ARCHER MATERIALS LIMITED — Capital/Financing Update 2011

Oct 26, 2011

27[th] October 2011

General Manager
The Company Announcements Office
Australian Securities Exchange

DRILLING COMPLETED AT CAMPOONA GRAPHITE DEPOSITS

Archer Exploration Limited advises that the drilling ������������������������������������ South and Grid 2 graphite deposits has been completed.

Drilling consisted of 9 RC drill holes for an aggregate 451 metres and was terminated 2 holes � short due to heavy rain in the Cleve Darke Peak area over recent days.

The purpose of the drilling was to confirm the depth continuity of the high grade Campoona
South outcrop (>25% C) that hosts large flake graphite and to confirm the potential of the
substantial EM signature corresponding to the Grid 2 graphite deposit.  Both objectives were
met.

Figure 1. Location of drillholes at Campoona South and Grid 2

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Six drill holes were drilled at Campoona South.  All six holes intersected highly graphitic intervals
in sheared gneiss.

All three holes drilled at Grid 2 intersected wide graphitic intervals within weathered gneiss.
Estimates of the graphite present were achieved by sieving samples over water and recording
the intensity of the layer of crystalline graphite left floating on the surface.

Samples have been submitted for laboratory analyses and are expected to take 2 to 3 weeks to
complete.  Additional samples for flotation are to be submitted to determine graphite recovery
and the purity and flake size within the flotation concentrates.

For further information please contact:

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

The exploration results 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 seventeen 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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