ARCHER MATERIALS LIMITED — Investor Presentation 2010

Jul 21, 2010

ARCHER EXPLORATION LIMITED

SACOME Breakfast July 2010 www.archerexploration.com.au

ASX : AXE

Disclaimer

• Competent persons statement

� The exploration results reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr. Wade Bollenhagen, Exploration Manager of Archer Exploration Limited. Mr. Bollenhagen is a Member of the Australasian Institute of Mining and Metallurgy who has more than fifteen years experience in the field of activity being reported. Mr. Bollenhagen consents to the inclusion in the report of matters based on his information in the form and context in which it appears.

� Forward looking statements

� The information in this presentation is published to inform you about Archer Exploration Limited and its activities. Some statements in this presentation regarding estimates or future events are forward looking statements.

� Although Archer Exploration Limited believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results and outcomes will be consistent with these forward-looking statements.

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Background
ASX Listing 14 [th] August 2007
Exploration Base – Adelaide
Projects – South Australia
Management Team
Mike Hatcher CEO
Wade Bollenhagen Expl.Manager
Board
Greg English Chairman
Tom Phillips
Gerard Anderson
Alice Cleary
John Dawkins
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Eyre Peninsula Projects

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4 ELs,1042 sqr Kms
Warramboo
Middleback
Deposits
Kopi
Bungalow
Cockabidnie
Wilgerup
Mt Hill
Carrow
Koppio
Bald Hill
Gum Flat
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Pindari Ni

Magnetics

• Magnetic Anomaly

• 3 kms Diameter

• 1987 Stockdale Drilling

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• 22m @ 0.19% Ni Petrology pentlandite & violerite

• 100% Equity

Pindari Ni Geochemistry

• 1 kms >0.1% Ni soil

anomaly

• peak values 0.37% Ni,

0.34% Cr.

• correlation with magnetic

• anomal y

July

Drill 6 x 100m holes August Analysis Results

Drill Contractor – Statewide - Assays ALS Drill supplies - Strength MS

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Jamieson Tank Mn/Fe

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WMC (1993) SJ41 11m @ 13%Mn 27% Fe from 12m. 5m @ 13% Mn 20% Fe from 41m. SJ42 4m @ 18.9% Mn 14% Fe from 7m. 4m @ 17.6% Mn 15% Fe from 39m. SJ45 5m @ 12.5% Mn 12% Fe from 37m. SJ46 7m @ 10.9% Mn 23% Fe from 13m. SJ47 10m @ 12.8% Mn 37.8% Fe from 17m. SJ48 m 3 @ 22 8% M. n 15 2% F. e rom m f 7 Archer (2008) CH14 9m @ 16.1% Mn 12.3% Fe from 41m 24m @ 12% Mn 12% Fe from 61m. June 2010 OMM Mn JTRC130 5m @ 14.6% Mn 7.4% Fe from 28m. JTRC132 5m @ 10.5% Mn 9.9% Fe from 28m. JTRC133 6m @ 15.0% Mn 10.7% Fe from 29m. JTRC136 5m @ 11.1% Mn 8.1% Fe from 35m JTRC141 10m@12.6% Mn 20% Fe from 33m Fe JTRC144 16m @ 35.3% Fe from 5m 5m @ 55.8% Fe from 16m to EOH JTRC145 2m*@ 50.5% Fe from 4m

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WILD HORSE PLAINS

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Fe
Wild Horse Plains
Mn/Fe
Early Stage Exploration
•
Farmin Agreement USA Feb 2010
•
Mn/Fe - 4 Target Areas Defined
Next Step
•
Drill Fe/Mn targets Q4
Results Late 2010
Mn
>10% Mn
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Manganese

4[th] Most consumed Metal after Fe, Al, Cu Increases steel hardness, toughness, stiffness, wear resistance

Mantle for Cone Bearings, pins Lithium Crusher bushes Manganese Battery Wear Plates – Grader Blades

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Wear resistant steels have up to 14% Mn

Manganese - Adelaidean

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Target high grade Manganese DSO
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• Historic WW2 DSO Sites

• • WA DSO model eg 360kms to Port

• • Tenements Near Transport Infrastructure

• • In remote locations, reduced land use conflict

• • 100% equity

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• Targets • Ketchowla – Shallow drilling Feb 2010 • Australia Plains– Neales Flat Mn Mine • ELA (30/10) – Kayaka Mn Mine • ELA (31/10) – Termination Hill (Stone Hut Mn Mine)

Ketchowla Manganese

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K2
K1 Nth
K9
Regional Rock Chip Sampling
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Ketchowla Manganese

Next Step 2010 Q3 & Q4

Evaluate Australia Plains Evaluate Kanyaka Evaluate Stone Hut

K9 E-W cross section showing Manganese grades %

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Pending Project Leigh Creek Magnesite*

232Kms Rail

Photo from Myrtle Springs Pit owned by MIL.

Regional Historic “Resources ” Area Measured Indicated Inferred MgO Pug Hill 10 10 42.7% Termination Hill 4 5 20 42.8% Mt Hutton 18.3 42 53 42.9% Mt Playfair 10 10 42.7% Witchelina 23.7 94 99 40.0% Source: SAMAG Project Report 1999

• High quality > 42% MgO

• • Low impurity magnesite chemical sediment

• • Large outcropping Deposits

• Adjacent to existing rail link & infrastructure

• Tenements are Exploration license applications

LCM - Order of Magnitude Study

Crushing Plant Leigh Creek Mine MgCO3 Calcine Crushed MgCO3 Rail to Spencer Gulf MgO Calcined natural Deadburned Electrofused Markets • Mg Metal • Steel Refractory • MgO Chemical

Leigh Creek Magnesite Market

14%

23%

63%

Magnesium Metal

Refractory Chemical Metal Refractory MgO

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Leigh Creek Magnesite Market MgO Chemical Applications

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MgO Board

• MgO Board approved for construction in US 2003 – Florida Mold Resistant

• • Beijing Olympics preferred construction material - Internal & external

Next Steps

T enemen t gran t e d 1 tonne Flash Calcining Trial Q4 2010 Baccus Marsh Calix Order of Magnitude Study complete end Q3.

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Archer Share Price

ARCHER

0.25

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0.2
0.15
0.1
0.05
0
Major Shareholders June 2010
1. Raffles Equities Ltd 18.19%
2. GDE Expl.(SA) Pty Ltd (Dragon Mining Investment A/C) 11.69%
3. GDE Exploration (SA) Pty Ltd (A1 English Family) 5.54%
4. Valentina Nowak 4.05%
5. UraniumSA 3.10%
A$
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ASX:AXE

Share Price $0.085 Shares 64.42m Market Capitalization $A 5.47m Cash on Hand $A 3.92m (June 2010)

Other Projects

West Roxby Uranium

Nth Burra –Riverton Gold

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OUTLOOK 2010 -11

INVESTOR PRESENTATION 2010