Energizer Resources Inc. (TSX.V: EGZ) (“Energizer” or the “Company”) is pleased to announce that an updated National Instrument 43-101 (“NI 43-101”) compliant resource estimate for its 100%-owned Green Giant Vanadium Project in Madagascar has been completed.

The updated NI 43-101 resource estimate includes:

• an indicated resource of 49.5 million tonnes at an average grade of 0.693% V₂O₅

• an inferred resource of 9.7 million tonnes at an average grade of 0.632% V₂O₅

A summary of the updated and expanded mineral resource estimate is presented below at a cut-off of 0.5% V₂O₅.

Classification (at 0.5% V2O5)	Tonnage (million tonnes)	V2O5 (million pounds)	Grade (%V2O5)
Indicated	49.5	756.3	0.693
Inferred	9.7	134.5	0.632

Rounding of tonnes as required by reporting guidelines may result in apparent differences in tonnes, grade and metal content.

Resource Increases By More Than Double

The initial NI 43-101 resource estimate, as announced in the Company’s May 11, 2010 press release, reported an indicated resource of 21.74 million tonnes at an average grade of 0.759% V2O5 and an inferred resource of 4.15 million tonnes at an average grade of 0.655% V2O5.   The updated resource estimate represents a total change in the indicated category of an additional 27.7 million tonnes (+128% change) containing an additional 392.5 million pounds of V2O5 (+108% change). The overall change in the inferred category amounted to an increase of 5.5 million tonnes (+133% change) containing an additional 74.7 million pounds of V₂O₅ (+125% change).

Green Giant Deposit Now Ranks Among One of the Largest Known Deposits in the World, 75% of the Vanadium Trend Remains Open for Drilling

This newly expanded resource estimate now places the Green Giant deposit as one of the largest known vanadium deposits in the world.

The mineral resource is contained in three separate zones on the Green Giant property, totaling approximately 5.3 kilometres (3.3 miles) in strike length, and are referred to as the Jaky, Manga and Mainty Zones. Of the 21-kilometre (18 mile) stratigraphic trend of vanadium confirmed on the Green Giant property, 75% remains open for drilling.

The Manga Zone is currently the largest zone, accounting for an indicated resource of 37.5 million tonnes at an average grade of 0.709% V₂O₅ containing 586.5 million pounds of V₂O₅ and an inferred resource of 6.0 million tonnes at an average grade of 0.652% V₂O₅ containing 86.7 million pounds of V₂O₅.

Pierre Desautels, P.Geo., of AGP Mining Consultants Inc. (AGP), the independent qualified person and author of the updated NI 43-101 resource estimate commented, “AGP believes that the near surface mineralization, as outlined by the surface trenches and mapping, has excellent potential to expand the resource further.”

Julie Lee Harrs, President of the Company states, “With this new updated resource estimate, we exceeded our target of identifying an additional resource of 25 to 30 million tonnes. With this expanded resource, combined with the metallurgical test work completed to date, we are ready to move the Green Giant project into the next phase of development and initiate a preliminary economic assessment.”

Power Supply and Infrastructure Synergies From Nearby Sakoa Coal Project

Energizer Resources is now ready to move forward with a National Instrument 43-101 preliminary economic assessment (“PEA”), which will begin to quantify the underlying economic parameters for the project.

The PEA will include analysis of the existing and additional infrastructure necessary for the Green Giant project.

One important and of potential benefit to Energizer will be the development of the adjacent Sakoa coal project, situated 30 kilometres away from the Green Giant vanadium project. The Sakoa coal project is being developed by Asia Thai Mining Co. Ltd., a related company of Italian-Thai Development Public Company Limited, Thailand’s largest construction company. A pre/feasibility study of the Sakoa coal project has been completed by DRA Mineral Projects, one of Energizer’s strategic partners. The development of the Sakoa coal project would provide the Green Giant project with infrastructure synergy opportunities, including power and water supply, transportation routes and port facilities, which would significantly reduce both capital and operating costs.

DRA Mineral Projects To Lead Green Giant Project Development

Energizer’s strategic alliance partner, DRA Mineral Projects, a leading engineering, project management and mine construction company based in South Africa will be completing the Company’s upcoming PEA. Having recently completed the pre/feasibility study for the Sakoa Coal Project, DRA Mineral Projects will provide valuable insight into these potential infrastructure synergies while assisting the Company in the on-going discussions with Asia Thai Mining.

Green Giant Deposit To Provide High Purity V2O5 to Battery and Steel Market

The Green Giant vanadium deposit is a sedimentary-hosted deposit, which is unique among the world’s known vanadium deposits. The Green Giant deposit will be able to produce a high-purity vanadium pentoxide (V₂O₅), which is required in battery power and in battery storage for both mobile (automotive) applications and stationary (large-scale) applications.

Vanadium Demand for Steel Growing at 7%

In addition to its ability to produce high-purity V₂O₅, the Green Giant project can also be easily adapted to supply another form of vanadium, called ferrovanadium, to the steel market where vanadium demand is growing at 7% year-over-year and is well-established as a strengthening agent for steel.

Energizer believes that a significant amount of the demand for V₂O₅ will come from the battery power and storage industry. The Company’s November 17, 2010 press release detailed new developments in vanadium-based battery technology, citing several examples of companies developing vanadium-based batteries for automotive applications and large-scale storage applications.

Lithium-Vanadium Polymer Battery Sets Electric Vehicle Distance Record with a 6-Minute Recharge

Perhaps the most compelling breakthrough illustrating how vanadium, when combined with lithium, creates “supercharged” batteries is the recent news by Germany’s DBM Energy. In partnership with German utility Lekker Energie, DBM Energy equipped an Audi A2 electric vehicle with its new lithium-vanadium metal polymer battery and set a long distance record of 603 kilometres (375 miles) travelled on a single charge. The battery’s basic electro-chemistry consists of a metallic lithium anode and a vanadium oxide cathode. DBM Energy claims the battery has a 97% efficiency and can be charged at virtually any electrical socket. Plugged into a high-voltage direct-current source, the battery can be fully charged within 6 minutes. More details can be found at www.benzev.co.nz.

Vanadium Redox Battery Manufacturer, Prudent Energy, Named a Top Cleantech Company

Prudent Energy, the manufacturer of a vanadium redox battery energy storage system called the VRB-ESS^TM, was recently named one of the most promising private clean technology companies poised to make a significant market impact in the next five to ten years by the 2010 Global Cleantech 100.   Prudent Energy, a private company based in Beijing, China with offices in Washington, D.C., U.S.A., was selected by a committee that included well-respected organizations in Cleantech innovation from around the world, including BASF, GE, Honeywell, IBM, Proctor & Gamble, Siemens and Veolia, as well as venture capital companies.

With installations around the world, Prudent Energy describes its VRB-ESS^TM as a large capacity, advanced energy storage system with high performance and low operating costs. Given the fact that their vanadium redox battery’s electrolyte operates at room temperature and never wears out, the company claims the total cost of ownership is undoubtedly the lowest for any energy storage system. For more details, please visit Prudent Energy’s website at www.pdenergy.com.

Gildemeister/Cellstrom’s Version of Vanadium Redox Battery called the CellCube^TM

Cellstrom GmbH, another vanadium redox battery manufacturer, based in Austria, was acquired in 2010 by a subsidiary of a German-based conglomerate, Gildemeister GmbH. Cellstrom has successfully been selling vanadium redox batteries since 2008 throughout Europe and most recently into India under the product name CellCube^TM. Cellstrom currently sells a 10 kilowatt/100 kilowatt hour VRB designed for uninterrupted power supply for households and factories and plans to launch in 2011 a 200 kilowatt/400 kilowatt hour VRB designed for solar and wind farms. According to Cellstrom, the CellCubes are modular in design and can be easily scaled up in size to reach megawatt capacities, suitable for power-grid applications.

Vanadium Redox Batteries Require Significant Amounts of High-Purity V2O5

Vanadium redox batteries (“VRB”) require significant amounts of high purity V₂O₅. Cellstrom’s CellCube FB10/100 is a 10 kilowatt/100 kilowatt hour VRB designed for uninterrupted power supply for households and factories and require approximately 1 tonne of V₂O₅ each. In 2011, Cellstrom plans to launch the Cellcube 200/400, a 200 kilowatt/400 kilowatt hour VRB designed for solar and wind farms and requires 5 tonnes of V₂O₅ per battery. These batteries can be easily scaled up in size to reach megawatt capacities, suitable for power-grid applications.

Vanadium Use Growing in Renewable Energy Storage; Green Giant Project Positioned to Meet This New Demand

Vanadium use is growing in renewable energy storage systems and the recent recognition of vanadium redox batteries as a leading storage solution signals the movement of vanadium-based technologies into the mainstream market of Green Power.

Today, high-purity V₂O₅ is not readily available and the substantial amounts of high purity V₂O₅ required for the production of these vanadium redox batteries cannot be met by the current supply of V₂O₅. New vanadium projects, such as the Green Giant project, will need to come online in order to meet this new demand.

With the capability to provide a high-purity V₂O₅ product, Energizer’s Green Giant project is uniquely positioned to meet this new demand from vanadium-based battery power and storage and increase supply as needed. In doing so, the Green Giant project will provide the sureness of price and sureness of supply of vanadium that companies such as VRB manufacturers like Prudent Energy and Cellstrom require.

AGP Mining Consultants as Qualified Person

The resource estimate was completed by AGP Mining Consultants Inc. (“AGP”) and is in conformance with the CIM Mineral Resource and Mineral Reserve definitions referred to in NI 43–101, Standards of Disclosure for Mineral Projects. To estimate the resource the following methods were utilized:

• This mineral resource estimate utilized approximately 18,832 m of diamond drill hole data from the 2008, 2009 and 2010 drill program and was supplemented by approximately 5,928 metres of trench data from the 2008, 2009 exploration programs
• All drill core and trench samples were analyzed using an alkaline flux fusion digestion followed by optical emission spectrometry (ICP OES) by Genalysis Laboratory located in Johannesburg, South Africa
• All drill holes are diamond drill core and were smapled mostly at 1.5 metre intervals.  A comprehensive QA/QC program was in place during the drill program, which included the insertion of standards and duplicates are regular intervals.
• Gemcom Software International, GEMS© Version 6.2.4 software was used for the estimate
• Ordinary kriging was used for all domains. The interpolation was carried out in multiple passes with increasing search ellipsoid dimensions. Inverse distance and nearest neighbor models were used for validation
• Classification was based primarily on the pass number and distance to the nearest sample. Metallurgical recoveries are not taken into account.

For detailed information as to how the mineral resource was generated, please refer to the updated resource estimate that will be filed within 45 days of this news release on www.sedar.com under the Company’s profile.

Pierre Desautels, P.Geo., of AGP Mining Consultants Inc., the Independent Qualified Person under NI 43-101 responsible for the resource estimate, has reviewed this release. Mr. Desautels is the author of the updated resource estimate, which will be filed within 45 days of this news release.

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% V₂O₅ and an inferred resource estimate of 9.7 million tonnes at an average grade of 0.632%, making the Green Giant project one of the largest known vanadium deposits in the world.

About Vanadium

Vanadium is well-established as a strategic metal that strengthens and hardens alloys like steel and is positioned to play a significant role in emerging battery technologies such as batteries for electric cars and for large-scale energy storage. While there are some opportunities for substitution in steel production, the same is not true for other markets, including the emerging energy (battery) storage markets, the military and particularly in the aerospace industry, where vanadium is irreplaceable.

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:

Brent Nykoliation

Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
Email: bnykoliation@energizerresources.com

or Julie Lee Harrs, President and COO

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.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. This mineral resource estimate includes 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.

Safe Harbour Statement:The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release issued by the Company. 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.

While Company’s management has attempted to determine the factors that could cause actual results to differ materially from estimated results contained in forward-looking statements, there may be other factors that cause results not to be as anticipated. The Company provides no assurance that such forward-looking statements will prove accurate or not materially different than projected. Therefore readers of this and other press releases issued by the Company should not place unreasonable reliance on stated forward-looking statements.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.