ARCHER MATERIALS LIMITED — Capital/Financing Update 2017

Jun 8, 2017

ASX Announcement (ASX: AXE )

9 June 2017

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Grant of first Broken Hill tenement

Highlights

• First tenement granted at Broken Hill.

• Tenement prospective for Thackaringa style cobalt mineralisation.

• Grant of remaining 2 tenement applications expected in next 1-2 weeks.

Archer Exploration Limited (ASX: AXE, Archer, Company) is pleased to announce the grant of exploration licence EL 8592 (Tenement), located approximately 20km north of Broken Hill. The Tenement is part of the Company’s larger Broken Hill Cobalt Project area which is prospective for Thackaringa style cobalt mineralisation.

The Tenement is situated along strike from Cobalt Blue Ltd’s (ASX:COB) Thackaringa Cobalt Project which includes the Pyrite Hill, Big Hill and Railway cobalt deposits. COB recently announced (ASX 05/06/17) a significant resource upgrade for the Thackaringa Project, with Mineral Resources increasing from 33.1Mt @ 833 ppm Co to 54.9Mt @ 910ppm Co.

COB’s Thackaringa Cobalt Project is associated with the Thackaringa Group geological formation. Archer’s extensive research has identified northern extensions of the Thackaringa Group formation on Archer’s tenements.

There has been no recorded historic cobalt exploration or drilling within Archer’s Broken Hill Cobalt Project area.

The Company’s main project areas are along strike from Cobalt Blue’s cobalt deposits and the presence of the same rocks that host these deposits and previously reported cobalt occurrences on Archer’s ground suggest high potential for further cobalt mineralisation.

Archer has been meeting with numerous affected landowners and has negotiated and executed land access agreements with key landowners which will allow access to the Tenement.

Next Steps

Archer expects the grant of the remaining two tenements within the coming weeks and intends to commence fieldwork on the Tenement before the end of June.

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Figure 1: Archer’s Broken Hill Cobalt Project showing newly granted tenement EL 8592 (red) and exploration licence applications (blue)

For further information, please contact:

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

Mr Cary Helenius Investor Relations Market Eye Tel: 03 9591 8906

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Wade Bollenhagen, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy and is a full-time employee of Archer Exploration Limited. Mr Bollenhagen has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Bollenhagen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.