ARCHER MATERIALS LIMITED — Capital/Financing Update 2012

Jun 21, 2012

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22[nd] June 2012

ASX ANNOUNCEMENT / MEDIA RELEASE

WEST ROXBY TENEMENT SALE COMPLETED

HIGHLIGHTS

• Completion of sale of West Roxby Tenements.

• Archer has received payment of $8.0 million from BHP Billiton.

• After receipt of funds, Archer has over $13.0 million in cash and plans to accelerate development of its 100% owned Campoona Graphite Deposit.

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Archer Exploration Limited (“Archer”) through its wholly owned subsidiary Kensington Exploration Pty Ltd, this morning completed the sale of the Company’s five West Roxby exploration tenements to BHP Billiton. At Completion Archer received a payment of $8.0 million resulting in the Company having over $13.0 million cash in bank to fund its work programs.

Finalisation of the sale of the West Roxby project leaves Archer in a very strong cash position and well placed to complete the drilling of the Campoona Graphite Deposit to JORC Resource status.

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

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