Energizer Resources Announces Issuance of Shares to The Balloch Group for Advisory Services

TORONTO, ONTARIO -- (Marketwire) -- 12/20/10 -- Energizer Resources Inc. (TSX VENTURE: EGZ)(OTCBB: ENZR)(FRANKFURT: YE5) ('Energizer' or the 'Company') previously announced on November 1, 2010 that The Balloch Group, of Beijing, China had been retained by the Company to assist in identifying potential strategic partners from China to participate in the development of the Green Giant vanadium project.

As required by the TSX Venture Exchange, the Company announces that 200,000 restricted common shares in the capital stock of the Company were issued to The Balloch Group Limited on December 17, 2010 as part consideration for its advisory services. These common shares are subject to a six-month hold period and will become freely trading effective June 17, 2011. In addition to these common shares, The Balloch Group is receiving cash consideration for its advisory services and in the event of the occurrence of certain events, will also receive broker warrants.

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 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.

About The Balloch Group

The Balloch Group ('TBG') is a leading financial advisory and merchant banking firm in China, serving clients and investors throughout Asia and North America. TBG provides financial advisory services and capital raising solutions to its clients across a number of industries. The Balloch Group was founded in 2001 by Howard Balloch (Canada's ambassador to China from 1996 to 2001). TBG provides its clients quality advice from bankers with decades of experience and a deep knowledge of China. TBG was ranked as the number one boutique investment bank in China in 2008 and 2009 by ChinaVenture.

In December 2010, it was announced that The Balloch Group was being acquired by Canaccord Financial Inc. and would be rebranded as Canaccord Genuity Asia.

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