>   Figure 1, The Molo Deposit located on the Green Giant Property in South Central Madagascar Mouse over to zoom, Click to enlarge.

>   Figure 2, : Satellite image from space showing the Molo footprint. Red area represents the area that will comprise of our NI 43-101 resource. Mouse over to zoom, Click to enlarge.

>   Figure 3, Reported trench and drill assays are represented as red lines and histograms. The drill holes and trenches we are awaiting assays for are represented by the black trace lines. Filled blocks illustrate block-modeled mineralization, while the wireframe model illustrates the overall shape of the anticipated deposit (based on modal drill intercepts). Mouse over to zoom, Click to enlarge.

The Molo Graphite Deposit

The Molo deposit is located in the Green Giant Graphite project in southern Madagascar, 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. 

Structure

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 Molo 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, which continue for tens of kilometres in length in either direction. A satellite image of the Molo deposit footprint shows the portion that Energizer has resource drilled to date.

Based on drill and trench data received to date, as well as mapping, prospecting, and geophysical surveying, graphite mineralization is confirmed at surface and over an area of at least 250,000 m_­².  Drilling has confirmed that the mineralization is open at depth in excess of 300 metres. 

Resource Delineation

The Company recently completed its resource drill program consisting of:

•   47 holes, totalling 9,246 metres
•   19 trenches, totalling over 2,100 metres

The Molo has a potential deposit size between 80-120 million tonnes*, at a grade range between 5 and 8% carbon (C). The Company anticipates the Molo will be the world’s largest known single source deposit of high-grade graphite. Molo’s size and scalability will be a barrier to entry for other producers.

*The potential quantity and grade of the Molo deposit is conceptual in nature and there has been insufficient assay data to adequately define a mineral resource in accordance with NI 43-101 requirements at this time. The potential quantity and grade of the Molo has been determined through the progression of exploration methodology. This included airborne geophysical surveys, ground geophysics, mapping, drilling and trenching. The deposit target range is based on drilling and trenching results obtained to date. 

Upcoming Milestones 

•   NI 43-101 resource completed by November 2012 
•   PEA study completed by December 2012
•   Targeting production in 2015

Four Key Attributes of The Molo 

Energizer is targeting low cost production. The four key attributes that set the Molo apart from other deposits in the world and position it to be a potential low-cost production model for the industry include: 

•   Topographical setting 

1. The Molo deposit rests in a flat and semi-arid environment
2. Deposit immediately at surface, with little to no stripping requirements and easy access to site

•   Scalability 

1. Molo deposit is very scalable, with surrounding satellite deposits allowing Energizer to increase output of graphite as market requires
2. Provides sureness of supply 

•   Geographic location 

1. Deposit is located in the centre of the hub of key graphite demand markets of China, India, South Korea and Japan
2. Deposit is in close proximity to specialty-finishing battery producers in both Korea andCurrently, the majority of producers, including 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 most complex part of the process to produce a battery-grade graphite end-product. 

•   Metallurgy 

1. Confirmed through multiple laboratory testing, the Molo contains flake graphite including jumbo (+50 mesh), large (+80 mesh), medium (-80 to +100 mesh) and small flake (-100 to -200).
2. Deposit possesses a unique metallurgical characteristic that delivers ‘jumbo’ flake (+50 mesh) with simple mechanical separation at 93% purity, without anyEnergizer’s process flow sheet is being designed with 2 additional streams; one to include a flotation circuit for upgrading remaining material to 95% purity as well as an end-module for upgrading to 99%+ purity for battery applications, which may also include spherical cutting. 

Infrastructure 

Confirmed by the Panalpina Group, one of the world’s leading intercontinental air and ocean freight supply chain and logistics companies, the current in-place infrastructure for transportation water and power at Molo will allow for immediate production.  The project will utilize a serviceable road  from site to port, 160km away, as well as existing water sources proximal to the Project.  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. 

Partnership with Major Engineering, Procurement, and Construction Management (EPCM) Contractor

Recognizing the need for mine development and operations expertise, Energizer secured a partnership in 2012 with DRA Mineral Projects (DRA), Africa’s leading mine engineering, construction and operations company.  With over 30 years of operating experience in Africa, DRA has built over 200 mines and currently operates 23, with clients such as Xstrata, Rio Tinto, Anglo American and Vale. This is a significant advantage for Energizer as it advances to production as it gives the Company a complete ‘turn key’ solution for mine development. Another coup for Energizer is the appointment of two senior directors of DRA - one to Energizer’s Board of Directors and the other to its Mine Development Committee.  DRA also took an equity interest in Energizer in 2012 and will be the author of its soon to be released PEA Study. 

Production

The Company is targeting a production start-up in 2015, with an output capacity of between 50,000 and 150,000 tonnes per annum (tpa).  Energizer’s technical partner DRA is designing the mine with three 50,000-tonne modules, where by the Molo will begin initially at 50 tpa, but can expand quickly to produce additional graphite as the market requires.