Hey Rowan,

This error message is often caused by incorrect e-mail settings in your Joomla Global Configuration section. There is also another cause which is the email address used is invalid. Does other email notification works on the site?

Checked both - both are valid.
All other emails send fine.

Hey Rowan,

Which account are you trying to reset? Can you please provide the username / email address of the user account? I will try this out.

The Student one with my hotmail address

Hey Rowan,

Hm, just tried to reset password with your e-mail and it didn't generate any errors for me, http://screencast.com/t/GVv20HzCyx6e

Mark it does it clearly says "could not initiate email" on your screenshot.
The email is not sent even though the message says it is.
It is only this area that has a problem.

Hey Rowan,

I am sorry for the delay of this reply,

It seem like these email address is not valid which you set it from backend > Easysocial > settings > general > emails tab > Sender e-mail address - info@spanisharks.com

You can check my first screenshot which I trying to send a test email to this email account (info@spanisharks.com), but it I received back mail server response :

This is an automatically generated Delivery Status Notification.

Delivery to the following recipients failed.

info@spanisharks.com

Then I switch to use website@spanishmarks.com email address instead. It should work perfectly now.

Can you give it a check now?