TORONTO, ONTARIO--(Aug. 29, 2012) - Energizer Resources Inc. (TSX:EGZ)(OTCBB:ENZR)(FRANKFURT:YE5) ("Energizer" or the "Company") is pleased to announce it has received additional assays from its recently completed National Instrument (NI) 43-101 graphite resource drill program on the Molo deposit. The Company is now in a position to outline the prospective deposit size and boundaries, as well as the grade and tonnage.

The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the Project.

NI 43-101 Graphite Resource Program Complete

The recently completed drill program will provide the necessary data to complete a National Instrument (NI) 43-101 graphite resource, which will be part of the Preliminary Economic Assessment (PEA) due in Q4 of this year. DRA Mineral Projects, Africa's largest mine engineering, construction and operations firm, is authoring the PEA Study, while Caracle Creek International Consulting Inc. of South Africa is authoring the resource statement. In total, 41 diamond drill holes over 8,450 metres, and 18 trenches over 2,100 metres were completed during the program.

Drill and Trench Intersections Confirm Large Footprint of Molo

The Company has now received assays for the first 9 (of 41) drill holes, and the first 8 (of 18) trenches completed during the course of the recently concluded resource delineation program. Coupled with the 6 diamond drill holes and 1 trench completed during the December 2011 exploration program, this assay data confirms that the Molo has a very large footprint.

The Molo deposit exists within a folded sequence over a 2 km strike length. In the north, it is between 50 to 60 metres wide then flares to over 500 metres in width. From this point, the graphite deposit tapers down to a width of approximately 250 to 350 metres. Finally, the deposit splits into two 'arms' of between 50 and 100 metre widths respectively. A satellite image of the Molo deposit footprint can be viewed on the Company's website at www.energizerresources.com.

Drill and trench data received to date, as well as mapping, prospecting and geophysical surveying, confirms graphite mineralization at surface, and over an area of at least 250,000 m2. Depth of mineralization has been confirmed by drilling in excess of 300 metres. Based on the size of the Molo footprint, as well as the tenor of mineralization found in the 15 drill holes (9 from 2012 and 6 from 2011) and 8 trenches received to date, the Company is confident of delineating a deposit in excess of 100 million tonnes at an average grade greater than 6% carbon (graphite)...

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/EGZ2908_Figure1.pdf.

Assay Results

The drill hole and trenches were designed to delineate the extent of the Molo deposit. The first 3 holes were emplaced to help determine the eastern and western boundaries of the Molo deposit. Diamond drill holes MOLO-12-04 through MOLO-12-09 were drilled to delineate the eastern edge of the deposit.

Trench MOLO-TH-12-03 assayed 7.2% carbon over 413 metres and was emplaced to test the extent of surficial mineralization over the width of the Molo. This trench was extended further to the east. Assays are still pending on this extension. Trenches MOLO-TH-12-04 through MOLO-TH-12-07 were emplaced to test the mineralized width of the northern limb of the Molo deposit, while MOLO-TH-12-08 was emplaced to test the widths of the southern limbs of the deposit.

The table below summarizes the drill and trench intersections. An assay table summarizing all results is also provided on the Company's website.

Targeting Low Cost Production

Energizer's Molo deposit possesses four key attributes that set it apart from other deposits in the world and position it to be a potential low-cost production model for the industry. These include:

• An excellent topographical setting. The Molo deposit rests in a flat and semi-arid environment, with no environmental issues. With the deposit immediately at surface, operations can be optimized through little to no stripping requirements and easy access to site.
  
  
• An ideal geographic location. The Molo deposit is uniquely located in the centre of the hub of key graphite demand markets of China, India, South Korea and Japan. Furthermore, the Molo deposit is in close proximity to specialty-finishing battery producers in both Korea and Japan. Currently, China must send almost all of its spherical cut graphite (required for batteries) to both Korea and Japan for specialty coating, which is the final, and very complex, process to produce battery-grade graphite.
  
  
• At 100 million tonnes and an average grade greater than 6% carbon, the Molo would be the world's largest known single source deposit of high-grade graphite. In addition, the Molo deposit possesses a unique metallurgical characteristic that allows simple mechanical separation of the graphite up to 93% without flotation.
  
  
• Current in-place and serviceable infrastructure for transportation water and power. Confirmed by the PanaAlpina Group, one of the world's leading intercontinental air and ocean freight supply chain and logistics companies, the in-place infrastructure at Molo will allow for immediate production. Utilizing a now serviceable road structure from site to port, 160km away, there are existing water sources proximal to the Project. Over-the-fence power will be required initially and will be satisfactory until the nearby Sakoa Coal Field (35km away) will upgrade the now serviceable infrastructure to world-class status. Targeted to produce 5 million tonnes of coal on an annualized basis, the Sakoa Coal Field will require significant upgrades to road infrastructure, port infrastructure, and on-sight power plants that Energizer expects to tap into. It is the Company's understanding that the Sakoa Coal Field is targeting operation between 2015 and 2016.
  
  

Energizer believes the Molo's 100 million tonnes will be required and relevant to what the Company views as the re-emergence of electric vehicles, evidenced in recent news from Ford, General Motors, BMW, Kia, Hyundai, Nissan and Toyota.

Qualified Person

Craig Scherba, Senior Vice President Exploration and Operations for Madagascar, P.Geol., is the qualified person for the technical information provided in this release.

For more information, please visit our website at www.energizerresources.com.

We seek Safe Harbour: 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.