ARCHER MATERIALS LIMITED — Interim / Quarterly Report 2011

Jul 25, 2011

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

Name of entity
Archer Exploration Limited
ABN64 123 993 233	Quarter ended (“current quarter”)
64 123 993 233	30 June 2011

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$A’000	Year to date(12...months)$A’000
	1(360)(231)40-10	5(827)(974)198(1)105
	(540)	(1,494)
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)	-	(43)
	-	(43)
	(540)	(1,537)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13	Total operating and investing cash flows	(540)	(1,537)
	(brought forward)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings	(5)	(19)
1.18	Dividends paid
1.19	Other advances for capital raising	300	300
	Net financingcash flows	295	281
		(245)	(1,256)
	Net increase (decrease) in cash held
1.20	Cash at beginning of quarter/year to date	2,919	3,930
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end ofquarter	2,674	2,674

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'000 138

		Current quarter$A'000138
1.23	Aggregate amount of payments to the parties included in item 1.2
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

Amount available Amount used $A’000 $A’000

3.1 Loan facilities 3.2 Credit standby arrangements

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration Total

$A’000 340 230 570

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows)to the related items in the accounts is as follows.	Current quarter$A’000	Previous quarter$A’000
5.1Cash on hand and at bank5.2Deposits at call5.3Bank overdraft5.4Other (provide details)	605	357
	2,069	2,562
Total: cash at end of quarter(item 1.22)	2,674	2,919

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 4729	Issuedduringthequarter	0	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.

	Total number	Number quoted	Issue price persecurity (seenote3) (cents)	Amount paid upper security (seenote3) (cents)
7.1Preference+securities(description)7.2Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs,redemptions
7.3+Ordinarysecurities7.4Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buy-backs	64,428,477	64,428,477	Fully Paid	Fully Paid
7.5+Convertibledebtsecurities(description)7.6Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted
7.7Options(description andconversionfactor)7.8Issued duringquarter7.9Exercisedduring quarter7.10Expired duringquarter	250,000270,001,000,0005,000,000	NilNilNilNil	ExercisePrice25 cents9 cents20cents20 cents	Exercise Date14 July 1129 June 1231 Dec 1230 Nov 13
7.11Debentures(totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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 5).

• 2 This statement does /does not* (delete one) give a true and fair view of the matters disclosed.

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Sign here: ........................................................... (Director/Company secretary) Print name: C W Gooden

Date: 26 July 2011

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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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