ARCHER MATERIALS LIMITED — Capital/Financing Update 2008

Jun 18, 2008

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19 June 2008

DRILLING STARTED TODAY AT S.A. MANGANESE PROJECT

Following the announcement last week of exceptionally high rock chip sample grades of up to 53.8% manganese oxide at Archer Exploration Limited’s (ASX code: “AXE”) Jamieson Tank Prospect near Whyalla in South Australia, the Company is pleased to announce that it has today commenced drilling at Jamieson Tank.

Archer’s Jamieson Tank Prospect extends into the adjacent tenement held by Monax Mining Limited which yesterday announced that drilling by Monax (also at Jamieson Tank) intersected manganese mineralisation close to surface (approximately 2 – 15 metres downhole).

The drill rig used by Monax has now moved a short distance onto Archer’s tenement and will commence drilling today. Archer is planning to undertake 2,000 – 3,000 metres of RC drilling, which should be completed within two weeks.

Archer’s exploration results reported last week confirm the extent of the widespread manganese mineralisation previously discovered by Western Mining Corporation at the Jamieson Tank Project.

The Jamieson Tank Project is located within Archer’s wholly-owned Carappee Hill tenement area, 115km southwest of OneSteel’s iron ore operations and the deepwater export port of Whyalla.

For further information please contact:

Mr Greg English Mr Wade Bollenhagen Director Exploration Manager Archer Exploration Limited Archer Exploration Limited Tel: (08) 8132 0003 Tel: (08) 8132 0003

The exploration results reported herein, insofar as they relate to mineralisation, are based on information complied by Mr. Wade Bollenhagen, Exploration Manager of Archer Exploration Limited and is a Member of the Australasian Institute of Mining and Metallurgy who has more than 10 years experience in the field of activity being reported. Mr. Bollenhagen consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

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Drill rig to be used at Jamieson Tank

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ABOUT ARCHER EXPLORATION

Archer Exploration Limited is a iron ore, manganese, copper and phosphate explorer focused on the discovery of world-class deposits. The Company has carefully acquired a portfolio of whollyowned projects in the highly prospective Gawler Craton region of South Australia.

The Company’s Carappee Hill Project on South Australia’s Eyre Peninsula contains iron ore grades of up to 57% and manganese grades of up to 53.8%. The Company is undertaking further exploration at Carappee Hill and is assessing a range of options for the further development of this exciting project.

The Company is also well advanced on the exploration of its Olympic Dam style iron oxidecopper-gold-uranium (IOCG-U) deposit. The Evelyn Dam anomaly has early geophysical characteristics similar to those of Olympic Dam and the recent Carrapateena discovery.

The World’s End Project area covers the historic Fairview Phosphate Mine which was last mined in 1903 when it yielded 100 t of hand-picked phosphate ore grading 25% P2O5.

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Archer’s project areas and tenements, covering prospective iron, manganese, copper and phosphate tenements in the Gawler Craton region of South Australia.