ARCHER MATERIALS LIMITED — Board/Management Information 2016

Feb 8, 2016

ABN 64 123 993 233

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ASX Announcement

09 February 2016 ABN 64 123 993 233

Queensland magnesia executive joins Archer Board as Leigh Creek magnesite project in SA ramps up

One of the executives behind driving Queensland’s magnesia industry, Mr Paul Rix, has been appointed to the Board of Adelaide-based graphite and magnesia developer, Archer Exploration Limited (ASX: “AXE”).

The appointment of Mr Rix as a new non-Executive Director of Archer comes at a time the Company is well advanced in developing its hub of graphite projects on SA’s Eyre Peninsula as well as its substantial magnesite holding near Leigh Creek in the State’s north.

The Company has been in close talks with the SA Government and other providers about accessing the nearby Leigh Creek coal mine infrastructure to bring the magnesite deposit into production as soon as possible.

The infrastructure opportunity arose only late last year with the formal closure of the Leigh Creek coal operations.

Mr Rix is an experienced mining professional with more than 30 years’ experience in the marketing of industrial minerals and products. From 2003 – 2013, Mr Rix worked for Queensland Magnesia Pty Ltd (QMAG) as General Manager Marketing where he was responsible for the development and implementation of QMAG's long-term marketing strategy, focusing on diversification of magnesia products and markets whilst maintaining high plant utilisation. His magnesia marketing responsibilities stretched across six continents and more than 30 countries.

In addition to considerable magnesite experience, Mr Rix has provided graphite marketing services in Australia and has successfully negotiated offtake agreements with graphite customers.

He will initially assist Archer in identifying magnesia markets and customers as well as supporting development of Archer’s SA graphite and magnesite projects.

Archer Chairman, Mr Greg English:

“Archer has been looking to increase the capabilities of the management team as our graphite and magnesia projects near production and the appointment of Mr Rix is consistent with this strategy.

“Directors are pleased to have an industrial minerals professional of Mr Rix’s calibre join the Board. His magnesia and graphite industry knowledge and industry contacts will complement the work already undertaken by Archer, as we move our projects towards production.”

An Appendix 3X (Initial Director’s Interest Notice) for Paul is attached to this announcement.

Archer Exploration Limited Level 1, 28 Greenhill Rd Wayville SA 5034 www.archerexploration.com.au

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For further information please contact:

Mr Greg English Chairman Archer Exploration Limited Tel: (08) 8272 3288

Mr Gerard Anderson Managing Director Archer Exploration Limited Tel: (08) 8272 3288

Appendix 3X Initial Director’s Interest Notice

Rule 3.19A.1

Appendix 3X

Initial Director’s Interest Notice

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 30/9/2001.

Name of entity: ARCHER EXPLORATION LIMITED

ABN: 64 123 993 233

We (the entity) give ASX the following information under listing rule 3.19A.1 and as agent for the director for the purposes of section 205G of the Corporations Act.

Name of Director	PAUL LEONARD RIX
Date of appointment	08/02/2016

Part 1 - Director’s relevant interests in securities of which the director is the registered holder In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Note: In the case of a company, interests which come within paragraph (i) of the definition of “notifiable interest of a director” should be disclosed in this part.

Number & class of securities

Nil.

• See chapter 19 for defined terms.

Appendix 3X Page 1

11/3/2002

Appendix 3X Initial Director’s Interest Notice

Part 2 – Director’s relevant interests in securities of which the director is not the registered holder

In the case of a trust, this includes interests in the trust made available by the responsible entity of the trust

Name of holder & nature of interestNote: Provide details of the circumstances giving riseto the relevant interest.Nil.	Number & class of Securities

Part 3 – Director’s interests in contracts

Note: In the case of a company, interests which come within paragraph (ii) of the definition of “notifiable interest of a director” should be disclosed in this part.

Detail of contract	Archer executed a Services Agreement with an
	entity associated with Paul Rix on 14 August
	2015. Mr Rix has agreed to terminate the Services
	Agreement upon his appointment to the Archer
	board and in accordance with the terms of the
	Termination Agreement.
	A key term of the Termination Agreement is that
	Archer will seek shareholder approval for the
	issue to Paul Rix or his nominee of 5,000,000
	unlisted options with an exercise price of $0.15
	and an expiry date 31 January 2019.
Nature of interest	Paul Rix is the sole director of RixMin International
	Pty Ltd.
Name of registered holder	N/A
(if issued securities)
No. and class of securities to which	N/A
interest relates

• See chapter 19 for defined terms.

Appendix 3X Page 2

11/3/2002