Energizer Resources Retains the Balloch Group to Find Strategic Chinese Partner
TORONTO, ONTARIO -- (Marketwire) -- 11/01/10 -- Energizer Resources Inc. (formerly Uranium Star Corp.) (TSX VENTURE: EGZ)(OTCBB: ENZR) (FRANKFURT: YE5) ('Energizer' or 'the Company') announces that it has retained The Balloch Group, based in Beijing, China, to provide the Company with advisory and consulting services in connection with the Company's Green Giant vanadium project in Madagascar. The Balloch Group has been retained to assist the Company in identifying potential strategic partners from China to participate in the development of the Green Giant vanadium project and to provide necessary services and support to negotiate and finalize a strategic alliance with a Chinese partner.
The Balloch Group is a leading independent financial advisory and merchant banking firm based in China serving domestic and international clients. The Balloch Group has offices in Beijing, Shanghai, Wuhan, Hangzhou, Hong Kong, New York, Vancouver and San Diego. Having advised on more than $6 billion in cross-border transactions over the last few years, The Balloch Group was ranked as the number one boutique investment in China in 2008 and 2009 by ChinaVenture.
The Balloch Group was the exclusive financial advisor to one of China's major steel producers in connection with its $240 million strategic investment in Consolidated Thompson Iron Mines Limited (TSX: CLM).
The Balloch Group was founded in 2001 by Howard Balloch, Canada's ambassador to China from 1996 to 2001.
Julie Lee Harrs, President and COO of the Company, said, 'With his decades of experience in China, his deep knowledge of China, and his business contacts and relationships, Howard Balloch and his team at The Balloch Group will provide valuable insight into China and will be able to introduce Energizer Resources to strategic partners, be it in the steel or battery industries, who are interested in securing vanadium off-take from our Green Giant project. We look forward to working with The Balloch Group as we advance our project.'
About the Green Giant Vanadium Project
The Green Giant Vanadium Project, located in Madagascar, is 100% owned by Energizer. The Company previously reported a National Instrument 43-101 compliant indicated resource estimate of 21.74 million tonnes of V2O5 at an average grade of 0.759% and an inferred resource estimate of 4.15 million tonnes of V2O5 at a grade of 0.655%. Assay results from the drilling program completed earlier this year are expected to increase the resource estimate by an additional 25 to 30 million tonnes, to make the Green Giant Vanadium Project one of the largest vanadium deposits in the world.
An updated National Instrument 43-101 compliant resource estimate is expected shortly.
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.
Today, more than 95% 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.
In addition, 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's Green Giant Vanadium Property is expected to produce high purity vanadium pentoxide and uniquely positions the Company to meet the increasing demand of vanadium from both the steel and battery industries.
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
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.
Contacts:
Energizer Resources Inc.
Brent Nykoliation
Vice President of Business Development
Toll Free: 800.818.5442 or 416.364.4911
bnykoliation@energizerresources.com
Energizer Resources Inc.
Julie Lee Harrs
President and COO
Toll Free: 800.818.5442 or 416.364.4911
www.energizerresources.com