ARCHER MATERIALS LIMITED — Capital/Financing Update 2016

May 17, 2016

ABN 64 123 993 233

ABN 64 123 993 23318 May 2016

ASX Announcement

Share Purchase Plan – Cleansing Notice

Archer Exploration Limited (ASX: AXE) ( Company ) refers to its announcement on 11 May 2016 whereby eligible shareholders will have the opportunity to purchase a parcel of shares up to the value of $15,000 under a share purchase plan ( SPP ).

The SPP will be offered in accordance with ASIC Class Order (CO 09/425). It is a condition of the Class Order that the Company gives ASX this notice within the 24 hour period before the SPP offer is made. Accordingly, Archer gives notice that:

• (a) The Company will make offers to issue shares under a Share Purchase Plan without disclosure to investors under Part 6D.2 of the Corporations Act 2001 (Cth) ( Corporations Act ).

• (b) This notice is given in accordance with ASIC Class Order (CO 09/425).

• (c) As at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company and section 674 of the Corporations Act.

• (d) As at the date of this notice, there is “no excluded information” within the meaning of sections 708A(7) and 708A(8) of the Corporations Act (as if this notice were a notice under paragraph 708A(5)(e) of the Corporations Act).

For further information please contact:

Mr Greg English Executive Chairman Archer Exploration Limited Tel: (08) 8272 3288 genglish@archerexploration.com.au

Mr Damien Connor Company Secretary Archer Exploration Limited Tel: (08) 8272 3288 dconnor@archerexploration.com.au

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