ARCHER MATERIALS LIMITED — Capital/Financing Update 2014

Apr 27, 2014

ASX RELEASE: 28 April 2014

ASX Code: AXE

Directors Greg English Chairman

Gerard Anderson Managing Director

Tom Phillips AM Director (Non-Executive)

Alice McCleary Director (Non-Executive)

Company Secretary Craig Gooden

Highlights

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• Three geotechnical diamond drill holes completed into the eastern and western pit walls to provide rock quality data to support detailed pit design.

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• Pit design to be completed during May 2014.

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• Four 22.9cm diameter, 30 metre deep auger holes completed along the Campoona Shaft deposit provided 4.5 tonnes of run-of-mine sample for the initial 5 years of mine life for scale-up and pilot scale test work.

Campoona Shaft 2014 Drilling

During February and March 2014 geotechnical diamond drilling was completed at Archer Exploration Limited’s (ASX: “AXE”) wholly-owned Campoona graphite project located north of Cleve on South Australia’s Eyre Peninsula.

Three diamond holes for 297m were drilled at Campoona Shaft to provide geotechnical data to enable detailed pit design to proceed.

Shares on Issue 83.6 million

Unlisted Securities on Issue 3.4 million Performance Rights

Key focus

Campoona and Sugarloaf Graphite Projects (Eyre Peninsula, South Australia). Second tier projects cover magnesite, manganese, copper and gold.

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Archer Exploration Limited ABN 64 123 993 233 Level 1, 28 Greenhill Road Wayville SA 5034

One drill hole was sampled and submitted for analyses with results expected in May.

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Plate 1. CSGT14_001 core from 25m

Telephone +61 8 8272 3288 Facsimile +61 8 8272 3888 www.archerexploration.com.au

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Plate 2. CSGT_001 core from 50-51m downhole

Additionally four 22.9cm diameter auger holes were drilled along the strike of the graphite body to a depth of 30m (Plate 6, below is an example of one of these holes). Approximately 4.5 tonnes of graphite ore was recovered from these holes which represents run-of-mine feedstock for the first 5 years of the project’s planned mine life. The ore recovered will form the basis of future up-scaling and pilot scale test work.

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Plate 6. Collar of CSAug14_002

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Once the outstanding assays are received the Campoona Shaft resource will be re-estimated bringing it into line with JORC 2012 standard.

Plate 7 below shows the location of the additional holes at Campoona Shaft.

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Plate 7. Location of Geotechnical (GT) and Auger (Aug) holes at Campoona Shaft

For further information please contact:

Mr Greg English Mr Gerard Anderson Chairman Managing Director Archer Exploration Limited Archer Exploration Limited Tel: (08) 8205 3343 Tel: (08) 8272 3288

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ASX RELEASE: 2 8 A p r i l 2014

About Archer

Archer Exploration Limited is an Australian Stock Exchange listed company with 100% ownership of 13 tenements all in South Australia covering 4,954 km[2] . Archer also has the rights to all minerals other than uranium on EL4693 covering a further 816 km[2] . Archer’s flagship project is the Campoona Graphite Project which is located within reach of established and major developing infrastructure. It has a JORC 2004* Resource of 2.53 million tonnes @ 12.3 % C (based on 5% cut-off). Archer plans to submit a Mining Lease Proposal to the South Australian Government for approval in the third quarter of calendar 2014.

• This information was prepared and first disclosed under the JORC Code 2004 ( Archer Exploration Limited, ASX Announcement 6th December 2012) . It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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What sets Campoona apart from almost all other graphite deposits in the world is its ability to deliver ultra-

pure, high-value, highly crystalline ultra-fine graphite using conventional mechanical cell flotation.

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Archer Exploration Limited ABN 64 123 993 233 Level 1, 28 Greenhill Road Wayville SA 5034

Telephone +61 8 8272 3288 Facsimile +61 8 8272 3888 www.archerexploration.com.au

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 eighteen years experience in the field of activity being reported. Mr Bollenhagen has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” relating to the reporting of Exploration Results. Mr. Bollenhagen consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

The information in this report that relates to the JORC 2004 Mineral Resource estimation has been prepared by Mr B Godsmark who is a Member of the AusIMM and peer reviewed by Mr G Reed who is also a Member of the AusIMM (CP). Mr Godsmark is a full time employee of Mining Plus Pty Ltd and Mr Reed is a sub-contractor to Mining Plus Pty Ltd., both have more than five years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Godsmark and Mr Reed have consented in writing to the inclusion in this announcement of the Mineral Resource estimation information in the form and context in which it appears. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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