ARCHER MATERIALS LIMITED — Capital/Financing Update 2016

Aug 3, 2016

ABN 64 123 993 233

04 August 2016ABN 64 123 993 233

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ASX Announcement

SPP Options offer closes

Archer Exploration Ltd (ASX:AXE) advises that the prospectus for the offer of SPP Options closed on 02 August 2016, with the Company receiving valid applications for 22,035,974 Options.

Archer shareholders who were allotted shares under the Company’s recent share purchase plan (SPP) were eligible to apply for unlisted share options (Options) to be issued in accordance with the terms set out in the prospectus and the personalised application form sent to eligible shareholders.

Each free attaching Option will have an exercise price of $0.12, expiry date of 30 June 2017 and otherwise issued on the terms set out in the prospectus dated 27 June 2016 (Prospectus).

The Company is seeking shareholder approval for the issue of the Options at the General Meeting to be held on Friday, 5[th] August 2016 at Level 1, 67 Greenhill Road, Wayville South Australia 5034, as detailed in the Notice of General Meeting dated 01 July 2016 and sent to all shareholders.

For further information please contact:

Mr Greg English Chairman Archer Exploration Limited Tel: (08) 8272 3288

Mr Damien Connor Company Secretary Archer Exploration Limited Tel: (08) 8272 3288

Archer Exploration Limited

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

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Archer Exploration Limited (ASX code AXE) has 100% ownership of 13 tenements all in South Australia covering more than 4,700 km[2] .

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