ARCHER MATERIALS LIMITED — Capital/Financing Update 2020

Dec 15, 2020

Mineral Exploration Graphite

Archer Materials Limited (ACN: 123 993 233) Ground Floor, 28 Greenhill Road, SA 5034

16 December 2020

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ASX Announcement (ASX: AXE )

Campoona Graphite Project fully permitted

Highlights

• Approval of Program for Environment Protection and Rehabilitation (“PEPR”) for the Campoona Graphite Project.

• PEPR is a significant step towards production, and better positions Archer for partnerships and co-development with key players in the lithium-ion battery supply chain.

Archer Materials Limited (“Archer”, the “Company”, “ASX: AXE ”) is pleased to announce that the South Australian Government has approved the Program for Environment Protection and Rehabilitation (“PEPR”) for the Campoona Graphite Project. Approval of the PEPR is the final step in the approvals process for the activities described in the PEPR.

The work program described in the PEPR allows for a bulk sample up to 60 tonnes to be collected, and for the sample to be processed off-site, including into graphite and graphene materials. This type of work is suitable for small-scale pilot testing and processing of Archer’s graphite materials in end-uses including lithium-ion batteries.

The collection of bulk graphite samples would allow Archer to pursue downstream opportunities with lithium-ion battery manufacturers and end-users so that the Campoona Graphite Project can be successfully developed to return maximum benefit to shareholders and the community.

Commenting on the PEPR approval, Archer Chairman Greg English said: “The approval of the PEPR is a significant achievement and another step forward in the de-risking of the Campoona Graphite Project.”

“With the forecast near term growth in lithium-ion battery demand and forecast increase in graphite prices, the timing of the PEPR approval could not have been better. The next steps towards production involve finding a partner or buyer of the Campoona Graphite Project”.

Significant progress has been made and announced to ASX by Archer on the development of the Campoona Graphite Project since the granting of a Mineral Lease (ASX Ann. Dec 2017). This has included technical studies determining the graphite at Campoona is structurally near perfect and can also produce graphene, be integrated into commercially scalable lithium-ion batteries and can be processed into high value spherical graphite products.

About Archer

A materials technology company developing innovative deep tech in quantum computing, biotechnology, and reliable energy. The Company has strong intellectual property, world-class in-house expertise, a unique materials inventory, and access to Tier 1 technology development infrastructure.

Mineral Exploration Graphite

Archer Materials Limited (ACN: 123 993 233)

Ground Floor, 28 Greenhill Road, SA 5034

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For more information about Archer’s activities, please visit our:

The Board of Archer authorised this For more information about Archer’s activities, announcement to be given to ASX. please visit our: General Enquiries Website: Mr Greg English https://archerx.com.au/ Executive Chairman Twitter: Dr Mohammad Choucair https://twitter.com/archerxau?lang=en Chief Executive Officer Tel: +61 8 8272 3288 YouTube: https://bit.ly/2UKBBmG Media Enquiries Mr James Galvin Sign up to our Newsletter: Communications Officer http://eepurl.com/dKosXI Email: hello@archerx.com.au Tel: +61 2 8091 3240