ARCHER MATERIALS LIMITED — Interim / Quarterly Report 2011

Oct 24, 2010

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.

Name of entity

Name of entity
Archer Exploration Limited
ABN64 123 993 233	Quarter ended (“current quarter”)
64 123 993 233	30 September 2010

Consolidated statement of cash flows	Consolidated statement of cash flows
Cash flows related to operating activities1.1Receipts from product sales and relateddebtors1.2Payments for (a) exploration & evaluation(b) development(c) production(d) administration1.3Dividends received1.4Interest and other items of a similar naturereceived1.5Interest and other costs of finance paid1.6Income taxes paid1.7R&D offsetNet OperatingCash Flows	Current quarter$A’000	Year to date(3 months)$A’000
	4(186)(308)59(1)95	4(186)(308)59(1)95
	(337)	(337)
Cash flows related to investing activities1.8Payment for purchases of: (a) prospects(b) equity investments(c) other fixed assets1.9Proceeds from sale of:(a) prospects(b) equity investments(c) other fixed assets1.10Loans to other entities1.11Loans repaid by other entities1.12Other (provide details if material)Net investing cash flows1.13Total operating and investing cash flows(carried forward)	(4)	(4)
	(4)	(4)
	(341)	(341)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13Total operating and investing cash flows(brought forward)	(341)	(341)
Cash flows related to financing activities1.14Proceeds from issues of shares, options, etc.1.15Proceeds from sale of forfeited shares1.16Proceeds from borrowings1.17Repayment of borrowings1.18Dividends paid1.19Other (provide details if material)Net financingcash flows	(4)	(4)
	(4)	(4)
Net increase (decrease) in cash held1.20Cash at beginning of quarter/year to date1.21Exchange rate adjustments to item 1.201.22Cash at end of quarter	(345)3,930	(345)3,930
	3,585	3,585

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter
		$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	56
1.24	Aggregate amount of loans to the parties included in item 1.10
1.25	Explanation necessaryfor an understandingof the transactions

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

3.1Loan facilities3.2Credit standby arrangements	Amount available$A’000	Amount used$A’000
	Nil	Nil
	Nil	Nil

Estimated cash outflows for next quarter

$A’000 200 240 445

Estimated cash outflows for next quarter
	$A’000
4.1Exploration and evaluation4.2Development4.3Production4.4Administration	200
	240
Total	445

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as	Current quarter	Previous quarter
shown in the consolidated statement of cash flows)	$A’000	$A’000
to the related items in the accounts is as follows.
5.1Cash on hand and at bank	511	367
5.2Deposits at call	3,074	3,558
5.3Bank overdraft
5.4Other (provide details)
Total: cash at end of quarter(item 1.22)	3,585	3,925

Changes in interests in mining tenements

6.1Interests in miningtenements relinquished,reduced or lapsed6.2Interests in miningtenements acquired orincreased	Tenementreference	Nature of interest(note (2))	Interest atbeginningofquarter	Interest atend ofquarter
	EL 4563EL 4564EL4567	Issued during the quarterIssued during the quarterIssued during the quarter	000	100%100%100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

IssueDescripti	and quoted son includes rate of inte		ecurities at end of currrest and any redemption or conversi		ent quarton rights togeth		erer with pric		es and dates.
		T	otal number	Number quote	d	Issue pricsecurity (	e persee	Ap	mount paid uper security (see
						note3) (c	ents)	n	ote3) (cents)
7.1	Preference+
	securities
	(description)
7.2	Changes during
	quarter
	a) Increases
	through issues
	b) Decreases
	hrough returns
	of capital, buy-
	acks,
	redemptions
	+Ordinar		64428477	64428477		Full	aid		Full Paid
7.3	ysecurities		,,	,,		y			y
7.4	Changes duringquarter
	(a) Increases
	through issuesb) Decreases
	through returns
	of capital, buy-
	acks
7.5	+Convertible
	debt
	securitiesdescrition)
7.6	pChanges during
	quarter
	a) Increasesthrough issues
	(b) Decreases
	throughecurities
	matured,
	converted
7.7	Options(description and		250,000	Nil		Exercise25 ce	pricents		Expiry date4 July 2011
	conversion		270,000	Nil		9 cen	ts		29 June 2012
8	factor)d di		1,000,000	Nil		20 ce	nts		31 Dec 2012
7.	ssue urngquarter
7.9	Exercised
710	during quarterExired durin
.	p gquarter
7.11	Debentures
	totals only)
+ See cha	pter 19 for defined ter		ms.

• See chapter 19 for defined terms.

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7.12 Unsecured notes (totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: 25 October 2010 (Company secretary)

Print name: Craig Gooden

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

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