ARCHER MATERIALS LIMITED — Capital/Financing Update 2018

Aug 14, 2018

ABN: 64 123 993 233

==> picture [157 x 28] intentionally omitted <==

ASX Announcement (ASX: AXE )

15 August 2018

Key licence terms for quantum technology IP finalised with the University of Sydney

Highlights

• Archer and the University of Sydney Commercial Development and Industry Partnerships (CDIP) to exclusively negotiate a definitive binding exclusive licence agreement within 6 months.

• Licence terms to allow Archer to develop and commercialise carbonbased quantum computing technology.

• Negotiated terms have facilitated the filing of an international patent covering Europe, Australia, United States of America, Japan, Republic of Korea, and China.

Archer Exploration Limited (Archer, Company) is pleased to announce that the Company has finalised terms with the University of Sydney Commercial Development and Industry Partnerships (CDIP) for exclusive rights to develop and commercialise intellectual property (IP) related to carbon-based quantum computing technology.

Archer and CDIP have agreed to work together to negotiate a definitive binding licence agreement for Archer’s exclusive international rights to develop and commercialise quantum technology IP. CDIP have agreed to negotiate with, and deal exclusively with Archer, for the execution of a proposed licence agreement for the next 6 months. The key terms of the proposed licence agreement between Archer and CDIP have been finalised and remain confidential.

The finalising of terms has facilitated the filing, and national phase entry, of a patent cooperation treaty (PCT) application by the University of Sydney (University) in the geographic areas covered by a European Patent, Australia, United States of America, Japan, Republic of Korea, and China.

Commenting on the negotiations, Archer CEO Dr Mohammad Choucair said; “We are pleased to have finalised terms to execute the licence for the IP rights related to the carbon-based quantum computing technology with CDIP. When executed, the licence will provide us with patents to develop and commercially exploit the quantum computing technology across major geographic regions around the world including Europe, America and Australasia. Over the next six months we will focus on finalising the exclusive binding agreement and we remain very excited about the opportunity for Archer to expand in the strategic focus area of Quantum Technology”.

ABN: 64 123 993 233

==> picture [157 x 28] intentionally omitted <==

Background:

The IP relates to the development of a quantum electronic device (QED) for storing and processing quantum bits (qubits) – the fundamental components of a quantum computer. In particular, the QED comprises advanced carbon material components critical for its function, including graphene, which are available in the inventory of Archer’s wholly owned subsidiary, Carbon Allotropes.

The negotiations are centred on Archer’s exclusive international rights to develop and commercialise the IP, which is described in a patent cooperation treaty (PCT) application that was filed by the University in the names of the University and École Polytechnique Fédérale de Lausanne (EPFL) as a result of quantum materials and technology research led by Archer CEO, Dr Mohammad Choucair, during his previous employment at the University. The University and EPFL finalised an inter-institutional agreement with which EPFL allows the University to take the commercialisation lead in negotiating with Archer.

For further information, please contact:

Contact Details

Shareholders

Mr Greg English Executive Chairman

For more information visit our website https://archerx.com.au/investors/

Dr Mohammad Choucair Chief Executive Officer

Tel: +61 8 8272 3288