ARCHER MATERIALS LIMITED — Capital/Financing Update 2015

Aug 10, 2015

ABN 64 123 993 233

11 August 2015

ASX Announcement

ABN 64 123 993 233

Further CSIRO “battery” tests for Archer’s SA graphite

Highlights

• Additional “battery suitability” tests to be undertaken by CSIRO on Archer’s Campoona graphite from SA’s Eyre Peninsula

• Results likely in October

• Follows successful test work in Germany on Campoona samples aiming at use in expanding lithium ion battery market

• Campoona samples also sent to overseas customers for testing

Newly refined graphite samples from Archer Exploration Limited’s (ASX: “AXE”) Campoona project on South Australia’s Eyre Peninsula, are to be sent to the CSIRO for a new round of testing for their suitability to meet the emerging global market for lithium ion batteries.

The new results are expected to be known by October.

In May this year, Archer announced (ASX 7 May 2015) that testing of the Company’s Campoona ultra-pure graphite found it compared very favourably against commercially available high purity synthetic graphite for use in current generation lithium-ion batteries. Synthetic graphite is currently used in some 32% of all lithium-ion batteries and that percentage is forecast to rise in the coming years. CSIRO suggested that further improvements in charge capacity could result if Campoona graphite was more finely and uniformly sized.

A sample of Campoona concentrate was subsequently sent to Netzsch in Germany for micronising and classification and it is this returned sample that is currently being purified before being sent later this month to the CSIRO for additional testing.

Archer Managing Director, Mr Gerard Anderson, said further positive findings by the CSIRO would greatly enhance the Company’s ability to attract suitable buyers for its high grade graphite.

Offtake customers

Archer also announces today that it has despatched samples of Campoona’s ultra-pure fine flake graphite to potential overseas partners, for in-house testing. Additional potential offtake customers had also been identified and were being contacted, as a result of Archer appointing agents to secure suitable offtake customers able to underpin Campoona’s development.

Archer Exploration Limited Level 1, 28 Greenhill Rd Wayville SA 5034 www.archerexploration.com.au

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Plate 1. SEM image of 99.5% Cg Campoona micronized graphite

Eyre Peninsula graphite mine and processing facility

Physical surveying of the Mineral Claim (over the Campoona Shaft graphite deposit) and two Miscellaneous Purpose Licenses – MPL Sugarloaf Processing Facility and MPL Water, has been completed. This survey work by Archer is required under mine development regulations.

Mr Anderson said feedback from the SA Government was being received on the Company’s draft Mining Lease Proposal for Campoona. Archer expects the final form Mining Lease Application to be lodged early in September.

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

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Archer Exploration Limited is an Australian Stock Exchange listed company with 100% ownership of 15 tenements all in South Australia covering more than 5,000 km[2] .

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