|                         |   |              |       |           |
|------------------------------|--------|-------------------|------------|----------------|
| Jackson McDonald             | t:     | +61 8 9426 6611   | Contact:   | Will Moncrieff |
| Lawyers                      | f:     | +61 8 9481 8649   | Reference: | 7141864        |
| 140 St Georges Terrace       | w:     | www.jacmac.com.au |       |           |
| Perth Western Australia 6000 |   |              |       |           |

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| 1      | Interpretation                              | 1                                    |
|--------|---------------------------------------------|--------------------------------------|
|   | 1.1                                         | Definitions                          | 1 |
|   | 1.2                                         | Interpretation                       | 11 |
| 2      | Commencement                                | 13                                   |
| 3      | Consideration                               | 13                                   |
|   | 3.1                                         | Deposit paid                         | 13 |
|   | 3.2                                         | Cash and Share Consideration         | 13 |
|   | 3.3                                         | Payment and issue                    | 13 |
| 4      | Provision of Mining Information             | 14                                   |
| 5      | Acknowledgements by Parties                 | 14                                   |
| 6      | Establishment of JV Company and its Board   | 15                                   |
|   | 6.1                                         | Establishment                        | 15 |
|   | 6.2                                         | Initial Shareholding Interests       | 15 |
|   | 6.3                                         | Adoption of constituent document     | 15 |
|   | 6.4                                         | Board members                        | 15 |
|   | 6.5                                         | Appointment and removal of Directors | 15 |
|   | 6.6                                         | Role and powers of the Board         | 16 |
|   | 6.7                                         | Meetings of the Board                | 16 |
|   | 6.8                                         | Notice of Board meetings             | 17 |
|   | 6.9                                         | Quorum                               | 17 |
|   | 6.1                                         | Decisions of the Boards              | 17 |
|   | 6.11                                        | Voting                               | 17 |
|   | 6.12                                        | Experts and advisers                 | 17 |
|   | 6.13                                        | Minutes of meetings and records      | 18 |
| 7      | Establishment of MadagascarCo               | 18                                   |
|   | 7.1                                         | Establishment                        | 18 |
|   | 7.2                                         | Management of MadagascarCo           | 18 |
|   | 7.3                                         | Appointment and removal              | 18 |
|   | 7.4                                         | Role of Company Manager              | 19 |
|   | 7.5                                         | Adoption of constituent document     | 19 |
| 8      | Business of the JV Company and MadagascarCo | 19                                   |
| 9      | Co-operation of Shareholders                | 19                                   |

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| 10     | Right to explore and sublease                   | 20                                                                           |
|--------|-------------------------------------------------|------------------------------------------------------------------------------|
|   | 10.1                                            | Grant of Subleases                                                           | 20 |
|   | 10.2                                            | Covenants of Permit Holders in respect of the Exploration Permits            | 21 |
|   | 10.3                                            | Covenants in respect of the Exploration Permits                              | 21 |
|   | 10.4                                            | Remedies of Energizer                                                        | 22 |
|   | 10.5                                            | Exercise of Industrial Mineral Rights                                        | 22 |
|   | 10.6                                            | Notice of activities                                                         | 23 |
|   | 10.7                                            | Mutual indemnities                                                           | 23 |
| 11     | Surrender of Exploration Permits                | 24                                                                           |
| 12     | Transfer of Permits                             | 24                                                                           |
| 13     | Bankable Feasibility Study and Decision to Mine | 25                                                                           |
|   | 13.1                                            | Bankable Feasibility Study                                                   | 25 |
|   | 13.2                                            | Decision to Mine                                                             | 25 |
|   | 13.3                                            | Election to participate and formation of mining joint venture                | 26 |
|   | 13.4                                            | Establishment of Mining Area                                                 | 26 |
|   | 13.5                                            | Holding of Mining Area                                                       | 26 |
|   | 13.6                                            | Mining Area ceases to be Joint Venture Property                              | 27 |
|   | 13.7                                            | Transfer of Mining Area                                                      | 27 |
|   | 13.8                                            | Terms of Mining Joint Venture                                                | 27 |
|   | 13.9                                            | Agreement                                                                    | 28 |
| 14     | Conversion to Exploitation Permits              | 28                                                                           |
|   | 14.1                                            | Conversion                                                                   | 28 |
|   | 14.2                                            | Transfer of Exploitation Permits                                             | 28 |
|   | 14.3                                            | Holding of Exploitation Permits                                              | 29 |
|   | 14.4                                            | Approval of Mining Department                                                | 29 |
|   | 14.5                                            | Option of Permit Holders to transfer Exploration Permits prior to conversion | 29 |
| 15     | Environment and Mining Operations               | 29                                                                           |
| 16     | Other Mineral Rights                            | 30                                                                           |
|   | 16.1                                            | Holder of Permits and Other Mineral Rights                                   | 30 |
|   | 16.2                                            | Priority of exercise of Industrial Mineral Rights by JV Company              | 30 |
|   | 16.3                                            | Exercise of Other Mineral Rights by the Permit Holders                       | 30 |
|   | 16.4                                            | Suspension of Other Mineral Rights for duration of Mining Operations         | 30 |
|   | 16.5                                            | Transfer of Other Mineral Rights                                             | 31 |
|   | 16.6                                            | Transfer of Industrial Mineral Rights                                        | 31 |
|   | 16.7                                            | Co-mingling                                                                  | 31 |

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| 17     | Operator                                  | 32                                          |
|--------|-------------------------------------------|---------------------------------------------|
|   | 17.1                                      | First Operator                              | 32 |
|   | 17.2                                      | Functions of the Operator                   | 32 |
|   | 17.3                                      | Operator to prepare Programs and Budgets    | 32 |
|   | 17.4                                      | Liability of Operator                       | 33 |
|   | 17.5                                      | Indemnity of Operator                       | 33 |
|   | 17.6                                      | Preserve Permits                            | 33 |
|   | 17.7                                      | Reporting                                   | 33 |
|   | 17.8                                      | Change of Operator                          | 33 |
| 18     | Contributions to Joint Venture Costs      | 33                                          |
| 19     | Right to dilute                           | 34                                          |
|   | 19.1                                      | Election not to fund                        | 34 |
|   | 19.2                                      | Contributions where election not to fund    | 34 |
|   | 19.3                                      | Dilution                                    | 35 |
| 20     | Disposal of Shares and pre-emption rights | 38                                          |
| 21     | Drag along                                | 38                                          |
| 22     | Tag along                                 | 38                                          |
| 23     | Interest below 10%                        | 39                                          |
| 24     | Representations and warranties            | 39                                          |
|   | 24.1                                      | Representations and warranties by Energizer | 39 |
|   | 24.2                                      | Representations and warranties by Malagasy  | 40 |
|   | 24.3                                      | Disclaimer of liability by Malagasy         | 41 |
| 25     | Guarantee by Malagasy                     | 42                                          |
| 26     | Guarantee by Energizer                    | 42                                          |
| 27     | Assignment                                | 42                                          |
| 28     | Termination                               | 42                                          |
|   | 28.1                                      | Termination events                          | 42 |
|   | 28.2                                      | Event of Default                            | 43 |
|   | 28.3                                      | Effect of termination                       | 43 |
|   | 28.4                                      | Continuing remedies                         | 43 |
| 29     | Force Majeure                             | 44                                          |
|   | 29.1                                      | Force Majeure                               | 44 |
|   | 29.2                                      | Relief                                      | 44 |
|   | 29.3                                      | Labour disputes                             | 44 |
|   | 29.4                                      | Resumption                                  | 45 |
| 30     | Dispute resolution                        | 45                                          |
|   | 30.1                                      | Application                                 | 45 |
|   | 30.2                                      | Dispute negotiation                         | 45 |
|   | 30.3                                      | Arbitration                                 | 46 |
|   | 30.4                                      | Urgent relief                               | 46 |
|   | 30.5                                      | Continued performance                       | 46 |

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| 31     | Disputes as to Technical or Financial Matters | 46                                                           |
|--------|-----------------------------------------------|--------------------------------------------------------------|
|   | 31.1                                          | Definitions                                                  | 46 |
|   | 31.2                                          | Application                                                  | 46 |
|   | 31.3                                          | Dispute negotiation                                          | 46 |
|   | 31.4                                          | Independent Expert                                           | 47 |
| 32     | Expert Determination                          | 47                                                           |
|   | 32.1                                          | Referral to Independent Expert                               | 47 |
|   | 32.2                                          | Appointment of Independent Expert                            | 47 |
|   | 32.3                                          | Requirements of Independent Expert                           | 47 |
|   | 32.4                                          | Rights of the Parties                                        | 48 |
|   | 32.5                                          | Confidentiality                                              | 48 |
|   | 32.6                                          | Determination                                                | 48 |
|   | 32.7                                          | Costs of Independent Expert                                  | 48 |
| 33     | Status of Agreement and further acts          | 49                                                           |
| 34     | Relationship between Parties                  | 49                                                           |
| 35     | Confidentiality and public announcements      | 50                                                           |
|   | 35.1                                          | Confidentiality                                              | 50 |
|   | 35.2                                          | Conditions                                                   | 51 |
|   | 35.3                                          | Notice to other Shareholders                                 | 52 |
|   | 35.4                                          | Indemnities                                                  | 52 |
|   | 35.5                                          | Survival of confidentiality obligations                      | 52 |
|   | 35.6                                          | Use of Mining Information in respect to Other Mineral Rights | 52 |
| 36     | Notices                                       | 52                                                           |
| 37     | Miscellaneous                                 | 53                                                           |
|   | 37.1                                          | Governing law                                                | 53 |
|   | 37.2                                          | Amendments                                                   | 54 |
|   | 37.3                                          | Primacy of this Agreement                                    | 54 |
|   | 37.4                                          | Language                                                     | 54 |
|   | 37.5                                          | Waiver                                                       | 54 |
|   | 37.6                                          | Consents                                                     | 54 |
|   | 37.7                                          | Counterparts                                                 | 54 |
|   | 37.8                                          | No representation or reliance                                | 54 |
|   | 37.9                                          | Expenses                                                     | 55 |
|   | 37.1                                          | Entire agreement                                             | 55 |
|   | 37.11                                         | Indemnities                                                  | 55 |
|   | 37.12                                         | Severance and enforceability                                 | 55 |
|   | 37.13                                         | No merger                                                    | 55 |
|   | 37.14                                         | Power of attorney                                            | 55 |
|   | 37.15                                         | Taxes                                                        | 56 |

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| Schedule 1 – Exploration Permits and Area of Interest | 57 |
|-------------------------------------------------------------|----|
| Schedule 2 – Industrial Minerals                      | 58 |
| Schedule 3 – Map of Area of Interest                  | 59 |
| Schedule 4 – Net Smelter Return Royalty               | 60 |
| Executed as an agreement                                    | 64 |
| Annexure A – Area of Interest                         | 65 |
| Annexure B – Form of Mazoto Sublease Agreement        | 66 |
| Annexure C – Form of MDA Sublease Agreement           | 67 |

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| Energizer Resources Inc.Energizer                                       | 141 Adelaide Street, West Suite 520, Toronto, Ontario, Canada                         |
|------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Malagasy Minerals LimitedACN 121 700 105Malagasy                        | Unit 7, 11 Colin Grove, West Perth, Western Australia                                 |
| Madagascar-ERG Joint Venture (Mauritius) LtdCompany Number: 106367JV Company | 6th Floor, Newton Tower, Sir William Newton Street, Port Louis, Republic of Mauritius |

| A.   | The Permit Holders are the sole registered holders and beneficial owners of the Exploration Permits. |
|----------------|------------------------------------------------------------------------------------------------------|

| B.   | By the Heads of Agreement Energizer and Malagasy agreed to participate in a joint venture in relation to the Industrial Mineral Rights subject to Energizer being satisfied with the outcome of due diligence enquiries in relation to the Permit Holders and the Permits. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | Energizer has completed its due diligence enquiries and is satisfied with the outcome of these enquiries. |
|----------------|-----------------------------------------------------------------------------------------------------------|

| D.   | This Agreement supersedes and replaces the Heads of Agreement. |
|----------------|----------------------------------------------------------------|

| 1.   | Interpretation |
|----------------|----------------|

| 1.1   | Definitions |
|-----------------|-------------|

| Accession Deed | a deed between the Parties to this Agreement and a third party pursuant to which the third party assumes the obligations of the assigning Party to the extent of the interest being assigned to the third party as if the third party was an original party to this Agreement and is otherwise in a form satisfactory to the non-assigning Party, acting reasonably. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           |                                                                                                                                                                                                                                                                                                                                                                 |
| Agreement      | this agreement.                                                                                                                                                                                                                                                                                                                                                      |
|           |                                                                                                                                                                                                                                                                                                                                                                 |

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| Area of Interest           | the areas of the Exploration Permits described in Annexure A and identified by the area within the green line of the map at Schedule 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Bankable Feasibility Study | a detailed report or reports prepared by or on behalf of Energizer and/or JV Company evaluating the feasibility of placing mineral deposits within the Area of Interest, or any part thereof, into production and operation as a mine, which detailed report or reports must include, without limitation, a reasonable assessment of the mineable mineral reserves and their amenability to metallurgical treatment, a complete description of the work, equipment and supplies required to bring the mineral deposits within the Area of Interest into mineral production and the estimated cost thereof, a description of the mining methods to be employed and a financial appraisal of possible mining operations.  Such detailed report or reports must be, in the opinion of the person or firm commissioning such report or reports, or, in the event of a dispute between the Parties, in the opinion of such qualified independent firm of consultants as Energizer and/or JV Company selects in good faith, in such form and of such substance which is normally accepted by substantial, recognised financial institutions for the purpose of determining whether to lend funds for the development of mineral deposits, and must include and be supported by at least the following: (a)   a description of the mining claims within the Area of Interest and that part of the mining claims within the Area of Interest proposed to be the subject of a mine; (b)   the estimated recoverable reserves of minerals and the estimated composition and content thereof; (c)   the procedure for the development, mining and production of Industrial Minerals from the mining claims within the Area of Interest; (d)   results of mineral processing tests and ore amenability tests; (e)   the nature and extent of the facilities which might be necessary to acquire or construct, which may include ore processing facilities if the nature, volume and location of the ore makes such ore processing facilities necessary and feasible, in which event the study must also include a design for such ore processing facilities; (f)    a detailed cost and timing analysis, including a capital cost budget, of the total estimated costs and expenses required to develop a mine on the mining claims within the Area of Interest and to purchase, construct and install all structures, machinery, equipment, and electricity connection or generation equipment required for such mine including an ore processing facility, if so included in accordance with the terms hereof; |

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|         | (g)   detailed operating cost estimates, including working capital requirements for the initial three months of operation of the mine or such longer period as may be reasonably justified; (h)   all description of necessary environmental impact and mitigation studies and costs, including planned rehabilitation of the mining claims within the Area of Interest with estimated costs thereof; (i)    a critical path time schedule for bringing the mining claims within the Area of Interest or any part thereof to commercial production; (j)    such other data and information as are reasonably necessary to substantiate the existence of a mineral deposit of sufficient size and grade to justify development of a mine on the  mining claims within the Area of Interest, taking into account all relevant business, tax and other economic considerations; (k)   disclosure of all price assumptions; (l)    a transportation cost analysis; (m)  a proposed procedure or method of disposing of tailings as required under the environmental and mining laws of all Governmental Agencies having jurisdiction; (n)   a detailed discussion and analysis of governmental requirements with respect to the development of a mine on the mining claims within the Area of Interest including time schedules; (o)  details regarding any proposed financing of the project; (p)  a discounted cash flow (net of income taxes) and return on investment analysis, including an economic forecast for the life of the proposed mine; and (q) appropriate sensitivity analyses.  |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board        | the board of Directors of JV Company or MadagascarCo (as the context requires).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Business     | the business of JV Company and MadagascarCo as described in clause 8(a) and such other business as the Shareholders may agree.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Business Day | a day which is not a Saturday, a Sunday or a public holiday in Ontario, Canada or Perth, Western Australia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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| Claim                    | in relation to a Party, any demand, claim, action or proceeding made or brought by or against the Party, howsoever arising and whether present, unascertained, immediate, future or contingent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Confidential Information | all information, documents, maps, reports, records, studies, forms, specifications, processes, statements, formulae, trade secrets, drawings and other data (and copies and extracts made of or from any such data) in written or electronic form and whether reduced to writing or not, and at any time in the possession or under the control of or readily accessible to any Party, including the Mining Information, concerning: (a)   the existence or contents of this Agreement; (b)   Joint Venture Property; (c)   Joint Venture Operations; (d)   JV Company; (e)   MadagascarCo; (f)    the operations and transactions of a Party; (g)   the organisation, finance, customers, markets, suppliers, intellectual property and know-how of a Party or a Related Body Corporate of a Party; and (h)   any other information obtained during the Term or in the course of the Joint Venture, that is not in the public domain (except by failure of a Party to perform and observe its covenants and obligations under this Agreement) and that has been obtained by a Party during the negotiations preceding the making of this Agreement or the Heads of Agreement by or through or by being a Party to this Agreement or the Heads of Agreement.  |
| Country Manager          | has the meaning in clause 7.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Decision to Mine         | has the meaning given to that term in clause 13.2(a).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Director                 | a director of JV Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| Dispose         | in relation to a person and any property, means to sell, transfer, assign, surrender, create an Encumbrance over, declare oneself a trustee of or part with the benefit or otherwise dispose of that property (or any interest in it or any party of it) whether done before, on or after the person obtains any interest in the property, including without limitation in relation to a share, to enter into a transaction in relation to the share (or any interest in the share) which results in a person other than the registered holder of the share: (a)   acquiring or having an equitable or beneficial interest in the share, including, without limitation, an equitable interest arising under a declaration of trust, an agreement for sale and purchase or an option agreement or an agreement creating a charge or other Encumbrance over the share; or (b)   acquiring or having any right to receive (directly or indirectly) any dividends or other distribution or proceeds of disposal payable in respect of the share or any right to receive an amount calculated by reference to any of them; or (c)   acquiring or having any rights of pre-emption, first refusal or other direct or indirect control over the disposal of the share; or (d)   acquiring or having any rights of (direct or indirect) control over the exercise of any voting rights or rights to appoint Directors attaching to the share; or (e)   otherwise acquiring or having equitable rights against the registered holder of the share (or against a person who directly or indirectly controls the affairs of the registered holder of the shares) which have the effect of placing the other person in substantially the same position as if the person had acquired a legal or equitable interest in the share itself, but excludes: (f)   a transaction expressly permitted by this Agreement; or (g)   a transaction conditional on each Shareholder consenting to it.  |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Encumbrance     | any mortgage, bill of sale, lien, charge, pledge, writ, warrant, production royalty, caveat (and all claims stated in the caveat), assignment by way of security, security interest, title retention, preferential right or trust arrangement, Claim, covenant, profit a pendre, easement, or any other security arrangement or other right or interest of any third party and includes any other arrangement having the same effect.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Energex         | Energex SARL, a company incorporated under the laws of Madagascar and a wholly owned subsidiary of Malagasy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Energizer       | Energizer Resources Inc., a company incorporated under the laws Minnesota, United States of Amercia.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Energizer Share | a fully paid ordinary share in the capital of Energizer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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| Environmental Law       | any law concerning environmental matters which regulates or affects the Permits, and includes, but is not limited to, laws concerning land use, development, pollution, waste disposal, toxic and hazardous substances, conservation of natural or cultural resources and resource allocation including any law relating to exploration for or development of any natural resource.                                                                                                                                             |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Environmental Liability | any obligation, expense, penalty or fine under Environmental Law, including rehabilitation and rectification work of whatsoever nature or kind.                                                                                                                                                                                                                                                                                                                                                                                 |
| Execution Date          | the date of execution of this Agreement by the last of the Parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Exploitation Permit     | a permit granted under the Mining Code in relation to the Area of Interest which gives the holder an exclusive right to exploit authorised minerals, continue exploration and research of such minerals and to build any permanent or temporary structures.                                                                                                                                                                                                                                                                     |
| Exploration             | all activities and operations that have as their purpose the discovery, location, delineation and further investigation of any Industrial Minerals, Industrial Mineral deposits and ore, including drilling and trenching, the testing or proving of those bodies, the conducting of pre-feasibility, viability and amenability studies and the establishment and the administration of field offices for the performance of any of these functions.                                                                            |
| Exploration Operations  | all Exploration activities conducted by JV Company and MadagascarCo in accordance with this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Exploration Permits     | the exploration permits granted under the Mining Code listed in Schedule 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Good Mining Practices   | in relation to Exploration and Mining, those practices, methods and acts engaged in or approved by a firm or body corporate which, in the conduct of its undertaking, exercises that degree of safe and efficient practice, diligence, prudence, and foresight reasonably and ordinarily exercised by skilled and experienced operators engaged in the mining industry in Ontario, Canada.                                                                                                                                      |
| Good Standing           | in relation to a Permit, that the Permit is and remains in full force and effect and is and remains not liable to cancellation, forfeiture or non-renewal, for any reason other than compulsory partial surrenders under the Mining Code and the non-renewal of a Permit other than by reason of default by the holder of the Permit but does not include anything that occurs as a result of the current political situation in Madagascar including as a result of the current moratorium on renewal or transfer of Permits.  |

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| Governmental Agency       | any government or any governmental, semi-governmental, administrative, fiscal or judicial body, responsible minister, department, office, commission, delegate, authority, instrumentality, tribunal, board, agency, entity or organ of government, whether federal, state, territorial or local, statutory or otherwise, in respect of a sovereign state and includes any of them purporting to exercise any jurisdiction or power outside that sovereign state.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Heads of Agreement        | the document entitled “Joint Venture Heads of Agreement” dated 5 October 2011 between Energizer and Malagasy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Independent Expert        | an expert independent of the Parties appointed under and for the purposes of clause 32.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Industrial Minerals       | the minerals listed in Schedule 2 of this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Industrial Mineral Rights | all Mineral Rights with respect to Industrial Minerals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Joint Venture             | the joint venture constituted by this Agreement for the Exploration of, and if warranted, the Mining of the Area of Interest, to be conducted by JV Company and MadagascarCo pursuant to this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Joint Venture Costs       | all costs, expenses and liabilities incurred in connection with Joint Venture Operations including: (a) all costs of establishing and maintaining JV Company and MadagascarCo; (b) the costs of conducting Exploration Operations (including any Minimum Expenditure Obligations); (c) the costs of conducting Mining Operations; (d) all rents, fees and taxes applicable to the Permits; (e) all Outgoings in relation to Permits; (f) the cost of all personnel engaged in the conduct of Joint Venture Operations; (g) the cost of all items of plant, equipment, machinery and vehicles used in connection with Joint Venture Operations; (h) a charge (not including any element of profit) for administrative and overhead expenses incurred by the Operator, at a rate not exceeding 10% of items of expense referred to in this definition; (i) any costs of procuring and maintaining any insurance required for the conduct of Joint Venture Operations in accordance with good industry practice; (j) administrative, overhead, office and employment costs and expenses incurred in connection with the conduct of Joint Venture Operations; and (k) domestic and international travel expenses incurred in connection with the conduct of Joint Venture Operations.  |

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| Joint Venture Operations          | all activities of the Joint Venture under this Agreement including Exploration Operations and if applicable, Mining Operations.                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Joint Venture Property            | all property of whatsoever kind held or hereafter acquired or created by or on behalf of JV Company or MadagascarCo for the purposes of the Joint Venture including (without limitation): (a) the Industrial Mineral Rights; (b) rights under any Sublease; (c) any Permits held by JV Company or MadagascarCo; and (d) Mining Information.                                                                 |
| Labradorite Subleases             | the following subleases entered into by MDA for the purposes of exploring for and exploiting labradorite: (a) sublease agreement between MDA and Magrama SA dated 17 November 2005; (b) sublease agreement between MDA and SQNY International SARL dated 3 November 2006 as amended by agreement dated 3 December 2010; and (c) sublease agreement between MDA and Euromad Minière SARL dated 17 November 2005.  |
| Law                               | any statute, ordinance, code, regulation, law, by-law, local law, plan, planning scheme, local structure plan, official directive, order, instrument, undertaking, judicial, administrative or regulatory decree, judgement, ruling or order.                                                                                                                                                                                                       |
| Madagascar                        | the Republic of Madagascar.                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Madagascar Development JV Company | has the meaning in clause 13.5(b).                                                                                                                                                                                                                                                                                                                                                                                                                  |
| MadagascarCo                      | the company incorporated or to be incorporated under the laws of Madagascar as described in clause 7 and known as ERG (Madagascar) Ltd.                                                                                                                                                                                                                                                                                                             |
| Madagascan Government             | the government of Madagascar.                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Malagasy                          | Malagasy Minerals Limited ACN 121 700 105, a company incorporated under the laws of Australia.                                                                                                                                                                                                                                                                                                                                                           |

----

----

| Material Adverse Effect          | an unfavourable or adverse event, occurrence or circumstance, or the result thereof, that causes the actual value of Area of Interest or the Industrial Mineral Rights to be materially impaired or devalued but does not include anything that occurs as a result of the current political situation in Madagascar including as a result of the current moratorium on renewal or transfer of Permits.     |
|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mauritian Development JV Company | has the meaning in clause 13.5(b).                                                                                                                                                                                                                                                                                                                                                                         |
| Mauritius                        | the Republic of Mauritius.                                                                                                                                                                                                                                                                                                                                                                                 |
| Mazoto                           | Mazoto Minerals SARL, a company incorporated under the laws of Madagascar and a wholly owned subsidiary of Malagasy.                                                                                                                                                                                                                                                                                       |
| Mazoto Sublease Agreements       | sublease agreements to be entered into by Mazoto and MadagascarCo in relation to the relevant area / squares of each Exploration Permit held by Mazoto within the Area of Interest, in the form set out at Annexure B.                                                                                                                                                                                     |
| MDA                              | means Mada-Aust SARL, a company incorporated under the laws of Madagascar and a wholly owned subsidiary of Malagasy.                                                                                                                                                                                                                                                                                       |
| MDA Sublease Agreements          | sublease agreements to be entered into by MDA and MadagascarCo in relation to the relevant area / squares of each Exploration Permit held by MDA within the Area of Interest, in the form set out at Annexure C.                                                                                                                                                                                           |
| Mineral Rights                   | the right to explore for and mine minerals within the Area of Interest in accordance with the Permits.                                                                                                                                                                                                                                                                                                     |
| Minimum Expenditure Obligations  | the minimum expenditure which the holder of a Permit is required under the Mining Code to incur in respect of that Permit in any given year.                                                                                                                                                                                                                                                               |
| Mining                           | all work of or associated with extraction of Industrial Mineral deposits by way of commercial exploitation, including all preparatory development and incidental work (other than Exploration) and to the extent agreed between the Parties may include extraction, beneficiation, transportation, refining, processing and marketing of minerals, including ore concentrates, matte and metals produced.  |
| Mining Area                      | the area of the Area of Interest determined under clause 13.4.                                                                                                                                                                                                                                                                                                                                                  |

----

----

| Mining Code          | the body of legal provisions in force in Madagascar contained in the Law no 99-022 of 19/08/1999 containing the Mining Code as amended by Law no 2005-021 of 17/10/2005 as well as Decree no 2006-910 of 19/12/2006 setting out the conditions of application of the Law no 99-022 of 19/08/1999 as amended by Law no 2005-021 of 17/10/2005, as amended from time to time.  |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Mining Department    | Bureau du Cadastre Minier de Madagascar (the Madagascar Mining Registry Office), also known as the BCMM.                                                                                                                                                                                                                                                                     |
| Mining Information   | all technical information including (without limitation) geological, geochemical and geophysical reports, surveys, mosaics, aerial photographs, samples, drill cores, drill logs, drill pulp, assay results, maps and plans relating to the Industrial Minerals in the Area of Interest or to Joint Venture Operations, whether in physical, written or electronic form.     |
| Mining Operations    | all Mining activities conducted by JV Company and MadagascarCo under this Agreement.                                                                                                                                                                                                                                                                                         |
| NewCo Madagascar     | has the meaning in clause 13.3(b).                                                                                                                                                                                                                                                                                                                                           |
| NewCo Mauritius      | has the meaning in clause 13.3(b).                                                                                                                                                                                                                                                                                                                                           |
| Operator             | the person appointed as operator in accordance with clause 17 for the purposes of managing, directing and controlling any and all Joint Venture Operations on behalf of and as agent for JV Company, MadagascarCo and the Shareholders.                                                                                                                                      |
| Other Mineral Rights | all Mineral Rights other than the Industrial Mineral Rights.                                                                                                                                                                                                                                                                                                                 |
| Other Minerals       | all other minerals other than the Industrial Minerals.                                                                                                                                                                                                                                                                                                                       |
| Outgoings            | all rents, rates, survey fees and other fees and charges under the applicable legislation or otherwise in connection with a Permit.                                                                                                                                                                                                                                          |
| Parties              | the parties to this Agreement and Party means any one of them.                                                                                                                                                                                                                                                                                                                    |

----

----

| Permit Holders         | MDA, Mazoto and Energex.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Permits                |  (a) Exploration Permits; (b) Exploitation Permits; (c) any licence, concession, permit or tenement which may hereafter be in force or issued in lieu of or in relation to the same ground as the permits referred to in paragraphs (a) or (b) of this definition; (d) any permit, concession, licence or tenement that is a successor, renewal, modification, extension or substitute for the permits referred to in paragraphs (a), (b) or (c) of this definition; and (e) all rights to mine and other privileges appurtenant to the mining tenements and all ore and mineral-bearing material, sand, slimes, tailings and residues of whatsoever nature located on and under the land the subject of a licence, concession, permit or tenement referred to in paragraphs (a), (b), (c) or (d) of this definition.  |
| Programs and Budgets   | a program and budget for the conduct of Joint Venture Operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Related Body Corporate | in relation to a Party, a corporation that is: (a) a holding company of the Party; (b) a subsidiary of the Party; or (c) a subsidiary of a holding company of the Party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Respective Proportion  | in respect of a Shareholder, a proportion equal to the proportion (by value) of the issued capital of JV Company or NewCo Mauritius (as the context requires) held by that Shareholder from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Share                  | a share in the capital of JV Company or NewCo Mauritius (as the context requires).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Shareholder            | a holder of Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Shareholding Interest  | a direct interest in Shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| SIAC                   | the Singapore International Arbitration Centre.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Simple Majority        |  (a) in relation to a resolution of Directors, a resolution that is passed by an affirmative vote of more than 50% of the votes cast by Directors entitled to vote on the resolution; and (b) in relation to a resolution of Shareholders, a resolution that is passed by an affirmative vote of more than 50% of the votes cast by Shareholders entitled to vote on the resolution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Sublease               | has the meaning given to that term in clause 10.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Sublease Agreements    | means either or both of the MDA Sublease Agreements and the Mazoto Sublease Agreements (as the context requires).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Term                   | the period from the Execution Date to the termination of this Agreement in accordance with its provisions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

| 1.2   | Interpretation |
|-----------------|----------------|

| (a)   | headings are for convenience; and |
|-----------------|-----------------------------------|

----

----

| (b)   | an obligation or a liability assumed by, or a right conferred on, 2 or more persons binds or benefits them jointly and severally; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| (c)   | a word or phrase in the singular number includes the plural, a word or phrase in the plural number includes the singular, and a word indicating a gender includes every other gender; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | if a word or phrase is given a defined meaning, any other part of speech or grammatical form of that word or phrase has a corresponding meaning; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | a reference to: |
|-----------------|-----------------|

| (i)   | a party, clause, schedule, exhibit, attachment or annexure is a reference to a party, clause, schedule, exhibit, attachment or annexure to or of this Agreement; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | a party includes that party’s executors, administrators, successors, permitted assigns, including persons taking by way of novation and, in the case of a trustee, includes a substituted or an additional trustee; |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | an agreement includes any undertaking, deed, agreement and legally enforceable arrangement whether in writing or not, and is to that agreement as varied, novated, ratified or replaced from time to time; |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | a document includes an agreement in writing and any deed, certificate, notice, instrument or document of any kind; |
|------------------|--------------------------------------------------------------------------------------------------------------------|

| (v)   | a document in writing includes a document recorded by any electronic, magnetic, photographic or other medium by which information may be stored or reproduced; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | a document (including this Agreement) includes a reference to all schedules, exhibits, attachments and annexures to it, and is to that document as varied, novated, ratified or replaced from time to time; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vii)   | legislation or to a provision of legislation includes any consolidation, amendment, re-enactment, substitute or replacement of or for it, and refers also to any regulation or statutory instrument issued or delegated legislation made under it; |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | a person includes an individual, the estate of an individual, a corporation, an authority, an unincorporated body, an association or joint venture (whether incorporated or unincorporated), a partnership and a trust; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix)   | a right includes a power, remedy, authority, discretion or benefit; |
|------------------|---------------------------------------------------------------------|

| (x)   | conduct includes an omission, statement or undertaking, whether in writing or not; |
|-----------------|------------------------------------------------------------------------------------|

| (xi)   | an agreement, representation or warranty in favour of two or more persons is for the benefit of them jointly and severally; and |
|------------------|---------------------------------------------------------------------------------------------------------------------------------|

| (xii)   | an agreement, representation or warranty on the part of two or more persons binds them jointly and severally; |
|-------------------|---------------------------------------------------------------------------------------------------------------|

----

----

| (f)   | the word “includes” in any form is not a word of limitation; |
|-----------------|--------------------------------------------------------------------------|

| (g)   | the words “for example” or “such as” when introducing an example do not limit the meaning of the words to which the example relates to that example or to examples of a similar kind; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | a reference to a day is to a period of time commencing at midnight and ending 24 hours later; |
|-----------------|-----------------------------------------------------------------------------------------------|

| (i)   | if a period of time dates from a given day or the day of an act or event, it is to be calculated exclusive of that day; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| (j)   | a reference to “$” or “dollar” is to US currency. |
|-----------------|---------------------------------------------------------------------------|

| 2.   | Commencement |
|----------------|--------------|

| (a)   | The Parties acknowledge and agree that this Agreement commences with effect on and from the Execution Date. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (b)   | With effect on and from the Execution Date, this Agreement replaces and supersedes the Heads of Agreement, which is of no further force and effect. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Consideration |
|----------------|---------------|

| 3.1   | Deposit paid |
|-----------------|--------------|

| 3.2   | Cash and Share Consideration |
|-----------------|------------------------------|

| (a)   | pay Malagasy the sum of US$2,000,000 (Cash Consideration) in accordance with clause 3.3; and |
|-----------------|----------------------------------------------------------------------------------------------|

| (b)   | issue to Malagasy (or its nominee) 7,500,000 Energizer Shares in accordance with clause 3.3 (Share Consideration). |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| 3.3   | Payment and issue |
|-----------------|-------------------|

| (a)   | The Cash Consideration is to be paid by Energizer to Malagasy within three (3) Business Days of the Execution Date, being the date on which this Agreement is executed by the Parties. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The Share Consideration is to be issued by Energizer to Malagasy within five (5) Business Days of Energizer receiving the approval of the Toronto Stock Exchange (TSX) for the issue of the Share Consideration to Malagasy. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (c)   | The Parties acknowledge that TSX approval for the issue of the Share Consideration can only be sought by Energizer on the Execution Date, once the Agreement has been executed.  Energizer agrees to use all reasonable endeavours to ensure TSX’s prompt approval and that the Share Consideration is issued as soon as practicable after the Execution Date. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The Cash Consideration will be paid by Energizer (or its nominee) into a bank account nominated by Malagasy. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| 4.   | Provision of Mining Information |
|----------------|---------------------------------|

| 5.   | Acknowledgements by Parties |
|----------------|-----------------------------|

| (a)   | The Parties acknowledge and agree that the Exploration Permits will remain registered in the name of the Permit Holders other than any portion of an Exploration Permit which is converted to an Exploitation Permit which will be dealt with in accordance with clause 14. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Malagasy must procure that the Permit Holders: |
|-----------------|------------------------------------------------|

| (i)   | perform all obligations expressed by this Agreement to be imposed on the Permit Holders by this Agreement; and |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (ii)   | execute all such documents as are necessary for those entities to be bound by the obligations imposed on them, and to be entitled to exercise the rights contemplated by this Agreement. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the Shareholders must procure that the JV Company and MadagascarCo: |
|-----------------|---------------------------------------------------------------------|

| (i)   | perform all obligations expressed by this Agreement to be imposed on the JV Company and MadagascarCo; and |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (ii)   | execute all such documents as are necessary for those entities to be bound by the obligations imposed on them, and to be entitled to exercise the rights contemplated by this Agreement. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The Parties acknowledge that they will use their respective best endeavours to execute the MDA Sublease Agreements and Mazoto Sublease Agreements contemporaneously with the signing of this Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | The Parties acknowledge that the relevant Permits held by Energex are currently in the process of being transferred to MDA; however, they remain subject to the current moratorium on transfer of Permits. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | The Parties acknowledge that Exploration Operations may only be conducted in respect of those Industrial Minerals noted on the Permits or for which an authorisation of the Mining Department has been received by the Permit Holders acknowledging that those Industrial Minerals are the subject of the Permits.  Malagasy will procure that the Permit Holders comply with their obligations under clause 10.2(d). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 6.   | Establishment of JV Company and its Board |
|----------------|-------------------------------------------|

| 6.1   | Establishment |
|-----------------|---------------|

| 6.2   | Initial Shareholding Interests |
|-----------------|--------------------------------|

| (a)   | On establishment of JV Company, the initial Shareholders and their Shareholding Interests in JV Company are as follows: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| Shareholder | Number of Shares | Shareholding Interest |
|-------------|------------------|-----------------------|
| Energizer   | 3                | 75%                   |
| Malagasy    | 1                | 25%                   |

| (b)   | If required, each Shareholder must subscribe for, for nominal consideration, the number of Shares specified in clause 6.2(a) next to its name. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3   | Adoption of constituent document |
|-----------------|----------------------------------|

| 6.4   | Board members |
|-----------------|---------------|

| (a)   | Mr Kirk McKinnon (Chairman); |
|-----------------|------------------------------|

| (b)   | Mr Richard Schler; |
|-----------------|--------------------|

| (c)   | Mr Peter Liabotis; |
|-----------------|--------------------|

| (d)   | Mr Craig Scherba; and |
|-----------------|-----------------------|

| (e)   | Mr Roland Fok-Seung. |
|-----------------|----------------------|

| 6.5   | Appointment and removal of Directors |
|-----------------|--------------------------------------|

| (a)   | Energizer shall have the right to appoint further Directors to the Board provided the total number of Directors does not exceed that number permitted under the articles of association of JV Company or by law. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Following the completion of a Bankable Feasibility Study and its delivery to Shareholders in accordance with clause 13.1, and provided Malagasy remains a Shareholder, Malagasy will be entitled to nominate one (1) Director to the Board. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (c)   | In circumstances where the office of Chairman of the Board becomes free, a new Chairman shall be nominated by the Shareholder holding the majority of Shares at that time. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | A person will be automatically removed as a Director without the need for any other actions by the Shareholders or the Director if: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the Shareholder who nominated the person as a Director ceases to be a Shareholder. |
|-----------------|------------------------------------------------------------------------------------|

| (ii)   | the Shareholder that nominated the person as a Director gives written notice to JV Company that the person ceases to be a Director; or |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | in such other circumstances as provided for in the articles of association of JV Company. |
|-------------------|-------------------------------------------------------------------------------------------|

| (e)   | If a Shareholder that nominated a person as a Director gives written notice to the other Shareholders that the person has ceased to be a Director pursuant to clause 6.5(d)(ii), the Shareholder may (without the need for any other actions by JV Company or the Directors) appoint another person as a Director to replace the person who has ceased to be a Director. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.6   | Role and powers of the Board |
|-----------------|------------------------------|

| (a)   | The business and affairs of the Joint Venture are to be under the control and direction of the Board.  All decisions of the Board must not breach the terms of this Agreement or any Law.  Except as otherwise provided in this Agreement, the Board is to decide all matters in relation to the business and affairs of the Joint Venture including: |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | adoption of an accounting procedures manual for the Joint Venture and the Operator; |
|-----------------|-------------------------------------------------------------------------------------|

| (ii)   | appointment of independent auditors (if any); |
|------------------|-----------------------------------------------|

| (iii)   | delegation of matters to any sub-committees and the Operator; |
|-------------------|---------------------------------------------------------------|

| (iv)   | giving directions to, and setting spending limits and other control mechanisms for any sub-committees and the Operator; |
|------------------|-------------------------------------------------------------------------------------------------------------------------|

| (v)   | the surrender of the Joint Venture Property; |
|-----------------|----------------------------------------------|

| (vi)   | approval and revision of Programs and Budgets; and |
|------------------|----------------------------------------------------|

| (vii)   | other matters to be decided by the Board as specified in this Agreement. |
|-------------------|--------------------------------------------------------------------------|

| (b)   | All decisions of the Board bind the Shareholders unless such decision is in breach of this Agreement or any Law.  Each Shareholder agrees to give effect to those decisions provided such decision not a breach of this Agreement or any Law. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.7   | Meetings of the Board |
|-----------------|-----------------------|

| (a)   | The Board will meet: |
|-----------------|----------------------|

----

----

| (i)   | at least once each calendar year; and |
|-----------------|---------------------------------------|

| (ii)   | at such other times as the Board may decide. |
|------------------|----------------------------------------------|

| (b)   | Meetings of the Board may take place where the Directors are physically present together, by telephone link-up or by audio-visual transmission. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | A Director may at any time, and the company secretary will on the request of a Director, convene a meeting of the Directors. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| 6.8   | Notice of Board meetings |
|-----------------|--------------------------|

| (a)   | must specify the time and the place of the meeting, but need not state the nature of the business to be transacted; |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (b)   | must be given to each Director not less than 5 days before the meeting; and |
|-----------------|-----------------------------------------------------------------------------|

| (c)   | may be given by telephone, facsimile transmission or electronic mail message, |
|-----------------|-------------------------------------------------------------------------------|

| 6.9   | Quorum |
|-----------------|--------|

| 6.10   | Decisions of the Boards |
|------------------|-------------------------|

| 6.11   | Voting |
|------------------|--------|

| (a)   | Each Director may vote at a meeting of the Board. |
|-----------------|---------------------------------------------------|

| (b)   | Each Director is entitled to one vote for each Share held by his nominating Shareholder in JV Company, provided that the total number of votes cast by the Directors appointed by his nominating Shareholder who vote on the matter shall not exceed the number of Shares held by the nominating Shareholder in JV Company.  For example, if a Shareholder holds 3 Shares, the total number of votes cast by all Directors nominated by that Shareholder shall be 3. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | In the case of equality of votes, the Chairman of the meeting will have a casting vote. |
|-----------------|-----------------------------------------------------------------------------------------|

| 6.12   | Experts and advisers |
|------------------|----------------------|

----

----

| 6.13   | Minutes of meetings and records |
|------------------|---------------------------------|

| (a)   | Minutes of Board meetings will be kept. |
|-----------------|-----------------------------------------|

| (b)   | On request, JV Company will provide copies of the agenda of Board meetings, minutes of Board meetings and Board papers supporting such minutes to the Shareholder who requests such information. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | On reasonable notice, any Shareholder and its advisers shall have access to review and will be provided with copies of such of the records of JV Company and MadagascarCo as reasonably requested from time to time. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Malagasy and its advisers will, at the cost of Malagasy, have the right to conduct an audit review of the records of JV Company and MadagascarCo. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.   | Establishment of MadagascarCo |
|----------------|-------------------------------|

| 7.1   | Establishment |
|-----------------|---------------|

| (a)   | The Parties have established, or will as soon as practicable after the Execution Date establish, ERG (Madagascar) Ltd as MadagascarCo, being a company incorporated under the laws of Madagascar for the purposes of holding the Subleases and eventually the Exploitation Permits. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | All shares in MadagascarCo are or will be owned by JV Company. |
|-----------------|----------------------------------------------------------------|

| (c)   | MadagascarCo has or will be incorporated for the time being as a Société á Responsabilité Limitée. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 7.2   | Management of MadagascarCo |
|-----------------|----------------------------|

| (a)   | Energizer has, or will as soon as practicable after the Execution Date, appoint Mr Roland Fok-Seung as the Gérant résident (Country Manager) of MadagascarCo, who will act in accordance with the instructions provided to him by JV Company. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Energizer has, or will as soon as practicable after the Execution Date, appoint Mr Kirk McKinnon, Mr Richard Schler and Mr Roland Fok-Seung as Gérants of MadagascarCo. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Decisions of MadagascarCo will only be made in accordance with an instruction from JV Company and will require the approval of at least two (2) of the three (3) managers (Gérants) of MadagascarCo. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.3   | Appointment and removal |
|-----------------|-------------------------|

| (a)   | Energizer shall have the ability to appoint additional Country Managers or remove and replace existing Country Managers of MadagascarCo subject to the total number of Country Managers so appointed not exceeding that number provided for in the constituent document of MadagascarCo or by law. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If it hasn’t already done so, following the completion of a Bankable Feasibility Study and its delivery to Shareholders in accordance with clause 13.1, Energizer will consider whether it is appropriate to remain incorporated as a Société á Responsabilité Limitée company or whether it is more appropriate to convert to a Société Anonyme company.  If MadagascarCo is converted to a Société Anonyme company following completion of a Bankable Feasibility Study (or at anytime following completion of a Bankable Feasibility Study), and provided Malagasy remains a Shareholder of JV Company, Malagasy will be entitled to nominate one (1) director to the Board of MadagascarCo. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 7.4   | Role of Company Manager |
|-----------------|-------------------------|

| 7.5   | Adoption of constituent document |
|-----------------|----------------------------------|

| 8.   | Business of the JV Company and MadagascarCo |
|----------------|---------------------------------------------|

| (a)   | The business of JV Company will be to, through MadagascarCo: |
|-----------------|--------------------------------------------------------------|

| (i)   | conduct Joint Venture Operations; |
|-----------------|-----------------------------------|

| (ii)   | hold and administer the Industrial Mineral Rights; |
|------------------|----------------------------------------------------|

| (iii)   | hold and administer the Sublease Agreements and Sublease; |
|-------------------|-----------------------------------------------------------|

| (iv)   | upon the grant of Exploitation Permits over any part of the Area of Interest in accordance with clause 14.1, hold and administer the Exploitation Permits; and |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | conduct any Exploration Operations and or Mining Operations. |
|-----------------|--------------------------------------------------------------|

| (b)   | The Shareholders agree and acknowledge that JV Company and/or MadagascarCo may enter into agreements with third parties with respect to the use, operation or other exploitation of any mining infrastructure which is located within the Area of Interest or any in relation to any other Joint Venture Property, but any agreement of this type must be entered into on arm’s length commercial terms. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Co-operation of Shareholders |
|----------------|------------------------------|

| (a)   | cooperate to: |
|-----------------|---------------|

| (i)   | foster the development of the Business; and |
|-----------------|---------------------------------------------|

| (ii)   | ensure that JV Company and MadagascarCo can successfully carry on the Business in accordance with all applicable laws and regulations; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (b)   | not use Confidential Information in a way which damages or is reasonably likely to damage JV Company or MadagascarCo or any Shareholder, which obligation will continue after a Shareholder has ceased being a Shareholder in JV Company and survive termination of this Agreement.  Nothing in this clause prevents Malagasy from using the Mining Information in relation to the exploration and development of the Other Minerals; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | not unreasonably delay an action, approval, direction, determination or decision required of the Shareholder; |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (d)   | make approvals or decisions that are required of the Shareholder in accordance with the terms and conditions of this Agreement; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | provide such assistance as required by this Agreement, at the cost of JV Company, as may from time to time reasonably be requested of it by JV Company or MadagascarCo or which the Shareholders agree would assist in the development of the Business, provided any costs incurred are reasonable out-of-pocket expenses and do not relate to minor ad-hoc assistance which will be provided in good faith. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Right to explore and sublease |
|-----------------|-------------------------------|

| 10.1   | Grant of Subleases |
|------------------|--------------------|

| (a)   | Malagasy will procure that during the Term, the Permit Holders grant to MadagascarCo the Industrial Mineral Rights and the exclusive right to carry out Exploration and Mining within the Area of Interest, in accordance with the laws of Madagascar, for the purposes of identifying and exploiting any Industrial Minerals within that area. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Subject to Malagasy’s receipt of the Cash Consideration and Share Consideration in accordance with clause 3.3, Malagasy will procure that during the Term, the Permit Holders grant to MadagascarCo subleases over the Area of Interest on terms whereby, for consideration which includes the benefit of Exploration Operations undertaken at the cost of MadagascarCo: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | MadagascarCo will, in accordance with the Mining Code, be the sole holder of the Industrial Mineral Rights and have the exclusive right to conduct Exploration and Mining within the Area of Interest; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the Permit Holders will, in accordance with and as permitted under the Mining Code, retain the exclusive right to Other Mineral Rights, |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Subject to the Mining Code, the Subleases will be for the term of the Permits, including for the term of any renewal of the Permits. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Subject to clause 10.1(e), the Permit Holders must enter into the Sublease Agreements and any other agreement(s) with MadagascarCo required by the Mining Code to give effect to the exclusive right to carry out Exploration as described in clause 10.1(a) and the Subleases as contemplated under clause 10.1(b). |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | The Parties must use all reasonable endeavours to ensure the Sublease Agreements and any other agreement contemplated by clause 10.1(d) are entered into by the Permit Holders and MadagascarCo on, or as soon as possible after, the Execution Date. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | If Energizer requires, Malagasy will procure that Energex enters into sublease agreements with MadagascarCo in respect of the Permits currently in the name of Energex but which are the subject of the current moratorium on transfer, with such sublease agreements being on the same terms and conditions as the Sublease Agreements. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 10.2   | Covenants of Permit Holders in respect of the Exploration Permits |
|------------------|-------------------------------------------------------------------|

| (a)   | use all reasonable endeavours permitted under the laws of Madagascar to ensure the Permits are renewed in the usual course for such periods as permitted by the Mining Code, as requested by JV Company; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | do all such acts as are reasonably necessary to keep the Permits in Good Standing which can only be done or performed by the registered holder of the Permits, provided that the Permit Holder must give to JV Company adequate prior notice of all such acts; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | use all reasonable endeavours to have the Sublease Agreements registered with the Mining Department as soon as possible (provided in this case, the costs associated with registration of the Sublease Agreements with the Mining Department will be met 50% by the Permit Holders and 50% by JV Company); and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | apply to the Mining Department to add such of the Industrial Minerals to the Permits as may be requested by JV Company from time to time to the extent those Industrial Minerals are not already noted on the Permits. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.3   | Covenants in respect of the Exploration Permits |
|------------------|-------------------------------------------------|

| (a)   | do all such acts and make all such payments as are reasonably necessary to keep the Permits in Good Standing; |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (b)   | comply with all Minimum Expenditure Obligations in respect of the Permits (if any); and |
|-----------------|-----------------------------------------------------------------------------------------|

| (c)   | contribute as sole contributors to all Outgoings. |
|-----------------|---------------------------------------------------|

| (a)   | paying the amount referred to in the cash call to Malagasy within 20 days of receipt of the cash call; or |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (b)   | paying the amount referred to in the cash call direct to the third party to which the relevant invoice or other supporting documentation relates on or before the due date for payment noted in the cash call provided that the third party will accept payment direct from JV Company or MadagascarCo (as the case may be). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 10.4   | Remedies of Energizer |
|------------------|-----------------------|

| (a)   | If any Permit Holder does, permits or suffers to be done anything, or omits to do anything required under the Mining Code or other laws of Madagascar, which constitutes a breach of any of its covenants under this Agreement and which may, in the JV Company’s reasonable opinion, result in: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the termination or non-renewal of a Permit; |
|-----------------|---------------------------------------------|

| (ii)   | a revocation of any permit, authority or approval necessary to maintain the Good Standing of a Permit; or |
|------------------|-----------------------------------------------------------------------------------------------------------|

| (iii)   | loss of access to any part of the Area of Interest, |
|-------------------|-----------------------------------------------------|

| (b)   | Any costs incurred by JV Company in exercising its rights pursuant to clause 10.4(a) will be a debt due from the Permit Holders to JV Company payable upon demand. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The rights created by clause 10.4(a) are the sole remedy in respect to a breach to which clause 10.4(a) applies. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (d)   | JV Company and MadagascarCo will not be liable to the Permit Holders for any loss or damage suffered by the Permit Holders as a result of actions taken or omissions made by JV Company in the course of exercising or purporting to exercise its rights under clause 10.4(a) so long as JV Company has acted in good faith. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.5   | Exercise of Industrial Mineral Rights |
|------------------|---------------------------------------|

| (a)   | comply with the conditions of the Permits (to the extent that those conditions relate to the Area of Interest) as if MadagascarCo were the permit holder; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | comply with the requirements of the Mining Department, the Mining Code, Environmental Laws and any other laws dealing with miners and the exploration for and mining of minerals; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | be responsible for approvals required for activities on the Area of Interest; |
|-----------------|-------------------------------------------------------------------------------|

| (d)   | be responsible for the preparation and lodgement of any reporting obligations on any work done on, and money expended in connection with the Area of Interest; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | comply with, adopt and exercise Good Mining Practices including rehabilitating any ground disturbance; |
|-----------------|--------------------------------------------------------------------------------------------------------|

----

----

| (f)   | without prejudice to clause 16, use its reasonable endeavours to minimise interference with the Permit Holders’ activities in planning, programming and executing any exploration activity on the Exploration Permits; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | keep all drill holes, costeans, trenches, excavations, shafts and other workings secure and safe and properly maintained and, where necessary, fenced; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | not do or suffer to be done anything which will or may place in jeopardy the Permits or render any of them liable to forfeiture. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| 10.6   | Notice of activities |
|------------------|----------------------|

| (a)   | MadagascarCo must, at least 20 Business Days prior to commencing any program of activity on the Area of Interest (Proposed Activity), give a notice to Malagasy (Notice of Proposed Activity) containing particulars of: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the general nature of the Proposed Activity; and |
|-----------------|--------------------------------------------------|

| (ii)   | the areas of the Area of Interest which MadagascarCo proposes to enter upon to conduct the Proposed Activity and or to construct, operate and maintain infrastructure in relation to the Proposed Activity. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | MadagascarCo will, at the cost of Malagasy, assay any exploration results for any Other Minerals requested by Malagasy provided that such request is received in sufficient time for MadagascarCo to make such request of the laboratory conducting the assay. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Malagasy will or will procure the Permit Holders to, at the cost of Energizer, assay any exploration results for any Industrial Minerals within the Area of Interest requested by Energizer provided that such request is received in sufficient time for Malagasy or the Permit Holders (as the case may be) to make such request of the laboratory conducting the assay. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | MadagascarCo must provide to Malagasy the results of MadagascarCo’s activities on the Area of Interest by way of: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (i)   | quarterly reports; and |
|-----------------|------------------------|

| (ii)   | reports at such other times as is required by Malagasy to enable the Permit Holders to comply with statutory and Mining Departmental reporting obligations as the holders of the Exploration Permits. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.7   | Mutual indemnities |
|------------------|--------------------|

| (a)   | JV Company and MadagascarCo each jointly and severally agree to indemnify, and keep indemnified, and hold harmless the Permit Holders and their Related Bodies Corporate, directors, employees and consultants from and against all Claims that may be made, brought against, suffered, sustained or incurred by the Permit Holders, arising out of any act or omission (including any negligent act or omission) of JV Company or MadagascarCo and in the course of the exercise of activities undertaken by JV Company or MadagascarCo on the Area of Interest. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (b)   | The Permit Holders each jointly and severally agree to indemnify, and keep indemnified, and hold harmless the Shareholders and JV Company and their Related Bodies Corporate, directors, employees and consultants from and against all Claims that may be made, brought against, suffered, sustained or incurred by the Shareholders or JV Company, arising out of any act or omission (including any negligent act or omission) of the Permit Holders and in the course of the exercise of activities undertaken by the Permit Holders on the Area of Interest. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Surrender of Exploration Permits |
|-----------------|----------------------------------|

| (a)   | Subject to clause 11(d), the Board of JV Company may resolve by Simple Majority to surrender any of the Joint Venture Property (Surrendered Property). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Subject to clause 11(c), if the Board resolves to surrender any Joint Venture Property in accordance with clause 11(a): |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (i)   | the Surrendered Property will, from the date of the resolution to surrender that property, cease to be Joint Venture Property for any purpose under this Agreement; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | except as expressly provided elsewhere in this Agreement, the Shareholders, JV Company and MadagascarCo will cease to have any rights or liabilities in respect of the Surrendered Property, other than any rights or liabilities which have accrued prior to the date of the resolution to surrender the Surrenders Property. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | If the Board resolves to surrender the whole or any part of, the Joint Venture Property (other than pursuant to any compulsory relinquishment obligations under the Mining Code) and one of the Shareholders (acting through a Director) votes against that resolution (Dissenting Party), the Operator must not give effect to that decision until the Operator has first offered in writing to transfer the relevant Joint Venture Property or part thereof to the Dissenting Party for no consideration other than the cost of transfer and the Dissenting Party has not accepted that offer within 14 days after it is made. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Where the Board resolves to surrender any of the Joint Venture Property, it must: |
|-----------------|-----------------------------------------------------------------------------------|

| (i)   | provide two (2) months written notice of the surrender to each Shareholder, which identifies the specific Joint Venture Property which is to be surrendered; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | ensure that, to the extent the surrender of Joint Venture Property applies or relates to a Permit or Permits, that all Outgoings, Minimum Expenditure Obligations (if any) and any payments reasonably necessary to keep the relevant Permit(s) in Good Standing are paid to date and for one (1) year following the date on which notice is given in accordance with clause 11(d)(i) above. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Transfer of Permits |
|-----------------|---------------------|

| (a)   | Subject to clause 12(b), should the Permit Holders decide to Dispose of their interest in any of the Permits, they may only sell, transfer or otherwise dispose of that interest to any person (Permit Transferee): |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (i)   | provided the JV Company and MadagascarCo are given the opportunity to match any bona fide third party offer as a right of first refusal for a period of 30 days from the time of notice of the offer from the Permit Holders; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the Permit Transferee enters into an Accession Deed. |
|------------------|------------------------------------------------------|

| (b)   | The Permit Holders may transfer the Permits to each other or another wholly owned subsidiary of Malagasy provided that the transferee first enters into an Accession Deed. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.   | Bankable Feasibility Study and Decision to Mine |
|-----------------|-------------------------------------------------|

| 13.1   | Bankable Feasibility Study |
|------------------|----------------------------|

| (a)   | At any time during the Term, the Board may direct the Operator to carry out a Bankable Feasibility Study in respect of the Area of Interest, the costs of which will form part of the Joint Venture Costs in accordance with clause 18(a). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Throughout the completion of the Bankable Feasibility Study, the Operator will provide the Shareholders with quarterly reports on the progress of the Bankable Feasibility Study and such other information as a Shareholder may reasonably request from time to time in order that such Shareholder can be kept informed of the progress of the Bankable Feasibility Study in order that it will be in a position to arrange finances to make a Decision to Mine in the time period required by clause 13.2(a). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Upon completion of a Bankable Feasibility Study referred to in clause 13.1(a) , the Operator must provide the Shareholders with a copy thereof. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Upon the completion and delivery of a Bankable Feasibility Study in accordance with this clause 13.1, the Shareholders will fund Joint Venture Costs in respect to the Mining Area in their Respective Proportions until such time as external funding for the development and commencement of Mining Operations has been procured. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2   | Decision to Mine |
|------------------|------------------|

| (a)   | Following delivery of a Bankable Feasibility Study to the Shareholders in accordance with clause 13.1, the Shareholders may, by a Simple Majority, decide to commence Mining Operations in respect of all or part of the Area of Interest the subject of the Bankable Feasibility Study (Decision to Mine).  A Decision to Mine can not be made earlier than the date which is 90 days after the date on which the final Bankable Feasibility Study is delivered to the Shareholders in accordance with clause 13.1(c), unless otherwise agreed in writing by all Shareholders. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If the Shareholders make a Decision to Mine in accordance with clause 13.2(a), JV Company must: |
|-----------------|-------------------------------------------------------------------------------------------------|

| (i)   | instruct the Permit Holders to apply for, as the case may be, any authorisation or permission required under the Mining Code or other laws of Madagascar, including the conversion of Exploration Permits into Exploitation Permits and relevant environmental authorisations, the granting of which by the Mining Department or other Governmental Agency of Madagascar is a condition to the implementation of the Decision to Mine; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | be responsible for arranging project finance for the development and commencement of the Mining Operations. |
|------------------|-------------------------------------------------------------------------------------------------------------|

----

----

| 13.3   | Election to participate and formation of mining joint venture |
|------------------|---------------------------------------------------------------|

| (a)   | A Shareholder which did not vote in favour of the Decision to Mine may elect, within 40 Business Days of the Decision to Mine, not to participate in the Mining Operation the subject of the Decision to Mine.  The Shareholders who do not make such an election or who voted in favour of the Decision to Mine are referred to as Mining Parties. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Upon the expiration of the 40 Business Day election period provided for in clause 13.3(a) (Mining JV Commencement Date), the Mining Parties will incorporate a joint venture company under the laws of Mauritius (NewCo Mauritius), the shareholders of which will be the Mining Parties, in the same proportion as their respective Shareholding Interest in JV Company bear to each other at the time a Decision to Mine is made, which will in turn will hold 100% of the shares in a newly formed company in Madagascar (NewCo Madagascar). |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.4   | Establishment of Mining Area |
|------------------|------------------------------|

| (a)   | Within 30 Business Days after the Mining JV Commencement Date, the Parties will meet to establish the boundaries of the Mining Area which is appropriate to encompass all deposits of Industrial Minerals the subject of the Bankable Feasibility Study, which deposits may be mined as a single mining enterprise, together with any milling or concentrating plant and other appropriate infrastructure and facilities necessary for the efficient conduct of Mining Operations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In the event of disagreement, the boundaries established for the Mining Area will be determined in accordance with clause 31 and will be the area reasonably required for the Mining Operations the subject of a Decision to Mine and accords with the Mining Code, Good Mining Practices and the Bankable Feasibility Study. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.5   | Holding of Mining Area |
|------------------|------------------------|

| (a)   | Upon the incorporation of NewCo Mauritius and NewCo Madagascar and the establishment of the Mining Area in accordance with clause 13.4, the Mining Parties will consult with each other in good faith and make a determination as to whether the Mining Area will be transferred into NewCo Madagascar or whether the Joint Venture Property (excluding the Mining Area) (Exploration Assets) will be transferred into NewCo Madagascar, leaving the Mining Area as the sole property of JV Company. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | After a determination is made under clause 13.5(a), the Mauritian company (being NewCo Mauritius or JV Company) which through its Madagascan subsidiary (being NewCo Madagascar or MadagascarCo), holds the Mining Area from time to time will be known as the Mauritian Development JV Company, the purpose of which will be to conduct Mining Operations in respect of the Mining Area.  The subsidiary in Madagascar of the Mauritian Development JV Company which holds the Mining Area will be known as the Madagascar Development JV Company. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | If the Exploration Assets are transferred into NewCo Madagascar then this Agreement will apply in relation to the Exploration Assets as if NewCo Mauritius and NewCo Madagascar were named herein in place of JV Company and MadagascarCo respectively. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 13.6   | Mining Area ceases to be Joint Venture Property |
|------------------|-------------------------------------------------|

| (a)   | On the Mining JV Commencement Date: |
|-----------------|-------------------------------------|

| (i)   | the Mining Area will be segregated from the Area of Interest; |
|-----------------|---------------------------------------------------------------|

| (ii)   | the Mining Area will cease to be Joint Venture Property; |
|------------------|----------------------------------------------------------|

| (iii)   | the Mining Area will be owned by the Madagascar Development JV Company; and |
|-------------------|-----------------------------------------------------------------------------|

| (iv)   | those Shareholders who are not Mining Parties must, at the cost of the Mining Parties, transfer to Madagascar Development JV Company all of their interest in the Mining Area for consideration equal to 75% of the market value of that interest as agreed between the Parties or, in the absence of agreement, as determined by an independent expert  appointed in accordance with clause 32.2. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | For the avoidance of doubt, a Shareholder who transfers all of their interest in the Mining Area under clause 13.6(a)(iv) will not be entitled to receive a royalty under clause 23 in respect of the relevant Mining Area which is transferred to the remaining Mining Parties. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.7   | Transfer of Mining Area |
|------------------|-------------------------|

| (a)   | the Permit Holders, Shareholders and Mining Parties must co-operate to prepare, execute and procure registration of such conditional surrenders, applications, transfers, new sub-leases and other documents as may be necessary to segregate the Mining Area and to vest the Mining Area in Madagascar Development JV Company; but |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if the Mining Parties decide to delay segregation, or segregation cannot immediately occur due to matters outside of the control of the Permit Holders, Shareholders or Mining Parties, the Permit Holders, Shareholders and Mining Parties will implement such alternative arrangements in order for Madagascar Development JV Company to have the sole benefit and control of the Mining Area. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.8   | Terms of Mining Joint Venture |
|------------------|-------------------------------|

| (a)   | Following the determination of the Mining Area and the conversion of the Permits into exploitation permits, the Development JV Company may proceed to implement Mining Operations within the Mining Area. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The interest of each Mining Party in the Mauritian Development JV Company will be in proportion to their relative Shareholding Interests in JV Company (Mining Venture Interest) at the time a Decision to Mine is made or as they may otherwise agree between themselves. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (c)   | If the then Operator is a Mining Party, then the Operator will be the operator of the Mining Operations conducted by the Mauritian Development JV Company through Madagascar Development JV Company (Mining Operator).  Otherwise, the Mining Parties will elect a Mining Operator by majority vote in proportion to their respective Mining Venture Interests. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The Mining Parties will contribute to the costs incurred by the Mauritian Development JV Company in proportion to their respective Mining Venture Interests to the extent additional funds are required by Mauritian Development JV Company. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.9   | Agreement |
|------------------|-----------|

| (a)   | provide for all matters necessary for the planning, financing, construction, commissioning and conduct of Mining Operations; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (b)   | otherwise reflect the terms of this Agreement where relevant; and |
|-----------------|-------------------------------------------------------------------|

| (c)   | provide for the execution of cross charges which encumber each Mining Party’s Mining Venture Interest, and its interest in any contracts for, and the proceeds of, sale of Industrial Minerals in favour of each other Mining Party and the Mining Operator as security for its performance of its duties and obligations arising under the agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.   | Conversion to Exploitation Permits |
|-----------------|------------------------------------|

| 14.1   | Conversion |
|------------------|------------|

| (a)   | in order to commence Mining Operations in respect of all or a part of the Area of Interest, the Exploration Permits, to the extent they cover the Mining Area (Current Permits) will be converted into Exploitation Permits; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if the Shareholders make a Decision to Mine, the Parties must do all things necessary to, as promptly as possible, have the Current Permits converted into Exploitation Permits and to apply for all relevant environmental authorisations. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.2   | Transfer of Exploitation Permits |
|------------------|----------------------------------|

| (a)   | Any Exploitation Permit issued by the Mining Department to the Permit Holders must be immediately transferred or, if for whatever reason the Exploitation Permit cannot immediately be transferred, sub-leased (as applicable) by the Permit Holders to Madagascar Development JV Company as soon as possible after the grant of the Exploitation Permit. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (b)   | The Parties acknowledge and agree that, in relation to this clause 14, it is the preference of the Parties to have any Exploitation Permit issued by the Mining Department to a Permit Holder immediately transferred to Madagascar Development JV Company.  However if such a transfer is not possible for whatever reason, then the Parties will implement such alternative arrangements in order for Madagascar Development JV Company to have the sole benefit and control of the Exploitation Permit including entering into new sub-leases in respect of the Exploitation Permits on terms and conditions which are consistent with this Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The Parties acknowledge and agree that on transfer of the Exploitation Permits to Madagascar Development JV Company, Madagascar Development JV Company will grant a sub-lease to Malagasy or its nominee in respect to the Other Mineral Rights within the Exploitation Permit on terms and conditions which are consistent with this Agreement, including clause 16. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.3   | Holding of Exploitation Permits |
|------------------|---------------------------------|

| (a)   | not to act in any manner which is detrimental to Madagascar Development JV Company or the Exploitation Permit; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

| (b)   | to act in accordance with Madagascar Development JV Company’s reasonable instructions in relation to the Exploitation Permit provided these instructions are not contrary to or breach of the laws of Madagascar. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.4   | Approval of Mining Department |
|------------------|-------------------------------|

| 14.5   | Option of Permit Holders to transfer Exploration Permits prior to conversion |
|------------------|------------------------------------------------------------------------------|

| 15.   | Environment and Mining Operations |
|-----------------|-----------------------------------|

----

----

| 16.   | Other Mineral Rights |
|-----------------|----------------------|

| 16.1   | Holder of Permits and Other Mineral Rights |
|------------------|--------------------------------------------|

| (a)   | subject to clause 14, the registered holders of the Permits; and |
|-----------------|------------------------------------------------------------------|

| (b)   | the sole holder of the Other Mineral Rights, |
|-----------------|----------------------------------------------|

| 16.2   | Priority of exercise of Industrial Mineral Rights by JV Company |
|------------------|-----------------------------------------------------------------|

| (a)   | the exercise of the Industrial Mineral Rights by JV Company; and |
|-----------------|------------------------------------------------------------------|

| (b)   | the exercise of the Other Mineral Rights by the Permit Holders, |
|-----------------|-----------------------------------------------------------------|

| 16.3   | Exercise of Other Mineral Rights by the Permit Holders |
|------------------|--------------------------------------------------------|

| (a)   | comply with all applicable laws and conditions of grant of the Permits; and |
|-----------------|-----------------------------------------------------------------------------|

| (b)   | not do or suffer to be done anything which will or may render a Permit liable to cancellation or forfeiture. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| 16.4   | Suspension of Other Mineral Rights for duration of Mining Operations |
|------------------|----------------------------------------------------------------------|

----

----

| 16.5   | Transfer of Other Mineral Rights |
|------------------|----------------------------------|

| (a)   | the Permit Holders giving the JV Company the opportunity to match any bona fide third party offer for the Other Mineral Rights as a right of first refusal for a period of 30 days from the time of notice of the offer from the Permit Holders; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the OMR Transferee being technically and financially able to perform the obligations of the Permit Holders as the holder of the Other Mineral Rights under this Agreement to the extent of the interest disposed of; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the OMR Transferee entering into a deed with JV Company and Shareholders whereby the OMR Transferee agrees to be bound by, and assumes the obligations of the Permit Holders as the holder of the Other Mineral Rights under this Agreement (including the obligations under this clause) to the extent of the interest to be disposed of. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.6   | Transfer of Industrial Mineral Rights |
|------------------|---------------------------------------|

| (a)   | JV Company giving the relevant Permit Holders the opportunity to match any bona fide third party offer for the Industrial Mineral Rights as a right of first refusal for a period of 30 days from the time of notice of the offer from JV Company; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the IMR Transferee being technically and financially able to perform the obligations of JV Company and MadagascarCo as the holder of the Industrial Mineral Rights under this Agreement to the extent of the interest disposed of; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the IMR Transferee entering into a deed with the relevant Permit Holders whereby the IMR Transferee agrees to be bound by, and assumes the obligations of the Shareholders, JV Company and MadagascarCo as the holder of the Industrial Mineral Rights under this Agreement (including the obligations under this clause) to the extent of the interest to be disposed of. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.7   | Co-mingling |
|------------------|-------------|

| (a)   | If a deposit of Industrial Minerals is co-mingled or co-incident to a deposit of Other Minerals then the Permit Holders and JV Company will negotiate in good faith the terms on which they will jointly develop the Industrial Minerals and Other Minerals, provided that, subject to clause 16.7(b), in no circumstances will the exploration or development of a deposit of Other Minerals impede the exploration or development of a deposit of Industrial Minerals. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The development of a deposit of Other Minerals that is co-mingled or co-incident to a deposit of Industrial Minerals will prevail over the exploration or development of the deposit of Industrial Minerals only in following circumstances: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (i)   | the deposit of Other Minerals has been determined by a competent person to be an orebody comprising a resource or reserve with a greater net present value than the deposit of Industrial Minerals; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the Permit Holders can demonstrate to the satisfaction of the JV Company, acting reasonably, that the deposit of Other Minerals can and will be developed and mined within the same timeframe as JV Company proposes to develop and mine the deposit of Industrial Minerals. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Subject to clause 16.7(d), if the Permit Holders and JV Company are unable to negotiate the joint development of the Industrial Minerals and Other Minerals, then as part of the development of the Industrial Minerals JV Company will, on receiving a written notification from Malagasy, stockpile the Other Minerals so that the Permit Holders may have the benefit of the development of the Other Minerals once JV Company has ceased Mining. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Any stockpiling costs associated with the development of Industrial Minerals (including overburden and waste) will be at the expense of JV Company. Any costs associated with the stockpiling of Other Minerals undertaken at the request of Malagasy which are not activities which would have been incurred by JV Company in the course of Mining Operations in any event, including (but not limited to) any ongoing environmental compliance costs, will be funded 100% by Malagasy. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | Operator |
|-----------------|----------|

| 17.1   | First Operator |
|------------------|----------------|

| 17.2   | Functions of the Operator |
|------------------|---------------------------|

| (a)   | (by itself or through its employees, agents or contractors) manage, direct and control any and all Joint Venture Operations on behalf of and as agent for JV Company, MadagascarCo and the Parties, subject to the applicable laws of the jurisdictions in which the abovementioned entities are incorporated; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | implement the Programs and Budgets approved by the Board; and |
|-----------------|---------------------------------------------------------------|

| (c)   | implement the decisions of the Board and shall make all expenditures necessary to comply with those instructions and directions. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| 17.3   | Operator to prepare Programs and Budgets |
|------------------|------------------------------------------|

----

----

| 17.4   | Liability of Operator |
|------------------|-----------------------|

| 17.5   | Indemnity of Operator |
|------------------|-----------------------|

| 17.6   | Preserve Permits |
|------------------|------------------|

| 17.7   | Reporting |
|------------------|-----------|

| 17.8   | Change of Operator |
|------------------|--------------------|

| (a)   | Energizer will continue as Operator until: |
|-----------------|--------------------------------------------|

| (i)   | it ceases to hold a majority Shareholding Interest in JV Company; or |
|-----------------|----------------------------------------------------------------------|

| (ii)   | it resigns as Operator by giving 30 days' written notice to the other Shareholders of JV Company of its intention to do so. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------|

| (b)   | On the resignation or removal of the Operator in accordance with clause 17.8(a), JV Company shall, by way of a Shareholders’ resolution, appoint a new Operator. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | The resolution referred to in clause 17.8(b) above shall be passed by a Simple Majority. |
|-----------------|------------------------------------------------------------------------------------------|

| 18.   | Contributions to Joint Venture Costs |
|-----------------|--------------------------------------|

| (a)   | Subject to clause 18(b), all Joint Venture Costs will be funded 100% by Energizer, including JV Company’s and MadagascarCo’s obligations under clause 10.3. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (b)   | Subject to clause 19, upon delivery of the Bankable Feasibility Study in accordance with clause 13.1, all Joint Venture Costs in respect to the Mining Area will be funded by the Mining Parties in their Respective Proportions. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | From the time Malagasy is required to contribute to the funding under clause 18(b) (Contribution Date), Malagasy and its representatives will, at Malagasy’s expense and on reasonable notice, have the right to access, review and audit the expenditure of Mauritian Development JV Company and Madagascar Development JV Company. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | From the Contribution Date, Mauritian Development JV Company may, from time to time by giving notice simultaneously to all Shareholders in Mauritian Development JV Company, request those Shareholders to fund the Joint Venture Costs in their Respective Proportions (Contribution Notice) and subject to clause 19.1, within one month after notice is given, all Shareholders must fund the amount specified in the notice. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Subject to clause 19.3(c), payment of amounts which a Shareholder is required to fund under this clause 18 and clause 19.2(d) shall be deemed to be the subscription by that Shareholder for additional Shares in Mauritian Development JV Company unless otherwise agreed by the Shareholders. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.   | Right to dilute |
|-----------------|-----------------|

| 19.1   | Election not to fund |
|------------------|----------------------|

| 19.2   | Contributions where election not to fund |
|------------------|------------------------------------------|

| (a)   | the Non-Contributing Shareholder will not be obliged to contribute the contribution specified in the notice, and: |
|-----------------|-------------------------------------------------------------------------------------------------------------------|

| (b)   | Mauritian Development JV Company may give notice to the other Shareholders of the total amount of Joint Venture Costs not funded by Non-Contributing Shareholders (Shortfall); |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | each other Shareholder (Contributing Shareholder) may, within 10 Business Days after receiving a notice from Mauritian Development JV Company under clause 19.2(b), give notice to Mauritian Development JV Company that it wishes to fund an additional amount of Joint Venture Costs up to the Shortfall (or, if there is more than one Contributing Shareholder and if the total additional amount that Contributing Shareholders wish to fund is greater than the Shortfall, Mauritian Development JV Company will allocate to each Contributing Shareholder that gives notice the proportion of the Shortfall that the amount of additional Joint Venture Costs that the Contributing Shareholder wishes to fund bears to the total additional Joint Venture Costs that all Contributing Shareholders wish to fund); and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | each Contributing Shareholder must fund the amount of Joint Venture Costs requested from the Contributing Shareholder under clause 19.2(c) and the additional amount of Joint Venture Costs of which it gives notice to Mauritian Development JV Company or which Mauritian Development JV Company allocates to it under clause 19.2(c). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 19.3   | Dilution |
|------------------|----------|

| (a)   | The Non-Contributing Shareholder’s percentage ownership of Mauritian Development JV Company will be diluted according to the following formula: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | I      = |    A        x  100 |
|--------|----------------------------------------|--------------------------------------------------------------------------------|

|   |    B |
|--------|----------------|

|   | where: |   |
|--------|--------|--------|

|   | I      = | the Non-Contributing Shareholder’s reduced percentage shareholding; |
|--------|----------------------------------------|---------------------------------------------------------------------------|

|   | A    = | the total amount contributed to the funding of Mauritian Development JV Company by the Non-Contributing Shareholder at the date of the calculation plus the deemed contribution of the Non-Contributing Shareholder; and |
|--------|----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | B    = | total amount of all funding of Mauritian Development JV Company at the date of the calculation plus the deemed contributions of all Parties, |
|--------|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | For the purposes of the above calculation, the deemed contribution of the Shareholders will be as follows: |
|-----------|------------------------------------------------------------------------------------------------------------|

|   | (a)  | As at the Contribution Date: |
|--------|-----------|------------------------------|

|   | (i) | the actual total funding contribution of the Shareholders will be: |
|--------|-----|--------------------------------------------------------------------|

|   | Malagasy: | nil |
|--------|-----------|-----|

|   | Energizer: | $30 million |
|--------|------------|-------------|

----

----

|   | (ii) | the deemed contribution of the Shareholders will be: |
|--------|------|------------------------------------------------------|

|   | Malagasy: | one third of $30 million = $10 million |
|--------|-----------|----------------------------------------|

|   | Energizer: | nil |
|--------|------------|-----|

|   | (iii) | Malagasy’s percentage ownership of Mauritian Development JV Company will be: |
|--------|-------|------------------------------------------------------------------------------------|

|   | I | = | A | x  100 |
|--------|---|---|---|------------------|

|   | B   |
|--------|---------------|

|   | = | 10 million        x  100 |
|--------|---|----------------------------------------------------------------------------|

|   | 40 million |
|--------|------------|

|   | = | 25% |
|--------|---|-----|

|   | (iv) | Energizer’s percentage ownership of Mauritian Development JV Company will be: |
|--------|------|-------------------------------------------------------------------------------------|

|   | I | = | A | x  100 |
|--------|---|---|---|------------------|

|   | B |
|--------|---|

|   | = | 30 million | x  100 |
|--------|---|------------|------------------|

|   | 40 million |
|--------|------------|

|   | = | 75% |
|--------|---|-----|

|   | (b) | If there is then a $10 million programme to which each of Malagasy and Energizer contribute i.e. $2.5 million and $7.5 million respectively, then: |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the actual total funding contribution of the Shareholders will be: |
|--------|-----|--------------------------------------------------------------------|

|   | Malagasy: | $2.5 million |
|--------|-----------|--------------|

|   | Energizer: | $37.5 million |
|--------|------------|---------------|

|   | (ii) | the deemed contribution of the Shareholders will be: |
|--------|------|------------------------------------------------------|

|   | Malagasy: | one third of $30 million = $10 million |
|--------|-----------|----------------------------------------|

|   | Energizer: | nil |
|--------|------------|-----|

|   | (iii) | Malagasy’s percentage ownership of Mauritian Development JV Company will be: |
|--------|-------|------------------------------------------------------------------------------------|

|   | I | = | A | x  100 |
|--------|---|---|---|------------------|

|   | B |
|--------|---|

|   | = | 12.5 million        x  100 |
|--------|---|------------------------------------------------------------------------------|

|   | 50 million |
|--------|------------|

|   | = | 25% |
|--------|---|-----|

----

----

|   | (iv) | Energizer’s percentage ownership of Mauritian Development JV Company will be: |
|--------|------|-------------------------------------------------------------------------------------|

|   | I | = | A | x  100 |
|--------|---|---|---|------------------|

|   | B |
|--------|---|

|   | = | 37.5 million | x  100 |
|--------|---|--------------|------------------|

|   | 50 million |
|--------|------------|

|   | = | 75% |
|--------|---|-----|

|   | (c) | If there is then a $20 million programme to which Malagasy elects NOT to contribute but Energizer does contribute 100% of the $20 million programme cost: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the actual total funding contribution of the Shareholders will be: |
|--------|-----|--------------------------------------------------------------------|

|   | Malagasy: | $2.5 million |
|--------|-----------|--------------|

|   | Energizer: | $57.5 million |
|--------|------------|---------------|

|   | (ii) | the deemed contribution of the Shareholders will be: |
|--------|------|------------------------------------------------------|

|   | Malagasy: | one third of $30 million = $10 million |
|--------|-----------|----------------------------------------|

|   | Energizer: | nil |
|--------|------------|-----|

|   | (iii) | Malagasy’s percentage ownership of Mauritian Development JV Company will be: |
|--------|-------|------------------------------------------------------------------------------------|

|   | I | = | A | x  100 |
|--------|---|---|---|------------------|

|   | B |
|--------|---|

|   | = | 12.5 million | x  100 |
|--------|---|--------------|------------------|

|   | 70 million |
|--------|------------|

|   | = | 17.86% |
|--------|---|--------|

|   | (iv) | Energizer’s percentage ownership of Mauritian Development JV Company will be: |
|--------|------|-------------------------------------------------------------------------------------|

|   | I | = | A | x  100 |
|--------|---|---|---|------------------|

|   | B |
|--------|---|

|   | = | 57.5 million | x   100 |
|--------|---|--------------|-------------------|

|   | 70 million |
|--------|------------|

|   | = | 82.14% |
|--------|---|--------|

| (c)   | A reduction to a Shareholder’s Shareholding Interest shall be effected in such manner as may be agreed between the Shareholders, or failing such agreement within 30 Business Days after the dilution occurs, in the manner determined by the Contributing Shareholders, including by means of: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | a transfer of Shares as between Shareholders; |
|-----------------|-----------------------------------------------|

| (ii)   | the forfeiture or cancellation of some or all of the Non-Contributing Shareholder’s Shares; or |
|------------------|------------------------------------------------------------------------------------------------------|

| (iii)   | the issue of new Shares to the Contributing Parties. |
|-------------------|------------------------------------------------------|

----

----

| 20.   | Disposal of Shares and pre-emption rights |
|-----------------|-------------------------------------------|

| (a)   | the transferring Shareholder giving the other non-transferring Shareholder the opportunity to match any bona fide third party offer for the Shares as a right of first refusal for a period of 30 days from the time of notice of the offer from the transferring Shareholder; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the Share Transferee being technically and financially able to perform the obligations of the transferring Shareholder under this Agreement to the extent of the interest disposed of (for avoidance of doubt if Energizer is proposing to sell its Shares then the purchaser must have the necessary skills to ensure JV Company or NewCo Mauritius (as applicable) can manage the matters contemplated by this Agreement); and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the Share Transferee entering into a deed with the non-transferring Shareholder whereby the Transferee agrees to be bound by, and assumes the obligations of the transferring Shareholder under this Agreement (including the obligations under this clause) to the extent of the interest to be disposed of. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21.   | Drag along |
|-----------------|------------|

| (a)   | Subject to clauses 20 and 21(b), if any third person (Offeror) provides to a Shareholder or Shareholders who hold Shares representing not less than 50% of the Shares on issue in the capital of the JV Company or NewCo Mauritius (as applicable) (Majority Shareholder) a bona fide arm’s length offer to purchase all of the Shares in JV Company or NewCo Mauritius (as applicable), and each Share of the same class is proposed to be purchased for equal consideration and on the same terms and conditions, then the Majority Shareholder may require each other Shareholder (Minority Shareholder) by providing notice in writing to transfer its Shares to the Offeror free from all Encumbrances on those same terms and conditions. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Clause 21(a) only applies where the Offeror has made a full cash offer to purchase all of the Shares on issue in the capital of the JV Company or NewCo Mauritius (as applicable). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 22.   | Tag along |
|-----------------|-----------|

| (a)   | Subject to clauses 20 and 22(b), if the Majority Shareholder wishes to accept a bona fide arm’s length offer for all of its Shares from an Offeror and does not serve a notice in accordance with clause 21, then the Minority Shareholder may require the Majority Shareholder to cause the Offeror to purchase all of the Shares of the Minority Shareholder at a price per Share and on such other terms and conditions as are no less favourable to those offered to the Majority Shareholder by the Offeror for the Shares of the Majority Shareholder. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Clause 22(a) only applies where the Offeror has made a full cash offer to purchase all of the Shares on issue in the capital of the JV Company or NewCo Mauritius (as applicable). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 23.   | Interest below 10% |
|-----------------|--------------------|

| (a)   | If at any time a Shareholder’s Shareholding Interest in JV Company or NewCo Mauritius is reduced to 10% or less, then that Shareholder will be deemed to have assigned and transferred its remaining Shareholding Interest to the other Shareholder in consideration for the other Shareholder procuring that JV Company or NewCo Mauritius pay a royalty of an amount equal to two percent (2%) of net smelter returns of all Industrial Minerals produced from the Area of Interest calculated in accordance with Schedule 4. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In circumstances where a royalty becomes payable in accordance with clause 23(a), the payee of the royalty may transfer, assign or otherwise dispose of its interest in the royalty to any person (Royalty Transferee) subject to: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | the payee of the royalty giving the payer of the royalty the opportunity to match any bona fide third party offer for the royalty as a right of first refusal for a period of 30 days from the time of notice of the offer from the payee; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | the Royalty Transferee entering into a deed with the payer of the royalty whereby the Royalty Transferee agrees to be bound by, and assumes the obligations of the payee under this Agreement (including the obligations under this clause) to the extent of the interest to be disposed of. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 24.   | Representations and warranties |
|-----------------|--------------------------------|

| 24.1   | Representations and warranties by Energizer |
|------------------|---------------------------------------------|

| (a)   | it is validly incorporated and subsisting under the laws of Minnesota, USA; |
|-----------------|-----------------------------------------------------------------------------|

| (b)   | the execution and delivery of this Agreement has been duly and validly authorised by all necessary corporate action; |
|-----------------|----------------------------------------------------------------------------------------------------------------------|

| (c)   | it has corporate power and lawful authority to execute and deliver this Agreement and to observe and perform or cause to be observed and performed all of its obligations in and under this Agreement; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | this Agreement does not conflict with or constitute or result in a material breach of or default under any agreement, deed, writ, order, injunction, judgment, law, rule or regulation to which it is a party or is subject or by which it is bound in a manner which may materially and adversely affect the rights and interests of a Party under this Agreement; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | it is solvent and is capable of performing its obligations under this Agreement. |
|-----------------|----------------------------------------------------------------------------------|

----

----

| 24.2   | Representations and warranties by Malagasy |
|------------------|--------------------------------------------|

| (a)   | Malagasy represents and warrants to Energizer as at the Execution Date that: |
|-----------------|------------------------------------------------------------------------------|

| (i)   | it is validly incorporated and subsisting under the laws of Australia; |
|-----------------|------------------------------------------------------------------------|

| (ii)   | the execution and delivery of this Agreement has been duly and validly authorised by all necessary corporate action; |
|------------------|----------------------------------------------------------------------------------------------------------------------|

| (iii)   | it has corporate power and lawful authority to execute and deliver this Agreement and to observe and perform or cause to be observed and performed all of its obligations in and under this Agreement; |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | this Agreement does not conflict with or constitute or result in a material breach of or default under any agreement, deed, writ, order, injunction, judgment, law, rule or regulation to which it is a party or is subject or by which it is bound in a manner which may materially and adversely affect the rights and interests of a Party under this Agreement; and |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | it is solvent and is capable of performing its obligations under this Agreement. |
|-----------------|----------------------------------------------------------------------------------|

| (b)   | Subject to clause 24.3, Malagasy represents and warrants to Energizer as at the Execution Date, and to Energizer, JV Company and MadagascarCo as at the date of execution of the Subleases that: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | it has full right, power and authority to grant the Subleases to MadagascarCo in accordance with this Agreement; |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (ii)   | its subsidiaries, Mazoto, MDA and Energex are the registered and beneficial holders of the Exploration Permits; provided that, the Parties acknowledge that the relevant Permits held by Energex are currently in the process of being transferred to MDA; however, they remain subject to the current moratorium on transfer of Permits and therefore are technically still in the name of Energex. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | other than under the terms of the Labradorite Subleases, no person other than Malagasy and or its Related Bodies Corporate has any proprietary rights of any nature in respect of the Exploration Permits and they have not granted to any person any rights to own or possess any interest or any rights to explore or prospect for minerals or to mine the same in any part of the land comprising the Exploration Permits; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | the Exploration Permits are free of any Encumbrances except to the extent of any conditions imposed under the Mining Code on the Exploration Permits; |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | there is no litigation or proceeding of any nature concerning the Exploration Permits, pending or threatened against them or any other person which may defeat, impair, detrimentally affect or reduce the right, title and interest of JV Company or MadagascarCo in the Exploration Permits or the interest therein, including any plaint seeking forfeiture of the Exploration Permits; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (vi)   | to the best of its knowledge, the Exploration Permits have been duly marked off, granted and applied for in accordance with the Mining Code; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (vii)   | the Exploration Permits are in full force and effect and in Good Standing and not liable to cancellation or forfeiture for any known reasons and they are not in breach or contravention of any of the terms and conditions upon which the Exploration Permits were granted or of any other rule, regulation or provision of the Mining Code or any other statute concerning, affecting or relating to the Exploration Permits; |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (viii)   | there are no facts or circumstances that could, under the currently applicable laws of Madagascar, give rise to the cancellation, forfeiture or suspension or grant of the Exploration Permits when renewed, that could have a Material Adverse Effect; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ix)   | except as disclosed to Energizer before the Execution Date, there are no agreements or dealings in respect of the Exploration Permits; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------|

| (x)   | there is not in existence any current compensation agreement with the owner or occupier of any land which is subject to the Exploration Permits; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (xi)   | there are no Environmental Liabilities relating to or affecting the Exploration Permits, nor are there any circumstances relating to the Exploration Permits which may reasonably be expected to give rise to future Environmental Liabilities, except to the extent of any report, study or assessment required to be lodged pursuant to the Mining Code or other regulation in relation to the Exploration Permits; |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (xii)   | the Mining Information is complete and accurate in all material respects; and |
|-------------------|-------------------------------------------------------------------------------|

| (xiii)   | the Exploration Permits have been granted in respect of all of the ground described in the Exploration Permits. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| 24.3   | Disclaimer of liability by Malagasy |
|------------------|-------------------------------------|

| (a)   | a result of the political situation in Madagascar including as a result of: |
|-----------------|-----------------------------------------------------------------------------|

| (i)   | the current moratorium on renewal or transfer of Permits; or |
|-----------------|--------------------------------------------------------------|

| (ii)   | processing of applications to add any Industrial Minerals to Permits by the Mining Department; |
|------------------|------------------------------------------------------------------------------------------------|

| (b)   | disclosed by Malagasy to Energizer or is known by Energizer prior to payment of the Cash Consideration; |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (c)   | in excess of the total amount of the consideration in clause 3.1 and 3.2; or |
|-----------------|------------------------------------------------------------------------------|

| (d)   | caused or contributed to by a breach by Energizer, JV Company or MadagascarCo or their respective obligations under this Agreement. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 25.   | Guarantee by Malagasy |
|-----------------|-----------------------|

| (a)   | Malagasy agrees to guarantee to Energizer the due performance and observance by each of MDA, Mazoto and Energex of each and every obligation of MDA, Mazoto and Energex under: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | this Agreement; and |
|-----------------|---------------------|

| (ii)   | any Sublease Agreement entered into by the Parties in accordance with this Agreement. |
|------------------|---------------------------------------------------------------------------------------|

| (b)   | Malagasy agrees to indemnify Energizer in relation to any loss suffered as a result of MDA, Mazoto or Energex failing to perform or observe any of their obligations under: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | this Agreement; and |
|-----------------|---------------------|

| (ii)   | any Sublease Agreement entered into by the Parties in accordance with this Agreement. |
|------------------|---------------------------------------------------------------------------------------|

| 26.   | Guarantee by Energizer |
|-----------------|------------------------|

| 27.   | Assignment |
|-----------------|------------|

| (a)   | No Party may assign, sublet, licence or otherwise transfer or part with, mortgage, encumber or in any way deal with its interest under this Agreement otherwise than in accordance with the provisions of this Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | At any time during the Term, Energizer may assign all or any of its rights or obligations under this Agreement as a matter of right to any Related Body Corporate of Energizer without Malagasy’s consent, provided that the assignee enters into an Accession Deed. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.   | Termination |
|-----------------|-------------|

| 28.1   | Termination events |
|------------------|--------------------|

| (a)   | any unanimous agreement by the Shareholders to that effect; |
|-----------------|-------------------------------------------------------------|

| (b)   | in relation to any Party, that Party ceasing to hold any Shares in JV Company; and |
|-----------------|------------------------------------------------------------------------------------|

| (c)   | MadagascarCo ceasing to have any rights to any of the Industrial Mineral Rights. |
|-----------------|----------------------------------------------------------------------------------|

----

----

| 28.2   | Event of Default |
|------------------|------------------|

| (a)   | Should a Party fail to do, execute or perform any material act or thing which such Party is obliged to do, execute or perform pursuant to this Agreement (Event of Default), the aggrieved Party may give the defaulting Party a notice requiring the defaulting Party to remedy such Event of Default within a period of 30 days following service of the notice or if such default is not capable of being remedied within such period of 30 days then within such further period as the aggrieved Party or Parties shall deem reasonable. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If a Party serves a notice of default under clause 28.2(a) and such default remains un-remedied upon expiry of the period specified in such notice for rectification, the aggrieved Party may terminate this Agreement forthwith upon the service of a further notice in writing to that effect and upon the service of such further notice this Agreement shall terminate forthwith without prejudice to the rights and remedies of the aggrieved Party at law or otherwise howsoever arising. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Clause 28.2(a) does not apply to any Event of Default for which another remedy is provided in this Agreement.  By way of example, clause 28.2(a) does not apply to a failure to contribute to a Contribution Notice but instead clause 19 would apply to such failure to contribute. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.3   | Effect of termination |
|------------------|-----------------------|

| (a)   | Termination of this Agreement releases each Party from any further performance of any liability under this Agreement but does not: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | affect any provision of this Agreement expressed to operate or have effect after termination; or |
|-----------------|--------------------------------------------------------------------------------------------------|

| (ii)   | have any prejudicial effect on any accrued right of any Party in relation to any breach or default under this Agreement by any other Party occurring before termination. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If this Agreement is terminated in accordance with clause 28.2, the aggrieved Party has an option to acquire the defaulting Party’s rights and interests under this Agreement at: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | a value determined by the Parties negotiating in good faith; or |
|-----------------|-----------------------------------------------------------------|

| (ii)   | in the absence of agreement under clause 28.3(b)(i) above, a discount of 10% to market value as determined by an independent expert appointed in accordance with clause 32.2. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 28.4   | Continuing remedies |
|------------------|---------------------|

----

----

| 29.   | Force Majeure |
|-----------------|---------------|

| 29.1   | Force Majeure |
|------------------|---------------|

| (a)   | act of God, accident of navigation, war (whether declared or not), sabotage, insurrection, civil commotion, national emergency (whether in fact or law), martial law, fire, lightning, flood, earthquake, landslide, storm or other severe adverse weather conditions, explosion, power shortage, strike or other labour difficulty (whether or not involving employees of a Party concerned), epidemic, quarantine, radiation or radioactive contamination; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | action or inaction of any government or governmental or other competent Governmental Agency (including any court) including expropriation, restraint, prohibition, intervention, requisition, requirement, direction or embargo by legislation, regulation or other legally enforceable order; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | delay in the grant of access to a Permit; |
|-----------------|-------------------------------------------|

| (d)   | inability to secure, on commercially acceptable terms, rights of access to a Permit from the owners, occupiers, lessees, custodians, trustees, native title claimants or holders of any land to which the Permit relates; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | breakdown of plant, machinery or equipment or shortages of labour, transportation, fuel, power, plant, machinery, equipment or material; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | any other cause which by the exercise of foresight or due diligence, a Party is unable to prevent or overcome. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| 29.2   | Relief |
|------------------|--------|

| (a)   | that Party is to give the other Party prompt notice of the Force Majeure with reasonably full particulars and, insofar as known to it, the probable extent to which it will be unable to perform, or be delayed in performing its obligation or exercising its right; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | that obligation, other than an obligation to pay money, is suspended and the time for performing that obligation or for exercising that right is extended but only so far as and for so long as it is affected by the Force Majeure; and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the affected Party is to use all possible diligence to overcome or remove the Force Majeure as quickly as possible. |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| 29.3   | Labour disputes |
|------------------|-----------------|

| (a)   | settle any strike or other labour dispute on terms contrary to its wishes; or |
|-----------------|-------------------------------------------------------------------------------|

----

----

| (b)   | contest the validity or enforceability of any law, regulation or legally enforceable order by way of legal proceedings. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| 29.4   | Resumption |
|------------------|------------|

| 30.   | Dispute resolution |
|-----------------|--------------------|

| 30.1   | Application |
|------------------|-------------|

| (a)   | this Agreement or its interpretation; |
|-----------------|---------------------------------------|

| (b)   | any right or liability of any Party under this Agreement; or |
|-----------------|--------------------------------------------------------------|

| (c)   | the performance of any action by any Party under or arising out of this Agreement, whether before or after its termination. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 30.2   | Dispute negotiation |
|------------------|---------------------|

| (a)   | A Party must not commence legal proceedings in relation to a dispute or refer a dispute to arbitration under this Agreement, unless that Party has complied with this clause 30. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | A Party claiming that a dispute has arisen must notify the other Party specifying details of the dispute. |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (c)   | Each Party must refer a dispute to an authorised officer of that Party for consideration and use its best efforts to resolve the dispute through negotiation within seven (7) Business Days following the dispute notification or longer period agreed between the Parties. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Each Party must refer the dispute to its chief executive officer, in the event that the authorised officers of the Parties fail to resolve the dispute within the specified period. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Each Party must following reference to its chief executive officer use its best efforts to resolve the dispute by agreement or through an agreed mediation procedure. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | A Party in compliance with this clause 30.2 may terminate the dispute resolution process by notice to the other Party at any time after seven (7) Business Days following reference of the dispute to its chief executive officer. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | A Party is not required to comply with this clause 30.2 in relation to any dispute where the other Party is in breach of or default under this clause 30.2 in relation to that dispute. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 30.3   | Arbitration |
|------------------|-------------|

| (a)   | the arbitration will be conducted by three arbitrators, who will be appointed as agreed by the Parties or, failing such agreement, by the Deputy President of SIAC or his or her nominee; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the arbitration will be conducted in English; |
|-----------------|-----------------------------------------------|

| (c)   | each Party is entitled to legal representation at any arbitration; and |
|-----------------|------------------------------------------------------------------------|

| (d)   | any arbitration will be conducted in Singapore, or at such other place as the Parties may agree. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 30.4   | Urgent relief |
|------------------|---------------|

| 30.5   | Continued performance |
|------------------|-----------------------|

| 31.   | Disputes as to Technical or Financial Matters |
|-----------------|-----------------------------------------------|

| 31.1   | Definitions |
|------------------|-------------|

| (a)   | Technical Matter means a matter which is capable of determination by reference to Mining knowledge or practice; and |
|-----------------|---------------------------------------------------------------------------------------------------------------------|

| (b)   | Financial Matter means a matter which is capable of determination by audit or reference to financial or accounting records, knowledge or practice. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2   | Application |
|------------------|-------------|

| (a)   | This clause 31 applies to any dispute arising between the Parties in relation to a Financial Matter or a Technical Matter. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (b)   | This clause 31 does not prevent any Party from seeking urgent interlocutory or declaratory relief from a court of competent jurisdiction where, in that Party's reasonable opinion, that action is necessary to protect that Party's rights. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.3   | Dispute negotiation |
|------------------|---------------------|

----

----

| 31.4   | Independent Expert |
|------------------|--------------------|

| 32.   | Expert Determination |
|-----------------|----------------------|

| 32.1   | Referral to Independent Expert |
|------------------|--------------------------------|

| (a)   | a Party submits a dispute in accordance with clause 31; or |
|-----------------|------------------------------------------------------------|

| (b)   | the Parties agree that a dispute between them will be resolved by an Independent Expert; or |
|-----------------|---------------------------------------------------------------------------------------------|

| (c)   | a dispute is required by this Agreement to be determined by an Independent Expert, |
|-----------------|------------------------------------------------------------------------------------|

| 32.2   | Appointment of Independent Expert |
|------------------|-----------------------------------|

| (a)   | the Parties must endeavour to agree upon the identity of a single Independent Expert to whom the dispute will be referred for determination as soon as is reasonably practicable; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if the Parties are unable to agree upon the identity of a single Independent Expert within 20 Business Days, the Parties will, as soon as practicable thereafter: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | in the case of a Financial Matter, request the President of the Institute of Chartered Accountants in Australia to appoint the Independent Expert; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | in the case of a Technical Matter, request the President of the Australasian Institute of Mining and Metallurgy to appoint the Independent Expert; and |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | within 10 Business Days of appointment, the Independent Expert must set a time and place for receiving the Parties’ submissions. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------|

| 32.3   | Requirements of Independent Expert |
|------------------|------------------------------------|

| (a)   | The Independent Expert will be required to have appropriate commercial and practical experience and expertise in the area of the dispute. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Any person nominated to act as an Independent Expert will be required to fully disclose any interest or duty prior to that person’s appointment. If that person has or may have any interest or duty which conflicts with their appointment as Independent Expert, then that person may not be appointed except with the agreement of all parties to the dispute. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (c)   | Any person nominated to act as an Independent Expert must, before they are appointed, confirm in writing that they are able to resolve the dispute within a reasonable time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | The Independent Expert appointed under clause 32.2 will act as an expert and not as an arbitrator. |
|-----------------|----------------------------------------------------------------------------------------------------|

| 32.4   | Rights of the Parties |
|------------------|-----------------------|

| (a)   | may be legally represented at any hearing before the Independent Expert; |
|-----------------|--------------------------------------------------------------------------|

| (b)   | is entitled to produce to the Independent Expert any materials or evidence which that Party believes is relevant to the dispute; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | must make available to the Independent Expert all materials requested by the Independent Expert and all other materials which are relevant to the Independent Expert’s determination. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.5   | Confidentiality |
|------------------|-----------------|

| 32.6   | Determination |
|------------------|---------------|

| (a)   | The Independent Expert must make a determination on the dispute within 70 Business Days of appointment and must determine what, if any, adjustments may be necessary between the Parties. The determination of the Independent Expert: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | must be in the form of a written report; |
|-----------------|------------------------------------------|

| (ii)   | will be final and binding upon the Parties except in the case of bias, fraud, manifest mistake or error; and |
|------------------|--------------------------------------------------------------------------------------------------------------|

| (iii)   | will be kept private and confidential unless otherwise agreed to by all Parties involved in the determination. |
|-------------------|----------------------------------------------------------------------------------------------------------------|

| (b)   | If the Independent Expert does not determine the dispute within 70 Business Days of appointment, either Party may terminate the appointment by written notice and a new Independent Expert will be appointed within 10 Business Days in accordance with the procedure set out in clause 32.2. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.7   | Costs of Independent Expert |
|------------------|-----------------------------|

----

----

| (a)   | the costs of the Independent Expert will be apportioned between the Parties in such proportions as the Independent Expert thinks fit, otherwise the Parties will each bear their own costs; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the Parties will each bear their own costs incurred in the preparation and presentation of any submissions or evidence to the Independent Expert. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| 33.   | Status of Agreement and further acts |
|-----------------|--------------------------------------|

| (a)   | The Parties agree that this Agreement is binding upon them and intend that this Agreement is legally enforceable in accordance with its terms. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Each Party must promptly do all further acts and execute and deliver all further documents (in form and content reasonably satisfactory to that Party) required by law or reasonably requested by any other party to give effect to this Agreement and the transactions contemplated by this Agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 34.   | Relationship between Parties |
|-----------------|------------------------------|

| (a)   | Nothing in this Agreement is to be construed so to constitute a Party a partner, agent or representative of any other Party or to create any partnerships or trust for any purpose howsoever except to the extent to which the operator is the agent of the Parties.  No Party will be under any fiduciary or other duty to the other which will prevent it from engaging in or enjoying the benefits of any competing endeavours subject to the express provisions of this Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | No Party will have any authority to act on behalf of any other Party, except as expressly provided in this Agreement. Where a Party acts on behalf of another without authority, such Party must indemnify the other from any losses, claims, damages and liabilities arising out of any such act. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Each Party has the unrestricted right to engage in and receive the full benefit of any competing activities outside the area the subject of the Joint Venture Operations. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Any agreement which is entered into by JV Company, MadagascarCo or the Operator on behalf of JV Company or MadagascarCo in the performance of its functions and obligations under this Agreement with a Shareholder, a Related Body Corporate of a Shareholder or an officer or director of a Shareholder or a Related Body Corporate of the Shareholder must: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | be on terms no less commercially reasonable in the particular circumstances of the agreement than would have been the case had the agreement been entered into on normal arm’s length commercial terms with a third party who is not a Shareholder, a Related Body Corporate of a Shareholder or an officer or director of a Shareholder or a Related Body Corporate of a Shareholder; and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | be entered into in good faith in the best interests of the Joint Venture. |
|------------------|---------------------------------------------------------------------------|

----

----

| 35.   | Confidentiality and public announcements |
|-----------------|------------------------------------------|

| 35.1   | Confidentiality |
|------------------|-----------------|

| (a)   | if the information is at the time generally and publicly available other than as a result of breach of confidence by the Recipient; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if the information is at the time lawfully in the possession of the proposed recipient of the information through sources other than the Recipient; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | by the Recipient to legal and other professional advisers and other consultants and officers and employees of: |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| (i)   | the Recipient; or |
|-----------------|-------------------|

| (ii)   | the Recipient's Related Bodies Corporate, |
|------------------|-------------------------------------------|

| (d)   | with the prior written consent of the Owner; |
|-----------------|---------------------------------------------------|

| (e)   | to the extent required by law or by a lawful requirement of any Governmental Agency having jurisdiction over the Recipient or any of its Related Bodies Corporate; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | if required in connection with legal proceedings or arbitration relating to this Agreement or for the purpose of advising the Recipient in relation thereto; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | if and to the extent that it may be necessary or desirable to disclose to any Governmental Agency in connection with applications for consents, approvals, authorities or licenses in relation to this Agreement; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | to the extent required by a lawful requirement of any stock exchange having jurisdiction over the Recipient or any of its Related Bodies Corporate; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | if necessary or commercially desirable to be disclosed in any prospectus or information memorandum to investors or proposed or prospective investors: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | for an issue or disposal of any shares or options in the Recipient or any of its Related Bodies Corporate; |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (ii)   | for an issue of debt instruments of the Recipient or any of its Related Bodies Corporate; or |
|------------------|----------------------------------------------------------------------------------------------|

| (iii)   | for the purposes of the Recipient obtaining a listing on any stock exchange of any shares, options or debt instruments; |
|-------------------|-------------------------------------------------------------------------------------------------------------------------|

----

----

| (j)   | if necessary or commercially desirable to be disclosed to a professional investor or investment adviser for the purposes of enabling an assessment to be made about the merits or otherwise of an investment in the Recipient or any of its Related Bodies Corporate; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | if necessary or commercially desirable to be disclosed to an existing or bona fide proposed or prospective: |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (i)   | financier of the Recipient or of any of its Related Bodies Corporate; or |
|-----------------|--------------------------------------------------------------------------|

| (ii)   | rating agency in respect of the Recipient or of any of its Related Bodies Corporate; |
|------------------|--------------------------------------------------------------------------------------|

| (l)   | if necessary or commercially desirable to be disclosed to any bona fide proposed or prospective: |
|-----------------|--------------------------------------------------------------------------------------------------|

| (i)   | transferee of any property to which the information relates or of any shares in the Recipient or any Related Body Corporate of the Recipient; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | financier of such transferee providing or proposing or considering whether to provide financial accommodation; or |
|------------------|-------------------------------------------------------------------------------------------------------------------|

| (iii)   | assignee of rights under the Recipient's financing documents; or |
|-------------------|------------------------------------------------------------------|

| (m)   | if necessary or commercially desirable to be disclosed to legal and other professional advisers and other consultants and officers or employees of any of the persons referred to in clause 35.1(j), 35.1(k), or 35.1(l). |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 35.2   | Conditions |
|------------------|------------|

| (a)   | In the case of a disclosure under clause 35.1(c) or 35.1(d) and, where appropriate, under clause 35.1(e), 35.1(f), 35.1(h) and 35.1(i), the Party wishing to make the disclosure must inform the proposed recipient of the confidentiality of the information and the Party must take such precautions as are reasonable in the circumstances to ensure that the proposed recipient keeps the information confidential. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In the case of a disclosure under clause 35.1(j), 35.1(k) or 35.1(l) or (in the case of legal and other professional advisers and other consultants only) 35.1(m) the Party wishing to make the disclosure must not make any disclosure unless: |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | in the case of a disclosure under clause 35.1(j), 35.1(k) or 35.1(l) the proposed recipient has first entered into and delivered to the Shareholders a confidentiality undertaking in a form acceptable to the other Shareholders; or |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | in the case of a disclosure under clause 35.1(m) the principal or employer of the proposed recipient has first entered into and delivered to the Shareholders a confidentiality undertaking in a form acceptable to the other Shareholders which will incorporate a warranty by the principal or employer of the proposed recipient that the proposed recipient is under an obligation of confidentiality to the principal or employer and that the principal or employer will enforce that obligation to the fullest extent that the law or equity allows upon being called upon to do so by any of the Shareholders. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 35.3   | Notice to other Shareholders |
|------------------|------------------------------|

| (a)   | promptly inform each other Party of any request received by that Party from any person described in clause 35.1(e) to disclose information under that clause; |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | inform all other Shareholders as soon as reasonably practicable after information is disclosed by the Party under clause 35.1(e) and |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | not disclose any information under clause 35.1 unless all other Shareholders have been informed of the proposed disclosure. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 35.4   | Indemnities |
|------------------|-------------|

| 35.5   | Survival of confidentiality obligations |
|------------------|-----------------------------------------|

| 35.6   | Use of Mining Information in respect to Other Mineral Rights |
|------------------|--------------------------------------------------------------|

| 36.   | Notices |
|-----------------|---------|

| (a)   | must be in writing; |
|-----------------|---------------------|

| (b)   | must be addressed as follows (or otherwise notified by that Party to the other Party from time to time): |
|-----------------|----------------------------------------------------------------------------------------------------------|

----

----

| To Energizer                      | Energizer Resources Inc         |                                                                                     |
|-----------------------------------|---------------------------------|------------------------------------------------------------------------------------------|
|                              |                            |                                                                                     |
|                              | Attention:                      | Chief Executive Officer                                                                  |
|                              |                            |                                                                                     |
|                              | Address:                        | Energizer Resources Inc.141 Adelaide Street West Suite 520Toronto, OntarioCANADA         |
|                              |                            |                                                                                     |
|                              | Facsimile:                      | +1 416.364.2753                                                                          |
|                              |                            |                                                                                     |
| To Malagasy or the Permit Holders | Malagasy Minerals Limited  |                                                                                     |
|                              |                            |                                                                                     |
|                              | Attention:                 | Managing Director                                                                        |
|                              |                            |                                                                                     |
|                              | Address:              | Malagasy Minerals LimitedUnit 7, 11 Colin GroveWest PerthWestern Australia 6005AUSTRALIA |
|                              |                            |                                                                                     |
|                              | Facsimile:                 | +61 8 9463 6657                                                                          |

| (c)   | must be signed by the Party making it or (on that party’s behalf) by the solicitor for or any attorney, director, secretary or authorised agent of that Party; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | must be delivered by hand or posted by prepaid post to the address, or sent by fax to the number, of the addressee; and |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (e)   | is taken to be received by the addressee: |
|-----------------|-------------------------------------------|

| (i)   | (in the case of prepaid post sent to an address in the same country) on the third day after the date of posting; |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (ii)   | (in the case of prepaid post sent to an address in another country) on the fifth day after the date of posting; |
|------------------|-----------------------------------------------------------------------------------------------------------------|

| (iii)   | (in the case of fax) at the time in the place to which it is sent equivalent to the time shown on the transmission confirmation report produced by the fax machine from which it was sent; and |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | (in the case of delivery by hand) on delivery; |
|------------------|------------------------------------------------|

| 37.   | Miscellaneous |
|-----------------|---------------|

| 37.1   | Governing law |
|------------------|---------------|

----

----

| 37.2   | Amendments |
|------------------|------------|

| 37.3   | Primacy of this Agreement |
|------------------|---------------------------|

| 37.4   | Language |
|------------------|----------|

| 37.5   | Waiver |
|------------------|--------|

| (a)   | Failure to exercise or enforce, or a delay in exercising or enforcing, or the partial exercise or enforcement, of a right provided by law or under this Agreement by a Party does not preclude, or operate as a waiver of, the exercise or enforcement, or further exercise or enforcement, of that or any other right provided by law or under this Agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | A waiver or consent given by a Party under this Agreement is only effective and binding on that Party if it is given or confirmed in writing by that Party. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | No waiver of a breach of a term of this Agreement operates as a waiver of another breach of that term or of a breach of any other term of this Agreement. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| 37.6   | Consents |
|------------------|----------|

| 37.7   | Counterparts |
|------------------|--------------|

| 37.8   | No representation or reliance |
|------------------|-------------------------------|

| (a)   | Each Party acknowledges that neither Party (nor any person acting on a Party’s behalf) has made any representation or other inducement to it to enter into this Agreement except for representations or inducements expressly set out in this Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (b)   | Each Party acknowledges and confirms that it does not enter into this Agreement in reliance on any representation or other inducement by or on behalf of the other Party, except for representations or inducements expressly set out in this Agreement. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 37.9   | Expenses |
|------------------|----------|

| 37.10   | Entire agreement |
|-------------------|------------------|

| (a)   | embodies the entire understanding of the Parties, and constitutes the entire terms agreed by the Parties; and |
|-----------------|---------------------------------------------------------------------------------------------------------------|

| (b)   | supersedes any prior written or other agreement of the Parties. |
|-----------------|-----------------------------------------------------------------|

| 37.11   | Indemnities |
|-------------------|-------------|

| (a)   | Each indemnity in this Agreement is a continuing obligation, separate and independent from the other obligations of the Parties, and survives termination, completion or expiration of this Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | It is not necessary for a Party to incur expense or to make any payment before enforcing a right of indemnity conferred by this Agreement. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | A Party must pay on demand any amount it must pay under an indemnity in this Agreement. |
|-----------------|-----------------------------------------------------------------------------------------|

| 37.12   | Severance and enforceability |
|-------------------|------------------------------|

| 37.13   | No merger |
|-------------------|-----------|

| 37.14   | Power of attorney |
|-------------------|-------------------|

| (a)   | Each attorney who signs this Agreement on behalf of a Party declares that the attorney has no notice from the Party who appointed him that the power of attorney granted to him, under which the attorney signs this Agreement, has been revoked or suspended in any way. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Each Party represents and warrants to each other that its respective attorney or authorised officer who signs this Agreement on behalf of that Party has been duly authorised by that Party to sign this Agreement on its behalf and that authorisation has not been revoked. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 37.15   | Taxes |
|-------------------|-------|

----

----

| Item | Exploration Permit |   | Item   | Exploration Permit |
|------|--------------------|--------|--------|--------------------|
| 1.   | 3432               |   | 21.    | 21064              |
| 2.   | 5394               |   | 22.    | 24864              |
| 3.   | 13064              |   | 23.    | 25605              |
| 4.   | 13811              |   | 24.    | 25606              |
| 5.   | 14619              |   | 25.    | 28340              |
| 6.   | 14620              |   | 26.    | 28346              |
| 7.   | 14622              |   | 27.    | 28347              |
| 8.   | 14623              |   | 28.    | 28348              |
| 9.   | 16747              |   | 29.    | 28349              |
| 10.  | 16753              |   | 30.    | 28352              |
| 11.  | 19003              |   | 31.    | 28353              |
| 12.  | 19851              |   | 32.    | 29020              |
| 13.  | 19932              |   | 33.    | 31734              |
| 14.  | 19934              |   | 34.    | 31735              |
| 15.  | 19935              |   | 35.    | 38323              |
| 16.  | 21059              |   | 36.    | 38324              |
| 17.  | 21060              |   | 37.    | 38325              |
| 18.  | 21061              |   | 38.    | 38392              |
| 19.  | 21062              |   | 39.    | 38469              |
| 20.  | 21063              |   |   |               |

----

----

----

----

----

----

| S4.1   | Definitions |
|------------------|-------------|

| (a)   | all costs of smelting and refining and retorting the ore and minerals extracted from the Mining Area, including Penalties for impurities and all umpire charges and other processor deductions; |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | all road, sea and rail freight, transportation, security and incidental costs and expenses, including forwarding, shipping, demurrage, delay and insurance costs, incurred between the outer boundary of, or adjacent to, the Mining Area and the point of delivery of the Products into a Refinery, including the cost of transport to and between any Refinery or other places of treatment; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | handling and incidental costs and expenses including agency, banking, assaying, sampling, weighing, loading, unloading, stockpiling and storage; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | actual sales, marketing, representation, agency and brokerage costs in respect of the Product subject to the Royalty; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (e)   | administrative and other general overhead costs that are directly attributable and reasonably allocable to the costs set out in paragraphs (a) to (d) above; |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Carried Forward Deductions; |
|-----------------|-----------------------------|

| (g)   | shipping agency fees; |
|-----------------|-----------------------|

| (h)   | bank charges on sales receipts and payments; |
|-----------------|----------------------------------------------|

| (i)   | government charges on banking transactions; |
|-----------------|---------------------------------------------|

| (j)   | all taxes (excluding taxes based on income) which the Payer may be required to pay or incur as a result of the sale of the Product (but not including any value added or goods and services taxes (including TVA) if subject to an input for credit); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (k)   | all royalties, duties, levies and charges imposed by a Governmental Agency in respect of the Product, including carbon emission licence fees, charges, fuel excise (net of any fuel tax credits), carbon trading taxes and imposts, value added taxes or energy consumption taxes, in any way connected with the transportation or sale of the Products from the Mining Area; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (l)   | any other incidental charge or expense incurred between the outer boundary of, or adjacent to, the Mining Area up to the point of delivery of the Products into a Refinery, including on-site transport and storage, |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | the total amounts actually received by the Payer from the sale of Product to the owner or operator of a Refinery, in US dollars, or in US Dollar Equivalent, (Sales) including the proceeds received from an insurer in the case of loss of, or damage to, the Products (net of any excess paid in respect of that loss),during the expired Quarter, less any refunds, claims or discount, where Sales are effected on an arms-length basis on normal commercial terms; and |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | if Sales are effected on any other basis than on an arms-length basis on normal commercial terms, or if Product is disposed of otherwise than by sale (whether immediate or for future delivery) during the expired Quarter, the fair market value of the Product so sold or otherwise disposed of during the expired Quarter in US dollars, or in US Dollar Equivalent, as determined in accordance with paragraph S4.8. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| S4.2   | Calculation of Net Smelter Return |
|------------------|-----------------------------------|

| S4.3   | Reporting |
|------------------|-----------|

| S4.4   | Time for payment of Royalty |
|------------------|-----------------------------|

| S4.5   | Audits and adjustments |
|------------------|------------------------|

| (a)   | The Payer’s records that relate to the calculation of the Net Smelter Return and the Royalty for a Quarter shall be open to inspection and review by the Payee’s external auditors for a period of 6 Months after the end of such Quarter, at the Payee’s cost. If not reviewed in that 6 Month period the Royalty payment for that Quarter will be taken to be in full and final satisfaction of the Payer’s obligations in respect of that payment. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If an audit carried out pursuant to paragraph S4.5(a) (Audit) discloses that the Payer has made an overpayment of the Royalty or has made an underpayment of the Royalty of 5% or less, then the Payee will be responsible for payment of the costs of the Audit and the Payer will (as the case may be): |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | deduct the amount of any such overpayment from its next Royalty payment to the Payee; or |
|-----------------|------------------------------------------------------------------------------------------|

| (ii)   | add the amount of any such underpayment to the next Royalty payment it makes to the Payee. |
|------------------|--------------------------------------------------------------------------------------------|

| (c)   | If an Audit discloses an underpayment by the Payer of more than 5%, then the costs of the Audit shall be borne by the Payer and the amount of the underpayment will be paid by the Payer to the Payee within 14 days after delivery of the Audit report to the Payer. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| S4.6   | Assignment |
|------------------|------------|

| (a)   | The Payer must not sell, assign or otherwise dispose of or encumber the whole or part of its interest in the Mining Area without first requiring the assignee or other such party to enter into a covenant with the Payee on terms to the satisfaction of the Payee (acting reasonably) binding it to observe and perform all the terms and conditions of these procedures as from the effective date of assignment or encumbrance. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Subject to the Payer not exercising the Royalty Option in accordance with clause 23(b), the Payee may only assign, sell or otherwise dispose of the whole (but not a part) of its rights and interest in or under the Royalty (Relevant Interest) if it first offers to the Payer the opportunity to acquire the Relevant Interest for consideration equal to that offered by the proposed assignee. If the Payer does not accept the offer within 15 days, the Payee may proceed with the assignment, sale or disposal to the proposed assignee within 90 days and on terms no more favourable to the proposed assignee than those offered to the Payer. If the Payer accepts the offer then settlement of the assignment of the Relevant Interest to the Payer shall occur within 60 days thereafter. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| S4.7   | Hedging and Disposal of Intermediate Product |
|------------------|----------------------------------------------|

| (a)   | All profits and losses resulting from the Payer engaging in any commodity futures trading, option trading, metals trading, gold loans or any combination thereof, or other hedging or price protection arrangements or mechanisms are excluded from calculations of the Net Smelter Return. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The Payer must not dispose of, or allow for commingling of, any ore from the Mining Area or any intermediate product unless it has ensured that it has access to all information necessary in order to calculate the Royalty. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| S4.8   | Reference to expert |
|------------------|---------------------|

| (a)   | If any dispute or difference arises between the Parties in connection with, the calculation of the Net Smelter Return or the Royalty, the Parties undertake with each other to use all reasonable endeavours, in good faith, to settle the dispute or difference by negotiation. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If any dispute referred to in paragraph S4.8(a) has not been resolved within a reasonable time of not less than 14 days, either Party may refer the matter in issue to an Independent Expert for determination and clause 32 of the Agreement applies. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Executed by Energizer Resources Inc. by its duly authorised representative: |   |                                              |
|-----------------------------------------------------------------------------|--------|---------------------------------------------------|
|                                                                        |   |                                              |
| /s/ Kirk McKinnon                                                           |   | /s/ Richard Schler                                |
|                                                                        |   |                                              |
| Signature of Kirk McKinnonChairman and CEO                                  |   | Signature of Richard SchlerVice President and CFO |
| Executed by Malagasy Minerals LimitedACN 121 700 105 in accordance with section127 of the Corporations Act 2001 (Cth) by or inthe presence of: |   |                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|
|                                                                                                                                           |   |                                  |
| /s/ Peter Woods                                                                                                                                |   | /s/ Max Cozijn                        |
|                                                                                                                                           |   |                                  |
| Signature of Director                                                                                                                          |   | Signature of Director or Secretary    |
|                                                                                                                                           |   |                                  |
|                                                                                                                                           |   |                                  |
| Name of Director in full                                                                                                                       |   | Name of Director or Secretary in full |

| Executed by Madagascar-ERG JointVenture (Mauritius) Ltd by its duly authorisedrepresentative: /s/ Kirk McKinnon |   | /s/ Richard Schler                  |
|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|
|                                                                                                                      |   |                                |
| Signature of Kirk McKinnonChairman                                                                                        |   | Signature of Richard SchlerDirector |

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