ARCHER MATERIALS LIMITED — Investor Presentation 2012

Nov 19, 2012

Archer Exploration

The drive to production for Campoona graphite

Mining SA Conference 20-21 November 2012 Whyalla SA

Gerard Anderson Managing Director

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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 eighteen years experience in the field of activity being reported. Mr Bollenhagen has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ relating to the reporting of Exploration Results. 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 forwardlooking 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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Presentation outline

• Corporate overview

• Company projects

• Archer graphite

• Campoona graphite deposit

• Exploration history

• Campoona Shaft resource drilling

• • Campoona Geophysics

• Campoona Shaft geology

• Metallurgy

• Campoona Stategy

• Current work plan

• Archer graphite summary

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Corporate overview

13 Exploration Licences and the rights to minerals other than uranium on Wild Horse Plain. One ELA.

The tenement portfolio hosts a number of significant projects.

Mineral Exposure

T1: Graphite; Copper; Gold; Magnesite/magnesia T2: Manganese ± REE; Coal – CSG; Phosphate; Barite; Iron ore.

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Archer’s tenement position at 30 September 2012

ASX Code: AXE

Shares on Issue 82,362,763

Unlisted Options on Issue 6,000,000 Share price at 12/11/2012 $0.24 Market Capitalisation $19.8 million Cash at 30/09/2012 $11.87 million

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Trading history Nov 2011 - present

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Company projects

With $11.7 million in cash at 31 October 2012, Archer is in a great position not only to fund exploration and development studies on the Campoona graphite deposit but also to fund aggressive exploration on promising copper and gold targets.

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Company projects

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Reserve
Mt Hutton
SAMAG reports
4
Resource
Termination Hill
Pug Hill Mt Playfair Witchelina
2
Advanced Exploration Project
Sugarloaf Graphite
Campoona Graphite
Mineralised Project Salt Ck Mn 5
Ketchowla Mn / REE Probability of Development
Cost Bender Au/Cu Robertstown Cu
Spring Creek Cu
Actual # of Projects
Geophysical / Geochemical Anomaly Watervale Au 9
Eudunda Ba Pindari Ni / REE Ediacara – Coal/CSG/CTL WHP Graphite
World’s End (Mimic) Cu Bartel - Au North Cowell Cu
Napoleon’s Hat Au
Tenement / Geological Target 16
15 Granted Tenements
100% of non uranium mineral rights on WHP
Concept / Project Review 3
Commodity Reviews
Industrial Minerals –
Strategic Minerals REE Magnesite, Graphite,
Phosphate, Barite
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Probability of Success
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Archer has an several mineral projects at various stages of evaluation
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Archer Graphite

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Mt Messenger
ELA 2012/304
4861
EL 4861
EL4893
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Archer has a substantial land position (918km[2] ) in “graphite province” with several flake occurrences. ELA2012/304 granted October 2012.

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Campoona graphite deposit

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Campoona exploration history

• Airborne EM surveys conducted as part of base metal exploration in the mid-1980s indentified several highly conductive bodies along the Campoona graphite trend. An historic shaft (circa 1915) exists on the graphite.

• Other elongate EM conductors, parallel to Campoona were drilled by ESSO at High Bluff and were confirmed as graphitic in origin.

• A 1991 petrology report identified the graphite ranging in size 0.1mm to 0.3mm with an average flake size of 0.2mm or 200 microns.

• Two samples were collected in June 2011 and submitted for petrological examination by Pontifex and Associates in Adelaide. Results confirmed the 1991 observations. Graphite content was reported as 25-30%. Size ranged mostly 10-50 microns (width) x 250 microns (length).

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Campoona Shaft spoil showing flake graphite

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Photomicrograph - reflected light, graphite is the white mineral, scale is 200µm (0.2mm)

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Campoona Shaft 50m x 20m Resource drilling

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Plan view of Campoona Shaft 2012 Resource Drilling

Diamond Hole #	From (m)	To (m)	Interval (m)	Carbon (%TGC)
CSDD12_001	16	47	31	14.4
CSDD12_002	11	88	77	17.2
CSDD12_003 incl and	24 24 90	106.4 89 106.4	82.4 65 16.4	15.9 14.7 21.3
CSDD12_004	17	115	98	13.3
CSDD12_005 incl and	28 32 59	74 51 73	46 19 14	12.6 16.1 14.8

RC Hole #	From (m)	To (m)	Interval (m)	Carbon (%TGC)
CSRC12_040 incl	20 20	55 44	35 24	13.0 15.3
CSRC12_041 incl	54 60	118 87	64 27	11.8 18.5
CSRC12_042 incl	29 31	75 51	46 20	9.3 13.3
CSRC12_043 incl	0 16	34 33	34 17	7.4 12.1
CSRC12_044 incl	18 35	54 51	36 16	11.0 16.6
CSRC12_047 incl	51 52	121 107	70 55	15.7 17.6
CSRC12_048 incl	11 18	67 46	56 28	10.6 17.1
CSRC12_050 and	30 70	62 81	32 11	9.3 8.3
CSRC12_051 incl	12 15	100 21	88 6	5.0 12.0
CSRC12_053 incl	32 61	79 75	47 14	6.7 10.6
CSRC12_05 incl8	47 49	89 70	42 21	13.8 17.7
CSRC12_059 incl	47 47	110 60	63 13	11.2 15.8
CSRC12_061 and	0 75	29 101	29 26	9.7 6.0
CSRC12_062 and	0 38	18 44	18 6	4.1 9.3
CSRC12_063	80	90	10	9.3

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Campoona geophysics

Airborne EM has highlighted probable strike extensions to Campoona Shaft and Central Campoona

• EM provides an effective tool to identify the presence of conductive bodies.

• EM has identified several possible graphite bodies along strike from the known graphite occurrences at Campoona Shaft and Central Campoona.

• Late stage cross faulting with attendant amphibolite intrusives has “segmented” the graphite to form discrete bodies.

• Campoona Shaft and Central Campoona account for just 2km of strike of highly graphitic schist. ( see black bars)

• A further 8km of likely graphite is yet to be drill tested. (see blue bars)

• EM suggests the possibility of parallel possibly fold repeated conductors to the southeast which are yet to be drill tested.

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Campoona Shaft geology

• Graphite deposit outcrops and forms a discrete NE striking, steep NW dipping, 20-50m thick main zone with two narrower and discontinuous footwall zones.

• Campoona graphite occurs as highly graphitic schist within a low grade graphitic proto-gneisses.

• The proto-gneiss is derived from mostly clastic marine sediments of Palaeoproterozoic age.

• Methane possibly from submarine volcanism was encapsulated into the marine sediments. Upper amphibolites facies metamorphism has converted the carbon to crystalline graphite.

• Below the soil is a thin (≈5m) clay-rich highly graphitic zone which passes into highly weathered, porous quartz + graphite + kaolin + garnet + tourmaline ± iron oxides (goethite & hematite). All feldspar has been converted to kaolin. Discrete thin clay-rich zones occur probably as cavity fill rather than as defined horizons.

• Below 60m depth the graphitic schist becomes more competent. Strong weathering persists to at least 100m depth. Feldspars have been converted to illite ± kaolin. Sulphides in the form of pyrite occur irregularly in trace quantities.

• Late stage NW trending cross faulting, often with attendant amphibolites intrusions, has segmented the graphite pods.

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Campoona geology

CSDD12_002

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• Hangingwall contact between soft highly weathered gneiss and completely oxidised graphitic schist.

• Note absence of graphitic clay layer.

• Graphite interval 11-13m assayed ≈12%TGC.

• Highly weathered, porous quartz + graphite + kaolin + garnet + tourmaline representing the graphite deposit above the base of complete oxidation (BOCO).

• • Interval from 54-58m assayed 19.5%TGC

• Strongly weathered graphitic schist below BOCO.

• Feldspars altered to illite ± kaolin.

• Graphitic schist is more competent but still strongly oxidised.

• Interval 80-83m assayed 18.9%TGC

Complete oxidation is a defining characteristic of the Campoona graphite deposits as it greatly enhances the liberation of graphite from gangue minerals

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Campoona metallurgy

Lonsdale Sample Facility

• Established during September 2012.

• Facility provides a metallurgical workshop and a bulk sample storage area for the preparation of bulk samples to be sent to commercial laboratories for metallurgical trials.

• Further in-house testing capability is being developed to allow for the bench scale testing of differing extractive processes.

• Ore microscopy established to provide visual assessments of performance of intermediate processing steps.

Interim DDH Metallurgy Results Samples to BOCO

• Base of complete oxidation (BOCO) at 5060m depth.

• Rock is largely decomposed resulting in easier mining and comminution.

• In clay-rich horizon approximately 40% of available graphite produced by simple washing of clays.

• Metallurgical trials for extraction and concentration indicate grades can meet market requirements.

• Optimum process flow sheet nearing completion.

Samples below BOCO

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• Strong oxidation persists to ≈100m.

• Tests outstanding.

A combination of traditional and widely adopted new technologies will be used to process all three material types: clay-rich upper horizon; above BOCO and below BOCO

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Campoona strategy

• Define optimum process flow sheet.

• Establish minimum aggregate JORC Resource* of 5Mt at Campoona Shaft and Central Campoona.

• Bulk sampling and pilot scale testing to produce samples for marketing.

• Establish markets for Campoona graphite.

• Drill test northern and southern extensions at Campoona .

• Drill test regional graphite targets to rank potential.

*It is not possible to confirm at this time whether Mineral Resources or Ore Reserves will be defined in accordance with the JORC Code at the Campoona Graphite Deposit

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QEMSCAN image of 95%TGC Campoona flake graphite

Central Campoona has identical characteristics to Campoona Shaft

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Campoona current work plan

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Exploration &
Resource Drilling
Project
Development
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Campoona Shaft Drilling
Central Campoona Drilling
Metallurgical Characterisation
Resource Estimation Campoona Shaft
Resource Estimation Campoona Central
Environmental Baseline Studies
Community Engagement
Sample
Pilot Plant / Plant Design
Reserve Estimation
Feasibility Study
2012
2013 2014
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*Reserve estimation is scheduled however this will be dependant on the results of the resource estimation and metallurgical characterisation that are both yet to be completed.

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Archer graphite summary

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Campoona
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• High grade outcropping graphite at Campoona.

• Base of complete oxidation 50 – 60m depth and strong oxidation to ≈100m.

• Fine and medium flake >94%TGC ; amorphous graphite >92%TGC. Large flake present.

• EM has identified likely strike extensions to be drilled during 2013.

• JORC Resource* for Campoona Shaft due December 2012.

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Campoona
Development
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• Plan to define JORC Resources* of at least 5Mt at Campoona Shaft and Central Campoona.

• Current plan to develop flotation plant with an initial capacity of 200,000 – 250,000tpa.

• Produce 20,000 – 25,000tpa of graphite concentrate.

• Negotiate long-term off-take agreements.

• JV development a possibility with the right partner.

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Growth
platform
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• 918km[2] land holding in graphite province. Mount Messenger ELA2012/304 granted.

• EM indicates several prospective graphite prospects.

• Underexplored . ≈1% of holding drilled to date.

• Historic exploration identified several flake bearing graphite prospects on tenements.

• Sugarloaf : 40-70Mt Exploration Target.

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High product
demand
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• Graphite critically important in traditional industries and high tech applications - electronics, green energy.

• “Strategic mineral status” by the United States and the European Union.

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Highly
desirable
commodity
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• Graphite continues to build its market globally as new high tech applications develop.

• Recent price resilience. Medium to long-term market outlook supports strengthening of prices on rising demand.

• Graphite’s unique characteristics reduce the threat from substitutes.

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Security of
tenure
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• 100% ownership of all the graphite deposits and prospects.

• SA has longstanding stable mining law and strong advocacy for mineral development.

• Graphite deposits and prospects all occur on freehold land.

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It is not possible to confirm at this time whether Mineral Resources or Ore Reserves will be defined in accordance with the JORC Code at the Campoona Graphite Deposit
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www.archerexploration.com.au

Contact details

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Archer Exploration Limited

Ph: +61 8 8272 3288 Fax: +61 8 8272 3888 Email: info@archerexploration.com.au

Thank you

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