ARCHER MATERIALS LIMITED — Capital/Financing Update 2018

Apr 9, 2018

ABN: 64 123 993 233

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ASX Announcement (ASX: AXE )

10 April 2018

MOU with Urbix for graphite purification alternatives

Highlights

• MOU signed with Urbix Resources LLC for preliminary purification testing of Archer’s Campoona graphite to grades suitable for battery and energy storage applications.

• Purification testing will involve proprietary methods developed by Urbix Resources LLC that if successful can lower processing costs for the Campoona Graphite Project.

Archer Exploration Limited (ASX:AXE, Archer, Company) is pleased to announce the signing of a Memorandum of Understanding (MOU) with Urbix Resources LLC related to the Company’s Campoona graphite deposit development activities.

The MOU with Urbix Resources, LLC (Urbix) is for initial work related to the suitability of Archer’s Campoona graphite using Urbix’s proprietary purification processes. Urbix has developed a low-temperature, non-oxidative purification technique which reduces the input costs and environmental impacts whilst still yielding graphite grades suitable for lithium-ion batteries and energy storage technology. The MOU outlines that consideration would be given to the joint development of additional purification process optimisation, technology licensing, and toll processing services for the Campoona Graphite Project.

Founded in 2014 Urbix specialises in all aspects of the graphite value chain. They have developed proprietary methods for environmentally conscious purification of various graphite and graphene products and advertises that their graphite is the most responsibly produced in the world. In December 2017, Urbix agreed to buy up to 11,000 tpa of graphite concentrate from ASX listed Battery Minerals Ltd (ASX:BAT) in accordance with the terms of an offtake agreement between the parties.

Archer CEO Dr Mohammad Choucair commented, “This is a valuable step for Archer in developing relationships with industry partners. The agreement with Urbix to investigate alternative methods for graphite refinement could reduce our future operational costs and provide efficient, high-volume processing of the Campoona Graphite Deposit with low environmental impact, whilst still maintaining the 99%+ grades required for downstream battery technologies.”

For further information, please contact:

Dr Mohammad Choucair Mr Cary Helenius Chief Executive Officer Investor Relations Archer Exploration Limited Market Eye Tel: +61 8 8272 3288 Tel: +61 3 9591 8906