ARCHER MATERIALS LIMITED — Capital/Financing Update 2012

Mar 14, 2012

15[th] March 2012

ASX ANNOUNCEMENT / MEDIA RELEASE

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RESOURCE DRILLING COMMENCED AT THE HIGH GRADE COARSEGRAINED CAMPOONA GRAPHITE PROJECT

Highlights

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• Drilling completed in February 2012 highlighted Campoona as a priority high grade graphite deposit.

• The February 2012 drilling confirmed wide intervals of exceptional grade graphite including:

  • 21m @ 15.0%C from 46m downhole in hole CSRC12_006.

  • 24m @ 10.4%C from 49m downhole, including 10m @16.7%C from 48m and and 3m @ 13.9%C from 70m in hole CSRC12_003.

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• Systematic resource drilling programme commenced yesterday, initially comprising of 2,500 metres of RC and aircore drilling designed to support the estimation of a JORC Inferred Resource.

• Drilling programme is the first step of a larger programme intended to enable drill out of the entire strike of the deposit to support the estimation of a JORC Indicated Resource.

Archer Exploration Limited (“Archer”) advises that resource drilling commenced on the 14[th] March 2012 at the Company’s 100% owned Campoona Graphite Project located approximately 12km north of the township of Cleve on Eyre Peninsula, South Australia.

Drilling by the Company last month confirmed the presence of visible flake graphite within a discrete 10-15m wide intense graphitic shear zone hosted in low grade graphitic proto-gneiss (high grade metamorphosed sediments) over a strike length of some 4km (Figure 1). A detailed airborne electromagnetic survey completed in 2011 indicated that the Campoona graphite deposit could have an overall strike of over 6km. The high grade graphite unit averages 10-15m in true width with the hangingwall section particularly high grade averaging over 15% graphitic carbon and carrying visible flake.

The highlights of last month’s drilling were:

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• Presence of visible flake graphite.

• Campoona is open at depth and along strike.

• The high grade graphite unit averages 10-15m in true width.

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The current phase of drilling is the first in a staged resource drilling programme designed to identify JORC standard resources at Campoona. It is expected that the drilling will take 4-6 weeks to complete with the assay results to be progressively reported.

Samples from the February drilling have been submitted for petrological examination and for detailed metallurgical evaluation. Test results should be available soon after the assay results.

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Figure 1. Location of all holes drilled in the Campoona / Grid2 area 2012 holes in blue.

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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