ENERGIZER RESOURCES INC T.EGZ

We should have some proven and probable reserves.

[riverrock]

The reasoning below is based partially on the 02/26/2013 PEA which after recent developments should allow for further tonnages and increased graphite qualities to ensure Energizer's future. https://energizerresources.com/2013/329-energizer-resources-announces-positive-preliminary-economic-assessment-of-the-green-giant-molo-graphite-project

If Energizer were to convert its present high grade indicated resource of 40.88M to a measured resource and further convert 25% of that new measured resource to about 10.0M tonne Proven and Probable Reserve it should ensure 10 year loan at about 8% (hopefully less) based on a Proven & Probable resource.

From the 02/26/2013 PEA annual production would be 82,000 tonne. With initial 10 year head grades at 8.5% and recoveries at 89% they should produce the required amount of graphite to cover a ten year loan.

(Annual graphite production in tonne x 10 years) / Average head grade x Recoveries

(82,000 x 10)/(.085x 0.89) = 10.84M tonne of proven and probable reserves to cover the 10 year loan. About 1.08M tonne would be mined annually which is close to that given in the PEA at 1.17M tonne.

With further exploration after Molo's in production plus the entrance of Vanadium into the product mix, Energizer could extend its proven and probable reserves and overall tonnages of both minerals as EV's and electrical storage take hold.

[tiger6301]

Hi Riverrock, PEA typically does not address the mining plan, so the resource classification are measured, indicated, and inferred. From the feasibility study, it will have proven and probable resources, that's what EGZ is working on. tiger