ARCHER MATERIALS LIMITED — Capital/Financing Update 2021

Oct 3, 2021

Corporate Equity Raising

Archer Materials Limited (ACN: 123 993 233) Lot Fourteen, Frome Road, Adelaide SA 5000

4 October 2021

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ASX Announcement (ASX: AXE )

A$15 million raised through successful placement to domestic and global institutional investors

Not for release to US wire services or distribution in the United States.

Highlights

• Successful completion of a A$15 million placement at A$1.45 per share.

• Non-underwritten Share Purchase Plan to be offered to eligible investors to raise up to a further A$5 million.

• Funds raised will be primarily used to develop Archer’s[12] CQ quantum computing chip and lab-on-a-chip biochip technologies.

• Funds will also enable the Company to pursue further technology and commercial development in the US.

Advanced semiconductor company, Archer Materials Limited (“Archer”, the “Company”, “ASX: AXE ”), is pleased to announce that it has received firm commitments for A$15 million via an institutional placement ( Placement ) of 10.3 million new fully paid ordinary shares ( New Shares ).

Demand for the Placement well exceeded the New Shares to be issued, with strong support from institutional investors.

The A$15 million Placement and non-underwritten share purchase plan to existing eligible shareholders to raise up to A$5 million (together, the Equity Raising ) provides funding to pursue the Company’s previously stated plans to develop its[12] CQ quantum computing qubit processor chip (“[12] CQ chip”) and lab-on-a-chip biochip (“Biochip”) technologies.

Funds raised from the Equity Raising will be principally used for executing on the Company’s strategic focus:

• Progressing Archer’s world-first technology development, including its[12] CQ chip and Biochip.

• Utilising world-class technology development infrastructure and facilities, R&D, people, and IP, to support pre-market development of Archer’s technologies.

• Protecting intellectual property assets (e.g. patents and international patent applications) underpinning the Company’s technology.

• Establishing and strengthening new and existing commercial partnerships in Australia and abroad.

• General working capital requirements.

Corporate Equity Raising

Archer Materials Limited (ACN: 123 993 233) Lot Fourteen, Frome Road, Adelaide SA 5000

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Archer’s Executive Chairman, Mr Greg English, commented: “We are very pleased with the overwhelming support received in the Placement in this transformational moment for Archer. We thank our existing shareholders for their ongoing support and welcome a number of new, high-quality institutional investors to our register, supporting our journey towards developing the next generation of semiconductors that could spur breakthrough solutions like quantum computing.”

Placement Details

The Placement of A$15 million was completed under ASX Listing Rule 7.1 (10,344,828 New Shares). Each New Share issued under the Placement will rank equally with existing fully paid ordinary shares on issue.

The New Shares under the Placement will be issued at A$1.45 per New Share ( Placement Price ), which represents a 16.4% discount to the last close price on 30 September 2021 of A$1.735.

Canaccord Genuity (Australia) Limited and Taylor Collison Limited acted as Joint Lead Managers to the Placement.

Settlement of the New Shares issued under the Placement is expected to occur on Thursday, 7 October 2021, with allotment scheduled for Friday, 8 October 2021.

Share Purchase Plan

Archer’s existing eligible shareholders, being those shareholders that are residents in Australia or New Zealand that held Archer shares as at 7:00pm (Sydney time) on Friday, 1 October 2021, will be invited to participate in the SPP at the same issue price as the Placement (A$1.45 per share). The SPP will provide eligible shareholders the opportunity to increase their holding by up to A$30,000 without incurring any brokerage or transaction costs.

The SPP is targeted to raise up to A$5 million and is not underwritten. Archer may increase or decrease the size of the SPP and/or scale back applications under the SPP at its discretion. Any scale-back will be applied to the extent and in the manner, Archer sees fit, which may include taking into account a number of factors such as the size of an applicant's shareholding at the record date for the SPP, the extent to which the applicant has sold or purchased shares since the record date, whether the applicant may have multiple registered holdings, the date on which the application was made, and the total applications received from eligible shareholders.

Further information regarding the SPP (including terms and conditions of the SPP) will be provided to eligible shareholders in the SPP offer booklet, which will be made available to eligible shareholders shortly. Eligible shareholders wishing to participate in the SPP will need to apply in accordance with the instructions in the SPP offer. Participation in the SPP is optional.

Corporate Equity Raising

Archer Materials Limited (ACN: 123 993 233) Lot Fourteen, Frome Road, Adelaide SA 5000

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Equity Raising Timetable

Event	Time / Date
Record Date for Share Purchase Plan	7:00pm Friday, 1 October 2021
Trading Halt and Bookbuild	Friday, 1 October 2021
Announcement of Completion of Placement	Monday, 4 October 2021
Trading Halt Lifted – Trading Resumes on ASX	Monday, 4 October 2021
Share Purchase Plan opens	Thursday, 7 October 2021
Settlement of New Shares issued under the Placement	Thursday, 7 October 2021
Allotment and commencement of trading of New Shares issued under the Placement	Friday, 8 October 2021
Share Purchase Plan closes	Thursday, 28 October 2021
Allotment of New Shares issued under the Share Purchase Plan	Thursday, 4 November 2021
Commencement of trading of New Shares issued under the Share Purchase Plan	Friday, 5 December 2021

The above timetable is indicative only and subject to change. All times are in Sydney time.

Not an offer in the United States

This announcement has been prepared for publication in Australia and may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. Any securities described in this announcement have not been, and will not be, registered under the US Securities Act of 1933 and may not be offered or sold in the United States except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable US state securities laws.

About Archer

Archer is a technology company developing advanced semiconductor devices, including chips that are relevant to quantum computing and medical diagnostics. Archer’s flagship development, the[12] CQ chip, is a world-first qubit processor technology that could allow for quantum computing powered mobile devices (‘QPMDs’). For more information, please view Archer’s webinar with IBM.

Archer Materials Limited (ACN: 123 993 233) Lot Fourteen, Frome Road, Adelaide SA 5000

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Corporate Equity Raising

The Board of Archer authorised this announcement to be given to ASX.

General Enquiries Mr Greg English Executive Chairman Dr Mohammad Choucair Chief Executive Officer Tel: +61 8 8272 3288

Media Enquiries Mr James Galvin Communications Officer Email: hello@archerx.com.au

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

Website: https://archerx.com.au/

Twitter: https://twitter.com/archerxau YouTube: https://bit.ly/2UKBBmG

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