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    Rare Mineral Hot Stock – Energizer takes on one of the World’s Largest Vanadium Deposits

    Energizer Resources Inc. (OTC BB:ENZR) stock increased 75% since October 13 price of $0.20 and hit $0.35 on October 25. The advancement of the company’s Giant Green Vanadium Project into the development phase, as well as positive results of its 2010 drilling program that allowed to delineate additional resources of vanadium pentoxide, have contributed to the recent price appreciation.

    Energizer is a mineral exploration company whose prime focus is the exploration and development of the Green Giant Vanadium Property in Madagascar. The property, which is 100% owned by Energizer, was reported to have a National Instrument 43-101 compliant indicated resource estimate of 21.74 million tonnes of vanadium pentoxide at an average grade of 0.759% and an inferred resource estimate of 4.15 million tonnes of vanadium pentoxide at a grade of 0.655%.  Energizer’s in-ground value of contained vanadium reserves approaches $2.8 billion at a price of $7 per lb of V2O5.

    In September Energizer reported preliminary metallurgy and assay results from its 2010 drill program and estimated that it was able to mark out additional mineral resources in the range of 25 to 30 million tonnes of V2O5 at a cut-off grade of 0.5%. This makes Green Giant Vanadium Project one of the largest vanadium deposits in the world. The company also reported that the ongoing metallurgical flow sheet development program has progressed well, with scoping test work nearing completion at three metallurgical laboratories (in Canada and Johannesburg). Metallurgical test program achieved 82% vanadium extraction.

    Energizer has now received all results for the 46 diamond drill holes (totaling 8,952 metres) completed during the 2010 drill program and is expected to file an updated National Instrument 43-101 compliant resource estimate by the end of October.

    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.

    Today, more than 90% of existing vanadium demand is from the global steel industry, driven by increased steel production primarily in China, India and the developing world. At the same time, various economic and legislative factors are increasing the use of vanadium in the steel industry (i.e. stronger rebar in construction) where production of higher strength steels to meet the growing demand for infrastructure is accelerating on a global basis. As a result, the demand for vanadium is expected to grow at 7% year-over-year from 2010 to 2025 based on the steel industry alone.

    New demand channels for vanadium from battery manufacturers of both mobile applications (electric vehicles) and large-scale energy storage systems is expected to result in additional demand for vanadium, especially high purity vanadium which is not readily available in today’s market. Energizer have estimated that the demand from these applications could reach 690,000 tonnes of vanadium, or 10 times the current annual world supply.

    The immediacy of resource estimate update as well as expectations of a greater resource deposit could further contribute to better valuation for Energizer. The new demand emerging from energy storage systems and battery manufacturers could accelerate the development and increase the value of Energizer’s vanadium deposits.

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