ARCHER MATERIALS LIMITED — AGM Information 2014

Nov 4, 2014

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ARCHER EXPLORATION LIMITED

2014 Annual General Meeting

5[th] November 2014

Gerard Anderson

Managing Director

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Disclaimer

Competent persons statement

The exploration results and Exploration Target reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Wade Bollenhagen, Exploration Manager of Archer Exploration Limited. Mr Bollenhagen is a Member of the Australasian Institute of Mining and Metallurgy who has more than eighteen years experience in the field of activity being reported. Mr Bollenhagen has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ relating to the reporting of Exploration Results. Mr Bollenhagen consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

The information in this report that relates to the Mineral Resource estimation has been prepared by Mr B Godsmark who is a Member of the AusIMM and peer reviewed by Mr G Reed who is also a Member of the AusIMM (CP). Mr Godsmark is a full time employee of Mining Plus Pty Ltd and Mr Reed is a sub-contractor to Mining Plus Pty Ltd., both have more than five years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Godsmark and Mr Reed have consented in writing to the inclusion in this announcement of the Mineral Resource estimation information in the form and context in which it appears.

Forward looking statements

The information in this presentation is published to inform you about Archer Exploration Limited and its activities. Some statements in this presentation regarding estimates or future events are forward looking statements.

Although Archer Exploration Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results and outcomes will be consistent with these forward-looking statements.

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Presentation outline

• Project locations

• Eyre Peninsula Graphite Project

• JORC 2012 Graphite Resource

• Mine approvals process

• Baseline studies

• Environment Impact Assessment

• Visual amenity

• MLP progress

• Proposed Campoona Shaft mine

• Proposed Sugarloaf processing facility

• Sugarloaf process water

• Campoona Shaft graphite products

• Graphite demand and market focus

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Campoona Shaft auger drilling

• Infrastructure

• Land

• Waddikee flake

• Additional graphite targets

• Graphite Research & Development

• Eyre Peninsula Graphite Project Summary

• Leigh Creek magnesite

• Precious metals and manganese

• Archer’s strategic priorities

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Campoona Shaft diamond drill core

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Project locations

Portfolio of high quality assets

Eyre Peninsula Graphite Project

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Eyre Peninsula Graphite Project

Significant graphite tenements

• Substantial tenement position (2,154km[2] ) in graphite province

• Waddikee EL4662 purchased on 23[rd] July 2014

• Key projects include Campoona Shaft, Central Campoona, and Wilclo South

• There are an additional 10 graphite prospects with large exploration upside

• current contained resource likely to grow appreciably with further drilling

• high quality EM has identified numerous distinct linear conductors

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JORC 2012 graphite Resource

Australia’s largest combined JORC 2012 graphite resource

8.55Mt @ 9.0 Cg% (lower cut-off grade of 5% Cg)*

Area	Resource Category	Tonnes (Mt)	Graphite (% Cg)	Contained Graphite (tonnes)
Campoona Shaft	Measured	0.32	12.7	40,600
	Indicated	0.78	8.2	64,000
	Inferred	0.55	8.5	46,800
Central Campoona	Indicated	0.22	12.3	27,100
	Inferred	0.30	10.3	30,900
Wilclo South	Inferred	6.38	8.8	561,400
Combined	Total	8.55	9.0	770,800

* This information was prepared and first disclosed under the JORC Code 2012 (Archer Exploration Limited, ASX Announcement)

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Drilling at Central Campoona
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Central Campoona
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Campoona Shaft
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Diamond drill core from CSDD12_002

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Mine approvals process

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Baseline studies

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Eyre Peninsula graphite project

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Eyre Peninsula graphite project - visual amenity

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Eyre Peninsula graphite project – MLP progress

Campoona Mining Lease Proposal to be submitted in Q1 calendar 2015

Task	Work undertaken to date	Work inprogress
Ecology	Spring & Winter baseline surveys Impact assessment	 Completed  Completed
Air quality	Project reviewed & GAP analysis	 Completed
**Hydrogeology **	Desktopstudycompleted	 Completed
**Geochemistry **	Draft report completed	 Final report in draft
Socio-Economic & Community Consultation	Stakeholder engagement plan Community newsletters Bi-Monthly CCC meetings	 7 x bi-monthly newsletters  7 x CCC Meetings completed  Community Open Day
Surface Water	Desktopstudy	 Completed
Visual Amenity	Fieldwork completed	 90% Completed
Tailings Management	Tailings workshop Tailings Option Assessment	 Tailings Option Assessment  Characterisation in progress
Mine Closure Plan	Information review & gap analysis	 Mine plan and mine closure planning in progress
MLP & PEPR	Kick-off meeting Table of Contents	 Preparation of MLP continuing - awaiting final mine plan and tailings finalisation
Regulator Liaison	Meetings with government stakeholders undertaken	 Regular meetings
Permitting Review	Draft Permit Register completed in February 2014	 Completed
Cultural Heritage	Desktop cultural heritage study	 Completed
Noise	Review of various project documents and gap analysis	 Completed
Traffic	Desktoptraffic study	 Completed

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Progress to Date

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Proposed Campoona Shaft mine

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Noise bund
Waste rock
dump
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Isometric view of open cut layout looking north showing the deposit geologic block model (ore disposition) within the pit. Open pit is shown in brown (10.2Ha), the waste rock noise bund to the right of the open pit (2.6Ha) and the waste rock dump to the left of the pit (13.4Ha).

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Proposed Sugarloaf processing facility

• Compact site.

• Original position near existing buildings moved to the south to minimise visual impact.

• Existing shed used as warehouse.

• Process involves:

Crushing – Blunging – Rougher Flotation – Concentrate Milling - Cleaner/Recleaner Flotation – Screening – Drying – Bagging

• Thickened tailings stored in across valley impoundment.

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Sugarloaf process water

• Saline groundwater located at Pindari near the junction of Ross Ramsay and Carrapee Hill Road.

• • Water quality -

• ≈ 22,500ppm TDS.

• SA Water potable water allocation of 40ML/yr rising to 80ML/yr if required.

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Campoona Shaft graphite products

Campoona: high grade, fine flake graphite

• Bulk flotation tests provided concentrates grading 92 – 98% Cg

• acid cleaning upgrades concentrates up to 98% Cg – 99.7% Cg

• Archer has opportunity to enter the higher value end of the graphite market

• Marketing samples being appraised

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Campoona concentrate prior to re-cleaning

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Graphite demand and market focus

Macro environment: a growing market with a bright future

• Chinese supply (~70% of market) is declining due to mine closures, increasing costs and environmental challenges

• Emerging production capacity especially in Africa & Australia

• Graphite identified as a critical industrial mineral by USA & UK

• Target markets include:

• Batteries – dry cell, alkaline and lithium-ion

• Recarburisation of steel

• Brake pads

• Carbon brushes

• Lubricants and greases

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Archer Exploration market engagement

• High purity graphite concentrates provided to specific market segments for

• assessment

• Market interest from Asia and North America

• Seeking to negotiate pre-sale and offtake agreements with prospective buyers

• Research agreement entered with Adelaide University to focus on new product opportunities for Archer graphite and graphene products

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Infrastructure

Access to critical infrastructure

Eyre Peninsula Project

• Electricity at Darke Peak for Sugarloaf, poles and wires for Campoona mine site

• Various port options

• Good road network

• Company owns land at Sugarloaf and Campoona Shaft, and has a binding HoA over the freehold land needed to commence operations

• High yielding aquifer near processing site

• Potable water allocation

• Accommodation and services all in the area

• Predominantly free-dig, open cut mining with low overall strip ratio

• South Australia one of the world’s most stable AAA mining jurisdictions

Mining Lease Proposal 75% completed with submission planned for Q1 calendar 2015

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Land

Archer owns the land needed for mining and mineral processing

• Campoona Shaft and Sugarloaf both occur on freehold pastoral land

• Archer owns Sugarloaf (1,403 acres) and has binding HoA over sufficient land at Campoona Shaft for mining to proceed

• Early land purchases has secured access and mitigated land risk associated with developing mining and processing operations

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Waddikee flake graphite

Waddikee: acquisition added flake graphite and trebled JORC Resources

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• Recently completed acquisition of neighbouring EL4662 from Monax Mining Limited

• JORC 2012 Indicated Resource at Wilclo South of 6.4Mt grading 8.8% Cg (561,400t of contained graphite at 5% cut off)

• Flake graphite exceeding 200µm - 500µm

• marketable (>90%Cg) large, medium and fine flake recovered at Wilclo South and Francis providing product optionality

Very coarse flake aggregates from RC drill hole WG041 (98-99m)

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Wilclo South flake graphite

In the oxide zone 42% - 55% of the graphite is recoverable into marketable flake products

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75µm Fine Flake >125µm Fine Flake >180µm Large Flake
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300µm (+50 mesh) Extra Large Flake
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>425µm (+32 mesh) Extra Large - Jumbo Flake

Graphite size (µm)	Graphite Distribution in flake product (%)
Extra large / Jumbo flake +425µm	5%
Extra large flake +300µm	10%
Large flake +180µm	29%
Fine & Medium flake +75µm	56%

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Waddikee – flake

Argent has very large flake potential

• Very coarse 1-5mm crystalline graphite in surface float

• Previous petrology recorded flake graphite 1-2mm in length.

• Notices of Entry served, waivers signed and awaiting DRD EWA approval.

• Expect to commence drilling within 2 weeks.

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Knapped surface rock sample from Argent showing liberation of very flake >1mm

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Additional graphite targets

Waddikee : strong likelihood for further Resource growth

• High quality electromagnetic database outlines >30kms of distinct linear conductive bodies that remain to be fully drill tested.

• 7 known graphite prospects all coincident with EM conductors. Francis prospect is high grade with intercepts >20% Cg

• Coarse graphite recorded at Argent, Wilclo South, Francis, Cut-Snake and Balumbah.

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Francis
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Additional graphite targets

Waddikee: EM provides excellent predictive vectoring tool for exploration for flake graphite asset

Wilclo South open to the north Wilclo South Resource of 6.38Mt grading 8.8% Cg over 1.2kms is open to the north and south for several kilometres. Wilclo South open to the south

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Graphite: Research & Development

Two-year research program with University of Adelaide into graphite and graphene related products. Early work closing in on “proof of concept” agricultural application.

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Graphite Prepared Semi- Prepared Archer Graphene
Materials products Products Product Examples
Graphene
Nanosheets
Graphene Oxide
Sheets
Graphene
Hydrogels
Campoona Graphite
Graphene from raw Archer Graphite
Concentrates Graphene
Aerogels
Graphene
Sheets
Graphene Aerogel
Graphite Composites
Flakes (92%)
Membrane of graphene sheets from raw graphite
Graphene
Powders
Intercalated
Graphite
Graphene
Films
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Graphene aerogel from raw graphite

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Eyre Peninsula Graphite Project - summary

Australia’s largest JORC 2012 graphite Resource	Australia’s largest JORC 2012 graphite Resource
1	Large Position in a Premium Graphite Location Archer has assembled a portfolio of tenements covering 2,154km2near Cleve-Darke Peak-Kimba on Eyre Peninsula, South Australia The Eyre Peninsula is Australia’s premier graphite exploration and production region Australia is a highly attractive investment location due to its low geopolitical risk, quality infrastructure and skilled local workforce
2	Multiple Discovered Resources Combined JORC 2012 Resources for Campoona Shaft, Central Campoona and Wilclo South of 8.55Mt @ 9.0 Cg% to give 770,800t of contained graphite (5% Cg lower cut-off) −Campoona Shaft Total: 1.65Mt @ 9.2 Cg% −Central Campoona Total: 0.52Mt @ 11.2 Cg% −Wilclo South Total: 6.38Mt @ 8.8 Cg%
3	High Quality Graphite Significant metallurgical tests at Campoona have been completed that demonstrate the ability to deliver high value fine graphite (plant to be constructed at Sugarloaf) The portfolio provides optionality to deliver full spectrum of products to various end users Large and Extra Large flake recovered from Wilclo South and Francis with petrology identifying further large flake potential at Cut-Snake, Balumbah and Argent
4	Exploration & Expansion Upside Much of the 2,154km2tenement package remains to be explored Drilling covers Reverse Circulation (RC) and Diamond Drilling High quality airborne EM and magnetic coverage across key areas Own land at Sugarloaf and have binding HoA covering land purchase at Campoona Shaft
5	Close to Existing Infrastructure Network Located close to existing and proposed infrastructure Power and major road infrastructure all located within the perimeter of the tenements with access to various port options Substantial saline groundwater aquifer located ~10km north of Sugarloaf has been drilled, tested and is expected to supply the full water needs of an extended project

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 Low sovereign risk, good access to infrastructure  High quality product 92% - 98.5% Cg  Combined deposit grade of 9.0% Cg could support long life project  Predominantly free-dig, open cut mining with low overall strip ratio  Mining Lease Proposal 75% completed

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Leigh Creek magnesite

Archer Exploration owns the world’s largest cryptocrystalline magnesite deposit

• 100% interest in Leigh Creek deposit – world’s largest cryptocrystalline magnesite deposit

• JORC Resource of 453Mt grading 41.4% MgO – almost 50% of the

  • world’s known cryptocrystalline magnesite resources

• cryptocrystalline magnesite’s superior qualities produce higher value

  • magnesia products than macrocrystalline magnesite

 Infrastructure

• 20 kms from a privately owned standard gauge rail line that operates between Leigh Creek and Port Augusta which connects to Port Pire

• Port Pirie has access to national rail and road infrastructure, bulk shipping facilities, gas, power and skilled labour

• Port Pirie is the preferred magnesia processing location, 220km north of Adelaide which has an established container terminal

• Strategic review proceeding to plan with probable finalisation Q1 calendar 2015

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Precious metals & manganese

Broad range of high quality copper and gold exploration prospects in SA

Gold

• Wildhorse Plain – several km epithermal gold anomaly at Bartel

• early exploration with best intercept of 29m @ 0.57g/t Au

• Napoleon’s Hat & Watervale – early stage targets

Copper

• North Cowell – covering historic Morrowie workings

• Spring Creek – historic mine with full supergene copper suite.

• World’s End – including Robertstown & Mimic

Manganese

• 100% interest in 7 manganese deposits and prospects

• 3 advanced prospects (Jamieson Tank, Ketchowla and Salt Creek) have grades ranging from 15%-20% Mn

• Beneficiation tests on both Jamieson Tank and Ketchowla K1 ore indicates saleable manganese grading ~40% Mn

• Jamieson Tank recoveries ≈ 80%

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• Potential divestment or JV opportunities

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Archer’s strategic priorities

Progress graphite prospects and unlock magnesite potential

• Market engagement commenced for Campoona graphite for off-take and/or JV partners – steady progress

• Drill out of graphite deposits and prospects to identify the key prospects to take forward to Resource

• Flake graphite recovery tests for each Prospect drilled during December 2014 – February 2015 drilling

• Near-term monetisation of non-core projects

• Complete MLP Q1 calendar 2015

• Progress research into specific graphite/graphene agricultural and environmental remediation products with a view to commercialisation

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Archer graphite concentrates Chemically intercalated graphite Thermally intercalated graphite

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