
•   Preliminary Layouts for the buildings have been prepared and are under review, with layouts for each building sent out for pricing
•   The Residential Village Plan is complete with designs, layout and costs. The layout formed part of the drawing pack issued for comments / approval. The residential village will cater for the full 550 people and will have executive, white collar and blue  collar dormitories, a general kitchen / canteen / laundry block, a recreation block and a small all-purpose shop
•   A tool list for all mechanical equipment required in the various workshops has been compiled with costs
•   The fire fighting system is being designed and costed
•   The preliminary block plant layout is complete
•   The water demand and supply has been estimated and a trade off study will be completed to determine the best option
•   The water treatment plant and sewage treatment plants have been sized and are being designed and costed including all water/sewage storage tanks
•   A logistical study to determine costs and the best options regarding shipping and transportation to and from site and to and from Madagascar is currently underway
•   Environmental and socio-economic studies are ongoing by local company, AGETIPA.

Infrastructure: The Green Giant Project will require the upgrading of existing roads, ports, and water supply routes and the importation of diesel power, all of which will be detailed in the upcoming PEA being completed by DRA Mineral Projects. However, the development of the Sakoa coal project located only 30 kilometres away is expected to enhance the economics of the Green Giant project as it will provide infrastructure-sharing opportunities for the two projects.

Metallurgical Update

The main component of the PEA study currently underway is the continued optimization of the metallurgical process. SGS Mineral Services (Lakefield) continues the advanced metallurgical test work as part of the PEA to optimize the vanadium extraction process confirmed by SGS Lakefield in 2010 under the direction of George Annandale, a consultant to the Company and a vanadium expert with over 30 years of international experience.

George Annandale stated, “We are well underway in optimizing the alkaline pressure leach process, which resulted in up to 82% vanadium extraction, and is a well-established and proven technology that is in use today, in particular, in connection with the treatment of uranium ores."

Property History: Archival research indicates that little if any modern exploration for mineral deposits has been completed in this part of Madagascar. The BRGM worked a sulphide occurrence at Besakoa located a few kilometres north of the Green Giant Property. They completed geological, geochemical and geophysical surveys as well as drilling a number of holes (18) that intersected VMS style mineralization. Majescor Resources drilled 8 additional holes in the area in 2006 with the best returning 21.5 meters averaging 0.7% Cu, 0.5 g/t Au, 1.1% Zn and 21.4 g/t Ag.

Exploration To Date: Since acquiring the Green Giant Vanadium property located in Madagascar in August 2007, Energizer has spent over U.S.$10 million on exploration and developing the project. An extensive exploration program has been conducted on the property. This work has included:

•   131 diamond drill holes (21,957 metres) 
•   140 trenches (17,105 metres)
•   11,035 soil samples
•   airborne - 7,843 line kilometres flown
•   ground geophysics 
•   281 line kilometres of EM surveys 
•   589 line kilometres of MAG surveys

Based on the Company’s exploration efforts to date, a 21-km (18 mile) continuous Vanadium trend has been identified on the property, of which we have drilled only 25%.

NI 43-101 Resource Estimate: The Company’s work has resulted in the delineation of a National Instrument 43-101 compliant (NI 43-101) resource estimate with an indicated resource 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.   

This National Instrument 43-101 resource estimate ranks the Green Giant vanadium deposit as one of the largest in the world. And, this resource is based on drilling of only 25% of the Vanadium trend identified to date.

Because Energizer’s Green Giant vanadium is sediment-hosted, and not magnetite-hosted like the majority of other known Vanadium deposits, the vanadium will be processed differently than the magnetite-hosted deposits. A well-known process called alkaline press leaching will be utilized to process the vanadium and it is expected to naturally produce a battery-grade form of V₂O₅ (99.5%+ in purity) directly from the process. Advanced metallurgical test work is ongoing at SGS Lakefield to optimize the process flow sheet. 

Current Work Program:

2011

The focus of the Green Giant Vanadium Project in 2011 has been the refinement of the metallurgical process and the National Instrument 43-101 compliant Preliminary Economic Assessment (PEA) regarding the planning of the mine site and supporting village.  The Company’s 2011 work programs have been focused on the delineation of graphitic trends as a result of the recent large flake graphite discovery and the comparison of these trends to those associated with vanadium mineralization. 

Previous Work Completed: