ARCHER MATERIALS LIMITED — Capital/Financing Update 2008

Apr 3, 2008

4 April 2008

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ARCHER EXPLORATION EXPANDS MANGANESE AND COPPER FOOTPRINT

Adelaide based mineral exploration company Archer Exploration (ASX code “AXE”) has successfully applied for three mineral exploration licences in the Wilmington area of South Australia. The areas applied for are highly prospective for manganese and copper and compliment the Company’s existing manganese, iron and copper projects at Carrappee Hill and West Roxby.

The tenement areas are located close to existing major infrastructure being 20km NW from the deep water port of Port Pirie, and 35km’s east of Port Augusta (see Figure 1).

Manganese mineralisation has been historically reported on the tenement area and potential exists for further strata bound manganese mineralisation.

The tenement area is also highly prospective for copper (previous diamond drilling recorded 3m @ 3% Cu from 132.6m and 6m @ 2.3% Cu from 146.3m) which has been historically mined on the tenement area (the Spring Creek Copper Mine was active from 1860 to 1910).

Archer intends to conduct a thorough review of all available historical data, after which, areas that are deemed prospective for copper and manganese will be targeted for follow up investigation.

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Figure 1 Location of Archer’s Wilmington ELA’s

For further information please contact:

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

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

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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. It should be noted that the abovementioned exploration results are historically based open file information.

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ABOUT ARCHER EXPLORATION

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

The Company’s Carrappee Hill Project on South Australia’s Eyre Peninsula contains iron ore grades of up to 57% and manganese grades of up to 38%. The Company is undertaking further exploration at Carrappee 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 oxide-coppergold-uranium (IOCG-U) deposit. The Evelyn Dam anomaly has early geophysical characteristics similar to those of Olympic Dam and the recent Carrapateena discovery.

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Map showing Archer’s 100% owned tenements covering approximately 5,600km[2] of prospective iron, manganese and base metal tenements in the Gawler Craton region of South Australia.