Energizer Resources Inc. (TSX.V: EGZ) (OTCBB: ENZR) (FWB: YE5) (“Energizer” or the “Company”) provides an update on its business strategy and initiatives for 2011 in connection with its 100%-owned Green Giant Vanadium Project in Madagascar.

One of World’s Largest Known Vanadium Deposits

The Company’s Green Giant Vanadium Project contains a National Instrument 43-101 compliant (“NI 43-101”) 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. With this resource estimate, the Green Giant deposit currently ranks as the third largest known vanadium deposit in the world.

The resource estimate was calculated on the basis on the following:

• Approximately 18,832 metres of diamond drill hole data from the 2008, 2009 and 2010 drill program, 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 sampled mostly at 1.5 metre intervals
• A comprehensive QA/QC program was in place during the drill programs, which included the insertion of standards and duplicates at 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.

The Company will continue to consider additional drilling to expand this resource estimate as 75% of the 21-kilometre (18 mile) stratigraphic trend of vanadium remains open for drilling.

Preliminary Economic Assessment to Commence

As a result of favourable in-house economic analyses conducted by AGP Mining Consultants Inc., the independent qualified person for the resource estimate contained in this press release, the Company will be moving forward with a NI 43-101 preliminary economic assessment (“PEA”) in the first quarter of 2011 to confirm and refine the economic parameters for the Green Giant project.

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 Sakoa Coal Project, DRA Mineral Projects will provide valuable insight into the potential infrastructure synergies while assisting the Company in the on-going discussions with Asia Thai Mining.

Strategic Partners To Be Determined

In the first quarter of 2011, the Company will be focusing its efforts on identifying strategic partners in both the steel and battery industries and concluding strategic alliances with these partners. These strategic alliances are expected to provide purchasers for the vanadium to be produced by the Green Giant project.

The Balloch Group, a leading boutique Chinese investment bank, who were retained in November 2010, will assist the Company in identifying potential strategic partners from China.

Increasing Evidence of Vanadium in the Market Place

As indicated in our press releases of November 17 and 30, 2010 there is increasing evidence of leading vanadium-based technologies in the market place. These new technologies require high purity V₂O₅, which is not readily available. The expected increase in demand for high purity V₂O₅, coupled with the vanadium demand from the steel industry, is expected to result in a shortage of supply of vanadium.

The Green Giant Vanadium Project is expected to produce the high purity V₂O₅ required by the new vanadium-based technologies, as well as the form of vanadium – called ferrovanadium – required by the steel industry.

The Year in Review

• March 2010: US$6.5 million private placement completed, with participation from Dundee Resources and Consolidated Thompson Iron Mines.
• May 2010: listed on the TSX Venture Exchange
• May 2010: initial NI 43-101 resource estimate consisting of an indicated resource of 21.74 million tonnes at an average grade of 0.759% V₂O₅ and inferred resource of 4.15 million tonnes at an average grade of 0.655% V₂O₅ announced
• June 2010: strategic alliance with DRA Mineral Projects, a leading mine engineering and construction company based in South Africa, concluded
• October 2010: Richard Quesnel joins board of directors
• November 2010: metallurgical test work conducted by SGS Lakefield confirms vanadium recoveries of up to 82% with a pre-roast + alkaline pressure leaching process
• November 2010: updated resource estimate that more than doubles initial resource
• November 2010: in-house economic analysis of the Green Giant project completed by our engineering consultants, AGP, confirms very positive internal rate of return
• November 2010: The Balloch Group retained to help identify potential Chinese partners.   More recently, it was announced that The Balloch Group was being acquired by Canaccord Financial Inc. and was being rebranded as Canaccord Genuity Asia with Howard Balloch as Chairman

2011 Snapshot 

Julie Lee Harrs, President and Chief Operating Officer of the Company, comments, “On the basis of our extraordinary achievements in 2010, we are aggressively moving the Green Giant project forward both from a project development perspective, as well as with strategic partners. To this end, I will be travelling to Africa to advance the PEA and the discussions regarding our use of the infrastructure being constructed for the nearby Sakoa coal project, as well as to Europe and Asia to meet and conclude agreements with strategic battery and steel partners. Stay tuned for an exciting 2011.”

Management Ownership of Securities

Contrary to erroneous information that may be circulating, the Company confirms that no insiders have sold any shares or exercised any options to purchase shares of the Company.

Management continues to believe strongly in the future potential of the Green Giant project and the growth of both new vanadium-based technologies and traditional steel applications which will significantly increase vanadium demand.

The Company remains firm in its belief that the upside of this quantified and valuable resource will soon be realized.

Qualified Person

The resource estimate referred to in this press release 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.

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, 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 by January 15, 2011.

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.