ARCHER MATERIALS LIMITED — Capital/Financing Update 2015

May 11, 2015

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ASX Code: AXE

HIGHLIGHTS

Directors Greg English Chairman

• Execution of definitive Sale and Purchase Agreement for land hosting Company’s Campoona Shaft graphite deposit and planned mine on SA’s Eyre Peninsula

• Subdivisions application to be lodged with local council

Gerard Anderson Managing Director

Tom Phillips AM

Graphite developer, Archer Exploration Limited (ASX:AXE) has executed the final Sale and Purchase Agreement to acquire the land underlying the Company’s imminent Mining Lease Application for the Campoona Shaft graphite deposit on SA’s Eyre Peninsula.

Alice McCleary

Company Secretary Damien Connor

The Company had previously announced that it had signed a legally binding Heads of Agreement (HoA) to purchase the land on which the Campoona Shaft mining operations would be located. Under the HoA, Archer and the landowners were to agree and execute the final form sale and purchase agreements.

Shares on Issue 84.3 million

Unlisted Securities on Issue 2.3 million Performance Rights

The land on which the proposed Campoona Shaft mining operations is located is part of a larger parcel of land owned by the landowners. Therefore, Archer will now make an application to the local council to subdivide the land and transfer title in the Campoona Shaft land to Archer.

Archer Managing Director, Mr Gerard Anderson:

Key focus

Eyre Peninsula Graphite Project (includes Campoona, Sugarloaf and Waddikee)

“ The signing of the final sale documentation is another crucial step in the development of the Campoona Graphite project. Archer could not have progressed Campoona as quickly as it has without the support of all local landowners and the Cleve community.

“The recent confirmation that our Campoona ultra-pure graphite is suited to battery applications, and the finalisation of the Campoona land acquisition, are significant achievements in the development of our planned graphite mining operations on Eyre Peninsula.”

Archer will lodge the Mine Lease Proposal for Campoona within the next week.

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

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

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