ARCHER MATERIALS LIMITED — Capital/Financing Update 2009

Sep 3, 2009

4 September 2009

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General Manager The Company Announcements Office Australian Securities Exchange

UNLISTED SHARE OPTIONS ISSUED TO CEO

Following the announcement of the appointment of Mr Mike Hatcher as new CEO (ASX 13 August 2009), Archer Exploration Limited advises that it has today issued 1,000,000 unlisted options to Mike Hatcher. The options have been granted as part of Mr Hatcher’s remuneration package and have been issued in accordance with the terms of the Company’s Employee Share Option Plan.

The options are exercisable at 20 cents compared with a recent share price of 12 cents. 500,000 options may be exercised at any time with the balance of 500,000 capable of exercise at any time after 30 June 2010. The expiry date for exercise of the options is 31 December 2012.

Mike Hatcher is a geologist with nearly 40 years experience in exploration, operations and business development roles and Archer has been fortunate to attract someone of Mike’s caliber to the role of CEO.

ARCHER EXPLORATION LIMITED

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Craig W Gooden Company Secretary