The mentalist shows a medium-size board, and draws on it an 8-inch circle with a marker. This he calls, and Energy Circle.
A volunteer is asked to draw a drawing inside the Energy Circle. While the volunteer is drawing, the mentalist holds the board between himself and the volunteer, while his head is turned away from the board. The audience sees he can't see what the volunteer is drawing.
After the volunteer finishes his drawing, the mentalist hands him the board cleaner (the sponge) and asks him to erase the drawing. Then, right before the eyes of the audience, he successfully reconstructs the erased drawing!