ARCHER MATERIALS LIMITED — Capital/Financing Update 2012

Apr 29, 2012

30[th] April 2012

ASX ANNOUNCEMENT / MEDIA RELEASE

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ARCHER SELLS WEST ROXBY AREA TENEMENTS

HIGHLIGHTS

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• Archer - through its wholly owned subsidiary Kensington Exploration Pty Ltd - and BHP Billiton have executed a binding Sale and Purchase Agreement.

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• The Sale and Purchase Agreement covers the sale to BHP Billiton of five (5) exploration licences covering 3,699 km[2] of the Stuart Shelf region.

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• On Completion BHP Billiton will pay Archer AUD$8 million in cash.

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• Completion is subject to Ministerial Consent to renewal and transfer of the Tenements.

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• After completion Archer will be in a position to accelerate the development of its graphite projects with a cash balance of approximately $12m (excluding proceeds from the current Share Purchase Plan).

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Archer Exploration Limited (“Archer”) through its wholly owned subsidiary Kensington Exploration Pty Ltd, has signed a Sale and Purchase Agreement with BHP Billiton relating to the sale of five (5) exploration tenements.

The Sale and Purchase Agreement supersedes a previous Heads of Agreement first announced on 28[th] December 2011 which contemplated a joint venture between the two companies.

The sale of the tenements will allow Archer to intensify its exploration focus on its emerging graphite deposits at Campoona and Sugarloaf and to commence systematic assessment of several additional graphite prospects around Cleve on Eyre Peninsula, South Australia.

Whilst remaining focused on the development of its graphite assets the additional funds will also provide Archer with the opportunity to advance some of its other projects covering copper, manganese and gold.

About the West Roxby Project

Archer’s West Roxby tenements are located approximately 90km southwest of BHP Billiton’s Olympic Dam Operations and comprise 5 contiguous tenements covering an area of approximately 3,699 km[2]

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which includes a reduction in EL3724 from 884 km[2] to 162 km[2] due to portions of the tenement residing within the Woomera Prohibited Area. The excised land did not have identified exploration targets.

The tenements host a number of undrilled exploration targets including potential IOCG targets at Island Lagoon and Evelyn Dam, a potential Athabasca unconformity uranium target at Apollo (Figure 1).

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Figure 1: Archer’s West Roxby Tenements

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

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 sixteen 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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