ARCHER MATERIALS LIMITED — Capital/Financing Update 2015

Feb 2, 2015

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----- Start of picture text ----- ASX Release 3 February 2015Key milestone for Eyre Peninsula Graphite Project----- End of picture text -----

ASX Code: AXE

Settlement and approval for Wildhorse Plain purchase

Directors

Greg English Chairman

Archer Exploration is pleased to advise that the transfer of EL 4693 Wildhorse Plain to Pirie Resources Pty Ltd, a wholly owned subsidiary of Archer Exploration Limited, has now been completed following ministerial approval.

Gerard Anderson Managing Director

Tom Phillips AM Director (Non-Executive)

Alice McCleary Director (Non-Executive)

Company Secretary Damien Connor

This transfer represents another key milestone in the development of Archer’s graphite assets. Archer now holds the title to all tenements encompassed in the Eyre Peninsula Graphite Project area. The ownership of the tenement gives Archer more certainty in respect of the development of these resources.

Archer’s proposed Campoona mine development is located within EL 4693 Wildhorse Plain (refer to Figure 1) which was previously held by Samphire Uranium Pty Ltd, a wholly owned subsidiary of ASX listed UraniumSA Limited. Until now Archer has been exploring EL 4693 pursuant to a Mineral Rights Agreement which allowed Archer to explore for all minerals except for uranium (refer to ASX announcement dated 15 March 2010).

Shares on Issue 84.3 million

Unlisted Options on Issue 2..3 million Performance Rights

Wholly-owned subsidiaries of Archer Exploration Limited and UraniumSA Limited signed the Wildhorse Plain Agreement which sets out the terms and conditions for the transfer of ownership of EL 4693 Wildhorse Plain. Under the terms of the agreement, UraniumSA will have the right to explore for uranium and may benefit from the development of a deposit(s) where uranium is not the dominant element.

Key focus

Archer will issue 250,000 fully paid Archer ordinary shares to UraniumSA Limited as full payment for the transfer.

Eyre Peninsula Graphite Project (includes Campoona, Sugarloaf and Waddikee) Additional portfolio opportunities: 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

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

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----- Start of picture text ----- Key milestone for Eyre Peninsula Graphite Project----- End of picture text -----

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Figure 1. Eyre Peninsula Project – EL 4693 Wildhorse Plain hosts the Campoona Shaft and Central Campoona graphite deposits and the Campoona South and North prospects.

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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----- Start of picture text ----- Key milestone for Eyre Peninsula Graphite Project----- End of picture text -----

Archer Exploration Limited is an Australian Stock Exchange listed company with 100% ownership of 17 tenements all in South Australia. Archer’s flagship project is the Eyre Peninsula Project which is located within reach of established and major developing infrastructure. Archer plans to submit a Mining Lease Proposal to the South Australian Government for approval in the second quarter of calendar 2015.

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----- Start of picture text ----- Eyre Peninsula Project----- End of picture text -----

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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

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