SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549







FORM 10-K



[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934



For the Fiscal Year Ended June 30, 2011



[  ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE 
SECURITIES EXCHANGE ACT OF 1934



Commission File Number:000-51151





ENERGIZER RESOURCES INC.

(Name of small business issuer as specified in its charter)

|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Minnesota                                                      |  | 20-0803515                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



520  141 Adelaide Street West, Toronto, Ontario, Canada M5H 3L5(Address of principal executive offices)



(416) 364-4911(Issuers telephone number)

_______________________



(Former name or former address, if changed since last report)









Securities Registered under Section 12(b) of the Exchange Act:

None



Securities Registered Under Section 12(g) of the Exchange Act:

Common Stock, $0.001







Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  [  ]     No [ X ]



Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.   Yes  [  ]     No [ X ]



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  [X]     No [  ]



Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  []     No [ X]



Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10K or any amendment to this Form 10-K or any amendment to this Form 10-K. [ x ]



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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):



|                                                    |  |                                                   |  | 
|--------------------------------------------------- |  | ------------------------------------------------- |  | 
|Large accelerated filer  o
Non-accelerated filer  o |  | Accelerated filer  o
Smaller reporting company  x |  | 



Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.

Yes  [  ]     No [ X ]



The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter was $12,082,699.



The number of shares outstanding of the registrants Common Stock, par value $0.01 per share (the "Common Stock"), as of September 23, 2011, was 146,197,178.



Documents Incorporated By Reference:  None



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ENERGIZER RESOURCES INC.

Report on Form 10-K

For the Fiscal Year Ended June 30, 2011



TABLE OF CONTENTS



|         |  |                                                                                      |  |   
|-------- |  | ------------------------------------------------------------------------------------ |  | --
|        
|PART I   |  |                                                                                      |  |   
|ITEM 1   |  | Description of Business                                                              |  | 5 
|ITEM 1A. |  | Risk Factors                                                                         |  | 25
|ITEM 1B  |  | Unresolved Staff Comments                                                            |  | 31
|ITEM 2.  |  | Description of Properties                                                            |  | 31
|ITEM 3.  |  | Legal Proceedings                                                                    |  | 31
|ITEM 4   |  | Removed and Reserved                                                                 |  | 31
|        
|PART II  |  |                                                                                      |  |   
|ITEM 5.  |  | Market for Registrants Common Equity, Related Stockholder Matters and Issuer        |  |   
|         |  | Purchases of Equity Securities                                                       |  | 32
|ITEM 6.  |  | Selected Financial Data                                                              |  | 35
|ITEM 7.  |  | Managements Discussion and Analysis of Plan of Operations                           |  | 35
|ITEM 7.1 |  | Quantitative and Qualitative Disclosures About Market Risk                           |  | 41
|ITEM 8   |  | Financial Statements                                                                 |  | 41
|ITEM 9.  |  | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |  | 41
|ITEM 9A. |  | Controls and Procedures                                                              |  | 41
|ITEM 9B. |  | Other Information                                                                    |  | 42
|        
|PART III |  |                                                                                      |  |   
|ITEM 10. |  | Directors, Executive Officers, Promoters, Control Persons and Corporate Governance   |  |   
|         |  | Compliance with Section 16(A) of the Exchange Act                                    |  | 43
|ITEM 11. |  | Executive Compensation                                                               |  | 46
|ITEM 12. |  | Security Ownership of Certain Beneficial Owners and Management and Related           |  |   
|         |  | Stockholder Matters                                                                  |  | 49
|ITEM 13. |  | Certain Relationships and Related Transactions, and Director Independence            |  | 50
|ITEM 14. |  | Principal Accountant Fees and Services                                               |  | 52
|        
|PART IV  |  |                                                                                      |  |   
|ITEM 15. |  | Exhibits, Financial Statement Schedules                                              |  | 53
|        
|         |  | Signatures                                                                           |  |   
|        
|         |  | CERTIFICATIONS                                                                       |  |   
|        
|         |  | Exhibit 31  Management Certification                                                |  |   
|         |  | Exhibit 32  Sarbanes-Oxley Act of 2002                                              |  |   



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FORWARD-LOOKING STATEMENTS



This Annual Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA") regarding managements plans and objectives for future operations including plans and objectives relating to our planned marketing efforts and future economic performance. The forward-looking statements and associated risks set forth in this Annual Report include or relate to, among other things, (a) our growth strategies, (b) anticipated trends in the mining industry, (c) our ability to obtain and retain sufficient capital for future operations, and (d) our anticipated needs for working capital. . These statements may be found under Managements Discussion and Analysis of Financial Condition and Results of Operations and Description of Business,. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors, including, without limitation, the risks outlined under Risk Factors. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will in fact occur.



The forward-looking statements herein are based on current expectations that involve a number of risks and uncertainties. Such forward-looking statements are based on assumptions described herein. The assumptions are based on judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Accordingly, although we believe that the assumptions underlying the forward-looking statements are reasonable, any such assumption could prove to be inaccurate and therefore there can be no assurance that the results contemplated in forward-looking statements will be realized. In addition, as disclosed in Risk Factors, there are a number of other risks inherent in our business and operations, which could cause our operating results to vary markedly, and adversely from prior results or the results contemplated by the forward-looking statements. Management decisions, including budgeting, are subjective in many respects and periodic revisions must be made to reflect actual conditions and business developments, the impact of which may cause us to alter marketing, capital investment and other expenditures, which may also materially adversely affect our results of operations. In light of significant uncertainties inherent in the forward-looking information included in the report statement, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved.



Any statement in this report that is not a statement of an historical fact constitutes a forward-looking statement. Further, when we use the words may, expect, anticipate, plan, believe, seek, estimate, internal, and similar words, we intend to identify statements and expressions that may be forward- looking statements. We believe it is important to communicate certain of our expectations to our investors. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions that could cause our future results to differ materially from those expressed in any forward-looking statements. Many factors are beyond our ability to control or predict. You are accordingly cautioned not to place undue reliance on such forward-looking statements. Important factors that may cause our actual results to differ from such forward-looking statements include, but are not limited to, the risks outlined under Risk Factors herein. The reader is cautioned that our company does not have a policy of updating or revising forward-looking statements and thus the reader should not assume that silence by management of our company over time means that actual events are bearing out as estimated in such forward-looking statements.



All references to dollars, $ or US$ are to United States dollars and all references to CAD$ are to Canadian dollars. United States dollar equivalents of Canadian dollar figures are based on the noon exchange rate as reported by the Bank of Canada on the applicable date.



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PART I

As used in this annual report, we, us, our, Energizer Resources, Company or our company refers to Energizer Resources Inc. and all of its subsidiaries.





ITEM 1.   DESCRIPTION OF BUSINESS



BACKGROUND

Company Overview

Energizer Resources Inc. was incorporated in the State of Nevada on March 1, 2004 and reincorporated in the State of Minnesota on May 14, 2008.  Our fiscal year-end is June 30. On December 16, 2009, we effected a name change from Uranium Star Corp to Energizer Resources Inc.. We are an exploration stage company engaged in the search for vanadium, uranium, gold and other minerals.  We have an interest in properties located in Madagascar and Canada (Province of Québec).  None of the properties in which we hold an interest has known mineral reserves of any kind at this time.  As such, the work programs planned by us are exploratory in nature.

We have not had any bankruptcy, receivership or similar proceeding since incorporation. There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant amount of assets not in the ordinary course of business since the date of incorporation.



Summary of Our Business

We are an exploration stage company engaged in the search for vanadium, uranium, gold and other minerals. We have an interest in properties located in Madagascar and Canada (Province of Québec).  None of the properties in which we hold an interest has known mineral reserves of any kind at this time.  As such, the work programs planned by us are exploratory in nature.

Our executive offices are currently located at 520141 Adelaide Street West, Toronto, Ontario, Canada M5H 3L5. Our telephone number is (416) 364-4911.  We maintain a website at www.energizerresources.com (which website is expressly not incorporated by reference into this filing). These offices are leased on a month-to-month basis, and our monthly rental payments are currently approximately CAD$5,000.

UNTIL WE CAN VALIDATE OTHERWISE, THE PROPERTIES OUTLINED BELOW HAVE NO KNOWN MINERAL RESERVES OF ANY KIND AND WE ARE PLANNING PROGRAMS THAT ARE EXPLORATORY IN NATURE.

Further details regarding our properties, although not incorporated by reference, including the comprehensive geological report prepared in compliance with Canadas National Instrument 43-101 on our companys Green Giant Property (formerly the Three Horses Property in Madagascar and our Segar property in Northern Quebec can be found on the Companys website: www.energizerresources.com (which website is expressly not incorporated by reference into this filing) or in the Companys filings on www.sedar.com(which website is expressly not incorporated by reference into this filing). The websites referred to above are expressly not incorporated by reference into this filing.



Cautionary Note

Due to the nature of our business, we anticipate incurring operating losses for the foreseeable future.  We base this expectation, in part, on the fact that very few mineral properties in the exploration stage ultimately develop into producing, profitable mines.  Our future financial results are also uncertain due to a number of factors, some of which are outside our control.  These factors include, but are not limited to:

-

our ability to raise additional funding as required;

-

the market price for vanadium;

-

the market price for gold;

-

the market price for uranium;

-

the market price for other minerals which we may find;

-

the results of our proposed exploration programs on our mineral properties; and

-

our ability to find joint venture partners for the development of our property interests.

If we are successful in completing an equity financing when necessary, existing shareholders will experience dilution of their interest in our company.  In the event we are not successful in raising additional financing, we anticipate that we will not be able to proceed with our business plan.  In such a case, we may decide to discontinue our current business plan and seek other business opportunities in the resource sector.



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During this period, we will need to maintain our periodic filings with the appropriate regulatory authorities and, as such, will incur legal and accounting costs.  In the event no other such opportunities are available and we cannot raise additional capital to sustain operations, we may be forced to discontinue our business altogether.  We do not have any specific alternative business opportunities in mind and have not planned for any such contingency.

Due to our lack of operating history and present inability to generate revenues, our auditors have stated their opinion that there currently exists substantial doubt about our ability to continue as a going concern.



Milestones

Green Giant Property, Madagascar

On August 22, 2007, we acquired a 75% interest in approximately 225 sq. kilometres of mineral permits in the District of Toliara, Madagascar. This interest is held by a limited liability company that was formed under the laws of Madagascar which held a 75% interest in the property.  The remaining 25% interest was held by Madagascar Minerals and Resources sarl.  On July 9, 2009, our company acquired the remaining 25% interest in the Madagascar property and now holds a 100% interest in the property.



Exploration programs have been carried out in the first quarter of 2007 and the first half of 2008 on the Green Giant Property as well as the Ianapera Coal Property located to the north of the Green Giant Property.  Drilling of 31 holes (4,073 meters) was carried out during 2008. Vanadium mineralization of potential economic consequence was intersected in a number of holes.  In the first half of 2009 a series of 56 trenches were established, using mechanical excavators, over an 18 kilometre strike length of the property. Analytical results provided by XRF instrumentation indicated significant widths of vanadium mineralization in the majority of the trenches. The Company then proceeded to drill 54 diamond drill holes (8,931 meters) in the latter half of 2009 to delineate a vanadium resource on the Property.  A further 46 diamond drill holes (8,952 meters) were emplaced on the property in 2010 to further enhance the resource delineation. A consulting engineering group has been retained to start preliminary economic assessments of the property. Metallurgical and mineralogical work is also being carried out.



Sagar Property  Romanet Horst, Labrador Trough, Québec, Canada

On May 2, 2006, the Company signed a letter of intent for an option to acquire a 75% interest in 200 claims located in northern Quebec, Canada.  The vendor had the right and option to sell the remaining 25% interest in the property.  This agreement was subject to a NSR (net smelter return).  The vendor had previously acquired a 100% interest in the property, subject to a 1% NSR on certain claims, and a 0.5% NSR on other claims.  A drill program was completed for the Sagar Property in 2007. A total of 164 reverse circulation drill holes (2,625 meters) and 5,610 meters of diamond drill holes (46) were completed.  Additionally, in excess of 3,500 soil samples were collected and analyzed. Target areas on the Sagar Property have shown anomalous gold, copper and uranium mineralization. Future exploration activity will be designed to identify the potential source area of the Mistamisk Boulder Field, as well as other potential sources of gold and uranium mineralization.



Competitive Conditions

The mineral exploration and mining industry is competitive in all phases of exploration, development and production. We compete with a number of other entities and individuals in the search for, and acquisition of, attractive mineral properties. As a result of this competition, the majority of which is with companies with greater financial resources than us, our company may not in the future be able to acquire attractive properties on terms it considers acceptable.  Furthermore, we  compete with other resource companies, many of whom have greater financial resources and/or more advanced properties that are better able to attract equity investments and other capital.  Factors beyond our control may affect the marketability of minerals mined or discovered by our company.



Employees

As of June 30, 2011, we had nil total employees and nil full-time employees. We engage consultants to serve as officers and to perform professional and administrative functions of our company.





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MADAGASCAR PROPERTY



[energizer10k09262011001.jpg]





Property Description and Location

The Madagascar properties are comprised of 6 mineral permits consisting of 576 squares, each square representing approximately 0.39 sq. kilometers. The properties are located in the District of Toliara and are referenced as TN 12,306,P(R); TN 12,814, P(R); TN 12,887 P(R); TN 12,888 P(R); TN 13,020 P(R); TN 13,021 P(R) as issued by the Bureau de Cadastre Minier de Madagascar (BCMM) pursuant to the Mining Code 1999 (as amended) and its implementing decrees.  This property can be accessed by both air and road.



[energizer10k09262011002.jpg]



Green Giant Property Boundary (blue lines are creeks, red lines are property boundary, black lines are seasonal tracks)





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Agreement

On August 22, 2007, we entered into a joint venture agreement with Madagascar Minerals and Resources sarl (MMR or Madagascar Minerals), a company incorporated under the laws of Madagascar.  The joint venture, which was to be known as the Three Horses Joint Venture, was operated through a Madagascar limited liability company in which our company held 75% undivided interest and MMR held the remaining 25% undivided interest.



The consideration paid to Madagascar Minerals to acquire the 75% stake in the joint venture consisted of:

(ii)

a signing fee of $15,000 within 15 days of the properties vesting in the joint venture;

(iii)

a payment of $750,000 within 15 days of the properties vesting in the joint venture; and

(iv)

the issuance of 1,250,000 of our common shares and 500,000 now expired common share purchase warrants. Each common share purchase warrant was exercisable at $1.00 per share for a period of 2 years from the date of issuance.



On July 9, 2009, our company entered into an  agreement to acquire the remaining 25% interest of the Green Giant Property for $100,000.  On acquisition of the remaining 25%, the joint venture with MMR was terminated.  MMR retains a 2% NSR.  Our company can acquire the NSR on this 25% interest portion at a price of $500,000 in cash or common shares for the first 1% and at a price of $1,000,000 in cash or common shares for the second 1% at our option.



Exploration Programs

The Green Giant Property consists of 576 squares, covering an area of approximately 225 square kilometers, and displays extensive gossans outcroppings at surface.  An examination of part of this property revealed several large areas covered with gossanous boulders, which are believed to overlie massive sulphide mineralization.  Phases of the exploration projects have been managed by Craig Scherba, one of our companys geologists.



We conducted a first phase of exploration from September to November 2007 that included the following activities:

·

Stream Sediment sampling of all stream on the property area

·

Detailed Geological mapping over selected startigraphic horizons

·

Reconnaissance geological mapping over the entire property

·

Soil sampling over selected target areas

·

Prospecting over selected target areas.

·

Limited trenching over selected targets

·

Construction of a cinder block base camp

·

Construction of a one kilometer long surfaced airstrip

·

Repair and surfacing of the access road from base camp to the airstrip

·

Airborne geophysical surveying over the Green Giant Property by Fugro Airborne Surveys Ltd



During March 2008 to June 2008 a full field exploration program following up on the airborne geophysical survey and results of the 2007 exploration program was implemented.  This exploration consisted of the following:

·

Infill stream sediment sampling

·

Detailed Geological mapping over selected stratigraphic horizons

·

Prospecting over selected target areas

·

Grid emplacement over selected target areas

·

Ground-based magnetometer and frequency domain EM surveys

·

Soil sampling over selected target areas



After reviewing the analytical data from the March 2008 to June 2008 program, additional exploration was conducted from July 2008 to September 2008 in preparation for a drill program.  This exploration consisted of the following:

·

Infill stream sediment sampling

·

Detailed Geological mapping over selected stratigraphic horizons

·

Prospecting over selected target areas with the aid of a mobile XRF analyzer



Based on compiled analytical results obtained from the various exploration programs, a drill program was initiated on the property from September 2008 to November 2008. This exploration program consisted of the following:

·

Prospecting over selected target areas with the aid of a mobile XRF analyzer

·

Ground-based scintillometer surveying over selected target areas

·

Diamond drilling of 31 holes over 4,073 metres





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The discovery of potentially significant vanadium mineralization from the 2008 exploration program resulted in the initiation of resource delineation drill program from September 2009 to December 2009. This exploration program consisted of the following:

·

XRF soil sample analyses (8,490 samples) on lines 200 meters apart and covering 18 kilometre strike length

·

Scintillometer surveying (112 line kilometres) on lines 200 meters apart over an 18 kilometre strike length

·

Trenching (140 trenches for 17,105 meters)

·

Diamond drilling of 54 diamond drill holes over 8,931 meters



The 2009 exploration program resulted in the delineation of two vanadium pentoxide (V­2O5) deposits (named the Jaky and Manga) on the property, characterized by two separate categories:  oxide and primary. Within the oxide and primary zone of the Jaky and Manga deposits, the total indicated resources was calculated to be 21.74 Mt at 0.759% V­2O5 containing 363.8 Mlb of vanadium pentoxide.  The total inferred resources was calculated to be 4.15 Mt at a grade of 0.655% V­2O5 containing 59.8 Mlb of vanadium pentoxide.  Based on these results, we conducted an additional exploration program on the property from April 2010 to July 2010. This program consisted of the following activities:

·

Diamond drilling of 46 diamond drill holes over 8,952 meters

·

Prospecting over selected target areas with the aid of a mobile XRF analyzer (20 grab samples)

·

Geologic mapping over the Manga and Mainty deposits at 1:5000 scale

·

ERT ground geophysical survey (5.64 km)

·

MAG ground geophysical survey (169.53 km)

·

Gradient Array EM ground geophysical survey (128.82 km)



2008 Diamond Drilling Program

Diamond drilling completed in 2008 on the Green Giant Property tested a series of gossans and EM conductors, however no Volcanic Massive Sulphide (VMS) mineralization of significance was encountered.  Drilling did confirm the presence of a series of mineral occurrences highly enriched in vanadium and a number of associated anomalous elements, which were first seen in stream sediment sampling programs.  Due to this unexpected result the focus of exploration shifted to vanadium mineralization part way through the 2008 drill program.



[energizer10k09262011003.jpg]



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Composited Vanadium Mineralization in 2008 Drill Holes

|         |                 |       |          |     
|-------- | --------------- | ----- | -------- | ----
|Hole     | Depth in Meters | V2O5 
|         | From            | To    | Interval | %   
|TH-08-01 | 103.6           | 115.8 | 12.2     | 0.39
|TH-08-02 | 42.7            | 109.7 | 36.6     | 0.27
|incl.    | 100.6           | 109.7 | 9.1      | 0.36
|TH-08-07 | 27.4            | 54.9  | 27.4     | 0.23
|TH-08-11 | 33.5            | 39.6  | 6.1      | 0.41
|TH-08-11 | 57.9            | 76.2  | 18.3     | 0.37
|TH-08-12 | 30.6            | 114.3 | 83.7     | 0.37
|incl.    | 45.7            | 61.0  | 15.2     | 0.40
|incl.    | 86.9            | 109.7 | 22.9     | 0.47
|TH-08-13 | 38.5            | 141.7 | 103.2    | 0.32
|incl.    | 76.2            | 141.7 | 65.5     | 0.36
|incl.    | 112.8           | 141.7 | 27.4     | 0.45
|TH-08-14 | 12.2            | 109.7 | 97.5     | 0.35
|incl.    | 76.2            | 91.4  | 15.2     | 0.66
|TH-08-24 | 4.6             | 82.3  | 77.7     | 0.67
|incl.    | 12.2            | 61.0  | 45.7     | 0.91
|TH-08-25 | 18.3            | 48.8  | 30.5     | 0.32
|TH-08-25 | 100.6           | 103.6 | 3.0      | 0.47
|TH-08-26 | 9.1             | 36.6  | 27.4     | 0.41
|incl.    | 18.3            | 27.4  | 9.0      | 0.76
|TH-08-26 | 67.1            | 73.2  | 6.1      | 0.53
|TH-08-27 | 9.1             | 97.5  | 88.4     | 0.30
|incl.    | 18.3            | 29.0  | 10.7     | 0.88
|TH-08-27 | 146.3           | 153.9 | 6.0      | 0.50
|TH-08-31 | 15.2            | 51.8  | 36.6     | 0.38
|incl.    | 36.6            | 48.8  | 12.2     | 0.56



**Average of Drill Intercepts - 43.9m @ 0.36% V2O5



The serendipitous discovery of potentially economic vanadium mineralization on the property changed the course of the 2008 diamond-drilling program.  Through a combination of prospecting, ground based scintillometer surveying, and analysis of airborne radiometrics, five vanadium-bearing trends were identified over the course of the 2008 exploration program.



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[energizer10k09262011004.jpg]



Vanadium-bearing Trends

Based on positive early indications of the presence of potentially economic grades and volumes of vanadium on the property, another exploration program was initiated on the Green Giant Project in the spring of 2009.  The program (completed between April 2009 and July 2009) consisted of an extensive X-Ray Fluorescence analysis (XRF) soil sampling program coupled with mechanical trenching and scintillometer surveys over known areas of vanadium enrichment and new areas, defined by the soil XRF survey.



After reviewing the analytical results from the spring 2009 exploration program, an additional exploration program was carried out between September and December 2009.  This exploration program involved mechanical trenching, diamond drilling with accompanying lithological, structural and geotechnical logging, specific gravity determination, point load tests and metallurgical sampling.  All work was carried out under a well-supervised Quality Assurance and Quality Control programs.



The primary aim of the September to December 2009 drill program was to delineate reserves at the Jaky and Manga targets.  A total of 8,931 meters (4,509.2m in 30 drill holes at the Jaky target and 4,422m in 24 drill holes at the Manga target) of diamond drilling was completed.  Selected drill holes were oriented with point load test and orientation measurements recorded.

Composited Vanadium Mineralization in 2009 Drill Holes

|       |  |          |        |          |             
|------ |  | -------- | ------ | -------- | ------------
|DDH ID |  | From (m) | To (m) | V2O5 (%) | Interval (m)
|J-01   |  | 1.50     | 25.50  | 0.65     | 24.00       
|J-01   |  | 25.5     | 28.10  | 0.45     | 2.60        
|J-01   |  | 28.10    | 37.50  | 0.17     | 9.40        
|J-01   |  | 37.50    | 42.00  | 0.40     | 4.50        
|J-01   |  | 42.00    | 60.00  | 0.20     | 18.00       
|J-01   |  | 60.00    | 90.00  | 0.75     | 30.00       
|J-01   |  | 90.00    | 97.50  | 0.36     | 7.50        
|J-01   |  | 97.50    | 103.50 | 0.16     | 6.00        



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|DDH ID |       | From (m) | To (m) | V2O5 (%) | Interval (m)
|------ | ----- | -------- | ------ | -------- | ------------
|J-01   |       | 111.00   | 126.00 | 0.17     | 15.00       
|J-01   |       | 132.00   | 136.50 | 0.32     | 4.50        
|J-02   |       | 1.80     | 17.00  | 0.46     | 15.20       
|J-02   |       | 17.00    | 24.50  | 1.06     | 7.50        
|J-02   |       | 24.50    | 38.00  | 0.37     | 13.50       
|J-02   |       | 38.00    | 51.50  | 0.96     | 13.50       
|J-02   |       | 51.50    | 68.00  | 0.20     | 16.50       
|J-02   |       | 68.00    | 69.50  | 0.64     | 1.50        
|J-02   |       | 69.50    | 77.00  | 0.28     | 7.50        
|J-02   |       | 86.00    | 89.00  | 0.36     | 3.00        
|J-03   |       | 1.50     | 22.50  | 0.57     | 21.00       
|J-03   | incl. | 1.50     | 9.00   | 0.65     | 7.50        
|J-03   | incl. | 9.00     | 16.50  | 0.44     | 7.50        
|J-03   | incl. | 16.50    | 22.50  | 0.65     | 6.00        
|J-03   |       | 22.50    | 42.00  | 0.27     | 19.50       
|J-03   |       | 42.00    | 78.00  | 1.00     | 36.00       
|J-03   |       | 78.00    | 93.00  | 0.15     | 15.00       
|J-03   |       | 93.00    | 99.00  | 0.53     | 6.00        
|J-03   |       | 99.00    | 102.00 | 0.20     | 3.00        
|J-04   |       | 9.00     | 23.90  | 0.22     | 14.90       
|J-04   |       | 23.90    | 39.10  | 0.59     | 15.20       
|J-04   | incl. | 27.00    | 30.50  | 0.80     | 3.50        
|J-04   |       | 39.10    | 76.50  | 0.24     | 37.40       
|J-04   |       | 76.50    | 85.50  | 0.57     | 9.00        
|J-04   |       | 85.50    | 94.50  | 0.14     | 9.00        
|J-04   |       | 94.50    | 103.50 | 0.41     | 9.00        
|J-04   |       | 103.50   | 109.50 | 0.19     | 6.00        
|J-04   |       | 119.50   | 150.00 | 0.15     | 30.50       
|J-04   |       | 150.00   | 153.00 | 0.82     | 3.00        
|J-04   |       | 153.00   | 168.00 | 0.19     | 15.00       
|J-04   |       | 196.50   | 204.00 | 0.29     | 7.50        
|J-04   |       | 214.50   | 219.00 | 0.40     | 4.50        
|J-05   |       | 1.50     | 9.00   | 0.83     | 7.50        
|J-05   |       | 9.00     | 39.00  | 0.30     | 30.00       
|J-05   |       | 39.00    | 75.00  | 0.79     | 36.00       
|J-05   | incl. | 39.00    | 45.00  | 0.91     | 6.00        
|J-05   | incl. | 45.00    | 55.50  | 0.70     | 10.50       
|J-05   | incl. | 55.50    | 73.50  | 0.89     | 18.00       
|J-05   | incl. | 73.50    | 75.00  | 0.50     | 1.50        
|J-05   |       | 75.00    | 91.50  | 0.14     | 16.50       
|J-05   |       | 91.50    | 97.50  | 0.52     | 6.00        
|J-05   |       | 97.50    | 115.00 | 0.17     | 17.50       
|J-06   |       | 0.00     | 7.50   | 0.44     | 7.50        
|J-06   |       | 7.50     | 19.50  | 1.36     | 12.00       
|J-06   |       | 19.50    | 33.70  | 0.45     | 14.20       
|J-06   |       | 33.70    | 46.70  | 0.94     | 13.00       
|J-06   |       | 46.70    | 84.00  | 0.23     | 37.30       
|J-07   |       | 14.00    | 170.00 | 0.18     | 156.00      





12





---





|DDH ID |  | From (m) | To (m) | V2O5 (%) | Interval (m)
|------ |  | -------- | ------ | -------- | ------------
|J-07   |  | 212.00   | 218.00 | 0.31     | 6.00        
|J-07   |  | 231.50   | 237.50 | 0.30     | 6.00        
|J-08   |  | 2.00     | 8.00   | 0.41     | 6.00        
|J-08   |  | 8.00     | 45.00  | 0.25     | 37.00       
|J-08   |  | 45.00    | 56.00  | 0.49     | 11.00       
|J-08   |  | 56.00    | 68.00  | 0.82     | 12.00       
|J-08   |  | 68.00    | 77.00  | 0.52     | 9.00        
|J-08   |  | 77.00    | 86.50  | 0.17     | 9.50        
|J-09   |  | 1.50     | 6.00   | 0.27     | 4.50        
|J-09   |  | 6.00     | 49.50  | 1.00     | 43.50       
|J-09   |  | 49.50    | 52.50  | 0.55     | 3.00        
|J-09   |  | 52.50    | 66.00  | 0.14     | 13.50       
|J-09   |  | 66.00    | 72.00  | 0.48     | 6.00        
|J-09   |  | 72.00    | 93.00  | 0.17     | 21.00       
|J-10   |  | 2.00     | 5.00   | 0.36     | 3.00        
|J-10   |  | 5.00     | 18.50  | 0.81     | 13.50       
|J-10   |  | 18.50    | 26.00  | 0.44     | 7.50        
|J-10   |  | 26.00    | 47.00  | 0.26     | 21.00       
|J-10   |  | 47.00    | 77.00  | 0.79     | 30.00       
|J-10   |  | 77.00    | 81.50  | 0.36     | 4.50        
|J-10   |  | 81.50    | 89.00  | 0.17     | 7.50        
|J-10   |  | 101.00   | 105.50 | 0.16     | 4.50        
|J-10   |  | 105.50   | 108.50 | 0.53     | 3.00        
|J-10   |  | 108.50   | 120.50 | 0.15     | 12.00       
|J-10   |  | 120.50   | 126.50 | 0.41     | 6.00        
|J-11   |  | 126.50   | 138.50 | 0.16     | 12.00       
|J-11   |  | 138.50   | 141.50 | 0.57     | 3.00        
|J-11   |  | 141.50   | 153.50 | 0.17     | 12.00       
|J-12   |  | 0.50     | 31.50  | 0.22     | 31.00       
|J-12   |  | 31.50    | 45.00  | 0.41     | 13.50       
|J-12   |  | 45.00    | 54.00  | 0.73     | 9.00        
|J-12   |  | 54.00    | 66.00  | 0.30     | 12.00       
|J-12   |  | 66.00    | 94.50  | 0.14     | 28.50       
|J-12   |  | 106.50   | 109.50 | 0.51     | 3.00        
|J-13   |  | 1.60     | 16.50  | 0.71     | 14.90       
|J-13   |  | 16.50    | 37.50  | 0.97     | 21.00       
|J-13   |  | 37.50    | 57.00  | 0.20     | 19.50       
|J-13   |  | 57.00    | 63.00  | 0.45     | 6.00        
|J-13   |  | 63.00    | 85.50  | 0.16     | 22.50       
|J-14   |  | 40.50    | 70.70  | 0.17     | 30.20       
|J-14   |  | 79.50    | 97.50  | 0.10     | 18.00       
|J-14   |  | 120.00   | 153.00 | 0.22     | 33.00       
|J-14   |  | 153.00   | 156.00 | 0.62     | 3.00        
|J-14   |  | 156.00   | 159.00 | 0.29     | 3.00        
|J-14   |  | 159.00   | 169.50 | 0.15     | 10.50       
|J-15   |  | 0.20     | 3.00   | 0.35     | 2.80        
|J-15   |  | 3.00     | 69.00  | 0.17     | 66.00       
|J-15   |  | 87.00    | 115.50 | 0.16     | 28.50       







13







---







|DDH ID |       | From (m) | To (m) | V2O5 (%) | Interval (m)
|------ | ----- | -------- | ------ | -------- | ------------
|J-15   |       | 115.50   | 118.50 | 0.60     | 3.00        
|J-16   |       | 0.00     | 14.00  | 0.45     | 14.00       
|J-16   |       | 14.00    | 30.50  | 0.83     | 16.50       
|J-16   |       | 30.50    | 38.00  | 0.48     | 7.50        
|J-16   |       | 38.00    | 45.50  | 0.20     | 7.50        
|J-16   |       | 51.50    | 56.00  | 0.12     | 4.50        
|J-16   |       | 56.00    | 60.50  | 0.49     | 4.50        
|J-16   |       | 60.50    | 63.50  | 0.18     | 3.00        
|J-17   |       | 2.00     | 6.50   | 0.19     | 4.50        
|J-17   |       | 6.50     | 11.00  | 0.42     | 4.50        
|J-17   |       | 11.00    | 23.00  | 0.93     | 12.00       
|J-17   |       | 23.00    | 39.50  | 0.19     | 16.50       
|J-17   |       | 39.50    | 45.50  | 0.48     | 6.00        
|J-17   |       | 45.50    | 62.00  | 0.16     | 16.50       
|J-18   |       | 1.50     | 6.50   | 0.37     | 5.00        
|J-18   |       | 6.50     | 20.00  | 0.21     | 13.50       
|J-18   |       | 20.00    | 24.50  | 0.54     | 4.50        
|J-19   |       | 36.50    | 62.00  | 0.19     | 25.50       
|J-19   |       | 81.90    | 86.00  | 0.34     | 4.10        
|J-19   |       | 86.00    | 113.00 | 0.13     | 27.00       
|J-19   |       | 113.00   | 117.50 | 0.62     | 4.50        
|J-20   |       | 0.50     | 8.00   | 0.30     | 7.50        
|J-20   |       | 8.00     | 27.50  | 0.50     | 19.50       
|J-20   |       | 27.50    | 42.50  | 0.23     | 15.00       
|J-20   |       | 50.00    | 53.00  | 0.13     | 3.00        
|J-20   |       | 53.00    | 57.50  | 0.48     | 4.50        
|J-20   |       | 57.50    | 78.50  | 0.16     | 21.00       
|J-21   |       | 6.5      | 11.00  | 0.32     | 4.50        
|J-21   |       | 11.00    | 26.00  | 0.73     | 15.00       
|J-21   |       | 26.00    | 39.50  | 0.18     | 13.50       
|J-21   |       | 39.50    | 44.00  | 0.5      | 4.50        
|J-21   |       | 44.00    | 59.00  | 0.16     | 15.00       
|J-22   |       | 117.50   | 153.50 | 0.31     | 36.00       
|J-22   | incl. | 141.50   | 146.00 | 0.54     | 4.50        
|J-22   |       | 153.50   | 164.00 | 0.66     | 10.50       
|J-22   |       | 164.00   | 170.00 | 0.12     | 6.00        
|J-22   |       | 170.00   | 174.50 | 0.42     | 4.50        
|J-23   |       | 2        | 42.50  | 0.15     | 40.50       
|J-23   |       | 93.5     | 113.00 | 0.16     | 19.50       
|J-23   |       | 113.00   | 117.50 | 0.54     | 4.50        
|J-23   |       | 117.50   | 121.80 | 0.21     | 4.30        
|J-24   |       | 0.7      | 3.5    | 0.22     | 2.80        
|J-24   |       | 3.5      | 14     | 0.34     | 10.50       
|J-24   |       | 14       | 27.5   | 0.21     | 13.50       
|J-24   |       | 38       | 41     | 0.17     | 3.00        
|J-24   |       | 41       | 47     | 0.54     | 6.00        
|J-24   |       | 47       | 69.5   | 0.16     | 22.50       
|J-25   |       | 2        | 12.5   | 0.33     | 10.50       





14





---







|DDH ID   |       | From (m) | To (m) | V2O5 (%) | Interval (m)
|-------- | ----- | -------- | ------ | -------- | ------------
|J-25     |       | 23       | 33.5   | 0.23     | 10.50       
|J-26     |       | 27.50    | 41.00  | 0.35     | 13.50       
|J-26     |       | 41.00    | 53.00  | 0.74     | 12.00       
|J-26     |       | 53.00    | 59.00  | 0.41     | 6.00        
|J-26     |       | 59.00    | 90.50  | 0.18     | 31.50       
|J-26     |       | 90.50    | 117.50 | 0.40     | 27.00       
|J-26     |       | 117.50   | 122.00 | 0.16     | 4.50        
|J-26     |       | 134.00   | 162.50 | 0.15     | 28.50       
|J-26     |       | 162.50   | 168.50 | 0.51     | 6.00        
|J-27     |       | 125.00   | 138.50 | 0.24     | 13.50       
|J-27     |       | 138.50   | 162.50 | 0.53     | 24.00       
|J-27     | incl. | 138.50   | 144.50 | 0.63     | 6.00        
|J-27     | incl. | 144.50   | 150.50 | 0.32     | 6.00        
|J-27     | incl. | 150.50   | 159.50 | 0.65     | 9.00        
|J-27     | incl. | 159.50   | 162.50 | 0.42     | 3.00        
|J-27     |       | 162.50   | 170.00 | 0.17     | 7.50        
|J-27     |       | 170.00   | 176.25 | 0.32     | 6.25        
|J-27     |       | 176.25   | 186.50 | 0.19     | 10.25       
|J-27     | incl. | 183.50   | 186.50 | 0.42     | 3.00        
|J-MET-01 |       | 2.50     | 5.50   | 0.43     | 3.00        
|J-MET-01 |       | 5.50     | 59.50  | 1.12     | 54.00       
|J-MET-01 |       | 59.50    | 64.00  | 0.51     | 4.50        
|J-MET-01 |       | 64.00    | 74.50  | 0.18     | 10.50       
|J-MET-02 |       | 2.50     | 10.00  | 1.11     | 7.50        
|J-MET-02 |       | 10.00    | 16.00  | 0.51     | 6.00        
|J-MET-02 |       | 16.00    | 23.50  | 0.18     | 7.50        
|J-MET-02 |       | 23.50    | 41.50  | 0.70     | 18.00       
|J-MET-02 |       | 41.50    | 64.00  | 0.22     | 22.50       
|J-MET-02 |       | 76.00    | 83.50  | 0.36     | 7.50        
|J-MET-02 |       | 83.50    | 121.00 | 0.17     | 37.50       
|J-MET-02 |       | 121.00   | 124.00 | 0.93     | 3.00        
|J-MET-02 |       | 124.00   | 133.00 | 0.26     | 9.00        
|J-MET-03 |       | 1.50     | 27.00  | 0.45     | 25.50       
|J-MET-03 |       | 27.00    | 78.00  | 0.80     | 51.00       
|J-MET-03 |       | 78.00    | 88.50  | 0.46     | 10.50       
|J-MET-03 |       | 88.50    | 96.00  | 0.17     | 7.50        
|M-11     |       | 7.00     | 38.00  | 0.22     | 31.00       
|M-11     |       | 38.00    | 57.50  | 0.58     | 19.50       
|M-12     |       | 3.50     | 20.00  | 0.47     | 16.50       
|M-12     | incl. | 3.50     | 9.50   | 0.64     | 6.00        
|M-12     | incl. | 9.50     | 20.00  | 0.37     | 10.50       
|M-13     |       | 123.00   | 132.50 | 0.18     | 9.50        
|M-13     |       | 132.50   | 144.00 | 0.40     | 11.50       
|M-13     |       | 144.00   | 153.00 | 0.17     | 9.00        
|M-13     |       | 153.00   | 156.00 | 0.57     | 3.00        
|M-13     |       | 156.00   | 166.50 | 0.81     | 10.50       
|M-13     |       | 166.50   | 175.50 | 0.36     | 9.00        
|M-14     |       | 1.50     | 4.50   | 0.27     | 3.00        





15





---







|DDH ID |       | From (m) | To (m) | V2O5 (%) | Interval (m)
|------ | ----- | -------- | ------ | -------- | ------------
|M-14   |       | 4.50     | 21.00  | 0.70     | 16.50       
|M-14   |       | 21.00    | 30.00  | 0.33     | 9.00        
|M-14   |       | 30.00    | 100.50 | 0.74     | 70.50       
|M-14   | incl. | 30.00    | 39.00  | 0.54     | 9.00        
|M-14   | incl. | 39.00    | 49.50  | 0.82     | 10.50       
|M-14   | incl. | 49.50    | 55.50  | 0.59     | 6.00        
|M-14   | incl. | 55.50    | 66.00  | 0.71     | 10.50       
|M-14   | incl. | 66.00    | 100.50 | 0.79     | 34.50       
|M-14   |       | 100.50   | 112.50 | 0.30     | 12.00       
|M-15   |       | 3.50     | 26.00  | 0.72     | 22.50       
|M-15   | incl. | 3.50     | 12.00  | 0.60     | 8.50        
|M-15   | incl. | 12.00    | 26.00  | 0.81     | 14.00       
|M-15   |       | 26.00    | 47.00  | 0.38     | 21.00       
|M-16   |       | 66.5     | 74.7   | 0.18     | 8.20        
|M-16   |       | 74.7     | 81.5   | 0.64     | 6.80        
|M-16   |       | 81.5     | 89     | 0.33     | 7.50        
|M-16   |       | 89.00    | 180.50 | 0.80     | 91.50       
|M-16   |       | 180.50   | 191.00 | 0.29     | 10.50       
|M-17   |       | 3.40     | 12.50  | 0.20     | 9.10        
|M-17   |       | 12.50    | 29.00  | 0.45     | 16.50       
|M-17   |       | 29.00    | 113.00 | 0.97     | 84.00       
|M-17   | incl. | 29.00    | 44.00  | 0.77     | 15.00       
|M-17   | incl. | 44.00    | 113.00 | 1.01     | 69.00       
|M-17   | incl. | 102.50   | 111.50 | 1.45     | 9.00        
|M-17   |       | 113.00   | 121.10 | 0.18     | 8.10        
|M-17   |       | 121.10   | 126.50 | 0.36     | 5.40        
|M-18   |       | 4.10     | 41.00  | 0.71     | 36.90       
|M-18   | incl. | 4.10     | 15.50  | 0.67     | 11.40       
|M-18   | incl. | 15.50    | 32.00  | 0.81     | 16.50       
|M-18   | incl. | 32.00    | 41.00  | 0.59     | 9.00        
|M-18   |       | 41.00    | 57.50  | 0.41     | 16.50       
|M-18   | incl. | 44.00    | 57.50  | 0.45     | 13.50       
|M-18   |       | 57.00    | 77.00  | 0.13     | 20.00       
|M-19   |       | 60.50    | 69.50  | 0.36     | 9.00        
|M-19   |       | 69.50    | 156.50 | 0.94     | 87.00       
|M-19   | incl. | 134.00   | 156.50 | 1.23     | 22.50       
|M-19   |       | 156.50   | 174.50 | 0.33     | 18.00       
|M-19   |       | 156.50   | 174.50 | 0.33     | 18.00       
|M-20   |       | 5.00     | 90.50  | 0.98     | 85.50       
|M-20   | incl. | 5.00     | 30.50  | 0.65     | 25.50       
|M-20   | incl. | 30.50    | 42.50  | 0.42     | 12.00       
|M-20   | incl. | 42.50    | 75.50  | 1.55     | 33.00       
|M-20   | incl. | 75.50    | 83.00  | 0.33     | 7.50        
|M-20   | incl. | 83.00    | 90.50  | 0.97     | 7.50        
|M-20   |       | 90.50    | 105.50 | 0.36     | 15.00       
|M-21   |       | 3.50     | 18.50  | 0.42     | 15.00       
|M-21   |       | 18.50    | 36.50  | 0.26     | 18.00       
|M-22   |       | 68.00    | 69.50  | 0.17     | 1.50        





16





---







|DDH ID |       | From (m) | To (m) | V2O5 (%) | Interval (m)
|------ | ----- | -------- | ------ | -------- | ------------
|M-22   |       | 69.50    | 153.50 | 0.84     | 84.00       
|M-22   | incl. | 69.50    | 95.00  | 0.85     | 25.50       
|M-22   | incl. | 83.00    | 92.00  | 1.10     | 9.00        
|M-22   | incl. | 95.00    | 108.50 | 0.34     | 13.50       
|M-22   | incl. | 108.50   | 126.50 | 1.41     | 18.00       
|M-22   | incl. | 126.50   | 134.00 | 0.46     | 7.50        
|M-22   | incl. | 134.00   | 143.00 | 1.17     | 9.00        
|M-22   | incl. | 143.00   | 153.50 | 0.52     | 10.50       
|M-22   |       | 153.50   | 164.00 | 0.34     | 10.50       
|M-22   |       | 164.00   | 168.50 | 0.14     | 4.50        
|M-23   |       | 1.70     | 8.00   | 0.34     | 6.30        
|M-23   |       | 8.00     | 30.50  | 0.73     | 22.50       
|M-23   |       | 30.50    | 38.00  | 0.30     | 7.50        
|M-23   |       | 38.00    | 68.70  | 0.45     | 30.70       
|M-23   |       | 68.70    | 77.00  | 0.95     | 8.30        
|M-23   |       | 77.00    | 95.00  | 0.40     | 18.00       
|M-24   |       | 12.50    | 35.00  | 0.31     | 22.50       
|M-25   |       | 108.50   | 111.50 | 0.33     | 3.00        
|M-25   |       | 111.50   | 123.50 | 0.80     | 12.00       
|M-25   |       | 123.50   | 137.00 | 0.61     | 13.50       
|M-26   |       | 48.50    | 77.00  | 0.82     | 28.50       
|M-26   | incl. | 48.50    | 54.30  | 0.54     | 5.80        
|M-26   | incl. | 54.30    | 74.00  | 0.94     | 19.70       
|M-26   | incl. | 74.00    | 77.00  | 0.55     | 3.00        
|M-26   |       | 77.00    | 110.00 | 0.33     | 33.00       
|M-26   |       | 110.00   | 114.50 | 0.68     | 4.50        
|M-26   |       | 114.50   | 132.50 | 0.30     | 18.00       
|M-27   |       | 2.00     | 14.00  | 0.70     | 12.00       
|M-27   |       | 14.00    | 35.00  | 0.35     | 21.00       
|M-37   |       | 132.50   | 233.00 | 0.86     | 100.50      
|M-37   | incl. | 132.50   | 141.50 | 0.60     | 9.00        
|M-37   | incl. | 141.50   | 159.50 | 0.90     | 18.00       
|M-37   | incl. | 159.50   | 164.00 | 0.58     | 4.50        
|M-37   | incl. | 164.00   | 219.50 | 0.98     | 55.50       
|M-37   | incl. | 192.50   | 215.00 | 1.11     | 22.50       
|M-37   | incl. | 219.50   | 224.00 | 0.46     | 4.50        
|M-37   | incl. | 224.00   | 227.00 | 1.04     | 3.00        
|M-37   | incl. | 227.00   | 233.00 | 0.46     | 6.00        
|M-38   |       | 198.50   | 215.00 | 0.19     | 16.50       
|M-38   |       | 215.00   | 237.50 | 0.85     | 22.50       
|M-38   |       | 237.50   | 245.00 | 0.26     | 7.50        
|M-39   |       | 132.50   | 135.50 | 0.15     | 3.00        
|M-39   |       | 135.50   | 141.50 | 0.56     | 6.00        
|M-39   |       | 141.50   | 147.50 | 0.29     | 6.00        
|M-39   |       | 200.00   | 208.80 | 0.17     | 8.80        
|M-39   |       | 208.50   | 212.00 | 0.37     | 3.50        
|M-39   |       | 212.00   | 215.00 | 0.68     | 3.00        
|M-39   |       | 215.00   | 224.00 | 0.40     | 9.00        









17





---









|DDH ID |       | From (m) | To (m) | V2O5 (%) | Interval (m)
|------ | ----- | -------- | ------ | -------- | ------------
|M-39   |       | 224.00   | 229.50 | 0.09     | 5.50        
|M-39   |       | 229.50   | 249.50 | 0.79     | 20.00       
|M-39   | incl. | 229.50   | 233.00 | 0.62     | 3.50        
|M-39   | incl. | 233.00   | 249.50 | 0.84     | 16.50       
|M-39   | incl. | 233.00   | 237.50 | 0.99     | 4.50        
|M-39   | incl. | 237.50   | 240.50 | 0.42     | 3.00        
|M-39   | incl. | 240.50   | 249.50 | 0.90     | 9.00        
|M-39   |       | 249.50   | 258.50 | 0.28     | 9.00        
|M-40   |       | 215.00   | 218.00 | 0.83     | 3.00        
|M-40   |       | 218.00   | 224.00 | 0.35     | 6.00        
|M-41   |       | 104.00   | 117.50 | 0.27     | 13.50       
|M-41   |       | 117.50   | 212.00 | 0.87     | 94.50       
|M-41   | incl. | 153.50   | 161.00 | 1.06     | 7.50        
|M-41   | incl. | 188.00   | 210.00 | 1.05     | 22.00       
|M-41   |       | 212.00   | 216.50 | 0.41     | 4.50        
|M-41   |       | 216.50   | 219.50 | 0.98     | 3.00        
|M-41   |       | 219.50   | 224.00 | 0.41     | 4.50        
|M-42   |       | 182.00   | 190.00 | 0.38     | 8.00        
|M-42   |       | 195.50   | 206.00 | 0.23     | 10.50       
|M-42   |       | 206.00   | 291.50 | 0.71     | 85.50       
|M-42   |       | 291.50   | 294.50 | 0.30     | 3.00        



Analytical results from the 2009 exploration program were given to our consulting engineering firm AGP Mining Consultants Inc. to calculate a vanadium pentoxide resource.  Based on the favourable resource calculation results, we conducted additional drilling between April 2010 and July, 2010. This program involved diamond drilling with accompanying lithological, structural and geotechnical logging, specific gravity determination, point load tests and metallurgical sampling. All work was carried out under a well-supervised Quality Assurance and Quality Control programs.   The primary aim of this drilling was to delineate additional reserves at the Jaky and Manga targets, as well as targeting an additional target, the Mainty. A total of 8,952 meters of diamond drilling was completed in 46 holes.  Selected drill holes were oriented with point load test and orientation measurements recorded.



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Drill hole results from the exploration program completed through April 2010 to July 2010 are as follows:



|         |            |          |        |              |       |          |        |             
|-------- | ---------- | -------- | ------ | ------------ | ----- | -------- | ------ | ------------
|INTERVAL | INCLUDING 
|Hole ID  | V205 Grade | From (m) | To (m) | Interval (m) | V205  | From (m) | To (m) | Interval (m)
|K-01     | 0.559      | 92       | 95     | 3            | -     | -        | -      | -           
|K-01     | 0.523      | 99.5     | 113    | 13.5         | -     | -        | -      | -           
|K-01     | 0.59       | 140      | 155    | 15           | 0.647 | 143      | 152    | 9           
|K-02     | 0.522      | 180.5    | 204.5  | 24           | 0.645 | 185      | 192.5  | 7.5         
|K-03     | 0.616      | 93.5     | 135.56 | 42.06        | -     | -        | -      | -           
|K-03     | 0.628      | 138.5    | 150.5  | 12           | 0.74  | 140      | 144.5  | 4.5         
|K-04     | 0.514      | 141.5    | 189.5  | 48           | 0.612 | 149      | 159.77 | 10.77       
|K-04     | -          | -        | -      | -            | 0.683 | 164.18   | 167    | 2.82        
|K-05     | 0.588      | 45.5     | 104    | 58.5         | 0.61  | 48.5     | 89     | 40.5        
|K-06     | 0.577      | 108.5    | 139.75 | 31.25        | 0.611 | 113      | 134    | 21          
|K-06     | 0.519      | 189.52   | 194    | 4.48         | -     | -        | -      | -           
|K-07     | 0.58       | 161      | 258.5  | 97.5         | 0.714 | 174.5    | 213.5  | 39          
|K-08     | 0.527      | 92.26    | 100.5  | 8.24         | -     | -        | -      | -           
|K-09     | 0.555      | 132.5    | 230    | 97.5         | 0.606 | 144.5    | 195.5  | 51          
|K-09     | -          | -        | -      | -            | 0.643 | 203      | 230    | 27          
|K-13     | 0.562      | 125      | 181.47 | 56.47        | 0.606 | 135.5    | 181.47 | 45.97       
|M-05     | 0.572      | 50       | 90.5   | 40.5         | 0.705 | 51.5     | 62     | 10.5        
|M-05     | -          | -        | -      | -            | 0.661 | 78.5     | 90.5   | 12          
|M-44     | 0.686      | 75.5     | 87.5   | 12           | 0.974 | 80       | 83     | 3           
|M-48     | 0.692      | 50       | 62     | 12           | 0.864 | 51.5     | 59     | 7.5         
|M-49     | 0.734      | 192.5    | 200    | 7.5          | 1.036 | 194      | 197    | 3           
|M-53     | 0.711      | 71       | 86     | 15           | 0.946 | 72.5     | 80     | 7.5         
|M-53     | 0.616      | 99.5     | 102.5  | 3            | -     | -        | -      | -           
|M-54     | 0.528      | 134      | 147.5  | 13.5         | 0.749 | 134      | 137    | 3           
|M-55     | 0.602      | 102.5    | 108.5  | 6            | 0.88  | 104      | 107    | 3           
|M-55     | 0.548      | 116      | 137    | 21           | -     | -        | -      | -           
|M-55     | 0.521      | 147.5    | 155    | 7.5          | -     | -        | -      | -           
|M-56     | 0.726      | 163.5    | 178.5  | 15           | 0.801 | 168      | 177    | 9           
|M-56     | 0.711      | 180      | 244.5  | 64.5         | 0.983 | 223.5    | 234    | 10.5        
|M-57     | 0.621      | 24.5     | 63.5   | 39           | 0.948 | 44       | 48.5   | 4.5         
|M-58     | 0.783      | 161      | 185    | 24           | 0.945 | 171.5    | 180.5  | 9           
|M-59     | 0.844      | 81.5     | 102.5  | 21           | 0.981 | 90.5     | 101    | 10.5        
|M-60     | 0.751      | 210.5    | 219.5  | 9            | -     | -        | -      | -           
|M-60     | 0.773      | 231.5    | 236    | 4.5          | -     | -        | -      | -           
|M-62     | 0.706      | 51.5     | 84.5   | 33           | 0.991 | 65       | 69.5   | 4.5         
|M-62     | -          | -        | -      | -            | 1.057 | 80       | 83     | 3           
|M-65     | 0.736      | 50       | 60.5   | 10.5         | -     | -        | -      | -           
|M-65     | 0.531      | 101      | 108.5  | 7.5          | -     | -        | -      | -           
|M-71     | 0.725      | 188      | 273.5  | 85.5         | 0.923 | 192.5    | 198.5  | 6           
|M-71     | -          | -        | -      | -            | 1.2   | 221      | 234.5  | 13.5        
|M-71     | -          | -        | -      | -            | 0.922 | 245.64   | 260    | 14.36       
|M-72     | 0.594      | 53       | 66.5   | 13.5         | 0.838 | 54.5     | 59     | 4.5         
|M-73     | 0.611      | 51.5     | 63.5   | 12           | 0.714 | 53       | 60.5   | 7.5         
|M-74     | 0.667      | 51.5     | 66.5   | 15           | 0.874 | 53       | 60.5   | 7.5         
|M-74     | 0.505      | 95       | 101    | 6            | -     | -        | -      | -           
|M-75     | 0.516      | 30.17    | 33.5   | 3.33         | -     | -        | -      | -           
|M-75     | 0.618      | 45.5     | 77     | 31.5         | 0.922 | 54.5     | 66.5   | 12          
|M-76     | 0.53       | 54.5     | 69.5   | 15           | -     | -        | -      | -           
|M-82     | 0.533      | 119      | 126.5  | 7.5          | -     | -        | -      | -           
|M-83     | 0.66       | 45.5     | 71     | 25.5         | 1.073 | 56       | 63.5   | 7.5         
|M-84     | 0.564      | 149.75   | 162.5  | 12.75        | -     | -        | -      | -           
|M-85     | 0.609      | 96.5     | 108.5  | 12           | -     | -        | -      | -           
|M-85     | 0.657      | 113      | 131    | 18           | 0.859 | 122      | 126.5  | 4.5         
|M-86     | 0.65       | 155      | 191    | 36           | -     | -        | -      | -           
|M-87     | 0.749      | 185      | 283.5  | 98.5         | 0.801 | 195.5    | 270.5  | 75          
|M-88     | 0.64       | 206      | 249.5  | 43.5         | 0.731 | 221      | 245    | 24          
|M-88     | 0.608      | 266      | 276.5  | 10.5         | -     | -        | -      | -           
|M-88     | 0.688      | 284      | 306.5  | 22.5         | 0.823 | 297.5    | 305    | 7.5         
|M-89     | 0.846      | 240.4    | 312.5  | 72.1         | 0.912 | 252.5    | 294.5  | 42          
|M-89     | -          | -        | -      | -            | 1.043 | 306.5    | 311    | 4.5         
|M-91a    | 0.875      | 243.5    | 303.5  | 60           | 0.939 | 282.5    | 303.5  | 21          
|MM-01    | 0.911      | 2.5      | 156.5  | 154          | 1.166 | 71       | 155    | 84          
|MM-01    | -          | -        | -      | -            | 1.343 | 74       | 86     | 12          
|MM-01    | -          | -        | -      | -            | 1.327 | 102.5    | 126.5  | 24          







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All drill core assays have been received and AGP Mining Consultants Inc. was retained to undertake a resource calculation update for the Manga and Jaky Zones, as well as a new resource estimate for the Mainty Zone.



Metallurgy

Various metallurgical scoping test programs have been completed since 2009, covering physical and chemical pre-concentration processes, acid and alkaline leaching (atmospheric and pressure), alkaline salt roasting and high definition mineralogical characterisation.  Mineralogical characterisation of several silicate samples has revealed a unique deportment of vanadium at Green Giant.  Vanadium bearing minerals include clays, micas, oxides, and sulphides.  The vanadium deportment for three recent silicate composites is summarized below.

Vanadium Deportment, Mass %- Summary

MineralHMC  (%)MPC (%)Silicate (%)Other0.00.10.1Rutile1.71.32.0Pyrrhotite0.42.00.5Other Micas/Clays0.74.03.0Sillimanite1.30.20.0Cordierite3.05.14.2Phlogophite (low-V)53.55.05.8Phlogophite (high-V)26.119.526.1Roscoelite14.511.115.0V-Phosphate0.70.00V-Oxides28.622.618.6V-Fe Sulphide17.429.224.6






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Vanadium is spread across a range of mineral types, but is primarily found in Phlogophite (of various V tenors) Oxides and sulphides.  Gangue minerals of note include quartz (generally 30-40% of sample mass) K-feldspar (10% of sample mass) and graphite (<10% of sample mass).  Similar work completed in 2009 suggests that the oxide zone differs mineralogically in that a greater percentage of vanadium occurs in oxide minerals, with less in clays/micas and none in sulphides.



Leaching with sulphuric acid can achieve high vanadium extractions (up to 77%), but always at the expense of acid consumption and leach liquor quality.  Acid consumptions have varied, but have generally been in the 3 to 500 kg/t range.  The vigorous co-extraction of elements such as aluminum, magnesium, and iron is considered detrimental to downstream processes, and is also believed to be responsible for the high acid consumption.

Leaching with alkaline lixiviants such as soda ash (Na2CO3) and caustic soda (NaOH) has historically not resulted in high vanadium extractions.  Pressure leaching with soda ash at Mintek (Phase 2) resulted in 30% to 40% vanadium extraction, which although lower than the acid-based leach results, was significantly higher than atmospheric alkaline leach extractions.  The more selective alkaline lixiviants provide much cleaner leach liquors, with minimal co-extraction of problematic elements.

Early Phase 3 alkaline pressure leach tests observed an excess of micaceous material in leach residues, and it was postulated that the vanadium-bearing micas (phlogophite) might be more resistant to alkaline leaching.  An oxidative pre-roast was introduced to the treatment process, with a resultant 25% increase in vanadium extraction rate.  Comparing leach residues, the micaceous material was no longer present after pre-roasting.  Further work is recommended to optimize conditions, but the most encouraging extraction results to date have been achieved on pre-roasted samples, using concentrated soda ash as a lixiviant at high temperature.



Phase 3 Alkaline Leach Results  Summary

|   |                |                            |            |               |            |           |     |      
|-- | -------------- | -------------------------- | ---------- | ------------- | ---------- | --------- | --- | -----
|PL | V205Extraction | Roasting                   | Grind  K80 | Feed % Solids | Na2CO3Kg/t | Na2CO3g/L | 0C  | Hours
|10 | 80.6           | Pre-roast  1,000 0C / 3 h | 105        | 10            | n/r        | 100       | 240 | 4    
|11 | 82.0           | Pre-roast  1,100 0C / 3 h | 105        | 10            | n/r        | 100       | 240 | 4    
|18 | 75.3           | Pre-roast  1,000 0C / 3 h | 105        | 10            | 147        | 50        | 220 | 4    
|20 | 64.0           | Pre-roast  1,100 0C / 3 h | 105        | 30            | 71         | 50        | 220 | 4    



As the project develops, further scoping work is essential to allow optimization of the roast and leach conditions for both silicate and oxide samples from all zones.  The metallurgical processes tested would undoubtedly benefit from higher head grades.  It is therefore important that future metallurgical programs asses the influence of higher feed vanadium concentrations.



Resource Calculations

During November 2010, AGP Mining Consultants estimated the mineral resources for the Green Giant Property in Madagascar.  The mineral deposits on the property have been divided into three separate zones, which are referred to as the Jaky, Manga, and Mainty deposits.  This mineral resource estimate utilized approximately 18,832 m of diamond drill hole data from the 2008, 2009, and 2010 drill program and was supplemented by approximately 5,928 m of trench data from the 2008 and 2009 exploration programs.  No additional work was carried out on the Jaky deposit; therefore, the resources are merely restated from the NI43-101 report dated June 18, 2010.

The Jaky, Manga, and Mainty resource estimate is comprised of indicated and inferred resources reported as vanadium pentoxide mineralization at a base case cut-off grade of 0.5% V2O5.  The method employed to select the base case cut-off grade was to consider the mineralogical characteristic, envisioned mining methods and comparable Vanadium projects worldwide.  Further work is required to more accurately determine the optimum economic cut-off grade, and this is recommended as part of the Preliminary Economic Assessment.

The vanadium deposits on the Green Giant property are split into two separate categories: oxide and primary.  The following resource values were determined at a 0.5% V2O5 cut-off.  Within the oxide and primary zones of the Jaky, Manga, and Mainty deposits, the total Indicated resource is 49.5 Mt at 0.693% V2O5, containing 756.3 Mlb of vanadium pentoxide.  The total Inferred resource is 9.7 Mt at a grade of 0.632% V2O5, containing 134.5 Mlb of vanadium
pentoxide.  Since no additional work was conducted, mineral resources at the property were classified using logic consistent with the CIM definitions referred to in NI 43-101 guidelines.  This independent mineral resource estimate and review conducted by AGP Mining Consultants supports the disclosure by our company of the mineral resource statement for the Jaky, Manga, and Mainty deposit dated November 30, 2010.



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Future Programs

The property merits an exploration program consisting of exploratory and infill diamond drilling over vanadium-bearing zones identified by diamond drilling and trenching completed in 2008, 2009 and 2010.  The goal of the program would be to upgrade inferred resources to indicated resources and to delineate additional indicated resources.  A 6,000 metre, 31-hole drill program will employ one Boart Longyear diamond drill to verify additional mineralized zones previously confirmed through trenching and/or prospecting. This program is anticipated to begin during the fourth quarter of 2011.



Our companys Canadian National Instrument 43-101 compliant resource estimate confirmed that a significant amount of vanadium has been discovered in the mineralized zones that account for a very small portion (2.55 kilometers) of the overall 18-kilometre trend of vanadium mineralization.  To date, 131 diamond drill holes and 151 trenches, totaling 38,643 meters have been completed on the property.  Management hopes to complete, but cannot guarantee, a NI 43-101 compliant preliminary economic assessment (scoping) during late 2011 or early 2012.



The economic potential of the property rests upon the ability to extract vanadium using reasonable, potentially economic parameters.  We are carrying out further larger sample tests and more complete mineralogy and metallurgical testing of vanadium ores to establish the technological and economic parameters of vanadium processing.  The goal of this work is to identify a potentially economic processing method to extract vanadium from both the vanadium silicate and vanadium oxide types, which are known to exist on the property.



We are currently up to date with all obligations required to maintain the property in good standing.



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SAGAR PROPERTY

[energizer10k09262011005.jpg]



Property Description and Location

The Sagar Property comprises 219 blocks of claims in the Territory of Nunavik, Province of Québec, Canada.  The approximate centre of exploration activity is circa 56°22 N latitude and circa 68° 00 W longitude.  Details on the individual claims are available on-line at the Government of Québecs Ministère des Resources Naturelles et de la Faune GESTIM website at https://gestim.mines.gouv.qc.ca.  This property can be accessed by air.



The area comprising these claims is approximately 6,580 hectares.  In this part of the Province of Québec, map staking predetermines claim outlines.  Previously the map-staking grid, producing some of the small parcels, superimposes upon staked claims. There are no carried environmental liabilities on the property. All surface work requires provincial government permits, including camp construction permits. These have been acquired.



Agreement

On May 2, 2006, the Company signed a letter of intent with Virginia Mines Inc. ("Virginia") for an option to acquire a 75% interest in 200 claims located in northern Quebec, Canada.  Virginia had the right and option to sell the remaining 25% interest in the property.  This agreement was subject to a 2% NSR.  Virginia had previously acquired a 100% interest in the property, subject to a 1% NSR on certain claims, and a 0.5% NSR on other claims.  Virginia has the right to buy back half of the 1% NSR for $200,000 and half of the 0.5% NSR for $100,000.  In order to exercise its option, the Company issued 2,000,000 common shares, 2,000,000 now expired share purchase warrants and incurred exploration expenditures greater than $2,000,000 on the property before September 1, 2008.



Further, on February 28, 2007 Virginia exercised its option to sell its remaining 25% interest on the property to the Company for 1,000,000 common shares valued at $1,219,000 and 1,000,000 now expired share purchase warrants.  As a result of these agreements, the Company now owns a 100% interest in this property.



We are currently up to date with all obligations required to maintain the property in good standing.



FERDERBER

Property Description and Location

Our company acquired a 100% undivided right, title and interest in and to 19 mining claims (0036315, 0036316, 0036317, 0036318, 0036319, 0036320, 0036321, 0036322, 0036323, 0036324, 0036325, 0036326, 0036327, 0030649, 0030650, 0030640, 0030638, 0030612, 0030613) held by Mr. Peter Ferderber, covering an area of approximately 64 hectares located in the Central Labrador Trough Region of Québec, 13 of which are contiguous to our companys Sagar Property.  This property can be accessed by air.  In consideration of our company receiving a 100% interest in these
claims, subject to any NSR royalties, our company paid CAD$6,000, and issued 150,000 common shares and 75,000 now expired common share purchase warrants.  Mr. Ferderber retained a 1% NSR on this property and agreed that our company shall have a first right of refusal to purchase the 1% NSR should Mr. Ferderber elect to sell the royalty.



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We are currently up to date with all obligations required to maintain the property in good standing.



Sagar and Ferderber Property Geological Highlights

The geological setting of the property is the northwest trending Romanet Horst within the Labrador Trough.  The significant mineral potential of this geological setting is well demonstrated by the abundance and diversity of uranium-gold showings, which range from veins to breccias to shear zones. There is also locally significant sedimentary-hosted copper mineralization.  The most spectacular mineralization found to date is the 500 x 200 meter Mistamisk boulder field which contains 150 boulders that range up to 640 g/t gold and 4.11% uranium, with 70 tested boulders averaging 64.9g/t gold and 1.3% uranium.  The boulders discovered within the Mistamisk boulder field range in length from 0.30 to 2.0 meters.  Previous work has not determined the bedrock source of this boulder field.



Copper mineralization has been defined in a number of locations, the most significant being the Dehli-Pacific showing, which has reported 4.2% copper over 7.6 meters within a drill hole that intersected a shear zone along a sediment-gabbro contact.



Potential Future Programs

In light of empirical observations collected during the course of 2007 exploration activities, other targets have been identified which could prove to be volumetrically more significant than the source of the Mistamisk Boulder Field.  In order of priority, management believes future exploration on the Sagar Property should focus on the discovery of:



·

Gold and uranium mineralization at redox boundaries along major faults. This work should focus on the intersection between the Romanet fault and the reducing lithologies of the Dunphy and Lace Lake formations.

·

Unconformity associated polymetallic uranium-style mineralization at the Archean basement contact.  The Kilo soil anomaly should be targeted for this exploration due to the anomalous soil, RC, and DDH geochemistry, as well as the numerous coincident geophysical anomalies.

·

Iron-Oxide Copper Gold (IOCG) mineralization.  This work should focus on the east-west structure bisecting the Romanet Horst.  In particular, the area to the southwest of the Lac Plisse showing should be drill tested as it has coincident gravity and magnetic highs, and has an anomalous IOCG-related geochemical signature for RC, soil, and water geochemical data. Additionally, the DDH geochemistry and alteration mineralogy observed from holes in the Alpha soil target area should be re-examined in the context of IOCG mineralization.

·

Source mineralization for the Mistamisk Boulder Field. The anomalous Alpha, Delta, and Kilo soil targets, as well as A, B, and E RC targets identified during the course of the 2007 exploration program should be examined to ascertain the source mineralization for the Mistamisk Boulder Field.



Other Expenses

Management anticipates spending approximately $350,000 - $450,000 in ongoing general office and administrative expenses and professional fees per quarter for the next twelve months.  The overall general and administration expenses will vary in direct proportion with the level of activity relating to future acquisitions and exploration programs.











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ITEM 1A. - RISK FACTORS



Our business is subject to a variety of risks and uncertainties, including, but not limited to, the risks and uncertainties described below. If any of the risks  described below, or elsewhere in this Annual Report on Form 10-K, or the Companys other filings with the Securities and Exchange Commission (the "SEC"), were to occur, our financial condition and results of operations could suffer and the trading price of our common stock could decline. Additionally, if other risks not presently known to us, or that we do not currently believe to be significant, occur or become significant, our financial condition and results of operations could suffer and the trading price of our common stock could decline.



You should carefully consider the following risk factors together with the other information contained in this Report, and in prior reports pursuant to the  Securities  Exchange Act of 1934, as amended and the Securities Act of 1933,  as  amended.  If any of the  risks  factors  actually  occur,  our business,  financial  condition  or results of  operations  could be  materially adversely  affected.  Additionally, if other risks not presently known to us, or that we do not currently believe to be significant, occur or become significant, our financial condition and results of operations could suffer and the trading price of our common stock could decline.  There have been no material changes to the risk factors previously  discussed in Item 1A of the Company's prior year Form 10-K for the year ended June 30, 2010, including but not limited, to the following:



The report of our independent registered public accounting firm contains explanatory language that substantial doubt exists about our ability to continue as a going concern.

The independent auditors report on our financial statements contains explanatory language that substantial doubt exists about our ability to continue as a going concern.  Due to our lack of operating history and present inability to generate revenues, we have sustained operating losses since our inception.  Since our inception, up to June 30, 2011, we had accumulated net losses of $52,073,840.  If we are unable to obtain sufficient financing in the near term as required or achieve profitability, then we would, in all likelihood, experience severe liquidity problems and may have to curtail our operations.  If we curtail our operations, we may be placed into bankruptcy or undergo liquidation, the result of which will adversely affect the value of our common shares.



Our common shares have been subject to penny stock regulation in the United States of America.

Our common shares have been subject to the provisions of Section 15(g) and Rule 15g-9 of the (US) Securities Exchange Act of 1934, as amended (the Exchange Act), commonly referred to as the penny stock rule.  Section 15(g) sets forth certain requirements for transactions in penny stocks and Rule 15g-9(d)(1) incorporates the definition of penny stock as that used in Rule 3a51-1 of the Exchange Act.  The Commission generally defines penny stock to be any equity security that has a market price less than US$5.00 per share, subject to certain exceptions.  Rule 3a51-1 provides that any equity security is considered to be penny stock unless that security is: registered and traded on a national securities exchange meeting specified criteria set by the Commission; issued by a registered investment company; excluded from the definition on the basis of price (at least US$5.00 per share) or the registrants net tangible assets; or exempted from the definition by the Commission. If our common shares are deemed to be penny stock, trading in common shares will be subject to additional sales practice requirements on broker/dealers who sell penny stock to persons other than established customers and accredited investors.



Financial Industry Regulatory Authority, Inc. (FINRA) sales practice requirements may limit a shareholders ability to buy and sell our common shares.

In addition to the penny stock rules described above, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer.  Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customers financial status, tax status, investment objectives and other information.  Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common shares, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.



We may not have access to sufficient capital to pursue our business and therefore would be unable to achieve our planned future growth.

We intend to pursue a growth strategy that includes development of our companys business plan.  Currently we have limited capital, which is insufficient to pursue our plans for development and growth.  Our ability to implement our exploration plans will depend primarily on our ability to obtain additional private or public equity or debt financing.



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Such financing may not be available at all, or we may be unable to locate and secure additional capital on terms and conditions that are acceptable to us.  Financing exploration plans through equity financing may have a dilutive effect on our common shares.  Our failure to obtain additional capital will have a material adverse effect on our business.



Our primary exploration efforts are in the African country of Madagascar, where there is uncertainty with regard to its leaders commitment to democratic elections.

The timing of democratic elections in Madagascar remains uncertain.  To date, our company has not been placed under any constraints or experienced any disruptions in our exploring efforts due to the political situation in Madagascar.  Depending on future actions taken by the transitional government in Madagascar, our company and its business operations could be impacted.



A roadmap has approved by the Madagascar government and was signed on September 17, 2011.  The African Union has endorsed this roadmap.  This roadmap provides a path for democratic elections in Madagascar.  However, at the date of this report, these elections have not taken place.



As the roadmap has not been fully implemented, the EU has extended its suspension of development assistance to Madagascar (with the continuing exception for humanitarian aid).  President Rajoelina of the transitional authority is pressing ahead with his plans for early elections, and has stated that they will go ahead with or without international support.  The timing for these elections remains unclear.  We are actively monitoring the political climate in Madagascar and continue to hold meetings with representatives of the government and the Ministry of Mines.



As the roadmap has not been fully implemented, the granting or changing of mining permits within their country has been suspended.  Our company has continued to pay taxes in Madagascar with respect to mining permits on its land holdings.  These payments have been acknowledged and accepted by the Madagascar government.



Any adverse developments to the political situation in Madagascar could have a material effect on our companys business, results of operations and financial condition.



As a public company we are subject to complex legal and accounting requirements that will require us to incur significant expenses and will expose us to risk of non-compliance.

As a public company, we are subject to numerous legal and accounting requirements that do not apply to private companies.  The cost of compliance with many of these requirements is material, not only in absolute terms but, more importantly, in relation to the overall scope of the operations of a small company.  Our relative inexperience with these requirements may increase the cost of compliance and may also increase the risk that we will fail to comply.  Failure to comply with these requirements can have numerous adverse consequences including, but not limited to, our inability to file required periodic reports on a timely basis, loss of market confidence, delisting of our securities and/or governmental or private actions against us.  We cannot assure you that we will be able to comply with all of these requirements or that the cost of such compliance will not prove to be a substantial competitive disadvantage vis-à-vis our privately held and larger public competitors.



Because we are quoted on the OTCQB instead of a national securities exchange in the United States, our U.S. investors may have more difficulty selling their stock or experience negative volatility on the market price of our stock in the United States.

Our common shares commenced trading on June 16, 2011 in Canada on the Toronto Stock Exchange (TSX).  Prior to this, from May 5, 2010 to June 15, 2011, our common shares traded in Canada on the TSX  Venture Exchange.



In the United States, our common shares are currently quoted on the OTCQB.  The OTCQB is often highly illiquid, in part because it does not have a national quotation system by which potential investors can follow the market price of shares except through information received and generated by a limited number of broker-dealers that make markets in particular stocks.  There is a greater chance of volatility for securities that trade on the OTCQB as compared to a national securities exchange in the United States, such as the New York Stock Exchange, the NASDAQ Stock Market or the NYSE Amex.  This volatility may be caused by a variety of factors, including the lack of readily available price quotations, the absence of consistent administrative supervision of bid and ask quotations, lower trading volume, and market conditions.  U.S. investors in our common shares may experience high fluctuations in the market price and volume of the trading market for our securities.  These fluctuations, when they occur, have a negative effect on the market price for our common shares.  Accordingly, our U.S. shareholders may not be able to realize a fair price from their shares when they determine to sell them or may have to hold them for a substantial period of time until the market for our common shares improves.





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In addition, our common shares are listed on the Frankfurt Exchange under the symbol YE5.



We do not intend to pay dividends.

We do not anticipate paying cash dividends on our common shares in the foreseeable future.  We may not have sufficient funds to legally pay dividends.  Even if funds are legally available to pay dividends, we may nevertheless decide in our sole discretion not to pay dividends.  The declaration, payment and amount of any future dividends will be made at the discretion of our board of directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors our board of directors may consider relevant.  There is no assurance that we will pay any dividends in the future, and, if dividends are paid, there is no assurance with respect to the amount of any such dividend.



Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 (the Sarbanes-Oxley Act) could have a material adverse effect on our business & operating results.

If we fail to comply with the requirements of Section 404 of the Sarbanes-Oxley Act regarding internal control over financial reporting or to remedy any material weaknesses in our internal controls that we may identify, such failure could result in material misstatements in our financial statements, cause investors to lose confidence in our reported financial information and have a negative effect on the trading price of our common shares.



Pursuant to Section 404 of the Sarbanes-Oxley Act and current SEC regulations, we are required to prepare assessments regarding internal controls over financial reporting. In connection with our on-going assessment of the effectiveness of our internal control over financial reporting, we may discover material weaknesses in our internal controls as defined in standards established by the Public Company Accounting Oversight Board, or the PCAOB.  A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.  The PCAOB defines significant deficiency as a deficiency that results in more than a remote likelihood that a misstatement of the financial statements that is more than inconsequential will not be prevented or detected.



In the event that a material weakness is identified, we will employ qualified personnel and adopt and implement policies and procedures to address any material weaknesses that we identify.  However, the process of designing and implementing effective internal controls is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a system of internal controls that is adequate to satisfy our reporting obligations as a public company.  We cannot assure you that the measures we will take will remediate any material weaknesses that we may identify or that we will implement and maintain adequate controls over our financial process and reporting in the future.



Any failure to complete our assessment of our internal control over financial reporting, to remediate any material weaknesses that we may identify or to implement new controls, or difficulties encountered in their implementation, could harm our operating results, cause us to fail to meet our reporting obligations or result in material misstatements in our financial statements.  Any such failure could also adversely affect the results of the periodic management evaluations of our internal controls.  Inadequate internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common shares.



The price at which you purchase our common shares may not be indicative of the price that will prevail in the trading market. You may be unable to sell your common shares at or above your purchase price, which may result in substantial losses to you. The market price for our common shares is particularly volatile given our status as a relatively unknown company with a small and thinly traded public float, limited operating history and lack of profits which could lead to wide fluctuations in our share price.

The market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future.  The volatility in our share price is attributable to a number of factors.  First our common shares are sporadically and thinly traded.  As a consequence of this lack of liquidity, the trading of relatively small quantities of shares by our shareholders may disproportionately influence the price of those shares in either direction.  The price for our shares could, for example, decline precipitously in the event that a large number of our common shares are sold on the market without commensurate demand, as compared to a seasoned issuer which could better absorb those sales without adverse impact on its share price.  Secondly, we are a speculative or risky investment due to our limited operating history, lack of profits to date and uncertainty of future market acceptance for our potential products. As a consequence of this enhanced risk, more risk-adverse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the stock of a seasoned issuer.  Many of these factors are beyond our control and may decrease
the market price of our common shares, regardless of our operating performance.  We cannot make any predictions or projections as to what the prevailing market price for our common shares will be at any time, including as to whether our common shares will sustain their current market prices, or as to what effect that the sale of shares or the availability of common shares for sale at any time will have on the prevailing market price.



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Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse.  Such patterns include control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;  manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses.  Our management is aware of the abuses that have occurred historically in the penny stock market.  Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities.  The occurrence of these patterns or practices could increase the volatility of our share price.



Volatility in our common share price may subject us to securities litigation, thereby diverting our resources that may have a material effect on our profitability and results of operations.

As discussed in the preceding risk factors, the market for our common shares is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future.  In the past, plaintiffs have often initiated securities class action litigation against a company following periods of volatility in the market price of its securities.  We may in the future be the target of similar litigation.  Securities litigation could result in substantial costs and liabilities and could divert managements attention and resources.



Should we lose the services of our key executives, our financial condition and proposed expansion may be negatively impacted.

We depend on the continued contributions of our executive officers to work effectively as a team, to execute our business strategy and to manage our business.  The loss of key personnel, or their failure to work effectively, could have a material adverse effect on our business, financial condition, and results of operations.  Specifically, we rely J.A. Kirk McKinnon, our Chief Executive Officer, and Richard E. Schler, our Vice-President and Chief Financial Officer.   We do not maintain key man life insurance on any of these people.   Should we lose any or all of their services and we are unable to replace their services with equally competent and experienced personnel, our operational goals and strategies may be adversely affected, which will negatively affect our potential revenues.



Minnesota law and our articles of incorporation protect our directors from certain types of lawsuits, which could make it difficult for us to recover damages from them in the event of a lawsuit.

Minnesota law provides that our directors will not be liable to our company or to our stockholders for monetary damages for all but certain types of conduct as directors.  Our articles of incorporation require us to indemnify our directors and officers against all damages incurred in connection with our business to the fullest extent provided or allowed by law.  The exculpation provisions may have the effect of preventing stockholders from recovering damages against our directors caused by their negligence, poor judgment or other circumstances.  The indemnification provisions may require our company to use its assets to defend our directors and officers against claims, including claims arising out of their negligence, poor judgment, or other circumstances.



We have not identified any mineral reserves or resources and due to the speculative nature of mineral property exploration, there is substantial risk that no commercially exploitable minerals will be found and our business will fail.

Exploration for minerals is a speculative venture involving substantial risk.  We cannot provide investors with any assurance that our claims and properties contain commercially exploitable reserves.  The exploration work that we intend to conduct on our claims or properties may not result in the discovery of commercial quantities of vanadium, gold uranium, or other minerals.  Problems such as unusual and unexpected rock formations and other conditions are involved in mineral exploration and often result in unsuccessful exploration efforts.  In such a case, we would be unable to complete our business plan.





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We are a mineral exploration company with a limited operating history and expect to incur operating losses for the foreseeable future.

We are a mineral exploration company.  We have not earned any revenues and we have not been profitable.  Prior to completing exploration on our claims, we may incur increased operating expenses without realizing any revenues from those claims.  There are numerous difficulties normally encountered by mineral exploration companies, and these companies experience a high rate of failure.  The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration of the mineral properties that we plan to undertake.  These potential problems include, but are not limited to, unanticipated problems relating to exploration and additional costs and expenses that may exceed current estimates.  We have no history upon which to base any assumption as to the likelihood that our business will prove successful, and we can provide no assurance to investors that we will generate any operating revenues or ever achieve profitable operations.



Because of the speculative nature of mineral property exploration, there is substantial risk that no commercially exploitable minerals will be found and our business will fail.

Exploration for minerals is a speculative venture involving substantial risk.  We cannot provide investors with any assurance that our claims and properties contain commercially exploitable reserves.  The exploration work that we intend to conduct on our claims or properties may not result in the discovery of commercial quantities of vanadium, gold, uranium or other minerals.  Problems such as unusual and unexpected rock formations and other conditions are involved in mineral exploration and often result in unsuccessful exploration efforts. In such a case, we would be unable to complete our business plan.



Because of the inherent dangers involved in mineral exploration, there is a risk that we may incur liability or damages as we conduct our business.

The search for valuable minerals involves numerous hazards.  As a result, we may become subject to liability for such hazards, including pollution, cave-ins and other hazards against which we cannot, or may elect not, to insure against.  We currently have no such insurance, but our management intends to periodically review the availability of commercially reasonable insurance coverage.  If a hazard were to occur, the costs of rectifying the hazard may exceed our asset value and cause us to liquidate all our assets.



If we confirm commercial concentrations of vanadium, gold, uranium or other minerals on our claims and interests, we can provide no assurance that we will be able to successfully bring those claims or interests into commercial production.

If our exploration programs are successful in confirming deposits of commercial tonnage and grade, we will require significant additional funds in order to place the claims and interests into commercial production.  This may occur for a number of reasons, including because of regulatory or permitting difficulties, because we are unable to obtain any adequate funds or because we cannot obtain such funds on terms that we consider economically feasible.



Because access to most of our properties is often restricted by inclement weather or proper infrastructure, our exploration programs are likely to experience delays.

Access to most of the properties underlying our claims and interests is restricted due to their remote locations and because of weather conditions.  Most of these properties are only accessible by air.  As a result, any attempts to visit, test, or explore the property are generally limited to those periods when weather permits such activities.  These limitations can result in significant delays in exploration efforts, as well as mining and production efforts in the event that commercial amounts of minerals are found.  This could cause our business to fail.



As we undertake exploration of our claims and interests, we will be subject to the compliance of government regulation that may increase the anticipated time and cost of our exploration program.

There are several governmental regulations that materially restrict the exploration of minerals.  We will be subject to the mining laws and regulations in force in the jurisdictions where our claims are located, and these laws and regulations may change over time.  In order to comply with these regulations, we may be required to obtain work permits, post bonds and perform remediation work for any physical disturbance to land.  While our planned budget for exploration programs includes a contingency for regulatory compliance, there is a risk that new regulations could increase our costs of doing business and prevent us from carrying out our exploration program, or that the budgeted amounts are inadequate.



Our operations are subject to strict environmental regulations, which result in added costs of operations and operational delays.

Our operations are subject to environmental regulations, which could result in additional costs and operational delays. All phases of our operations are subject to environmental regulation.  Environmental legislation is evolving in some countries and jurisdictions in a manner that may require stricter standards, and enforcement, increased fines and penalties for non-compliance, more stringer environmental assessments of proposed projects, and a heightened degree of
responsibility for companies and their officers, directors, and employees. There is no assurance that any future changes in environmental regulation will not negatively affect our projects.



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We have no insurance for environmental problems.

Insurance against environmental risks, including potential liability for pollution or other hazards as a result of the disposal of waste products occurring from exploration and production, has not been available generally in the mining industry.  We have no insurance coverage for most environmental risks.  In the event of a problem, the payment of environmental liabilities and costs would reduce the funds available to us for future operations.  If we are unable to fund fully the cost of remedying an environmental problem, we might be required to enter into an interim compliance measure pending completion of the required remedy.



Due to external market factors in the mining business, we may not be able to market any minerals that may be found.

The mining industry, in general, is intensely competitive.  Even if commercial quantities of minerals are discovered, we can provide no assurance to investors that a ready market will exist for the sale of these minerals.  Numerous factors beyond our control may affect the marketability of any substances discovered.  These factors include market fluctuations, the proximity and capacity of markets and processing equipment, and government regulations, including regulations relating to prices, taxes, royalties, land tenure, land use, mineral importing and exporting and environmental protection.  The exact effect of these factors cannot be accurately predicted, but any combination of these factors may result in our not receiving an adequate return on invested capital.



Our performance may be subject to fluctuations in market prices of vanadium, uranium, gold & other minerals.

The profitability of a mineral exploration project could be significantly affected by changes in the market price of the relevant minerals.  Recently, the price of vanadium has increased due to the markets in China as well as the expanded uses including large-scale power storage application.  With respect to the market prices of gold, its price has increased significantly over the past several months.  Demand for gold can also be influenced by economic conditions, attractiveness as an investment vehicle and the relative strength of the U.S. dollar and local investment currencies.  The market price of uranium has increased due in large measure to projections as to the number of new nuclear energy plants that will be constructed in China, the United States and other jurisdictions.  A number of other factors affect the market prices for other minerals. The aggregate effect of the factors affecting the prices of various minerals is impossible to predict with accuracy.  Fluctuations in mineral prices may adversely affect the value of any mineral discoveries made on the properties with which we are involved, which may in turn affect the market price and liquidity of our common shares and our ability to pursue and implement our business plan.  In addition, the price of vanadium has in the past fluctuated significantly on a month-to-month and year-to-year basis.



Because from time to time we hold a significant portion of our cash reserves in Canadian dollars, we may experience losses due to foreign exchange translations.

From time to time we hold a significant portion of our cash reserves in Canadian dollars.  Due to foreign exchange rate fluctuations, the value of these Canadian dollar reserves can result in translation gains or losses in U.S. dollar terms.  If there was a significant decline in the Canadian dollar versus the U.S. dollar, our converted Canadian dollar cash balances presented in U.S. dollars on our balance sheet would significantly decline.  If the US dollar significantly declines relative to the Canadian dollar our quoted US dollar cash position would significantly decline as it would be more expensive in US dollar terms to pay Canadian dollar expenses.  We have not entered into derivative instruments to offset the impact of foreign exchange fluctuations.  Such foreign exchange declines could cause us to experience losses.



Until we can validate otherwise, the properties described below have no known mineral reserves of any kind and we are planning programs that are exploratory in nature.

Further details regarding the Companys properties, although not incorporated by reference, including the comprehensive geological report prepared in compliance with Canadas National Instrument 43-101 on the Sagar Property in Northern Québec and on the Green Giant Property in Madagascar have been filed within the Companys filings on Sedar at http://www.sedar.com (which website is expressly not incorporated by reference into this filing).



Climate change and related regulatory responses may impact our business.

Climate change as a result of emissions of greenhouse gases is a significant topic of discussion and may generate government regulatory responses in the near future.  It is impracticable to predict with any certainty the impact of climate change on our business or the regulatory responses to it, although we recognize that they could be significant.  However, it is too soon for us to predict with any certainty the ultimate impact, either directionally or quantitatively, of climate change and related regulatory responses.





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To the extent that climate change increases the risk of natural disasters or other disruptive events in the areas in which we operate, we could be harmed.  While we maintain rudimentary business recovery plans that are intended to allow us to recover from natural disasters or other events that can be disruptive to our business, our plans may not fully protect us from all such disasters or events.



Compliance with changing regulation of corporate governance and public disclosure will result in additional expenses and pose challenges for our management.

Changing laws, regulations and standards relating to corporate governance and public disclosure, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations promulgated thereunder, the Sarbanes-Oxley Act and SEC regulations, have created uncertainty for public companies and significantly increased the costs and risks associated with accessing the U.S. public markets.  Our management team will need to devote significant time and financial resources to comply with both existing and evolving standards for public companies, which will lead to increased general and administrative expenses and a diversion of management time and attention from revenue generating activities to compliance activities.



SHOULD ONE OR MORE OF THE FOREGOING RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD THE UNDERLYING ASSUMPTIONS OF OUR BUSINESS PROVE INCORRECT, ACTUAL RESULTS MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED, BELIEVED, ESTIMATED, EXPECTED, INTENDED OR PLANNED.





ITEM 1B.

UNRESOLVED STAFF COMMENTS

Not applicable.





ITEM 2.  DESCRIPTION OF PROPERTY

The Companys executive offices are currently located at 520141 Adelaide Street West, Toronto, Ontario, Canada M5H 3L5. These offices are leased on a month-to-month basis, and the Companys monthly rental payments are  approximately CAD$5,000.





ITEM 3. - LEGAL PROCEEDINGS

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations.  There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries' officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.





ITEM 4.  REMOVED AND RESERVED

Removed and reserved.



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PART II



ITEM 5. - MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES



Market Information

As of September 23, 2011, there were 146,197,178 common shares issued and outstanding and
63,005,695 common shares underlying outstanding options and warrants to purchase, or securities convertible into, our common shares. Our common shares are quoted on the OTCQB under the symbol ENZR, the TSX under the symbol EGZ and the Frankfurt Stock Exchange under the symbol YE5.   On September 22, 2011 the last reported sale price for our common shares on the OTCQB and TSX was US$0.23 and CAD$0.21 per share, respectively.  The table below sets forth the high and low closing sale prices of our common shares for the fiscal quarters indicated as reported on the OTCQB and TSX.  Over-the-counter market quotations reflect inter-dealer prices, without retail mark-up, markdown or commission and may not necessarily represent actual transactions.



|                                                                    |             |                     |       |       
|------------------------------------------------------------------- | ----------- | ------------------- | ----- | ------
|                                                                    | OTCQB
(US$) | TSX / TSX-V1
(CAD$)
|Period                                                              | High        | Low                 | High  | Low   
|Fiscal year ended June 30, 2012                                    
|First quarter ended September 30, 2011 (through September 22, 2011) | $0.37       | $0.20               | $0.35 | $0.20 
|Fiscal year ended June 30, 2011                                    
|First quarter ended September 30, 2010                              | $0.33       | $0.18               | $0.34 | $0.185
|Second quarter ended December 31, 2010                              | $0.50       | $0.195              | $0.51 | $0.20 
|Third quarter ended March 31, 2011                                  | $0.585      | $0.39               | $0.63 | $0.38 
|Fourth quarter ended June 30, 2011                                  | $0.45       | $0.30               | $0.42 | $0.285
|Fiscal year ended June 30, 2010                                    
|First quarter ended September 30, 2009                              | $0.68       | $0.14               | N/A   | N/A   
|Second quarter ended December 31, 2009                              | $0.64       | $0.39               | N/A   | N/A   
|Third quarter ended March 31, 2010                                  | $0.48       | $0.29               | N/A   | N/A   
|Fourth quarter ended June 30, 2010                                  | $0.45       | $0.20               | $0.49 | $0.22 
|Fiscal year ended June 30, 2009                                    
|First quarter ended September 30, 2008                              | $0.15       | $0.06               | N/A   | N/A   
|Second quarter ended December 31, 2008                              | $0.10       | $0.02               | N/A   | N/A   
|Third quarter ended March 31, 2009                                  | $0.10       | $0.04               | N/A   | N/A   
|Fourth quarter ended June 30, 2009                                  | $0.22       | $0.05               | N/A   | N/A   
|Fiscal year ended June 30, 2008                                    
|First quarter ended September 30, 2007                              | $0.65       | $0.29               | N/A   | N/A   
|Second quarter ended December 31, 2007                              | $0.44       | $0.18               | N/A   | N/A   
|Third quarter ended March 31, 2008                                  | $0.23       | $0.12               | N/A   | N/A   
|                                                                    |             |                     |       |       
|Fourth quarter ended June 30, 2008                                  | $0.17       | $0.10               | N/A   | N/A   

|                                                                                                                                         
|-----------------------------------------------------------------------------------------------------------------------------------------
|1Our common shares commenced trading on the TSX Venture Exchange ("TSX-V")
    on May 5, 2010.  We graduated to the TSX on June 16, 2011.









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Holders

As of September 23, 2011, there were approximately 2,565 holders of record of common shares.

Dividends

We have never declared any cash dividends with respect to our common shares. Future payment of dividends is within the discretion of our board of directors, and will depend upon, among other things, the results of our operations, cash flows and financial condition, operating and capital requirements, and other factors our board of directors may consider relevant. Although there are no material restrictions limiting, or that are likely to limit, our ability to pay dividends on our common shares, we presently intend to retain future earnings, if any, for use in our business and have no present intention to pay cash dividends on our common shares.



Equity Compensation Plan Information

The following table sets forth certain information as of June 30, 2011 for (i) all compensation plans previously approved by the Company's security holders and (ii) all compensation plans not previously approved by the Company's security holders.



|                                                           |                                                                                      |                                                                     |                                                                                                                                  
|---------------------------------------------------------- | ------------------------------------------------------------------------------------ | ------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------
|Plan Category                                              | Number of securities to be issued upon exercise of outstanding options, and warrants | Weighted-average exercise price of outstanding options and warrants | Number of securities remaining available for future under equity compensation plans (excluding securities reflected in column (a)
|Equity compensation plans approved by security holders     | --                                                                                   | --                                                                  | --                                                                                                                               
|Equity compensation plans not approved by security holders | 7,630,000                                                                            | $0.15                                                               | 5,080,000                                                                                                                        



On April 21, 2009, the Company re-priced the 7,630,000 outstanding stock options by amending the exercise price ranging between $0.55 to $0.85 per share to $0.15 per share.



All options reported above were issued under the Company's amended 2006 Stock Option Plan.



Recent Issuances of Unregistered Securities

During the year ended June 30, 2011 and since July 1, 2009, the Company issued the following unregistered securities:



On August 17, 2009, the Company issued 2,250,000 shares of common stock to directors, officers and consultants as compensation for services rendered at a fair value of $382,500. The shares were valued at $0.17 per share.



On October 5, 2009, the Company issued 500,000 shares of common stock valued at $340,000, and 250,000 share purchase warrants valued at $113,125 to a director.  The prevailing market price on the date of issuance was $0.68. The share purchase warrants issued are exercisable at $0.58 per share for a period of two years from date of issuance.  The warrants were valued using the Black-Scholes pricing model with the following assumptions: risk free interest rate  2.25%; expected volatility  172%;  dividend yield  NIL; and expected life  2 years.



On March 15, 2010, the Company closed a private placement of 21,666,667 units for gross proceeds of $6,500,000 (the 2010 Offering).  Each unit consists of one common share and one common share purchase warrant.  Each warrant entitles the holder the right to purchase one common share at an exercise price of $0.50 for a period of three years following the later of March 15, 2010 or the date of listing on the TSX-V (May 5, 2010).  The expiry of the warrants may be accelerated by the Company if the shares of common stock trade at a price greater than $0.75 at any time after 9 months from March 15, 2010 for a period of 21 consecutive days on the OTC Bulletin Board ("OTCBB") or the TSX-V, provided that the Company has filed, and had declared effective, the Registration Statement (as defined below).



The units were issued together with listing and filing rights, which rights could have been converted into an escalating number of shares of common stock if the Company did not complete its TSX-V listing or file a resale registration statement for the securities issued in connection with the 2010 Offering (the Registration Statement) by certain specific dates.  The Company was listed on the TSX-V on May 5, 2010 and its Registration Statement was declared effective by the Securities Exchange Commission on November 10, 2010.  Therefore the rights have expired.



As consideration for their services in connection with the brokered offerings, two agents ( Agents) were (i) paid a cash commission of 6% of the gross proceeds of the brokered offerings, (ii) issued 870,000 Class A broker warrants, and (iii)
issued 870,000 Class B broker warrants. Each Class A broker warrant entitles the holder to acquire one common share at an exercise price of US$0.30 until March 15, 2012.  Each Class B broker warrant entitles the holder to acquire one common share at an exercise price of US$0.50 at any time after a corresponding number of Class A broker warrants have been exercised by the Agent and on or before May 5, 2013.



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In addition, an Agent was issued 400,000 shares of common stock and 400,000 Class C broker warrants for certain advisory services in connection with the brokered offerings. Each Class C broker warrant entitles the holder to acquire one common share at an exercise price of US$0.30 until March 15, 2013.



On May 5, 2010, the common stock of the Company commenced trading on the TSX-V.  A total of 12,060,000 common shares, 4,435,000 warrants and 3,025,000 stock options controlled by Principals (as defined in the Corporate Finance Manual of the TSX-V) and certain non-Principals are subject to TSX-V surplus escrow requirements applicable to a Tier 2 Issuer and will be released from escrow as follows: 5% of the original number of escrowed stock at the time of listing, 5% of the original number of escrowed securities 6 months after the listing date (November 4, 2010), 10% of the original number of escrowed securities 12 months after the listing date (May 4, 2010), 10% of the original number of escrowed securities 18 months after the listing date (November 4, 2011), 15% of the original number of escrowed securities 24 months after the listing date (May 4, 2012), 15% of the original number of escrowed securities 30 months after the listing date (November 4, 2012) and 40% of the original number of escrowed securities 36 months after the listing date (May 4, 2013).



On June 16, 2011, the Company graduated from the TSX-V to the Toronto Stock Exchange ("TSX").  The Company's ticker symbol "EGZ" remains the same.  As a result of this graduation, the escrowed shares release dates have been revised.  There was no effect for the 20% of the Company's escrowed shares released up to June 16, 2011.  Upon commencement of trading on the TSX, 40% of the original number of escrowed securities were released.  The remaining and final 40% of the escrowed securities will be released on November 4, 2011.



On December 17, 2010, the Company issued 200,000 shares of common stock valued at $90,000 pursuant to a contract with a party to provide advisory services in China.



During January and February 2011, the Company closed a private placement of
30,936,654 units for gross proceeds of $13,921,495.  Each unit consisted of one common share and one half of one common share purchase warrant.  Each of the 15,468,327 warrants issued entitles the holder the right to purchase one common share at an exercise price of $0.75 for a period of two years from the date of issue.  In connection with the private placement, the Company paid finders fees consisting of a cash fee of 6% to certain eligible finders totaling $704,115, TSX-V fees totaling $38,411 and compensation warrants equal to 6% of the eligible units sold totaling 1,564,700. Each full compensation warrant entitles the holder to acquire one unit of the Company at $0.45 per unit and expire on February 25, 2013.



During the year ended June 30, 2011, the Company issued a total of 4,549,500 shares of common stock for consideration of $886,500.  This common stock was issued pursuant to the exercise of several share purchase warrants.



The Offering of such shares of our common stock and common stock purchase warrants to the Investors was effected in reliance on the exemptions for sales of securities not involving a public offering, in reliance upon Regulation S of the Securities Act of 1933, as amended (the Securities Act), based on the following: (a) the Investors confirmed to us that they were "accredited investors," as defined in Rule 501 of Regulation D promulgated under the Securities Act and had such background, education and experience in financial and business matters as to be able to evaluate the merits and risks of an investment in the securities; (b) there was no public offering or general solicitation with respect to the offering; (c) the Investors were provided with certain disclosure materials and all other information requested with respect to our company; (d) the Investors acknowledged that all securities being issued were "restricted securities" for purposes of the Securities Act, and agreed to transfer such securities only in a transaction registered under the Securities Act or exempt from registration under the Securities Act; and (e) a legend was placed on the certificates representing each such security stating that it was restricted and could only be transferred if subsequent registered under the Securities Act or transferred in a transaction exempt from registration under the Securities Act.  The Investors, in conjunction with the issuance of common shares and common stock purchase warrants pursuant to Rule 903(a) and (b)(3) of Regulation S represented to us that they were not a U.S. Person. We did not engage in a distribution of this offering in the United States. The Investors represented its intention to acquire the securities for investment only and not with a view towards distribution. Appropriate legends have been affixed to the stock certificate issued to the Investors in accordance with Regulation S.



For purposes of this disclosure, U.S. Person within the meaning of U.S. tax laws, means a citizen or resident of the
United States, any former U.S. citizen subject to Section 877 of the Internal Revenue Code, any corporation, or partnership organized or existing under the laws of the United States of America or any state, jurisdiction, territory or possession thereof and any estate or trust the income of which is subject to U.S. federal income tax irrespective of its source, and within the meaning of U.S. securities laws, as defined in Rule 902(o) of Regulation S, means:  (i) any natural person resident in the United States; (ii) any partnership or corporation organized or incorporated under the laws of the United States; (iii) any estate of which any executor or administrator is a U.S. person; (iv) any trust of which any trustee is a U.S. person; (v) any agency or branch of a foreign entity located in the United States; (vi) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (vii) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (viii) any partnership or corporation if organized under the laws of any foreign jurisdiction, and formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts.



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We offered and sold the securities in the brokered and non-brokered offerings outside the United States in compliance with Rule 903 of Regulation S under the Securities Act. Each purchaser of such securities has represented to us that it is not a U.S. person, as defined under Regulation S (a U.S. Person), and is not acquiring the securities for the account or benefit of a U.S. Person or person in the United States.



Issuer Repurchases of Equity Securities

None





ITEM 6.  SELECTED FINANCIAL DATA

Omitted.  Refer to the financial statements included within this report.





ITEM 7. - MANAGEMENTS DISCUSSION AND ANALYSIS OF PLAN OF OPERATION



Managements Discussion and Analysis of Results of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the financial statements included herein.  Further, this MD&A should be read in conjunction with the Companys Financial Statements and Notes to Financial Statements included in this Annual Report on Form 10-K for the years ended June 30, 2011 and June 30, 2010, as well as the Business and Risk Factors sections of this Annual Report on Form 10-K.  The Company's financial statements have been prepared in accordance with United States generally accepted accounting principles



Managements Discussion and Analysis contains various forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding future events or the future financial performance of the Company that involve risks and uncertainties. Certain statements included in this Form 10-K, including, without limitation, statements related to anticipated cash flow sources and uses, and words including but not limited to anticipates, believes, plans, expects, future and similar statements or expressions, identify forward looking statements. Any forward-looking statements herein are subject to certain risks and uncertainties in the Companys business and any changes in current accounting rules, all of which may be beyond the control of the Company. The Company adopted at managements discretion, the most conservative recognition of revenue based on the most astringent guidelines of the SEC. Management will elect additional changes to revenue recognition to comply with the most conservative SEC recognition on a forward going accrual basis as the model is replicated with other similar markets (i.e. SBDC). The Companys actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth therein.



Based on the nature of our business, we anticipate incurring operating losses in the foreseeable future. We base this expectation, in part, on the fact that very few mineral properties in the exploration stage ultimately develop into producing, profitable mines. Our future financial results are also uncertain due to a number of factors, some of which are outside our control. These factors include, but are not limited to:

- our ability to raise additional funding;

- the market price for vanadium, gold and uranium;

- the results of our proposed exploration programs on our mineral properties;

-the political instability in Madagascar; and

- our ability to find joint venture partners for the development of our property interests.



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Any future equity financing will cause existing shareholders to experience dilution of their interest in our company. In the event we are not successful in raising additional financing, we anticipate that we will not be able to proceed with our business plan. In such a case, we may decide to discontinue our current business plan and seek other business opportunities in the resource sector. Any business opportunity would require our management to perform diligence on possible acquisition of additional resource properties. Such due diligence would likely include purchase investigation costs such as professional fees by consulting geologists, preparation of geological reports on the properties, conducting title searches and travel costs for site visits. It is anticipated that such costs will not be sufficient to acquire any resource property and additional funds will be required to close any possible acquisition.



During this period, we will need to maintain our periodic filings with the appropriate regulatory authorities and will incur legal and accounting costs. In the event no other such opportunities are available and we cannot raise additional capital to sustain operations, we may be forced to discontinue business. We do not have any specific alternative business opportunities in mind and have not planned for any such contingency.



Due to our lack of operating history and present inability to generate revenues, our auditors have stated their opinion that there currently exists substantial doubt about our ability to continue as a going concern.



Plan of Operation

Our plan of operations for the period until the end of the calendar year ending December 31, 2011 (to the end of the Companys second quarter 2012) is to complete the following objectives within the time periods specified, subject to our obtaining the necessary funding and/or permits for continued exploration of the mineral properties. The following table, although subject to revision and although assurances can be provided that the objectives will be reached, summarizes the anticipated exploration expenditures on our current properties for the period until December 31, 2011.



Estimated Exploration Budget

Our plan is to incur approximately $1,500,000 - $2,000,000 on exploration up to December 31, 2010 on our Green Giant property and approximately $10,000 on other projects.



Future Programs

The property merits an ambitious exploration program consisting of exploratory and infill diamond drilling over vanadium-bearing zones identified by diamond drilling and trenching completed in 2008 and 2009. The goal of the program is to establish a compliant vanadium resource in the Jaky, Manga and Mainty Zones at a minimum, and to continue exploration on other less well-developed target areas mainly the Fondrana and Maitso Zones. A 7,000 meter, 35-hole drill program will employ two Boart Longyear diamond drills and will include a number of step-out drill holes along the main vanadium trend to verify additional mineralized zones previously confirmed through trenching.



Our National Instrument 43-101 compliant resource estimate confirmed that a significant amount of vanadium has been discovered in two mineralized zones that account for a very small portion (1.35 kilometers) of the overall 21-kilometre trend of continuous vanadium mineralization.



The Manga zone has a high-grade core with vanadium values assaying as high as 1.2% V2O5 and is open along strike to the south and at depth. In just 500 meters of strike-length drilled to date, the Manga zone accounts for 77% of the total resource estimate.



To date, 131 diamond drill holes and 151 trenches, totaling 38,643 meters have been completed on the Green Giant Property.  Our management  expects, but cannot guarantee, to complete a NI 43-101 compliant preliminary economic assessment (scoping) study by the end of this fiscal year.



The economic potential of the property rests upon the ability to extract vanadium using reasonable, potentially economic parameters. We are carrying out further larger sample tests and more complete mineralogy and metallurgical testing of vanadium ores to establish the technological and economic parameters of vanadium processing. The goal of this work is to identify a potentially economic processing method to extract vanadium from both the vanadium silicate and vanadium oxide types, which are known to exist on the property.





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RESULTS OF OPERATIONS

We have had no operating revenues from inception on March 1, 2004 through to the year ended June 30, 2011. Our activities have been financed from the proceeds of securities subscriptions.  From inception, on March 1, 2004, to June 30, 2011, we raised net aggregate proceeds of $37,464,105 from private offerings of our securities and $886,500 through the exercise of common share purchase warrants.



For the period from inception, March 1, 2004, to June 30, 2011, we incurred a loss before income taxes of $52,073,840.  Expenses included $18,667,956 in mineral property and exploration costs. These costs charged to operations were for the acquisition of the Madagascar properties, Sagar Properties in Canada, and other abandoned properties.  This amount includes ancillary costs related to the mineral properties.  We also incurred $3,698,195 in professional fees since inception.  In addition, since inception, we have recorded general and administrative expenses of $5,038,784 which includes rental costs, travel and office expenses; stock based compensation valued at $19,037,563, a foreign exchange translation gain of $971,695, donated services and expenses of $18,750, and total other income (including interest) of $1,059,473.



Liquidity and Capital Resources

As at June 30, 2011, we had cash on hand of $4,536,275 plus $8,031,076 invested in dual currency deposits.  Our working capital was $12,052,743.

We hold a significant portion of cash reserves in Canadian dollars.  Due to foreign exchange rate fluctuations, the value of these Canadian dollar reserves can result in translation gains or losses in US dollar terms.  If there was to be a significant decline in the Canadian dollar against the US Dollar, the US dollar value of that Canadian dollar cash position presented on the companys balance sheet would also significantly decline.  If the US Dollar significantly declines relative to the Canadian dollar our quoted US dollar cash position would also significantly decline. We have not entered into derivative instruments to offset the impact of foreign exchange fluctuations.  Such foreign exchange declines could cause us to experience losses.

There are no assurances that we will be able to achieve further sales of common stock or any other form of additional financing.  If our company is unable to achieve the financing necessary to continue the plan of operations, then we will not be able to continue our exploration and our venture will fail.



Capital Financing



·

From inception to June 30, 2004, we raised $59,750 through the issuance of 9,585,000 common shares.



·

For the year ended June 30, 2005, we did not raise any new financing.



·

For the year ended June 30, 2006, we raised $795,250 through the issuance of 2,750,000 common shares and 2,265,000 share purchase warrants.



·

For the year ended June 30, 2007, we raised $17,300,000 through the issuance of 34,600,000 common shares and 29,000,250 share purchase warrants.



·

For the year ended June 30, 2008, we did not raise any new financing.



·

For the year ended June 30, 2009, we raised $680,000 through the issuance of 6,800,000 common shares and 3,400,000 share purchase warrants.



·

For the year ended June 30, 2010, we raised $6,500,000 through the issuance of 21,666,667 common shares and 21,666,667 share purchase warrants.



·

For the year ended June 30, 2011, we raised net proceeds of $13,178,708 through the issuance of
30,936,654 common shares and 15,468,328 common share purchase warrants and $886,500 through the exercise of common share purchase warrants.



We anticipate that additional funding will be in the form of equity financing from the sale of our common shares. However, our company cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of common shares for additional phases of exploration. Our management believes that debt financing will not be an alternative for funding additional phases of exploration. We do not have any arrangements in place for any future equity financing.





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Issuances of Securities

We have funded our business to date from sales of our securities.

On March 15, 2010, the Company closed a private placement of 21,666,667 units for gross proceeds of $6,500,000 (the 2010 Offering).  Each unit consists of one common share and one common share purchase warrant.  Each warrant entitles the holder the right to purchase one common share at an exercise price of $0.50 for a period of three years following the later of March 15, 2010 or the date of listing on the TSX-V (May 5, 2010).  The expiry of the warrants may be accelerated by the Company if the shares of common stock trade at a price greater than $0.75 at any time after 9 months from March 15, 2010 for a period of 21 consecutive days on the OTC Bulletin Board ("OTCBB") or the TSX-V, provided that the Company has filed, and had declared effective, the Registration Statement (as defined below).



The units were issued together with listing and filing rights, which rights could have been converted into an escalating number of shares of common stock if the Company did not complete its TSX-V listing or file a resale registration statement for the securities issued in connection with the 2010 Offering (the Registration Statement) by certain specific dates.  The Company was listed on the TSX-V on May 5, 2010 and its Registration Statement was declared effective by the Securities Exchange Commission on November 10, 2010.  Therefore the rights have expired.



As consideration for their services in connection with the brokered offerings, two agents ( Agents) were (i) paid a cash commission of 6% of the gross proceeds of the brokered offerings, (ii) issued 870,000 Class A broker warrants, and (iii) issued 870,000 Class B broker warrants. Each Class A broker warrant entitles the holder to acquire one common share at an exercise price of US$0.30 until March 15, 2012.  Each Class B broker warrant entitles the holder to acquire one common share at an exercise price of US$0.50 at any time after a corresponding number of Class A broker warrants have been exercised by the Agent and on or before May 5, 2013.



In addition, an Agent was issued 400,000 shares of common stock and 400,000 Class C broker warrants for certain advisory services in connection with the brokered offerings. Each Class C broker warrant entitles the holder to acquire one common share at an exercise price of US$0.30 until March 15, 2013.



All of these shares were issued to non-US investors.  The Offering of such shares of our common stock and common stock purchase warrants to the Investors was effected in reliance on the exemptions for sales of securities not involving a public offering, in reliance upon Regulation S of the Securities Act of 1933, as amended (the Securities Act), based on the following: (a) the Investors confirmed to us that they were "accredited investors," as defined in Rule 501 of Regulation D promulgated under the Securities Act and had such background, education and experience in financial and business matters as to be able to evaluate the merits and risks of an investment in the securities; (b) there was no public offering or general solicitation with respect to the offering; (c) the Investors were provided with certain disclosure materials and all other information requested with respect to our company; (d) the Investors acknowledged that all securities being issued were "restricted securities" for purposes of the Securities Act, and agreed to transfer such securities only in a transaction registered under the Securities Act or exempt from registration under the Securities Act; and (e) a legend was placed on the certificates representing each such security stating that it was restricted and could only be transferred if subsequent registered under the Securities Act or transferred in a transaction exempt from registration under the Securities Act.  The Investors, in conjunction with the issuance of common shares and common stock purchase warrants pursuant to Rule 903(a) and (b)(3) of Regulation S represented to us that they were not a U.S. Person. We did not engage in a distribution of this offering in the United States. The Investors represented its intention to acquire the securities for investment only and not with a view towards distribution. Appropriate legends have been affixed to the stock certificate issued to the Investors in accordance with Regulation S.

For purposes of this disclosure, U.S. Person within the meaning of U.S. tax laws, means a citizen or resident of the United States, any former U.S. citizen subject to Section 877 of the Internal Revenue Code, any corporation, or partnership organized or existing under the laws of the United States of America or any state, jurisdiction, territory or possession thereof and any estate or trust the income of which is subject to U.S. federal income tax irrespective of its source, and within the meaning of U.S. securities laws, as defined in Rule 902(o) of Regulation S, means:  (i) any natural person resident in the United States; (ii) any partnership or corporation organized or incorporated under the laws of the United States; (iii) any estate of which any executor or administrator is a U.S. person; (iv) any trust of which any trustee is a U.S. person; (v) any agency or branch of a foreign entity located in the United States; (vi) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (vii) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (viii) any partnership or corporation if organized under the laws of any foreign jurisdiction, and formed by a U.S. person principally for the
purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts.



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We offered and sold the securities in the brokered and non-brokered offerings outside the United States in compliance with Rule 903 of Regulation S under the Securities Act. Each purchaser of such securities has represented to us that it is not a U.S. person, as defined under Regulation S (a U.S. Person), and is not acquiring the securities for the account or benefit of a U.S. Person or person in the United States.



On March 31, 2010, 2,000,000 stock options were exercised for gross proceeds of $300,000.



On December 17, 2010 the Company issued 200,000 shares of common stock valued at $90,000 pursuant to a contract with a party to provide advisory services in China.



During January and February 2011, the Company closed a private placement of 30,936,654 units for gross proceeds of $13,921,495.  Each unit consisted of one common share and one half of one common share purchase warrant.  Each of the 15,468,327 warrants issued entitles the holder the right to purchase one common share at an exercise price of $0.75 for a period of two years from the date of issue.  In connection with the private placement, the Company paid finders fees consisting of a cash fee of 6% to certain eligible finders totaling $704,115, TSX-V fees totaling $38,411 and compensation warrants equal to 6% of the eligible units sold totaling 1,564,700. Each full compensation warrant entitles the holder to acquire one unit of the Company at $0.45 per unit and expire on February 25, 2013.



During the year ended June 30, 2011, the Company issued a total of 4,549,500 shares of common stock for consideration of $886,500.  This common stock was issued pursuant to the exercise of several share purchase warrants.



The offer and sale of all shares of our common stock and warrants listed above were affected in reliance on the exemptions for sales of securities not involving a public offering, as set forth in Regulation S promulgated under the Securities Act.  The Investor acknowledged the following: Subscriber is not a United States Person, nor is the Subscriber acquiring the shares of our common stock and warrants directly or indirectly for the account or benefit of a United States Person.  None of the funds used by the Subscriber to purchase the shares of our common stock and warrants have been obtained from United States Persons. For purposes of this Agreement, United States Person within the meaning of U.S. tax laws, means a citizen or resident of the United States, any former U.S. citizen subject to Section 877 of the Internal Revenue Code, any corporation, or partnership organized or existing under the laws of the United States of America or any state, jurisdiction, territory or possession thereof and any estate or trust the income of which is subject to U.S. federal income tax irrespective of its source, and within the meaning of U.S. securities laws, as defined in Rule 902(o) of Regulation S, means: (i) any natural person resident in the United States; (ii) any partnership or corporation organized or incorporated under the laws of the United States; (iii) any estate of which any executor or administrator is a U.S. person; (iv) any trust of which any trustee is a U.S. person; (v) any agency or branch of a foreign entity located in the United States; (vi) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (vii) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (viii) any partnership or corporation if organized under the laws of any foreign jurisdiction, and formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a)) who are not natural persons, estates or trusts.

Further, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. However, we cannot provide investors with any assurance that we will be able to raise sufficient funding for additional phases of exploration. We currently believe that debt financing will not be an alternative for funding additional phases of exploration. We do not have any arrangements in place for any future equity financing.

There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our exploration and our venture will fail.



Foreign currencies

We hold a significant portion of our cash reserves in Canadian dollars. Due to foreign exchange rate fluctuations, the value of these Canadian dollar reserves can result in either translation gains or losses in US dollar terms.  If the US Dollar significantly declines relative to the Canadian dollar our quoted US dollar cash position would also significantly decline. We have not entered into derivative instruments to offset the impact of foreign exchange fluctuations.  Such foreign exchange declines could cause us to experience losses.



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In addition to paying certain expenses in Canadian dollars, our company is also required, from time to time, to pay expenses in South African Rand, Australian Dollars and Madagascar Ariary.   Therefore our company is subject to risks relating to movements in those currencies.



Off-balance sheet arrangements

We have no off-balance sheet arrangements including arrangements that would affect the liquidity, capital resources, market risk support and credit risk support or other benefits.





CRITICAL ACCOUNTING POLICIES



Principals of Consolidation and Basis of Presentation

The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), and are expressed in US dollars.   The accompanying consolidated financial statements include the accounts of Energizer Resources Inc. and its wholly-owned subsidiaries, Uranium Star (Mauritius) Ltd., THB Ventures Ltd, Energizer Resources Madagascar Sarl and Energizer Resources Minerals Sarl.  All inter-company balances and transactions have been eliminated on consolidation.



Use of Estimates

The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period.  On an ongoing basis, management evaluates its judgments and estimates in relation to assets, liabilities, revenue and expenses. Management uses historical experience and other factors it believes to be reasonable as the basis for its judgments and estimates.  Actual results could differ from those estimates.   The consolidated financial statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout these consolidated financial statements, and may require accounting adjustments based on future occurrences.  Revisions to accounting estimates are recognized in the period in which the estimate is revised and the revision affects current and future periods.



Mineral Property Costs

The Company has been in the exploration stage since its inception on March 1, 2004, and has not yet realized any revenues from its mineral operations.  Mineral property exploration costs are expensed as incurred.  Mineral property acquisition costs are initially capitalized when incurred using the guidance in ASC Topic-930,  "Whether Mineral Rights Are Tangible or Intangible Assets".  The Company assesses the carrying costs for impairment under ASC Topic-360, at each fiscal quarter end.



When it has been determined that a mineral property can be economically developed as a result of establishing probable and proven reserves, the costs then incurred to develop such property will be capitalized.  Such costs will be amortized using the units of production method over the estimated life of the probable reserve. If the properties are abandoned or the carrying value is determined to be in excess of possible future recoverable amounts the Company will write off the appropriate amount.



Financial Instruments

The fair value of cash and cash equivalents, amounts receivable, marketable securities, dual currency deposits and accounts payable and accrued liabilities were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments.  The Company's exploration operations are primarily in Madagascar but also in Canada, which result in exposure to market risks from changes in foreign currency rates.  Financial risk is the risk to the Company's operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates.



Foreign Currency Translation

The Company's functional and reporting currency is United States Dollars.  Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC Topic-830, "Foreign Currency Translation", using the exchange rate prevailing at the balance sheet date.  Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the consolidated statement of operations.









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Stock Based Compensation

The Company has a stock option plan as described in note 8.  All stock-based awards granted, including those granted to directors not acting in their capacity as directors, are accounted for using the fair value based method.  The fair value of stock options granted is recognized as an expense within the income statement and a corresponding increase in shareholder equity.  Any consideration paid by eligible participants on the exercise of stock options is credited to capital stock.  The additional paid in capital amount associated with stock options is transferred to capital stock upon exercise.





RECENT ACCOUNTING PRONOUNCEMENTS

The following are recent accounting pronouncements, which may have an impact on the Company's future financial statements.  FASB has issued the following pronouncements:

·

Compensation  Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency Market in Which the Underlying Equity Security Traded (ASU 2010-13) was issued during April 2010.  ASU 2010-13 provides guidance on the classification of a share-based payment award as either equity or a liability.  A share-based payment that contains a condition that is not a market, performance, or service condition is required to be classified as a liability.  ASU 2010-13 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after July 1, 2011.

·

"Intangibles - Goodwill and Other (Topic 350):  When to perform Step 2 of Goodwill Impairment Test for Reporting Units With Zero or Negative Carrying Amounts" ("ASU 2010-28") was issued during December 2010.  ASU 2010-28 provides guidance on the two-step test for goodwill impairment.  When testing for goodwill impairment, an entity must assess whether the carrying amount of a reporting unit exceeds its fair value (Step 1). If it does, an entity must perform an additional test to determine whether goodwill has been impaired and to calculate the amount of that impairment (Step 2). ASU 2010-28 addresses questions about entities with reporting units with zero or negative carrying amounts.

·

"Business Combinations (Topic 805):  Disclosure of Supplementary Pro Forma Information for Business Combinations"  ("ASU 2010-29") was issued during December 2010.  ASU 2010-29 addresses diversity in practice about the interpretation of the pro forma revenue and earnings disclosure requirements for business combinations.

·

"Fair value measurement (Topic ): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs:  ("ASU 2011-04") was issued during May 2011.  ASU 2011-04 is a collaboration between FASB and the International Accounting Standards Board to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with US GAAP and International Financial Reporting Standards (IFRSs). ASU 2011-04 explains how to measure fair value. It does not require additional fair value measurements and is not intended to establish valuation standards or affect valuation practices outside of financial reporting.

No other accounting standards or interpretations issued recently are expected to a have a material impact on the Company's consolidated financial position, operations or cash flows.





ITEM 7.1. - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We do not hold any derivative instruments and do not engage in any hedging activities. Most of our activity is the development and mining of our mining claim.





ITEM 8. - FINANCIAL STATEMENTS

The financial statements required by this Item, the accompanying notes thereto and the reports of independent accountants are included, as part of this Form 10-K immediately following the signature page.





ITEM 9. - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.



ITEM 9A. - CONTROLS AND PROCEDURES

Our management team, under the supervision and with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), as of the last day of the fiscal period covered by this report, June 30, 2011. The term disclosure controls and procedures means our controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported, within the time periods specified in the SECs rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive officer and our principal financial officer concluded that, given the size of our company and its finance department, that our disclosure controls and procedures were effective as of June 30, 2011.



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Managements report on internal control over financial reporting

Our principal executive officer and our principal financial officer, are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f). Management is required to base its assessment of the effectiveness of our internal control over financial reporting on a suitable, recognized control framework, such as the framework developed by the Committee of Sponsoring Organizations (COSO). The COSO framework, published in Internal Control-Integrated Framework, is known as the COSO Report. Our principal executive officer and our principal financial officer, have has chosen the COSO framework on which to base its assessment.  Based on this evaluation, we have concluded that, as of June 30, 2011, internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as described below.



The matters involving internal controls and procedures that the Companys management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) inadequate segregation of duties consistent with control objectives; (2) lack of a majority of independent directors on the Companys board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements; and (4) ineffective controls over period end financial disclosure and reporting processes.



Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives. Furthermore, smaller reporting companies face additional limitations. Smaller reporting companies employ fewer individuals and find it difficult to properly segregate duties. Often, one or two individuals control every aspect of the Company's operation and are in a position to override any system of internal control. Additionally, smaller reporting companies tend to utilize general accounting software packages that lack a rigorous set of software controls.



This annual report does not include an attestation report of our independent registered public accounting firm over managements assessment regarding internal control over financial controls due to a transition period established by rules of the SEC for non-accelerated filers.  Our principal executive officer and our principal financial officer, report was not subject to attestation by the companys registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the company to provide only managements report in this annual report.



It should be noted that any system of controls, however well designed and operated, can provide only reasonable and not absolute assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of certain events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.



Changes in Internal Control over Financial Reporting

During the fiscal quarter ended June 30, 2011, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.





ITEM 9B. - OTHER INFORMATION

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries' officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.





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PART III



ITEM 10. - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE GOVERNANCE COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

The following table sets forth the name, age, and position of each executive officer and director the Company as at September 23, 2011.



|                   |     |                                                     
|------------------ | --- | ----------------------------------------------------
|Name               | Age | Position                                            
|J.A. Kirk McKinnon | 68  | Chief Executive Officer, Chairman and Director      
|Richard E. Schler  | 58  | Vice-President, Chief Financial Officer and Director
|Craig Scherba      | 39  | Vice President, Exploration and Director            
|John Sanderson     | 76  | Vice Chairman and Director                          
|V. Peter Harder    | 59  | Director                                            
|Quentin Yarie      | 46  | Director                                            



Directors of the Company hold their offices until the next annual meeting of the Companys shareholders and until their successors have been duly elected and qualified or until their earlier resignation, removal of office or death. Executive officers of the Company are elected by the board of directors to serve until their successors are elected and qualified.There are no family relationships between any director or executive officer of the Company.



J.A. Kirk McKinnon (Brampton, Canada)

Mr. McKinnon has served as the Companys Chairman and Chief Executive Officer since October 1, 2009 and a director since April 2006. Mr. McKinnon has also served as the Companys President and Chief Executive Officer from April 2006 to September 30, 2009. He brings over 25 years of senior management experience to the Company.  Mr. McKinnon is currently President and CEO of MacDonald Mines Exploration Ltd., Red Pine Exploration Inc.  and Honey Badger Exploration Inc., all of which are resource exploration companies trading on the TSX headquartered in Toronto, Canada. Previously, Mr. McKinnon held senior management positions with several high profile Canadian corporations, including Nestle Canada. Mr. McKinnon is well-versed in business management and he has been very successful in raising funds in the capital markets. Mr. McKinnons qualifications to serve as a director of the Company include his over 25 years of senior management experience.



Richard E. Schler, MBA (Toronto, Canada)

Mr. Schler has served as the Companys Vice President and Chief Financial Officer since October 1, 2009 and a director since April 2006. Mr. Schler was the Companys Chief Operating Officer and Chief Financial Officer from February 2009 to September 30, 2009 and served as the Companys Vice President and Chief Financial Officer from April 2006 to January 2009. He is also currently serving as Chief Operating Officer and Chief Financial Officer of MacDonald Mines Exploration Ltd., Red Pine Exploration Inc. and Honey Badger Exploration Inc., all of which are resource exploration companies trading on the TSX headquartered in Toronto, Canada. Before joining these companies, Mr. Schler held various senior management positions with noted corporations. He also has over 25 years of experience in the manufacturing sector. Mr. Schler is very experienced in financial management and business operations. Together with Mr. McKinnon, they have been very successful in raising funds in the capital markets. Mr. Schlers qualifications to serve as a director of the Company include his many years of financial management and business operations experience.



John Sanderson Q.C. (Vancouver, Canada)

Mr. Sanderson has been Vice Chairman of the Board of Directors of the Company since October 1, 2009 and a director of the Company since January 2009. Mr. Sanderson was Chairman of the Board of Directors of the Company from January 2009 to September 2009. Mr. Sanderson is a mediator, arbitrator, consultant and lawyer called to the Bar in the Canadian Provinces of Ontario and British Columbia. Mr. Sandersons qualifications to serve as a director of the Company include his many years of legal and mediation experience in various industries.



V. Peter Harder, LL.D, M.A., B.A. (Hons) (Manotick, Canada)

Mr. Harder has served as a director of the Company since July 2, 2009. He is a Senior Policy Advisor to Fraser Milner Casgrain, LLP, a national law firm in Canada.  Prior to joining Fraser Milner Casgrain, LLP, Mr. Harder was a long-serving Deputy Minister in the Government of Canada. First appointed a Deputy Minister in 1991, he served as the most senior public servant in a number of federal departments including Treasury Board, Solicitor General, Citizenship and Immigration, Industry and Foreign Affairs and International Trade. At Foreign Affairs, Mr. Harder assumed the responsibilities of the Personal Representative of the Prime Minister to three G8 Summits (Sea Island, Gleneagles and St. Petersburg).  Mr. Harder served as Co-Chair of the Canada China Strategic Working Group.





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Mr. Harder is also a director of Power Financial Corporation (TSX: PWF), IGM Financial Corporation (TSX: IGM), Telesat Canada, Northland Power Inc. (TSX: NPI), Timberwest Forest Company and Pinetree Capital Limited (TSX: PNP).  Mr. Harder is also a member of a Board of Governors of the University of Ottawa, The United Church Foundation and other charitable organizations.



Mr. Harder was appointed a Trudeau Foundation Mentor for 2009-2010. He also serves as the Chair of the National Arts Centres Governance, Nominating, and Ethics Committee. In 2008, Peter was elected the President of the Canada China Business Council (CCBC). He is also a member of the International Institute for Strategic Studies (IISS).  Mr. Harders qualifications to serve as a director of the Company include his many years of experience as a director and senior policy advisor.



Craig Scherba, P.Geol. (Oakville, Canada)

Mr. Scherba was appointed Vice President, Exploration and a director of the Company effective January 1, 2010. Mr. Scherba has been a professional geologist with Taiga Consultants Ltd. (Taiga), a mining exploration consulting company, since March 2003, and has been a managing partner of Taiga since January 2006. Mr. Scherba has been a geologist since 2000, and his expertise includes supervising large Canadian and international exploration. Mr. Scherba was an integral member of the exploration team that developed Nevsun Resources high grade gold, copper and zinc Bisha project in Eritrea. Mr. Scherba served as the Company's Country and Exploration Manager for the Green Giant Vanadium Project in Madagascar during its initial exploration stage. Mr. Scherbas qualifications to serve as a director of the Company include his many years of senior management experience in the mining industry.



Quentin Yarie, P.Geol. (Toronto, Canada)

Mr. Yarie has served as a director of the Company since 2008. Mr. Yarie is an experienced geophysicist and a successful entrepreneur.  He has over 20 years of experience in the mining and environmental/engineering sectors.  Mr. Yarie has project management and business development experience as he has held positions of increasing responsibility with a number of Canadian-based geophysical service providers. Since January 2010 Mr. Yarie has been a consultant and VP Exploration for MacDonald Mines Exploration Ltd (TSX-V: BMK), Red Pine Exploration Inc (TSX-V: RPX) and Honey Badger Exploration Inc (TSX-V:TUF). From October 2007 to December 2009, Mr. Yarie has been a business development officer with Geotech Ltd, a geo-physical airborne survey company. From September 2004 through October 2007, Mr. Yarie was a senior representative of sales and business development for Aeroquest Limited.From 1992-2001 Mr. Yarie was a partner of a specialized environmental and engineering consulting group where he managed a number of large projects including the ESA of the Sydney Tar Ponds, the closure of the Canadian Forces Bases in Germany and the Maritime and Northeast Pipeline project. Mr. Yaries qualifications to serve as a director of the Company include his several years of senior management experience in the mining industry.



Involvement in Certain Legal Proceedings

To the best of the Companys  knowledge, during the past ten years, none of the following occurred with respect to a director or executive officer of the Company: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of any competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; (4) being found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the commodities futures trading commission to have violated a Federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated; (5) being subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of any federal or state securities or commodities law or regulation or any law or regulation respecting financial institutions or insurance companies or prohibiting mail or wire fraud or fraud in connection with any business entity; or (6) being subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization, any registered entity of the Commodity Exchange Act, or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.



Audit Committee and Audit Committee Financial Expert

The Company has an audit committee and is comprised of John Sanderson, Peter Harder and Quentin Yarie, all of whom are financially literate.  Messers Sanderson, Harder and Yarie are independent directors as they do not have any involvement in the day to day operations of the Company. The audit committee is a key component of the Companys commitment to maintaining a higher standard of corporate responsibility.





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The audit committee assists our board of directors in its oversight of the companys accounting and financial reporting processes and the audits of the companys financial statements, including (i) the quality and integrity of the companys financial statements, (ii) the companys compliance with legal and regulatory requirements, (iii) the independent auditors qualifications and independence and (iv) the performance of the companys internal audit functions and independent auditors, as well as other matters which may come before it as directed by the board of directors. Further, the audit committee, to the extent it deems necessary or appropriate, among its several other responsibilities, shall:

·

be responsible for the appointment, compensation, retention, termination and oversight of the work of any independent auditor engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company;

·

discuss the annual audited financial statements and the quarterly unaudited financial statements with management and the independent auditor prior to their filing with the SEC in the Companys Annual Report on Form 10-K and Quarterly Reports on Form 10-Q;

·

review with the companys financial management on a periodic basis (a) issues regarding accounting principles and financial statement presentations, including any significant changes in the companys selection or application of accounting principles, and (b) the effect of any regulatory and accounting initiatives, as well as off-balance sheet structures, on the financial statements of the company;

·

monitor the Companys policies for compliance with federal, state, local and foreign laws and regulations and the Companys policies on corporate conduct;

·

maintain open, continuing and direct communication between the board of directors, the committee and both the companys independent auditors and its internal auditors; and

·

monitor our compliance with legal and regulatory requirements, with the authority to initiate any special investigations of conflicts of interest, and compliance with federal, state and local laws and regulations, including the Foreign Corrupt Practices Act.



Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Companys executive officers, directors and persons who own more than 10% of a registered class of the Companys equity securities to file certain reports with the SEC regarding ownership of, and transactions in, the Companys securities.  Such officers, directors and 10% shareholders are also required by the SEC to furnish the Company with all Section 16(a) forms that they filed.



Section 16(a) of the Securities Exchange Act of 1934, as amended, requires the Companys directors and executive officers, and persons who beneficially own more than 10% of a registered class of the Companys equity securities, to file reports of beneficial ownership and changes in beneficial ownership of the Companys securities with the SEC on Form 3 (Initial Statement of Beneficial Ownership), Form 4 (Statement of Changes of Beneficial Ownership of Securities) and Form 5 (Annual Statement of Beneficial Ownership of Securities).  Directors, executive officers and beneficial owners of more than 10% of the Companys Common Stock are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms that they filed.



Except as otherwise set forth herein, based solely on review of the copies of such forms furnished to the Company, or written representations that no reports were required, the Company believes that for the fiscal year ended June 30, 2011, beneficial owners and executives complied with Section 16(a) filing requirements applicable to them.



Code of Ethics

The Company has adopted a code of business conduct and ethics that applies to its directors, officers, and employees, including its principal executive officers, principal financial officer, principal accounting officer, controller or persons performing similar functions.  The Financial Code of Business Conduct was filed as Exhibit 14.1 to our Annual Report on Form 10-QSB for March 31, 2004 as filed on May 19, 2004.







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ITEM 11. - EXECUTIVE COMPENSATION



Summary Compensation

The following table sets forth certain summary information concerning the compensation paid or accrued during each of our last two completed fiscal years to our principal executive officer and two other most highly compensated executive officers who received compensation in excess of $100,000 for the fiscal year ended June 30, 2011 (collectively, the Named Executive Officers):



Annual CompensationLong Term CompensationAwardsPayoutsName and Principal PositionFiscal YearSalary
($)Bonus
($)Other Annual Compensation 
($)Restricted Stock Award(s)Securities Underlying Options/ SARs (#)LTIP PayoutsAll Other Compensation
($)J.A. Kirk McKinnon, CEO and Director2011261,810 (1)------------2010134,178 (4)--80,750 (2)------512,469 (6)Richard E. Schler, Vice-President, CFO and Director2011189,490 (1)------------2010129,953 (4)--76,500 (2)------488,218 (6)Julie Lee Harrs, Former President, COO and Director (2)2011202,126 (1)------------201093,252 (5)--340,000 (3)------429,698 (6)


(1)

Consulting fees paid and accrued for the fiscal year ended June 30, 2011.

(2)

Shares valued at $0.17 per share based on quoted market price issued to these individuals and/or to companies controlled by them.

(3)

Shares valued at $0.68 per share based on quoted market price.

(4)

Consulting fees paid and accrued for fiscal year ended June 30, 2010.

(5)

Consulting fees paid and accrued for 11 months to June 30, 2010.

(6)

Stock options valued between $0.35 to $0.40 per option, using the Black-Scholes option pricing model.



Outstanding Equity Awards at 2011 Fiscal Year-End

The following table provides information regarding the outstanding equity awards held by our Named Executive Officers (NEO) as of June 30, 2011.



NameOption AwardsNo. of Securities Underlying Unexercised
Options Exercisable (#)No. of Securities Underlying
Unexercised Options
Unexercisable (#)Option Exercise Price ($)Option Expiration DateJ.A. Kirk McKinnon, NEO280,000
425,000
720,000
975,000
225,000
1,150,000--0.15
0.15
0.15
0.15
0.352
0.395July 28, 2011
Nov. 26, 2011
March 4, 2012
July 11, 2012
Sep 2, 2013
May 11, 2014Richard E. Schler, NEO690,000
875,000
200,000
1,100,000--0.15
0.15
0.352
0.395March 4, 2012
July 11, 2012
Sep 2, 2013
May 11, 2014Julie Lee Harrs (formerly a NEO)1,100,000--0.395May 11, 2014










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Aggregated Option Exercises and Fiscal Year-End Option Values

On March 9, 2006, the Company filed a Form S-8 registration statement in connection with its newly adopted 2006 Stock Option Plan (the 2006 Plan) allowing for the direct award of shares or granting of stock options to acquire up to a total of 2,000,000 common shares. On December 18, 2006, February 16, 2007, July 11, 2007, September 29, 2009 and May 3, 2011, the 2006 Plan was amended to increase the stock option pool by a total of 20,000,000 additional common shares. No stock options were granted during the year ended June 30, 2011 The Company granted a further 7,000,000 stock options on May 11, 2010 which will expire on May 11, 2014.



The following table summarizes the continuity of the Companys stock options:



Number of
SharesWeighted average exercise price ($)Outstanding, June 30, 20097,630,0000.15Granted8,505,0000.40Exercised(2,000,000)0.15Expired / Cancelled(515,000)0.42Outstanding June 30, 201013,620,0000.30Granted1,100,0000.25Expired / Cancelled(590,000)0.57Outstanding, June 30, 201114,130,0000.29






Additional information regarding options outstanding as at June 30, 2011 is as follows:



Exercise priceOutstandingExercisableNumber of sharesWeighted average remaining life (years)Weighted average exercise priceNumber of sharesWeighted average exercise price$0.15365,0000.08$0.15365,000$0.15$0.15650,0000.41$0.15650,000$0.15$0.151,920,0000.68$0.151,920,000$0.15$0.152,695,0001.03$0.152,695,000$0.15$0.35750,0002.18$0.35750,000$0.35$0.406,650,0002.87$0.406,650,000$0.40$0.251,100,0003.31$0.251,100,0000.25Total/Average14,130,0002.11$0.2814,130,000$0.28






Long-Term Incentive Plan Awards Table

There are no Long-Term Incentive Plans in place at this time.



Pension Benefits Table

None.



Nonqualified Deferred Compensation Table

None.







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All Other Compensation Table

None



Perquisites Table

None



Potential Payments Upon Termination Or Change In Control Table

None



Employment Agreements

Currently, the Company does not have an employment agreement or consulting agreement with Messrs. McKinnon and Schler but the Company has agreed to pay them a monthly stipend.  Mr. McKinnon and Mr. Schler receive approximately CAD$15,000 per month, although the compensation varies from month to month depending on various factors.  In consultation with legal counsel, the Company intends to execute consulting arrangements with all key personnel in the near future and will publish such consulting agreements pursuant to the requirements of, and within the time frame required by, the Securities Exchange Act of 1934, as amended.





Compensation of Directors

Directors who are also Named Executive Officers or officers of the Company are remunerated for their services rendered as officers of the Company. Directors who are not also officers of the Company or do not otherwise provide services to the Company receive only stock based compensation in the form of common shares and stock options for their services as directors of the Company. Appended in the table below are compensation award to directors other than Named Executive Officers for the fiscal year ended June 30, 2011. The Company also reimburses our non-employee directors for expenses incurred in connection with their service on our Board of Directors. No additional amounts are payable to our directors for committee participation or special assignments. The
compensation paid to directors who provide services to the Company in other capacities has been previously reported under Summary Compensation.



The following table summarizes compensation paid to or earned by our directors who are not Named Executive Officers for their service as directors of our company during the fiscal year ended June 30, 2011.



|                                        |                                    |                  |                   |                                            |                                                 |                            |          
|--------------------------------------- | ---------------------------------- | ---------------- | ----------------- | ------------------------------------------ | ----------------------------------------------- | -------------------------- | ---------
|Name                                    | Fees Earned or Paid in Cash    ($) | Stock Awards
($) | Option Awards
($) | Non-Equity Incentive Plan Compensation
($) | Nonqualified Deferred Compensation Earnings
($) | All other Compensation
($) | Total
($)
|Craig Scherba, Director                 | 71,048                             | --               | --                | --                                         | --                                              | --                         | 71,048   
|John Sanderson, Director                | --                                 | --               | --                | --                                         | --                                              | --                         | --       
|Quentin Yarie, Director                 | --                                 | --               | --                | --                                         | --                                              | --                         | --       
|Peter Harder, Director                  | --                                 | --               | --                | --                                         | --                                              | --                         | --       
|Richard Quesnel, (former Director)  (1) | --                                 | --               | 231,800           | --                                         | --                                              | --                         | 231,800  



(1)

Richard Quesnel was appointed as a director of the Company on October 21, 2011 and resigned April 18, 2011.  As incentive for becoming a director, the Company awarded him 1,100,000.  The Black-Scholes value of these stock options was calculated to be $231,800.



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ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFITICAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth certain information regarding beneficial ownership of our common shares as of  September 23, 2011, by: (i) each person who is known by the Company to own beneficially more than 5% of our common shares; (ii) each director of the Company; (iii) each of the Named Executive Officers; and (iv) all directors and executive officers of the Company as a group.

The number and percentage of shares beneficially owned is determined in accordance with Rule 13d-3 under the Exchange Act, and the information is not necessarily indicative of beneficial ownership for any other purpose.  The Company believes that each individual or entity named has sole investment and voting power with respect to the securities indicated as beneficially owned by them, subject to community property laws, where applicable, except where otherwise noted.

The Number of Common Shares Beneficially Owned in calculated based on total shares held plus warrants held (plus stock options entitled to exercise).  The aggregate of these items, which totals 209,202,873, will be used as the denominator for the percentage calculation below.

Name and Address of Beneficial OwnerNumber of Common Shares Beneficially OwnedPercentage of Outstanding Common Shares Beneficially Owned(1)Consolidated Thompson Iron Mines Limited
1155 University Street, Suite 508
Montréal, Québec H3B 2A713,333,3346.37%Dundee Corporation
1 Adelaide Street East, Suite 2800
Toronto, Ontario M5C 2V911,896,4505.69%J.A. Kirk McKinnon, Chairman, CEO & Director
46 Ferndale Crescent
Brampton, Ontario, Canada L6W 1E9(2)(9)9,275,0004.43%Richard E. Schler, Vice President, CFO & Director
80 Greybeaver Trail,
Toronto, Ontario, Canada M1C 4N5(3)(9)7,765,0003.71%John Sanderson, Director
1721  27th Street
West Vancouver, BC, Canada, V7H 4K9(5) (8) (9)600,0000.29%Quentin Yarie, Director
520  141 Adelaide Street West
Toronto, Ontario, Canada M5H 3L5(5) (8) (9)875,0000.42%Peter Harder, Director
5538 Pattapiece Crescent
Manotick, Ontario K4M 1C5(6) (8) (9)950,0000.45%Craig Scherba, Director
1480 Willowdown Road,
Oakville, ON L6L 1X3(7)(9)600,0000.29%All directors and executive officers as a group
(6 persons)(9)20,065,0009.59%


(1) Denominator used for calculation is 209,202,873.  Based on total issued and outstanding common shares of 146,197,178 plus warrants outstanding of 44,565,695 plus stock options outstanding of 18,440,000 as of September 23, 2011.

(2) Includes 1,000,000 warrants and 3,700,000 common shares held in Badger Resources Inc., a related company. These warrants are exercisable until April 26, 2013 at a price of $0.15 per share. Also includes 350,000 common shares and 4,225,000 stock options held directly exercisable between $0.15 to $0.57 per share with expiry dates between July 28, 2011 and July 1, 2016.

(3) Includes 900,000 warrants and 3,600,000 common shares held in Sarmat Resources Inc., a related company. These warrants are exercisable until April 26, 2013 at a price of $0.15 per share. Also includes 3,2,65,000 stock options held directly exercisable between $0.15 to $0.57 per share with expiry dates between March 4, 2012 to July 1, 2016.

(4) Includes 325,000 common shares and 275,000 stock options exercisable between $0.30 to $0.57 per share with expiry dates between September 2, 2013 to July 1, 2016.

(5) Includes 325,000 common shares and 550,000 stock options exercisable between $0.30 to $0.57 per share with expiry dates between September 2, 2013 to July 1, 2016.

(6) Includes 125,000 warrants, 325,000 common shares and 475,000 stock options exercisable between $0.30 to $0.57 per share with expiry dates between September 2, 2013 to July 1, 2016.

(7) Includes 600,000 stock options exercisable between $0.30 to $0.57 per share with expiry dates between May 11, 2014 to July 1, 2016.

(8) Members of the Audit Committee.

(9) Parties whose shareholdings are a part of the total of All directors and executive officers as a group (6 persons).



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Changes in Control

We are not aware of any arrangements that may result in a change in control of the Company.



Description of Capital Structure



General

Our authorized capital stock consists of 350,000,000 shares of common stock, par value $ 0.001.



Common Stock

The shares of our common stock presently outstanding, and any shares of our common stock issues upon exercise of stock options and/or warrants, will be fully paid and non-assessable. Each holder of common stock is entitled to one vote for each share owned on all matters voted upon by shareholders, and a majority vote is required for all actions to be taken by shareholders. In the event we liquidate, dissolve or wind-up our operations, the holders of the common stock are entitled to share equally and ratably in our assets, if any, remaining after the payment of all our debts and liabilities and the liquidation preference of any shares of preferred stock that may then be outstanding. The common stock has no preemptive rights, no cumulative voting rights, and no redemption, sinking fund, or conversion provisions. Holders of common stock are entitled to receive dividends, if and when declared by the Board of Directors, out of funds legally available for such purpose, subject to the dividend and liquidation rights of any preferred stock that may then be outstanding.



Voting Rights

Each holder of Common Stock is entitled to one vote for each share of Common Stock held on all matters submitted to a vote of stockholders.



Dividends

Subject to preferences that may be applicable to any then-outstanding securities with greater rights, if any, and any other restrictions, holders of Common Stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by the Companys board of directors out of legally available funds. The Company and its predecessors have not declared any dividends in the past. Further, the Company does not presently contemplate that there will be any future payment of any dividends on Common Stock.





ITEM 13. - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Except as noted under the section entitled Executive Compensation,none of the following parties, since July 1, 2008, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction with us that has or will materially affect us:

·

any of our directors or officers;

·

any person proposed as a nominee for election as a director;

·

any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock;

·

any of our promoters;

·

any relative or spouse of any of the foregoing persons who has the same house as such person.



The following directors were independent under the independence standards of both the Toronto Stock Exchange and the NYSE Amex during the past fiscal year:  Quentin Yarie, Peter Harder and John Sanderson.



Given the size of the Company, the only formal committee in place is an audit committee.  The following independent directors serve on the audit committee:  John Sanderson, Peter Harder Schler and Quentin Yarie.







50





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WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and current reports, proxy statements and other information with the Commission.  Our Commission filings are available to the public over the Internet at the Commissions website at http://www.sec.gov.  The public may also read and copy any document we file with the Commission at its Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549, on official business days during the hours of 10:00 am to 3:00 pm. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330.  We maintain a website at http://www.energizerresources.com, however, information contained on our website is not part of this annual report on Form 10-K.





DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES

Minnesota corporation law provides that:

·

a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful;

·

a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper; and

·

to the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding, or in defense of any claim, issue or matter therein, the corporation shall indemnify him against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense.



Our articles of incorporation require us to indemnify our directors and officers against all damages incurred in connection with our business to the fullest extent provided or allowed by law.



Our bylaws provide that we will advance all expenses incurred to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suite or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he is or was our director or officer, or is or was serving at our request as a director or executive officer of another company, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding, promptly following request. This advanced of expenses is to be made upon receipt of an undertaking by or on behalf of such person to repay said amounts should it be ultimately determined that the person was not entitled to be indemnified under our bylaws or otherwise.



Our bylaws also provide that no advance shall be made by us to any officer in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly made: (a) by the board of directors by a majority vote of a quorum consisting of directors who were not parties to the proceeding; or (b) if such quorum is not obtainable, or, even if obtainable, a quorum of disinterested directors so directs, by independent legal counsel in a written opinion, that the facts known to the decision-making party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to our best interests.



51





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Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers or controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Commission this indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.





ITEM 14.  - PRINCIPAL ACCOUNTANT FEES AND SERVICES

Year ended June 30, 2011

Audit Fees: The aggregate fees, including expenses, billed by the Companys principal accountant in connection with the audit of our financial statements for the most recent fiscal year and for the review of our financial information included in our Annual Report on Form 10-K; and our quarterly reports on Form 10-Q during the fiscal year ending June 30, 2011 was $50,925 CAD.



Audit Related Fees:The aggregate fees, including expenses, billed by the Companys principal accountant for services reasonably related to the audit for the year ended June 30, 2011 were $24,690 CAD.



All Other Fees: The aggregate fees, including expenses, billed for all other services rendered to the Company by its principal accountant during year ended June 30, 2011 was $nil.



Year ended June 30, 2010

Audit Fees: The aggregate fees, including expenses, billed by the Companys principal accountant in connection with the audit of our financial statements for the most recent fiscal year and for the review of our financial information included in our Annual Report on Form 10-K; and our quarterly reports on Form 10-Q during the fiscal year ending June 30, 2010 was $68,906 CAD.



Audit Related Fees:The aggregate fees, including expenses, billed by the Companys principal accountant for services reasonably related to the audit for the year ended June 30, 2010 were $6,000 CAD.



All Other Fees: The aggregate fees, including expenses, billed for all other services rendered to the Company by its principal accountant during year ended June 30, 2010 was $Nil.



Auditor Independence

Our Board of Directors considers that the work done for us in the year ended June 30, 2011 by MSCM LLP Chartered Accountants is compatible with maintaining MSCM LLP, Chartered Accountants.



Auditors Time on Task

All of the work expended by MSCM LLP, Chartered Accountants on our June 30, 2011 audit was attributed to work performed by MSCM LLP, Chartered Accountants full-time, permanent employees.





52





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ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

|               |                                                                                                                                                                                                                                                                                  
|-------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit Number | Description                                                                                                                                                                                                                                                                      
|3.1            | Articles of Incorporation of Uranium Star Corp. (now known as Energizer Resources Inc.) (Incorporated by reference to Exhibit 3.1 to the registrants current report on Form 8-K as filed with the SEC on May 20, 2008)                                                          
|3.2            | Articles of Amendment to Articles of Incorporation of Uranium Star Corp. changing its name to Energizer Resources Inc. (Incorporated by reference to Exhibit 3.1 to the registrants current report on Form 8-K as filed with the SEC on July 16, 2010)                          
|3.3            | Amended and Restated By-Laws of Energizer Resources Inc. (Incorporated by reference to Exhibit 3.2 to the registrants current report on Form 8-K as filed with the SEC on July 16, 2010)                                                                                        
|4.1            | Amended and Restated 2006 Stock Option Plan of Energizer Resources, Inc. (as of February 2009) (Incorporated by reference to Exhibit 4.1 to the registrant's Form S-8 registration statement as filed with the SEC on February 19, 2010)                                         
|4.2            | Form of broker Subscription Agreement for Units (Canadian and Offshore Subscribers) (Incorporated by reference to Exhibit 4.1 to the registrants current report on Form 8-K as filed with the SEC on March 19, 2010)                                                            
|4.3            | Form of standard Subscription Agreement for Units (Canadian and Offshore Subscribers) (Incorporated by reference to Exhibit 4.2 to the registrants current report on Form 8-K as filed with the SEC on March 19, 2010)                                                          
|4.4            | Form of Warrant to Purchase common shares (Incorporated by reference to Exhibit 4.3 to the registrants current report on Form 8-K as filed with the SEC on March 19, 2010)                                                                                                      
|4.5            | Form of Class A broker warrant to Purchase common shares (Incorporated by reference to Exhibit 4.4 to the registrants current report on Form 8-K as filed with the SEC on March 19, 2010)                                                                                       
|4.6            | Form of Class B broker warrant to Purchase common shares (Incorporated by reference to Exhibit 4.5 to the registrants current report on Form 8-K as filed with the SEC on March 19, 2010)                                                                                       
|4.7            | Agency Agreement, dated March 15, 2010, between Energizer Resources, Clarus Securities Inc. and Byron Securities Limited (Incorporated by reference to Exhibit 4.6 to the registrants current report on Form 8-K as filed with the SEC on March 19, 2010)                       
|10.1           | Property Agreement effective May 14, 2004 between Thornton J. Donaldson and Thornton J. Donaldson, Trustee for Yukon Resources Corp. (Incorporated by reference to Exhibit 10.1 to the registrant's Form SB-2 registration statement as filed with the SEC on September 14, 2004)
|10.2           | Letter of Intent dated March 10, 2006 with Apofas Ltd. (Incorporated by reference to Exhibit 99.1 to the registrant's current report on Form 8-K as filed with the SEC on March 13, 2006)                                                                                        
|10.3           | Letter agreement effective May 12, 2006 between Yukon Resources Corp. and Virginia Mines Inc. (Incorporated by reference to Exhibit 99.1 to the registrant's current report on Form 8-K filed as with the SEC on May 9, 2006)                                                    
|10.4           | Joint Venture Agreement dated August 22, 2007 between Uranium Star Corp. & Madagascar Minerals and Resources sarl
    (Incorporated by reference to Exhibit 10.1 to the registrant's current report on Form 8-K as filed with SEC on September 11, 2007)                         
|21             | Subsidiaries of the Registrant (Incorporated by reference to Exhibit 21.1 to the registrants annual report on Form 10-K as filed on September 21, 2009)                                                                                                                         
|31.1           | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act. (filed herein)                                                                                                                                                                       
|31.2           | Certification of Principal Financial and Accounting                                                                                                                                                                                                                              
|               | Officer Pursuant to Section 302 of the Sarbanes-Oxley Act. (filed herein)                                                                                                                                                                                                        
|32.1           | Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act.  (filed herein)                                                                                                                                                                      
|32.2           | Certification of Chief Accounting Officer Pursuant to Section 906 of the Sarbanes-Oxley Act.  (filed herein)                                                                                                                                                                     
|99.1           | Canadian National Instrument 43-101 Technical Report Update for Green Giant Property, Fotadrevo, Province of Toliara, Madagascar (Incorporated by reference to Exhibit 99.1 to the registrant's report on Form 8-K as filed with SEC on July 9, 2010)                            











53





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SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



ENERGIZER RESOURCES INC.



Dated:  September 26, 2011



By:

/s/ J A Kirk McKinnon

Name:  J A Kirk McKinnon

Title:  President, Chief Executive Officer and Director



Dated:  September 26, 2011



By:

/s/ Richard E. Schler

Name:  Richard E. Schler

Title:  Vice-President, Chief Financial Officer and Director



Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated.

|                      |          |                                             |  |                   
|--------------------- | -------- | ------------------------------------------- |  | ------------------
|Signatures            |          | Title                                       |  | Date              
|                      |          |                                             |  |                   
|/S/ J A Kirk McKinnon |          | Chairman, Chief Executive Officer, Director |  | September 26, 2011
|J A Kirk McKinnon     |          |                                             |  |                   
|                      |          |                                             |  |                   
|/S/ Richard E. Schler |          | Vice-President, Chief Financial Officer,    |  | September 26, 2011
|Richard Schler        | Director
|                      |          |                                             |  |                   
|/S/ John Sanderson    |          | Director                                    |  | September 26, 2011
|John Sanderson        |          |                                             |  |                   
|                      |          |                                             |  |                   
|/S/ Quentin Yarie     |          | Director                                    |  | September 26, 2011
|Quentin Yarie         |          |                                             |  |                   



|                  |  |          |  |                   
|----------------- |  | -------- |  | ------------------
|/S/ Peter Harder  |  | Director |  | September 26, 2011
|Peter Harder      |  |          |  |                   
|                  |  |          |  |                   
|/S/ Craig Scherba |  | Director |  | September 26, 2011
|Craig Scherba     |  |          |  |                   













54





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ENERGIZER RESOURCES INC.

(An Exploration Stage Company)

Consolidated Financial Statements

For the year ended June 30, 2011



(Expressed in US Dollars)





























---

























REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors and
Stockholders of Energizer Resources Inc.

We have audited the accompanying consolidated balance sheets of Energizer Resources Inc. as of June 30, 2011 and 2010, and the related consolidated statements of operations and comprehensive loss, stockholders' equity, and cash flows for the years then ended and accumulated for the period from March 1, 2004 (Date of Inception) to June 30, 2011. Energizer Resources Inc.s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Energizer Resources Inc. as of June 30, 2011 and 2010, and the results of its operations and its cash flows for each of the years then ended and accumulated for the period from March 1, 2004 (Date of Inception) to June 30, 2011 in conformity with accounting principles generally accepted in the United States of America.





Signed:  MSCM LLP





Chartered Accountants

Licensed Public Accountants



Toronto, Ontario

September 22, 2011







701 Evans Avenue, 8th Floor, Toronto ON  M9C 1A3, Canada    T (416) 626-6000   F (416) 626-8650   MSCM.CA











---



|Energizer Resources Inc.                                                                |  |               |  |               |  |           
|--------------------------------------------------------------------------------------- |  | ------------- |  | ------------- |  | ----------
|(An Exploration Stage Company)                                                          |  |               |  |               |  |           
|Consolidated Balance Sheets                                                             |  |               |  |               |  |           
|(Expressed in US Dollars)                                                               |  |               |  |               |  |           
|                                                                                       
|                                                                                        |  | June 30, 2011 |  | June 30, 2010
|                                                                                       
|                                                                                       
|Assets                                                                                  |  |               |  |               |  |           
|Current Assets:                                                                         |  |               |  |               |  |           
|Cash and cash equivalents (note 4)                                                      |  | $ 4,536,275   |  | $ 2,505,480  
|Dual currency deposits (note 4)                                                         |  |               |  | 8,031,076     |  | -         
|Amounts receivable and prepaid expenses                                                 |  |               |  | 135,392       |  | 68,996    
|Marketable securities                                                                   |  |               |  | 40,403        |  | 28,559    
|Tax credits recoverable                                                                 |  |               |  | 12,073        |  | 244,632   
|                                                                                       
|Total current assets                                                                    |  |               |  | 12,755,219    |  | 2,847,667 
|                                                                                       
|                                                                                       
|Equipment (note 5)                                                                      |  |               |  | 6,667         |  | 15,556    
|                                                                                       
|Total assets                                                                            |  | $ 12,761,886  |  | $ 2,863,223  
|                                                                                       
|                                                                                       
|                                                                                       
|                                                                                       
|Liabilities and Stockholders' Equity                                                    |  |               |  |               |  |           
|Liabilities                                                                             |  |               |  |               |  |           
|Current Liabilities:                                                                    |  |               |  |               |  |           
|Accounts payable and accrued liabilities (note 6)                                       |  |               |  | $ 689,857     |  | $ 413,121 
|Derivative liability (note 4)                                                           |  |               |  | 12,619        |  | -         
|                                                                                       
|Total liabilities                                                                       |  |               |  | 702,476       |  | 413,121   
|                                                                                       
|                                                                                       
|                                                                                       
|Stockholders' Equity                                                                    |  |               |  |               |  |           
|Common stock ,350,000,000 shares authorized, $0.001 par value,                          |  |               |  |               |  |           
|146,197,178 issued and outstanding (June 30, 2010-110,511,024) (note 8)                 |  | 146,197       |  | 110,510      
|Additional paid-in capital                                                              |  |               |  | 63,998,735    |  | 49,563,403
|Donated capital                                                                         |  |               |  | 20,750        |  | 20,750    
|Accumulated comprehensive loss                                                          |  |               |  | (32,432)      |  | (44,276)  
|Accumulated deficit during exploration stage                                            |  | (52,073,840)  |  | (47,200,285) 
|                                                                                       
|Total stockholders' equity                                                              |  |               |  | 12,059,410    |  | 2,450,102 
|                                                                                       
|                                                                                       
|Total liabilities and stockholders' equity                                              |  | $ 12,761,886  |  | $ 2,863,223  
|                                                                                       
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |              
|                                                                                       
|                                                                                       
|Going concern (note 1)                                                                  |  |               |  |               |  |           





FS-2



---



|Energizer Resources Inc.                                                                |  |                        |  |               |  |               
|--------------------------------------------------------------------------------------- |  | ---------------------- |  | ------------- |  | --------------
|(An Exploration Stage Company)                                                          |  |                        |  |               |  |               
|Consolidated Statements of Operations and Comprehensive Loss                            |  |                        |  |              
|(Expressed in US Dollars)                                                               |  |                        |  |               |  |               
|                                                                                       
|                                                                                        |  | March 1, 2004 (date of |  | For the       |  | For the       
|                                                                                        |  | inception) to          |  | year ended    |  | year ended    
|                                                                                        |  | June 30, 2011          |  | June 30, 2011 |  | June 30, 2010 
|                                                                                       
|                                                                                       
|Revenues                                                                                |  | $-                     |  | $ -           |  | $-            
|                                                                                       
|                                                                                       
|                                                                                       
|Expenses                                                                                |  |                        |  |               |  |               
|Mineral exploration expense                                                             |  | 18,667,956             |  | 2,172,223     |  | 5,309,724     
|General and administrative (note 6)                                                     |  | 5,038,784              |  | 1,543,064     |  | 1,010,438     
|Professional and consulting fees                                                        |  | 3,698,195              |  | 1,248,696     |  | 879,224       
|Stock-based compensation (note 8 and 9)                                                 |  | 19,037,563             |  | 237,710       |  | 3,649,142     
|Impairment loss on mineral properties                                                   |  | 7,588,508              |  | -             |  | 100,000       
|Foreign currency translation (gain)                                                     |  | (971,695)              |  | (226,268)     |  | (238,831)     
|Donated services and expenses                                                           |  | 18,750                 |  | -             |  | -             
|Depreciation                                                                            |  | 55,252                 |  | 8,889         |  | 8,889         
|                                                                                       
|Total expenses                                                                          |  | 53,133,313             |  | 4,984,314     |  | 10,718,586    
|                                                                                       
|                                                                                       
|Net loss from operations                                                                |  | (53,133,313)           |  | (4,984,314)   |  | (10,718,586)  
|                                                                                       
|Other Income:                                                                           |  |                        |  |               |  |               
|Investment income                                                                       |  | 755,620                |  | 110,759       |  | 9,997         
|Other income                                                                            |  | 303,853                |  | -             |  | -             
|                                                                                       
|Net loss                                                                                |  | (52,073,840)           |  | (4,873,555)   |  | (10,708,589)  
|                                                                                       
|Unrealized (loss) gain from investments in                                              |  |                        |  |               |  |               
|marketable securities                                                                   |  | (38,276)               |  | 11,844        |  | 4,810         
|                                                                                       
|                                                                                       
|Comprehensive loss                                                                      |  | $ (52,112,116)         |  | $ (4,861,711) |  | $ (10,703,779)
|                                                                                       
|Net loss per share - basic and diluted (note 12)                                        |  |                        |  | $ (0.04)      |  | $ (0.12)      
|                                                                                       
|Weighted average shares outstanding - basic and diluted                                 |  | 126,983,413            |  | 93,027,873   
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |                        |  |              

FS-3



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|Energizer Resources Inc.                                                                |  |                |  |               |  |               
|--------------------------------------------------------------------------------------- |  | -------------- |  | ------------- |  | --------------
|(An Exploration Stage Company)                                                          |  |                |  |               |  |               
|Consolidated Statements of Cash Flows                                                   |  |                |  |               |  |               
|(Expressed in US Dollars)                                                               |  |                |  |               |  |               
|                                                                                       
|                                                                                       
|March 1, 2004 (date of                                                                  |  | For the        |  | For the      
|                                                                                        |  | inception) to  |  | year ended    |  | year ended    
|                                                                                        |  | June 30, 2011  |  | June 30, 2011 |  | June 30, 2010 
|Operating Activities                                                                    |  |                |  |               |  |               
|Net loss                                                                                |  | $ (52,073,840) |  | $ (4,873,555) |  | $ (10,708,589)
|                                                                                       
|Adjustments to reconcile net loss to net cash                                           |  |                |  |               |  |               
|used in operating activities:                                                           |  |                |  |               |  |               
|Depreciation                                                                            |  | 55,252         |  | 8,889         |  | 8,889         
|Donated services and expenses                                                           |  | 20,750         |  | -             |  | -             
|Non-cash proceeds received                                                              |  | (74,000)       |  | -             |  | -             
|Accrued interest not yet received                                                       |  | (18,456)       |  | (18,456)      |  | -             
|Impairment loss on mineral properties                                                   |  | 7,588,508      |  | -             |  | 100,000       
|Stock-based compensation                                                                |  | 19,037,563     |  | 237,710       |  | 3,649,142     
|Issuance of shares and warrants for services rendered                                   |  | 168,100        |  | 168,100       |  | -             
|Change in operating assets and liabilities:                                             |  |                |  |               |  |               
|Amounts receivable and prepaid expenses                                                 |  | (135,392)      |  | (66,396)      |  | 51,334        
|Accounts payable and accrued liabilities                                                |  | 690,683        |  | 276,736       |  | 258,541       
|Taxes recoverable                                                                       |  | (257,259)      |  | (12,627)      |  | 138,734       
|Non-cash component of marketable securities                                             |  | 337            |  | -             |  | 337           
|Government grants received                                                              |  | 245,186        |  | 245,186       |  | -             
|Net cash used in operating activities                                                   |  | (24,752,568)   |  | (4,034,413)   |  | (6,501,612)   
|                                                                                       
|                                                                                       
|Financing Activities                                                                    |  |                |  |               |  |               
|Proceeds from issuance of common stock, net                                             |  | 37,464,105     |  | 13,178,708    |  | 6,330,915     
|Exercise of warrants                                                                    |  | 886,500        |  | 886,500       |  | -             
|Net cash provided by financing activities                                               |  | 38,350,605     |  | 14,065,208    |  | 6,330,915     
|                                                                                       
|                                                                                       
|Investing Activities                                                                    |  |                |  |               |  |               
|Mineral property acquisition costs                                                      |  | (999,844)      |  | -             |  | (100,000)     
|Purchase of property and equipment                                                      |  | (61,918)       |  | -             |  | -             
|Investment in dual currency deposits                                                    |  | (8,000,000)    |  | (8,000,000)   |  | -             
|                                                                                       
|Net cash used in investing activities                                                   |  | (9,061,762)    |  | (8,000,000)   |  | (100,000)     
|                                                                                       
|                                                                                       
|Increase (decrease) in cash and cash equivalents                                        |  | 4,536,275      |  | 2,030,795     |  | (270,697)     
|Cash and cash equivalents - beginning of period                                         |  | -              |  | 2,505,480     |  | 2,776,177     
|                                                                                       
|                                                                                       
|Cash and cash equivalents - end of period                                               |  | $ 4,536,275    |  | $ 4,536,275   |  | $ 2,505,480   
|                                                                                       
|                                                                                       
|Non-cash investing and financing activities:                                            |  |                |  |               |  |               
|Issuance of common stock for mineral properties                                         |  | $ 3,840,500    |  | $ -           |  | $ -           
|Issuance of common stock for services                                                   |  | 5,811,125      |  | 90,000        |  | 722,500       
|                                                                                       
|Supplemental Disclosures:                                                               |  |                |  |               |  |               
|Interest received                                                                       |  | $ 755,620      |  | $ 110,759     |  | $ 9,997       
|Interest paid                                                                           |  | -              |  | -             |  | -             
|Income taxes paid                                                                       |  | -              |  | -             |  | -             
|The accompanying notes are an integral part of these consolidated financial statements. |  |                |  |              

FS-4



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|Energizer Resources Inc.                                                                |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  |             |  |            
|--------------------------------------------------------------------------------------- |  | ---------- |  | ------ |  | --------------------------------- |  | ------------------------------- |  | ---------- |  | ----------- |  | ----------- |  | -----------
|(An Exploration Stage Company)                                                          |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  |             |  |            
|Consolidated Statement of Stockholders' Equity                                          |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  |            
|For the Period from March 1, 2004 (Date of Inception) to June 30, 2011                  |  |            |  |        |  |                                   |  |                                 |  |           
|(Expressed in US Dollars)                                                               |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  |             |  |            
|                                                                                        |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  | Deficit     |  |            
|                                                                                        |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  | Accumulated |  |            
|                                                                                        |  |            |  |        |  | Additional         
Accumulated   |  | Common                          |  |            |  | During the  |  |            
|                                                                                        |  |            |  |        |  | Paid-In     
Comprehensive        |  | Stock                           |  | Donated    |  | Exploration |  |            
|                                                                                        |  | Shares     |  | Amount |  | Capital                           |  | Income (loss)                   |  | Subscribed |  | Capital     |  | Stage       |  | Total      
|                                                                                        |  | #          |  | $      |  | $                              
$ |  | $                           
 $ |  | $         
|                                                                                       
|Balance - March 1, 2004 (Date of Incorporation)                                         |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | -           |  | -           |  | -          
|Issuance of common shares for cash-at $0.01/share                                       |  | 7,500,000  |  | 7,500  |  | 17,500                            |  | -                               |  | -          |  | -           |  | -           |  | 25,000     
|Issuance of common shares for cash-at $0.05/share                                       |  | 2,085,000  |  | 2,085  |  | 32,665                            |  | -                               |  | -          |  | -           |  | -           |  | 34,750     
|Issuance of common stock for mineral property                                           |  | 7,500,000  |  | 7,500  |  | (5,800)                           |  | -                               |  | -          |  | -           |  | -           |  | 1,700      
|Donated services and expenses                                                           |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | 5,000       |  | -           |  | 5,000      
|Net loss for period                                                                     |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | -           |  | (9,991)     |  | (9,991)    
|                                                                                       
|Balance - June 30, 2004                                                                 |  | 17,085,000 |  | 17,085 |  | 44,365                            |  | -                               |  | -          |  | 5,000       |  | (9,991)     |  | 56,459     
|                                                                                       
|                                                                                       
|Donated services and expenses                                                           |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | 9,000       |  | -           |  | 9,000      
|Net loss for the year                                                                   |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | -           |  | (38,500)    |  | (38,500)   
|                                                                                       
|Balance - June 30, 2005                                                                 |  | 17,085,000 |  | 17,085 |  | 44,365                            |  | -                               |  | -          |  | 14,000      |  | (48,491)    |  | 26,959     
|                                                                                       
|                                                                                       
|Issuance of common shares for cash-at $0.20/share                                       |  | 2,265,000  |  | 2,265  |  | 448,235                           |  | -                               |  | -          |  | -           |  | -           |  | 450,500    
|Issuance of shares to exercise stock options                                            |  | 255,000    |  | 255    |  | 114,495                           |  | -                               |  | -          |  | -           |  | -           |  | 114,750    
|Issuance of common shares for mineral properties:                                       |  |            |  |        |  |                                   |  |                                 |  |            |  |             |  |             |  |            
|-at $0.101/share                                                                        |  | 300,000    |  | 300    |  | 30,000                            |  | -                               |  | -          |  | -           |  | -           |  | 30,300     
|-at $0.85/share                                                                         |  | 2,000,000  |  | 2,000  |  | 1,698,000                         |  | -                               |  | -          |  | -           |  | -           |  | 1,700,000  
|Issuance of common shares for services-at $0.60/share                                   |  | 5,550,000  |  | 5,550  |  | 3,324,450                         |  | -                               |  | -          |  | -           |  | -           |  | 3,330,000  
|Common stock subscribed                                                                 |  | -          |  | -      |  | -                                 |  | -                               |  | 255,000    |  | -           |  | -           |  | 255,000    
|Fair value of warrants issued                                                           |  | -          |  | -      |  | 1,925,117                         |  | -                               |  | -          |  | -           |  | -           |  | 1,925,117  
|Stock-based compensation                                                                |  | -          |  | -      |  | 2,228,626                         |  | -                               |  | -          |  | -           |  | -           |  | 2,228,626  
|Donated services and expenses                                                           |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | 6,750       |  | -           |  | 6,750      
|Net loss for the year                                                                   |  | -          |  | -      |  | -                                 |  | -                               |  | -          |  | -           |  | (9,595,317) |  | (9,595,317)
|                                                                                       
|Balance - June 30, 2006                                                                 |  | 27,455,000 |  | 27,455 |  | 9,813,288                         |  | -                               |  | 255,000    |  | 20,750      |  | (9,643,808) |  | 472,685    
|                                                                                       
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |            |  |        |  |                                   |  |                                 |  |            |  |            

FS-5



---

|Energizer Resources Inc.                                               |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|---------------------------------------------------------------------- |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|(An Exploration Stage Company)                                         |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|Consolidated Statement of Stockholders' Equity                         |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|For the Period from March 1, 2004 (Date of Inception) to June 30, 2011 |  |  |  |  |  |  |  |  |  | 
|(Expressed in US Dollars)                                              |  |  |  |  |  |  |  |  |  |  |  |  |  | 

| |  |        |  |        |  |                                   |  |                                |  |            |  |             |  | Deficit     |  |      
| |  | ------ |  | ------ |  | --------------------------------- |  | ------------------------------ |  | ---------- |  | ----------- |  | ----------- |  | -----
| |  |        |  |        |  |                                   |  |                                |  |            |  |             |  | Accumulated |  |      
| |  |        |  |        |  | Additional          Accumulated   |  | Common                         |  |            |  | During the  |  |            
| |  |        |  |        |  | Paid-In     
Comprehensive        |  | Stock                          |  | Donated    |  | Exploration |  |            
| |  | Shares |  | Amount |  | Capital                           |  | Income (loss)                  |  | Subscribed |  | Capital     |  | Stage       |  | Total
| |  | #      |  | $      |  | $                              
$ |  | $                            $ |  | $         

|Continued from prior page:                                                              |  |            |  |        |  |             |  |          |  |           |  |        |  |              |  |             
|--------------------------------------------------------------------------------------- |  | ---------- |  | ------ |  | ----------- |  | -------- |  | --------- |  | ------ |  | ------------ |  | ------------
|Issuance of common shares for mineral properties                                        |  |            |  |        |  |             |  |          |  |           |  |        |  |              |  |             
|-at $0.82/share                                                                         |  | 500,000    |  | 500    |  | 409,500     |  | -        |  | -         |  | -      |  | -            |  | 410,000     
|Cancellation of common stock subscribed                                                 |  | -          |  | -      |  | -           |  | -        |  | (25,000)  |  | -      |  | -            |  | (25,000)    
|Stock-based compensation                                                                |  | -          |  | -      |  | 5,193,315   |  | -        |  | -         |  | -      |  | -            |  | 5,193,315   
|Issuance of common shares for mineral properties                                        |  |            |  |        |  |             |  |          |  |           |  |        |  |              |  |             
|-at $0.69/share                                                                         |  | 150,000    |  | 150    |  | 103,350     |  | -        |  | -         |  | -      |  | -            |  | 103,500     
|Issuance of common shares for mineral properties                                        |  |            |  |        |  |             |  |          |  |           |  |        |  |              |  |             
|-at $1.22/share                                                                         |  | 1,000,000  |  | 1,000  |  | 1,219,000   |  | -        |  | -         |  | -      |  | -            |  | 1,220,000   
|Fair value of warrants issued                                                           |  | -          |  | -      |  | 2,941,961   |  | -        |  | -         |  | -      |  | -            |  | 2,941,961   
|Issuance of common shares for services-at $0.41/share                                   |  | 1,450,000  |  | 1,450  |  | 596,675     |  | -        |  | -         |  | -      |  | -            |  | 598,125     
|Issuance of shares to exercise stock options                                            |  | 343,119    |  | 343    |  | 507,157     |  | -        |  | -         |  | -      |  | -            |  | 507,500     
|Private placement common shares subscribed                                              |  | 460,000    |  | 460    |  | 229,540     |  | -        |  | (230,000) |  | -      |  | -            |  | -           
|Issuance of common shares for cash-at $0.50/share                                       |  | 34,600,000 |  | 34,600 |  | 17,265,400  |  | -        |  | -         |  | -      |  | -            |  | 17,300,000  
|Commission                                                                              |  | 891,850    |  | 891    |  | 807,824     |  | -        |  | -         |  | -      |  | -            |  | 808,715     
|Cost of issue                                                                           |  | -          |  | -      |  | (3,843,798) |  | -        |  | -         |  | -      |  | -            |  | (3,843,798) 
|Net loss for the year                                                                   |  | -          |  | -      |  | -           |  | -        |  | -         |  | -      |  | (14,390,122) |  | (14,390,122)
|                                                                                       
|Balance - June 30, 2007                                                                 |  | 66,849,969 |  | 66,849 |  | 35,243,212  |  | -        |  | -         |  | 20,750 |  | (24,033,930) |  | 11,296,881  
|                                                                                       
|Issuance of shares to exercise of warrants                                              |  | 561,388    |  | 561    |  | 207,152     |  | -        |  | -         |  | -      |  | -            |  | 207,713     
|Issuance of common shares for mineral properties                                        |  |            |  |        |  |             |  |          |  |           |  |        |  |              |  |             
|-at $0.30/share                                                                         |  | 1,250,000  |  | 1,250  |  | 373,750     |  | -        |  | -         |  | -      |  | -            |  | 375,000     
|Fair value of warrants issued                                                           |  | -          |  | -      |  | 60,560      |  | -        |  | -         |  | -      |  | -            |  | 60,560      
|Issuance of common shares for services-at $0.20/share                                   |  | 2,975,000  |  | 2,975  |  | 592,025     |  | -        |  | -         |  | -      |  | -            |  | 595,000     
|Stock-based compensation                                                                |  | -          |  | -      |  | 1,827,270   |  | -        |  | -         |  | -      |  | -            |  | 1,827,270   
|Accumulated comprehensive loss                                                          |  | -          |  | -      |  | -           |  | (22,952) |  | -         |  | -      |  | -            |  | (22,952)    
|Net loss for the year                                                                   |  | -          |  | -      |  | -           |  | -        |  | -         |  | -      |  | (9,202,295)  |  | (9,202,295) 
|                                                                                       
|Balance - June 30, 2008                                                                 |  | 71,636,357 |  | 71,635 |  | 38,303,969  |  | (22,952) |  | -         |  | 20,750 |  | (33,236,225) |  | 5,137,177   
|                                                                                       
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |            |  |        |  |             |  |          |  |          
|                                                                                       
|                                                                                       



FS-6



---



|Energizer Resources Inc.                                                                |  |             |  |         |  |                                   |  |                                |  |            |  |             |  |              |  |             
|--------------------------------------------------------------------------------------- |  | ----------- |  | ------- |  | --------------------------------- |  | ------------------------------ |  | ---------- |  | ----------- |  | ------------ |  | ------------
|(An Exploration Stage Company)                                                          |  |             |  |         |  |                                   |  |                                |  |            |  |             |  |              |  |             
|Consolidated Statement of Stockholders' Equity                                          |  |             |  |         |  |                                   |  |                                |  |            |  |             |  |             
|For the Period from March 1, 2004 (Date of Inception) to June 30, 2011                  |  |             |  |         |  |                                   |  |                                |  |           
|(Expressed in US Dollars)                                                               |  |             |  |         |  |                                   |  |                                |  |            |  |             |  |              |  |             
|                                                                                       
|                                                                                        |  |             |  |         |  |                                   |  |                                |  |            |  |             |  | Deficit      |  |             
|                                                                                        |  |             |  |         |  |                                   |  |                                |  |            |  |             |  | Accumulated  |  |             
|                                                                                        |  |             |  |         |  | Additional          Accumulated   |  | Common                         |  |            |  | During the  |  |             
|                                                                                        |  |             |  |         |  | Paid-In     
Comprehensive        |  | Stock                          |  | Donated    |  | Exploration |  |             
|                                                                                        |  | Shares      |  | Amount  |  | Capital                           |  | Income (loss)                  |  | Subscribed |  | Capital     |  | Stage        |  | Total       
|                                                                                        |  | #           |  | $       |  | $                              
$ |  | $                            $ |  | $         
|                                                                                       
|Continued from prior page:                                                              |  |             |  |         |  |                                   |  |                                |  |            |  |             |  |              |  |             
|                                                                                       
|Balance - June 30, 2008                                                                 |  | 71,636,357  |  | 71,635  |  | 38,303,969                        |  | (22,952)                       |  | -          |  | 20,750      |  | (33,236,225) |  | 5,137,177   
|Issuance of common shares for services-at $0.10/share                                   |  | 2,500,000   |  | 2,500   |  | 247,500                           |  | -                              |  | -          |  | -           |  | -            |  | 250,000     
|Issuance of common shares for services-at $0.08/share                                   |  | 1,600,000   |  | 1,600   |  | 126,400                           |  | -                              |  | -          |  | -           |  | -            |  | 128,000     
|Issuance of common shares for services-at $0.10/share                                   |  | 6,800,000   |  | 6,800   |  | 673,200                           |  | -                              |  | -          |  | -           |  | -            |  | 680,000     
|Commission                                                                              |  | 408,000     |  | 408     |  | (408)                             |  | -                              |  | -          |  | -           |  | -            |  | -           
|Stock-based compensation                                                                |  | 750,000     |  | 750     |  | 131,174                           |  | -                              |  | -          |  | -           |  | -            |  | 131,924     
|Incremental value of stock options on repricing                                         |  | -           |  | -       |  | 128,328                           |  | -                              |  | -          |  | -           |  | -            |  | 128,328     
|Accumulated comprehensive loss                                                          |  | -           |  | -       |  | -                                 |  | (26,134)                       |  | -          |  | -           |  | -            |  | (26,134)    
|Net loss for the year                                                                   |  | -           |  | -       |  | -                                 |  | -                              |  | -          |  | -           |  | (3,255,471)  |  | (3,255,471) 
|                                                                                       
|Balance - June 30, 2009                                                                 |  | 83,694,357  |  | 83,693  |  | 39,610,163                        |  | (49,086)                       |  | -          |  | 20,750      |  | (36,491,696) |  | 3,173,824   
|                                                                                       
|                                                                                       
|Issuance of common shares for services-at $0.17/share                                   |  | 2,250,000   |  | 2,250   |  | 380,250                           |  | -                              |  | -          |  | -           |  | -            |  | 382,500     
|Stock-based compensation                                                                |  | -           |  | -       |  | 2,813,517                         |  | -                              |  | -          |  | -           |  | -            |  | 2,813,517   
|Issuance of common shares for services-at $0.68/share                                   |  | 500,000     |  | 500     |  | 339,500                           |  | -                              |  | -          |  | -           |  | -            |  | 340,000     
|Fair value of warrants issued                                                           |  | -           |  | -       |  | 113,125                           |  | -                              |  | -          |  | -           |  | -            |  | 113,125     
|Cost of issue                                                                           |  | -           |  | -       |  | (469,085)                         |  | -                              |  | -          |  | -           |  | -            |  | (469,085)   
|Private placement common share subscribed                                               |  | 21,666,667  |  | 21,667  |  | 6,478,333                         |  | -                              |  | -          |  | -           |  | -            |  | 6,500,000   
|Commission                                                                              |  | 400,000     |  | 400     |  | (400)                             |  | -                              |  | -          |  | -           |  | -            |  | -           
|Issuance of shares to exercise stock options                                            |  | 2,000,000   |  | 2,000   |  | 298,000                           |  | -                              |  | -          |  | -           |  | -            |  | 300,000     
|Accumulated comprehensive gain                                                          |  | -           |  | -       |  | -                                 |  | 4,810                          |  | -          |  | -           |  | -            |  | 4,810       
|Net loss for the year                                                                   |  | -           |  | -       |  | -                                 |  | -                              |  | -          |  | -           |  | (10,708,589) |  | (10,708,589)
|                                                                                       
|Balance - June 30, 2010                                                                 |  | 110,511,024 |  | 110,510 |  | 49,563,403                        |  | (44,276)                       |  | -          |  | 20,750      |  | (47,200,285) |  | 2,450,102   
|                                                                                       
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |             |  |         |  |                                   |  |                                |  |            |  |            

FS-7

---



|Energizer Resources Inc.                                               |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|---------------------------------------------------------------------- |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|(An Exploration Stage Company)                                         |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|Consolidated Statement of Stockholders' Equity                         |  |  |  |  |  |  |  |  |  |  |  |  |  | 
|For the Period from March 1, 2004 (Date of Inception) to June 30, 2011 |  |  |  |  |  |  |  |  |  | 
|(Expressed in US Dollars)                                              |  |  |  |  |  |  |  |  |  |  |  |  |  | 

|                                                                                        |  |             |  |         |  |                                   |  |                                |  |            |  |             |  | Deficit      |  |            
|--------------------------------------------------------------------------------------- |  | ----------- |  | ------- |  | --------------------------------- |  | ------------------------------ |  | ---------- |  | ----------- |  | ------------ |  | -----------
|                                                                                        |  |             |  |         |  |                                   |  |                                |  |            |  |             |  | Accumulated  |  |            
|                                                                                        |  |             |  |         |  | Additional          Accumulated   |  | Common                         |  |            |  | During the  |  |             
|                                                                                        |  |             |  |         |  | Paid-In     
Comprehensive        |  | Stock                          |  | Donated    |  | Exploration |  |             
|                                                                                        |  | Shares      |  | Amount  |  | Capital                           |  | Income (loss)                  |  | Subscribed |  | Capital     |  | Stage        |  | Total      
|                                                                                        |  | #           |  | $       |  | $                              
$ |  | $                            $ |  | $         
|Continued from prior page:                                                              |  |             |  |         |  |                                   |  |                                |  |            |  |             |  |              |  |            
|                                                                                       
|Private placement common shares subscribed                                              |  | 30,936,654  |  | 30,936  |  | 13,890,559                        |  | -                              |  | -          |  | -           |  | -            |  | 13,921,495 
|Fair value of warrants issued                                                           |  | -           |  | -       |  | 78,100                            |  | -                              |  | -          |  | -           |  | -            |  | 78,100     
|Cost of issue                                                                           |  | -           |  | -       |  | (742,787)                         |  | -                              |  | -          |  | -           |  | -            |  | (742,787)  
|Issuance of common shares for services-at $0.45/share                                   |  | 200,000     |  | 200     |  | 89,800                            |  | -                              |  | -          |  | -           |  | -            |  | 90,000     
|Issuance of shares to exercise warrants                                                 |  | 4,549,500   |  | 4,551   |  | 881,950                           |  | -                              |  | -          |  | -           |  | -            |  | 886,501    
|Stock-based compensation                                                                |  | -           |  | -       |  | 237,710                           |  | -                              |  | -          |  | -           |  | -            |  | 237,710    
|Accumulated comprehensive gain                                                          |  | -           |  | -       |  | -                                 |  | 11,844                         |  | -          |  | -           |  | -            |  | 11,844     
|Net loss for the year                                                                   |  | -           |  | -       |  | -                                 |  | -                              |  | -          |  | -           |  | (4,873,555)  |  | (4,873,555)
|                                                                                       
|Balance - June 30, 2011                                                                 |  | 146,197,178 |  | 146,197 |  | 63,998,735                        |  | (32,432)                       |  | -          |  | 20,750      |  | (52,073,840) |  | 12,059,410 
|                                                                                       
|                                                                                       
|The accompanying notes are an integral part of these consolidated financial statements. |  |             |  |         |  |                                   |  |                                |  |            |  |            







FS-8

---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

1. Exploration Stage Company and Going Concern

Energizer Resources Inc. (formerly Uranium Star Corp.) (the "Company") was incorporated in the State of Nevada, United States of America on March 1, 2004 and reincorporated in the
State of Minnesota on May 14, 2008. The Company is an Exploration Stage Company, as defined by ASC Topic-915, "Development Stage Entities" whose principal business is the acquisition and exploration of mineral resources. During fiscal 2008, the
Company incorporated Uranium Star (Mauritius) Ltd., a Mauritius subsidiary and Energizer Resources Madagascar Sarl (formerly Uranium Star Madagascar Sarl), a Madagascar subsidiary. In fiscal 2009, the Company incorporated THB Venture Ltd., a
Mauritius subsidiary to hold the interest in Energizer Resources Minerals Sarl (formerly Uranium Star Minerals Sarl), a Madagascar subsidiary, which holds the Madagascar properties. The Company has not yet fully determined whether its properties
contain mineral reserves that are economically recoverable.

These consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will continue to realize its assets and discharge its liabilities
in the normal course of business. The Company has yet to generate revenue from mining operations or pay dividends and is unlikely to do so in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon
the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations. As at June 30, 2011, the Company has accumulated losses of
$52,073,840. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset
amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. Significant Accounting Policies
Principals of Consolidation and Basis of
Presentation

These consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"), and are expressed in US dollars.
These consolidated financial statements include the accounts of Energizer Resources Inc. and its wholly-owned subsidiaries, Uranium Star (Mauritius) Ltd., THB Ventures Ltd, Energizer Resources Madagascar Sarl and Energizer Resources Minerals Sarl.
All inter-company balances and transactions have been eliminated on consolidation. The Company's fiscal year end is June 30.

Use of Estimates

The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. On an ongoing basis, management evaluates its judgments and estimates in relation to assets,
liabilities, revenue and expenses. Management uses historical experience and other factors it believes to be reasonable as the basis for its judgments and estimates. Actual results could differ from those estimates. The consolidated financial
statements include estimates which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout these consolidated financial statements, and may require accounting adjustments based on future occurrences. Revisions to
accounting estimates are recognized in the period in which the estimate is revised and the revision affects current and future periods.

Areas where significant estimates and assumptions are used include: the valuation of shares, warrants and stock options issued, the valuation recorded for impairment on property
expenditures, the valuation recorded for future income taxes, and the valuation on the balance representing derivatives and dual currency deposits.

Comprehensive Income (Loss)

ASC Topic-220, "Reporting Comprehensive Income", establishes standards for the reporting and display of comprehensive income, its components and accumulated balances. As at June 30,
2011, the Company's only component of other comprehensive income is unrealized losses on marketable securities.



FS-9



---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

2. Significant Accounting Policies - continued
Basic and Diluted Net Income (Loss) Per
Share

The Company computes net earnings (loss) per share in accordance with ASC Topic-260, "Earnings per Share". ASC Topic-260 requires presentation of basic and diluted earnings per share
(EPS) on the consolidated statement of operations. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS
gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and the "if converted" method for convertible instruments. In computing Diluted EPS, the average stock price for the period is used in
determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Basic and diluted earnings (loss) per share is computed
using the weighted average number of common shares outstanding. Diluted EPS and the weighted average number of common shares exclude all dilutive potential shares since their effect is anti-dilutive.

Cash and Cash Equivalents

Cash and cash equivalents include money market investments that are readily convertible to known amounts of cash and have a original maturity of less than or equal to 90 days. Cash
and cash equivalents do not include dual currency deposits which are discussed within the "financial instruments" section of this note.

Marketable Securities

The Company classifies and accounts for debt and equity securities in accordance with ASC Topic-320, "Accounting for Certain Investments in Debt and Equity Securities". The Company
has classified all of its marketable securities as available for sale, thus securities are recorded at fair market value and any associated unrealized gain or loss, net of tax, are included as a separate component of stockholders equity,
Accumulated Comprehensive Loss.

Equipment

Exploration equipment is stated at cost, less accumulated depreciation, and consists of exploration equipment. Depreciation is computed on a straight-line basis over 5
years.

Mineral Property Costs

The Company has been in the exploration stage since its inception on March 1, 2004, and has not yet realized any revenues from its mineral operations. Mineral property exploration
costs are expensed as incurred. Mineral property acquisition costs are initially capitalized when incurred using the guidance in ASC Topic-930, "Whether Mineral Rights Are Tangible or Intangible Assets". The Company assesses the carrying costs for
impairment under ASC Topic-360, at each fiscal quarter end.

When it has been determined that a mineral property can be economically developed as a result of establishing probable and proven reserves, the costs then incurred to develop such
property will be capitalized. Such costs will be amortized using the units of production method over the estimated life of the probable reserve. If the properties are abandoned or the carrying value is determined to be in excess of possible future
recoverable amounts the Company will write off the appropriate amount.





FS-10

---





|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

2. Significant Accounting Policies - continued

Foreign Currency Translation

The Company's functional and reporting currency is United States Dollars. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC
Topic-830, "Foreign Currency Translation", using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the consolidated statement of
operations.

Stock-Based Compensation

The Company has a stock option plan as described in note 8. All stock-based awards granted, including those granted to directors not acting in their capacity as directors, are
accounted for using the fair value based method. The fair value of stock options granted is recognized as an expense within the income statement and a corresponding increase in shareholder equity. Any consideration paid by eligible participants on
the exercise of stock options is credited to capital stock. The additional paid in capital amount associated with stock options is transferred to capital stock upon exercise.

Income Taxes

The Company has adopted ASC Topic740 "Accounting for Income Taxes" as of its inception. Pursuant to ASC Topic-740, the Company is required to compute tax asset benefits for net
operating losses carried forward. Potential benefits of net operating losses have not been recognized in these consolidated financial statements as the Company cannot be assured it is more likely than not it will utilize the net operating losses
carried forward in future years.

Management does not believe unrecognized tax benefits will significantly change within one year of the balance sheet date. Interest and penalties related to income tax matters are
recognized in income tax expense. As of June 30, 2011, there was no accrued interest or penalties related to uncertain tax positions.

Long Lived Assets

In accordance with the ASC Topic-360, "Accounting for Impairment or Disposal of Long Lived Assets", the carrying value of intangible assets and other long-lived assets is reviewed on
a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses,
if any, are measured as the excess of the carrying amount of the asset over its estimated fair value.

Asset Retirement Obligations

The operations of the Company are subject to regulations governing the environment, including future site restoration for mineral properties. The Company recognizes the fair value of
a liability for an asset retirement obligation in the period in which it is incurred and when a reasonable estimate of fair value can be made. If a reasonable estimate of fair value cannot be made in the period the asset retirement is incurred, the
liability is recognized when a reasonable estimate of fair value can be made. The Company has determined that there are no asset retirement or any other environmental obligations currently existing with respect to its mineral properties and
therefore no liability has been recognized.

Government grants

The Company makes periodic applications for financial assistance under available government incentive programs and tax credits related to the mineral property expenditures. The
Company recognizes government assistance on an accrual basis when all requirements to earn the assistance have been completed and receipt is reasonably assured. Government grants are recognized on the balance sheet under tax credits recoverable and
accrued as a reduction of mineral exploration expenses. Government grants relating to mineral expenditures are reflected as a reduction of the cost of the property. Government grants relating to operating expenses are reflected as a reduction of the
expense.



FS-11

---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

2. Significant Accounting Policies - continued
Financial Instruments

The fair value of cash and cash equivalents, amounts receivable, marketable securities, dual currency deposits and accounts payable and accrued liabilities were estimated to
approximate their carrying values due to the immediate or short-term maturity of these financial instruments. The Company's exploration operations are primarily in Madagascar but also in Canada, which result in exposure to market risks from changes
in foreign currency rates. Financial risk is the risk to the Company's operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates.

Fair Value of Financial Instruments Hierarchy

ASC Topic820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are as follows:

Level 1  Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset
or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 includes marketable securities such as listed equities and U.S. government treasury securities.

Level 2  Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2
includes those financial instruments that are valued using industry-standard models or other valuation methodologies. These models consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, current
market and contractual prices for the underlying instruments as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the term of the instrument, can be derived from observable
data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category include over the counter forwards, options and repurchase agreements.

Level 3  Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies
that result in management's best estimate of fair value from the perspective of a market participant. Level 3 instruments include those that may be more structured or otherwise tailored to customers' needs. At each balance sheet date, the Company
performs an analysis of all instruments subject to ASC Topic820 and includes in Level 3 all of those whose fair value is based on significant unobservable inputs.

As of June 30, 2011, the marketable securities that the Company held were Level 1 and the dual currency deposits were Level 2 within the fair value hierarchy.

Subsequent Events

The Company adopted ASC Topic-855, Subsequent Events, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet
date but before financial statements are issued. The adoption of this standard did not have a material impact on these consolidated financial statements.



FS-12

---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

3. Recent Accounting Pronouncements Affecting The Company

The following are recent accounting pronouncements which may have an impact on the Company's future financial statements. FASB has issued the following pronouncements:

- Compensation  Stock Compensation (Topic 718): Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency Market in Which the Underlying Equity Security Traded (ASU 2010-13) was issued during April 2010.
ASU 2010-13 provides guidance on the classification of a share-based payment award as either equity or a liability. A share-based payment that contains a condition that is not a market, performance, or service condition is required to be classified as a liability. ASU2010-13 is effective for fiscal years, and interim periods within those fiscal years, beginning on or afterJuly 1, 2011.
- "Intangibles - Goodwill and Other (Topic 350): When to perform Step 2 of Goodwill Impairment Test for Reporting Units With Zero or Negative Carrying Amounts" ("ASU 2010-28") was issued during December 2010. ASU 2010-28 provides guidance on the two-step test
for goodwill impairment. When testing for goodwill impairment, an entity must assess whether the carrying amount of a reporting unit exceeds its fair value (Step 1). If it does, an entity must perform an additional test to determine whether goodwill has been impaired and
to calculate the amount of that impairment (Step 2). ASU 2010-28 addresses questions about entities with reporting units with zero or negative carrying amounts.
- "Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations" ("ASU 2010-29") was issued during December 2010. ASU 2010-29 addresses diversity in practice about the interpretation of the pro forma revenue
and earnings disclosure requirements for business combinations.
- "Fair value measurement (Topic ): Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs: ("ASU 2011-04") was issued during May 2011. ASU2011-04 is a collaboration between FASB and the International Accounting Standards Board to developcommon
requirements for measuring fair value and for disclosing information about fair valuemeasurements in accordance with US GAAP and International Financial Reporting Standards
(IFRSs).ASU 2011-04 explains how to measure fair value. It does not require additional fair value measurementsand is not intended to establish valuation standards or affect valuation practices outside of financialreporting.

The Company is currently evaluating the impact, if any, that the items noted above will have on its consolidated financial statements.

4. Dual Currency Deposits

On June 30, 2011, the Company held a total of $8,000,000 (2010: $Nil) with a Canadian bank in two short term dual currency deposits ("DCD"), each representing $4,000,000.
Both DCD's matured during July 2011. The Company contracted to a strike rate in Canadian dollars at the inception of the contract. On the day of maturity, if the spot rate is greater than the contracted strike rate, the Company will receive its
money in Canadian dollars. Conversely if the spot rate is less than the contracted strike rate, the Company will receive its money in US dollars. The Company uses this form of deposit to increase the interest rate, and hence its return, on its
deposits and because it makes payments to vendors in both US dollars and Canadian dollars. Because of this, the Company is somewhat indifferent as to whether the deposit is returned in Canadian dollars or US dollars. This investment poses a greater
risk when compared to investing excess cash in liquid and low risk money market deposits due to the fact that the movement in the underlying foreign exchange rates is uncertain. The following is a summary of the DCD held at year end:

|                                                                                         |  | Notional      |  | Strike     |  | Time to  |  | Fair      |  |                    
|---------------------------------------------------------------------------------------- |  | ------------- |  | ---------- |  | -------- |  | --------- |  | -------------------
|                                                                                         |  | Amount ($)    |  | Price ($)  |  | Maturity |  | Value ($) |  | Presentation       
|USD/CAD DCD                                                                              |  | USD 4,014,667 |  | 0.9895 USD |  | 5 days   |  | $4,458    |  | Current Liabilities
|USD/CAD DCD                                                                              |  | USD 4,021,511 |  | 0.9945 USD |  | 17 days  |  | $8,161    |  | Current Liabilities
|The notional amount above includes interest accrued up to the date of the balance sheet. |  |              

FS-13

---



|Energizer Resources Inc.                   |  |  |  |  |  | 
|------------------------------------------ |  |  |  |  |  | 
|(An Exploration Stage Company)             |  |  |  |  |  | 
|Notes to Consolidated Financial Statements |  |  |  |  |  | 
|For the year ended June 30, 2011           |  |  |  |  |  | 
|(Expressed in US Dollars)                  |  |  |  |  |  | 
|                                          



|5. |  | Equipment
|-- |  | ---------

| |                       |  |          |  |              |  | June 30, 2011 |  | June
30, 2010
| | --------------------- |  | -------- |  | ------------ |  | ------------- |  | -------------
| |                       |  |          |  | Accumulated  |  | Net
Book      |  | Net Book     
| |                       |  | Cost     |  | Depreciation |  | Value         |  | Value        
| | Exploration equipment |  | $ 44,445 |  | $ 37,778     |  | $ 6,667       |  | $ 15,556     



|6. |  | Related Party Transactions and Balances |  |  |  |  |  | 
|-- |  | --------------------------------------- |  |  |  |  |  | 

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making
operating and financial decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related
party transaction when there is a transfer of resources or obligations between related parties. Related party transactions that are in the normal course of business and have commercial substance are measured at the exchange amount.

The following are the related party transactions for the year ended June 30, 2011:

|a) | The Company incurred a total of $59,410 (June 30, 2010: $59,335) in office administration and rent expense from a company related by common management.                                                                                                                                                                                                                                                      
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|b) | During the year a total of 1,100,000 (June 30, 2010: 5,585,000) stock options valued at $237,710 (June 30, 2010: $2,499,136) were issued to directors, officers and relatives
of directors (Note 9).                                                                                                                                                                                                         
|  
|c) | A total of Nil (June 30, 2010: 2,125,000) shares were issued to directors, officers and relatives of directors for services at a fair value of $Nil (June 30, 2010: $361,250).
A further, Nil (June 30, 2010: 250,000) share purchase warrants were issued to a director valued at $Nil (June 30, 2010: $113,125) and are exercisable at $0.58 per share for a period of two years from the date of issuance.
|  
|d) | The Company incurred $821,338 (June 30, 2010: $481,629) in administrative, management and consulting fees to directors, officers and relatives of directors.                                                                                                                                                                                                                                                 
|  

The following are the related party balances as of June 30, 2011:

|a) | Included in accounts payable and accrued liabilities is $168,000 (June 30, 2010: $30,000) due to related parties.
|-- | -----------------------------------------------------------------------------------------------------------------
|  



FS-14

---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

7. Mineral Properties

Green Giant Property, Madagascar, Africa

On August 22, 2007, the Company entered into a joint venture agreement with Madagascar Minerals and Resources Sarl ("MMR"), a Madagascar incorporated company. The joint venture was
established with the Company owning a 75% undivided interest and MMR owning the remaining 25% interest in the Green Giant Property. In order to acquire the 75% interest, the Company paid a total of $765,000, issued 1,250,000 common shares and
500,000 now expired share purchase warrants. On December 10, 2007, the Company issued 1,250,000 common shares valued at $375,000 and 500,000 now expired share purchase warrants. As the Company has not yet determined whether the property has
probable or proven reserves, the Company recognized an impairment loss totaling $1,200,560 which represented the total cash paid and the value of common shares and share purchase warrants issued.

The properties in the joint venture are comprised of mineral permits consisting of 36 "squares" with each square representing approximately 6.25 square kilometres. The properties are
located in the District of Toliara and are referenced as TN 12306, P(R); TN 12814, P(R); TN 12887 P(R); TN 12888 P(R); TN 13020 P(R); TN 13021 P(R) as issued by the Bureau de Cadastre Minier de Madagascar ("BCMM") pursuant to the Mining Code 1999
(as amended) and its implementing decrees.

On July 9, 2009, the Company entered into an agreement with MMR to acquire the remaining 25% interest for $100,000 and terminated the joint venture with MMR. MMR retains a 2% net
smelter return (NSR). The NSR on this 25% interest portion can be acquired by the Company for $500,000 in cash or common shares for the first 1% and at a price of $1,000,000 in cash or common shares for the second 1% at the
Company's option.

Sagar Property - Romanet Horst, Labrador Trough, Quebec, Canada

On May 2, 2006, the Company signed a letter of intent with Virginia Mines Inc. ("Virginia") for an option to acquire a 75% interest in 200 claims located in northern Quebec, Canada.
Virginia had the right and option to sell the remaining 25% interest in the property. This agreement was subject to a 2% NSR. Virginia had previously acquired a 100% interest in the property, subject to a 1% NSR on certain claims, and a 0.5% NSR on
other claims. Virginia has the right to buy back half of the 1% NSR for $200,000 and half of the 0.5% NSR for $100,000. In order to exercise its option, the Company issued 2,000,000 common shares, 2,000,000 now expired share purchase
warrants and incurred exploration expenditures greater than $2,000,000 on the property before September 1, 2008.

Further, on February 28, 2007 Virginia exercised its option to sell its remaining 25% interest on the property to the Company for 1,000,000 common shares valued at $1,219,000 and
1,000,000 now expired share purchase warrants. As a result of these agreements, the Company now owns a 100% interest in this property.

On August 15, 2006, the Company acquired 19 mineral claims contiguous to the Sagar property by paying $5,385, issuing 150,000 common shares valued at $103,500 and 75,000 now
expired share purchase warrants.



FS-15

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|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------



|8. Common Stock
|---------------

|a) | On August 17, 2009, the Company issued 2,250,000 shares of common stock to directors, officers and consultants as compensation for services rendered at a fair value of $382,500.
The shares were valued at $0.17 per share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|b) | On October 5, 2009, the Company issued 500,000 shares of common stock valued at $340,000, and 250,000 share purchase warrants valued at $113,125 to a director. The prevailing
market price on the date of issuance was $0.68. The share purchase warrants issued are exercisable at $0.58 per share for a period of two years from date of issuance. The warrants were valued using the Black-Scholes pricing model with the
following assumptions: risk free interest rate  2.25%; expected volatility  172%; dividend yield  NIL; and expected life  2 years.                                                                                                                                                                                                                                                              
|  
|c) | On March 15, 2010, the Company closed a private placement of 21,666,667 units for gross proceeds of $6,500,000 (the 2010 Offering). Each unit consists of one common
share and one common share purchase warrant. Each warrant entitles the holder the right to purchase one common share at an exercise price of $0.50 for a period of three years following the later of March 15, 2010 or the date of listing on the
TSX-V (May 5, 2010). The expiry of the warrants may be accelerated by the Company if the shares of common stock trade at a price greater than $0.75 at any time after 9 months from March 15, 2010 for a period of 21 consecutive days on the OTC
Bulletin Board ("OTCBB") or the TSX-V, provided that the Company has filed, and had declared effective, the Registration Statement (as defined below).
|  
|   | The units were issued together with listing and filing rights, which rights could have been converted into an escalating number of shares of common stock if the Company did not
complete its TSX-V listing or file a resale registration statement for the securities issued in connection with the 2010 Offering (the Registration Statement) by certain specific dates. The Company was listed on the TSX-V on May 5, 2010
and its Registration Statement was declared effective by the Securities Exchange Commission on November 10, 2010. Therefore the rights have expired.                                                                                                                                                                                                                                              
|  
|   | As consideration for their services in connection with the brokered offerings, two agents ( Agents) were (i) paid a cash commission of 6% of the gross proceeds of the
brokered offerings, (ii) issued 870,000 Class A broker warrants, and (iii) issued 870,000 Class B broker warrants. Each Class A broker warrant entitles the holder to acquire one common share at an exercise price of US$0.30 until March 15, 2012.
Each Class B broker warrant entitles the holder to acquire one common share at an exercise price of US$0.50 at any time after a corresponding number of Class A broker warrants have been exercised by the Agent and on or before May 5,
2013.                                                                                                                                                      
|  
|   | In addition, an Agent was issued 400,000 shares of common stock and 400,000 Class C broker warrants for certain advisory services in connection with the brokered offerings. Each Class
C broker warrant entitles the holder to acquire one common share at an exercise price of US$0.30 until March 15, 2013.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|d) | On March 31, 2010, 2,000,000 stock options were exercised for gross proceeds of $300,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  



FS-16

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|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------



|8. Common Stock - continued
|---------------------------

|e) | On May 5, 2010, the common stock of the Company commenced trading on the TSX-V. A total of 12,060,000 common shares, 4,435,000 warrants and 3,025,000 stock options controlled by
Principals (as defined in the Corporate Finance Manual of the TSX-V) and certain non-Principals are subject to TSX-V surplus escrow requirements applicable to a Tier 2 Issuer and will be released from escrow as follows: 5% of
the original number of escrowed stock at the time of listing, 5% of the original number of escrowed securities 6 months after the listing date (November 4, 2010), 10% of the original number of escrowed securities 12 months after the listing date
(May 4, 2010), 10% of the original number of escrowed securities 18 months after the listing date (November 4, 2011), 15% of the original number of escrowed securities 24 months after the listing date (May 4, 2012), 15% of the original number of
escrowed securities 30 months after the listing date (November 4, 2012) and 40% of the original number of escrowed securities 36 months after the listing date (May 4, 2013).
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | On June 16, 2011, the Company graduated to the Toronto Stock Exchange ("TSX"). The Company's ticker symbol "EGZ" remains the same. As a result of this graduation, the escrowed shares
release dates have been revised. There was no effect for the 20% of the Company's escrowed shares released up to June 16, 2011. Upon commencement of trading on the TSX, 40% of the original number of escrowed securities were released. The remaining
and final 40% of the escrowed securities will be released on November 4, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|f) | On May 11, 2010, the Company issued 6,650,000 stock options to directors, officers and consultants of the Company valued at $2,269,645. The stock options were valued using the
Black-Scholes pricing model with the following assumptions: risk free interest rate  2.28%; expected volatility  147%; dividend yield  NIL; and expected life  4 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  
|g) | On July 2, 2010, the Company issued 500,000 common share purchase warrants to a party who assisted the Company in listing its common stock on the TSX Venture Exchange. These warrants
were valued at $78,100.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|  
|   | The share purchase warrants were valued using the Black-Scholes pricing model with the following assumptions: risk free interest rate  1.54%; expected volatility  172%;
dividend yield  NIL; and expected life  4 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|  
|h) | On October 20, 2010 the Company cancelled 590,000 stock options to directors, officers and consultants of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|  
|i) | On October 21, 2010, the Company issued 1,100,000 stock options to a director of the Company valued at $237,710. The stock options, which vested immediately, were valued using the
Black-Scholes pricing model with the following assumptions: risk free interest rate  1.54%; expected volatility  172%; dividend yield  NIL; and expected life  4 years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|  
|j) | On December 17, 2010 the Company issued 200,000 shares of common stock valued at $90,000 pursuant to a contract with a party to provide advisory services in China.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|  
|k) | During January and February 2011, the Company closed a private placement of 30,936,654 units for gross proceeds of $13,921,495. Each unit consisted of one common share and one
half of one common share purchase warrant. Each of the 15,468,327 warrants issued entitles the holder the right to purchase one common share at an exercise price of $0.75 for a period of two years from the date of issue. In connection with the
private placement, the Company paid finders fees consisting of a cash fee of 6% to certain eligible finders totaling $704,115, TSX-V fees totaling $38,411 and compensation warrants equal to 6% of the eligible units sold totaling
1,564,700. Each full compensation warrant entitles the holder to acquire one unit of the Company at $0.45 per unit and expire on February 25, 2013.                                                                                                                                                                                                                                                                                    
|  
|l) | During the year ended June 30, 2011, the Company issued a total of 4,549,500 shares of common stock for consideration of $881,950. This common stock was issued pursuant to the
exercise of several share purchase warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|  



FS-17

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|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)9. Stock Options
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

On March 8, 2006, the Company filed a Form S-8 Registration Statement in connection with its adopted 2006 Stock Option Plan ("the "2006 Plan") allowing for the direct award of stock
or granting of stock options to acquire up to a total of 2,000,000 shares of common stock. During December 2006, February 2007, September 2009, September 2010 and April 2011, the Stock Option Plan was amended to increase the stock option pool by an
additional 20,000,000 common stock.

|The following table summarizes the continuity of the Company's stock options: |  |            
|----------------------------------------------------------------------------- |  | -----------
|                                                                             
|                                                                              |  | Number     
|                                                                              |  | of Options 
|                                                                             
|Outstanding and exercisable, June 30, 2009                                    |  | 7,630,000  
|Granted                                                                       |  | 8,505,000  
|Exercised                                                                     |  | (2,000,000)
|Expired / Cancelled                                                           |  | (515,000)  
|                                                                             
|Outstanding and exercisable, June 30, 2010                                    |  | 13,620,000 
|Granted                                                                       |  | 1,100,000  
|Expired / Cancelled                                                           |  | (590,000)  
|Outstanding and exercisable, June 30, 2011                                    |  | 14,130,000 

Additional information regarding options outstanding and exercisable as at June 30, 2011 is as follows:

|Exercise  |  | Number of     |  | Expiry           
|--------- |  | ------------- |  | -----------------
|Price ($) |  | Stock Options |  | Date             
|0.15      |  | 365,000       |  | July 28, 2011    
|0.15      |  | 650,000       |  | November 26, 2011
|0.15      |  | 1,920,000     |  | March 4, 2012    
|0.15      |  | 2,695,000     |  | July 11, 2012    
|0.35      |  | 750,000       |  | September 2, 2013
|0.40      |  | 6,650,000     |  | May 11, 2014     
|0.25      |  | 1,100,000     |  | October 21, 2014 
|         
|0.28      |  | 14,130,000    |  |                  

The following were the Black-Scholes pricing model assumptions used to value the stock options issued:

|                                |  | June 30, 2011 |  | June 30, 2010
|------------------------------- |  | ------------- |  | -------------
|                               
|Risk-free interest rate         |  | 1.84%         |  | 2.25% - 2.75%
|Expected dividend yield         |  | 0.00%         |  | 0.00%        
|Expected volatility             |  | 172%          |  | 147% - 158%  
|Expected option life (in years) |  | 4.00          |  | 4.00         

FS-18



---

|Energizer Resources Inc.                   |  |  |  | 
|------------------------------------------ |  |  |  | 
|(An Exploration Stage Company)             |  |  |  | 
|Notes to Consolidated Financial Statements |  |  |  | 
|For the year ended June 30, 2011           |  |  |  | 
|(Expressed in US Dollars)                  |  |  |  | 
|                                          



|10. |  | Warrants |  |  |  | 
|--- |  | -------- |  |  |  | 

|                                                                        
|------------------------------------------------------------------------
|The following table summarizes the continuity of the Company's warrants:
|                                                                        
|                                                                        
|                                                                        
|Outstanding, June 30, 2009                                              
|Granted                                                                 
|Exercised                                                               
|Outstanding, June 30, 2010                                              
|Granted                                                                 
|Exercised                                                               
|Expired / Cancelled                                                     
|Outstanding, June 30, 2011                                              



|At June 30, 2011, the following share purchase warrants were outstanding: |  |           
|------------------------------------------------------------------------- |  | ----------
|                                                                         
|                                                                         
|Exercise                                                                  |  | Number of 
|Price ($)                                                                 |  | Warrants  
|0.58                                                                      |  | 250,000   
|0.30                                                                      |  | 696,000   
|0.75                                                                      |  | 15,468,328
|0.45                                                                      |  | 1,564,700 
|0.50                                                                      |  | 870,000   
|0.30                                                                      |  | 400,000   
|0.15                                                                      |  | 3,650,000 
|0.50                                                                      |  | 21,666,667
|                                                                         
|                                                                          |  | 44,565,695

|The following were the Black-Scholes pricing model assumptions used to value the warrants issued: |  |              
|------------------------------------------------------------------------------------------------- |  | -------------
|                                                                                                 
|                                                                                                  |  | June 30, 2011
|                                                                                                 
|                                                                                                 
|                                                                                                 
|Risk-free interest rate                                                                           |  | 1.54%        
|Expected dividend yield                                                                           |  | 0.00%        
|Expected volatility                                                                               |  | 172%         
|Expected option life (in years)                                                                   |  | 2.00         

FS-19

---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)11. Income Taxes
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

The following table reconciles the expected income tax recovery at the Canadian Federal and Provincial statutory tax rate of 29.3% (2009: 32.5%) to the amount recognized in the
Statement of Operations:

|                                                                                                             |  | June 30, 2011 |  | June 30, 2010 
|------------------------------------------------------------------------------------------------------------ |  | ------------- |  | --------------
|                                                                                                            
|Net loss                                                                                                     |  | $ (4,873,555) |  | $ (10,708,589)
|                                                                                                            
|Expected tax recovery                                                                                        |  | $ (1,427,952) |  | $ (3,480,291) 
|Permanent differences                                                                                        |  | 615,830       |  | 2,396,134     
|Tax rate changes and other adjustments                                                                       |  | 59,674        |  | 682,087       
|Increase in valuation allowance                                                                              |  | 852,930       |  | 567,783       
|Share issue costs                                                                                            |  | (217,637)     |  | (165,713)     
|Expiry of non capital losses                                                                                 |  | 117,155       |  | -             
|                                                                                                            
|Income tax recovery reflected in the Statement of Operations                                                 |  | $ -           |  | $ -           
|                                                                                                            
|The Company's income tax (recovery) is allocated as follows:                                                 |  |               |  |               
|Current tax expense                                                                                          |  | $ -           |  | $ -           
|Future tax recovery                                                                                          |  | $ -           |  | $ -           
|                                                                                                            
|The Companys future income tax assets and liabilities as at June 30, 2011 and June 30, 2010 are as follows: |  |              
|                                                                                                            
|                                                                                                            
|                                                                                                             |  | June 30, 2011 |  | June 30, 2010 
|                                                                                                            
|Non-capital losses                                                                                           |  | $ 1,952,256   |  | $ 1,264,819   
|Undeducted share issue costs                                                                                 |  | 235,277       |  | 147,587       
|Marketable securities                                                                                        |  | 3,706         |  | 5,187         
|Undeducted resource and other tax pools                                                                      |  | 1,103,691     |  | 1,024,373     
|                                                                                                            
|                                                                                                             |  | 3,294,930     |  | 2,441,966     
|Less: valuation allowance                                                                                    |  | (3,294,930)   |  | (2,441,966)   
|                                                                                                            
|Net future income tax (liability) asset                                                                      |  | $ -           |  | $ -           

At June 30, 2011, the Company had non capital losses of approximately $15,556,530 available to offset future taxable income. These losses expire as follows:

|2012 |  | $ 1,714,818 
|---- |  | ------------
|2013 |  | 2,886,412   
|2014 |  | 3,146,277   
|2027 |  | 1,124,081   
|2028 |  | 1,089,979   
|2029 |  | 1,102,306   
|2030 |  | 1,864,839   
|2031 |  | 2,627,818   
|     |  | $ 15,556,530

FS-21

---



|Energizer Resources Inc.(An Exploration Stage Company)Notes to Consolidated Financial StatementsFor the year ended June 30, 2011(Expressed in US Dollars)
|---------------------------------------------------------------------------------------------------------------------------------------------------------

12. Loss Per Share

Basic and diluted loss per share is computed using the weighted average number of common stock outstanding. Diluted EPS and the weighted average number of shares of common stock
exclude all potentially dilutive shares since their effect is anti-dilutive. As at June 30, 2011, there were a total of 58,695,695 (June 30, 2010: 45,509,667) potentially dilutive stock options and warrants outstanding.

13. Subsequent Event

Stock Options

On July 1, 2011 the Company issued a total of 5,175,000 stock options to directors, officers and consultants. These stock options will expire on July 1, 2016 and have an exercise
price of $0.30 per share.







FS-22







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[energizer10k09262011006.jpg]











Consent of Independent Registered Public Accounting Firm







To the Shareholders and Board of Directors of Energizer Resources Inc.

We hereby provide our consent to the incorporation by reference, in this Annual Report on Form 10-K of Energizer Resources Inc. of our report dated September
21, 2011 relating to the consolidated financial statements of Energizer Resources Inc. for the period from July 1, 2010 through June 30, 2011.









Signed:  MSCM LLP





Chartered Accountants

Licensed Public Accountants



Toronto, Ontario

September 27, 2011



















---





Exhibit 31.1



Certification of CEO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2002.

--------------------------------------------------------------------



I, J A Kirk McKinnon, certify that:



1.  I have reviewed this annual report on Form 10-K of Energizer Resources Inc.;



2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;



4.  The Registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:



(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;



(c) Evaluated the effectiveness of the Issuers disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



(d) Disclosed in this report any change in the Issuers internal control over financial reporting that occurred during the Registrants fiscal quarter ending June 30, 2011 that has materially affected, or is reasonably likely to materially affect, the Issuers internal control over financial reporting.



5.  The Registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrants auditor and the audit committee of the Registrants board of directors (or persons performing the equivalent functions):



(a) All deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and



(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.



Dated:   September 26, 2011

/s/ J A Kirk McKinnon

J A Kirk McKinnon, Chief Executive Officer







---





Exhibit 31.2



Certification of CFO pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2002.

--------------------------------------------------------------------



I, Richard E. Schler, certify that:



1.  I have reviewed this annual report on Form 10-K of Energizer Resources Inc.;



2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;



4.  The Registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:



(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;



(c) Evaluated the effectiveness of the Issuers disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



(d) Disclosed in this report any change in the Issuers internal control over financial reporting that occurred during the Registrants fiscal quarter ending June 30, 2011 that has materially affected, or is reasonably likely to materially affect, the Issuers internal control over financial reporting.



5.  The Registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrants auditor and the audit committee of the Registrants board of directors (or persons performing the equivalent functions):



(a) All deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and



(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.



Dated:   September 26, 2011

/s/ Richard E. Schler

Richard E. Schler, Chief Financial Officer







---





Exhibit 32.1



CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)





In connection with the annual report of Energizer Resources Inc. (the "Company") on Form 10-K for the period ending June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, J A Kirk McKinnon, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:



(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and



(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.



Dated:  September 26, 2011

/s/ J A Kirk McKinnon

J A Kirk McKinnon, Chief Executive Officer











---





Exhibit 32.2



CERTIFICATIONS PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)





In connection with the annual report of Energizer Resources Inc. (the "Company") on Form 10-K for the period ending June 30, 2011, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Richard E. Schler, Chief Financial Officer, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:



(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and



(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.



Dated:  September 26, 2011



/s/ Richard E. Schler

Richard E. Schler, Chief Financial Officer













---