ARCHER MATERIALS LIMITED — Investor Presentation 2012

Nov 11, 2012

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Archer Exploration Positioned for growth

Broker Presentation 12 November 2012

Gerard Anderson

Managing Director

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Disclaimer
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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
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• Corporate overview

• Corporate strategy

• Company projects

• Graphite

• Campoona

• Copper

• World’s End & Robertstown

• • North Cowell

• Spring Creek

• Gold

• Napoleon's Hat

• Watervale

• Bartel

• Magnesite

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Resource drilling at the Campoona Shaft graphite deposit

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Corporate overview

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

The tenement portfolio hosts a number of significant projects.

Mineral Exposure

Graphite; Copper; Gold; Magnesite/magnesia

Manganese ± REE; Coal – CSG; Phosphate; Barite; Iron ore.

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Archer’s tenement position at 30 September 2012

ASX Code:

Shares on Issue

Unlisted Options on Issue Share price at 8/11/2012 Market Capitalisation Cash at 31/10/2012

AXE

82,362,763 6,000,000 $0.24 $19.7 million $11.7 million

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Trading history Nov 2011 - present

With $11.7 million in cash, 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 several very promising copper and gold targets.

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Company projects

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1
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
Ediacara – Coal/CSG/CTL WHP Graphite
Pindari Ni / REE
Bartel - Au North Cowell Cu
World’s End (Mimic) Cu Napoleon’s Hat Au
Tenement / Geological Target 16
13 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
5
Probability of Success
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Archer has several mineral projects at various stages of evaluation
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Campoona Graphite

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4861
EL 4861
EL4893
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Archer has a substantial land position in “graphite province” with several flake occurrences

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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 EM

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 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 a parallel (fold repeated?) signature to the southeast which requires drill testing.

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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). Any remaining feldspar has been converted to kaolin. Discrete thin clay-rich zones occur more as cavity fill than 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 intrusives, has segmented the graphite pods.

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Campoona geology

CSDD12_002

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• Hangingwall contact with soft highly weathered gneiss passing directly into 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 ± iron oxides (goethite & hematite) 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 set up for weighing, washing, wet-screening, drying, crushing, splitting and blending of specially prepared bulk samples to be sent to commercial laboratories for flotation tests.

• 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.

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Interim DDH Metallurgy Results Samples within BOCO

• BOCO at 50-60m depth.

• Rock largely decomposed resulting in naturally liberated graphite.

• Approximately 40% of available graphite produced by washing of clays.

• Metallurgical trials indicate grades can meet market requirements.

• Testing will continue to develop optimum process flow sheet.

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QEMSCAN image of Campoona flake graphite

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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.

• 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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Archer Copper - Four very promising targets

#1 World’s End

• Mimic is a conceptual target but has compelling vectors - structurally identical to the nearby Monster Mine at Burra (86Kt recovered Cu) – antiform with oblique faulting; NMS9 marker bed in Kooringa Member and the presence of prominent iron blows. Several historic shafts.

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Mimic
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#2 Robertstown

• Robertstown rock chips to 1.75g/t Au and 1.14% Cu. 400m x 60m copper soil anomaly defined by auger drilling.

• Cuprite (Cu2O) identified in highly ferruginous gossan.

• Significant historic silver deposit.

Robertstown and Mimic copper targets

Mimic and Robertstown - EM flown October 2012. RC drilling is planned in the December 2012 – April 2013 period.

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Copper targets

#3 North Cowell

• Rock chip sampling returned highly anomalous copper with assays to 15.1% Cu. Rock chips also reported >10% Pb.

• The copper anomalism present as carbonates occurs on a prominent ridge and extends for over 3km.

#4 Spring Creek

• Mining of copper carbonates (malachite and azurite) passing into cuprite, native copper and minor chalcocite in what appears to be a classic supergene profile. No sulphides recorded.

• Drives assayed up to 21ft @ 2.5% - 8.9% Cu.

• 21m @ 1.8% Cu from DDH 60m below workings.

• Airborne EM flown for graphite indentified a prominent non-graphite conductor near the historic Morowie copper workings.

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Extensive copper anomalism

• Access requires DEH approval.

• Copper within a breccia which may extend to the Brighton Limestone opening possibility for skarn mineralisation.

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Historic adit showing copper carbonate lode

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Gold – Three key targets

#1 Napoleon’s Hat

• EL4668 covers the widespread historic Wonna gold workings (circa 1886; 1888; 1932 & 1967) in the Burra region.

• Gold associated with sheeted quartz veins within competent sediments.

• Historic records of Burra district gold report a very high nugget effect with bonanza grades associated with sulphides.

• EM survey September 2012. RC drilling planned in the December 2012 – April 2013 period.

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Significant gold anomalism associated with sheeted quartz veining

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Historic line-of-lode workings at Wonna

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Gold targets

#2 Watervale

#3 Bartel

• Rock chip sampling of quartz veins in the Watervale Sandstone returned gold values to 6.42g/t Au. High nugget.

• Widespread argillic and potassic hydrothermal alteration and quartz breccias over at least 1.5km x 1.2km.

• Gold anomalism extends for over 1 kilometre and is open along strike.

• EM survey conducted September 2012. RC drilling planned December 2012 – April 2013.

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Stratabound gold-bearing quartz veins within the Watervale Sandstone

• EM flown as part of the greater graphite survey indicates possible northeast extension to the alteration supported by fluorite occurrences some 3.5km’s NNE.

• A deeper conductive target occurs 100m below an intercept of 29m @ 0.57ppm Au in EPIRC12_001.

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Photomicrograph - Carbonate breccia largely replaced by quartz, carrying a grain of free gold associated with an equally fine soft grey metallic mineral- possibly antimony

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Archer Magnesite – Leigh Creek magnesite

• Magnesite (MgCO3) was deposited as a chemical precipitate in shallow, marginal marine lagoons and occurs as cryptocrystalline particles 1–5 µm in size. 86 separate interbeds within the Skillogalee Dolomite.

• Magnesia (MgO) is produced by heating magnesite typically to1000[o] C. Main magnesia products are:

1. Caustic Calcined Magnesia (CCM) is formed by heating magnesite to temperatures up to 1,000[o] C. It is reactive and that reactivity is important for construction materials, industrial applications, in fertilizers and as a soil conditioning agent in agriculture, for water purification and waste water treatment and in the paper and rubber industries.

2. Deadburn Magnesia (DBM) is produced by heating CCM to temperatures of 2,300[o] C to produce inert magnesia capable of withstanding temperatures up to 3,600[o] C. Deadburned magnesia is used in the production of refractory bricks.

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Leigh Creek coal operations
Mt Playfair
Mt Hutton
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*Source: Reproduced from MDL Report “Economic Evaluation of the Pug Hill Magnesite Deposit, North Flinders Ranges, South Australia. 2001. The independent resource estimates were completed by Mr. Colin Arthur (BSc, MSc, FGS, MAusIMM, CGeol, CEng) Manager, Micromine Resource Centre, August 1999.

1 Pure magnesite is 47.8% MgO

Magnesia products widely used across a number of high growth industries and high technology consumer goods. MgO Market grows at ≈330ktpa. Market - 63% refractories; 23% chemicals; 14% magnesium metal

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Leigh Creek business model

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Mine
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ROM MgCO3

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HPGR Crushing

Calcination

Rail to Spencer Gulf

Caustic Calcined

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± DSO magnesite

>95% MgO; 2.5% SiO2

Market

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Archer magnesite summary

Key Attributes

• High grade magnesite deposits.

• Enormous value proposition:

• It takes 3t of magnesite to make 1t of magnesia. Value of magnesia between $400 - $600/t.

• Huge JORC Resource could support very long-term operation.

• Fully serviced town of Leigh Creek nearby.

• Good supply chain logistics - Mt Hutton within 20kms privately owned standard gauge rail line, rail connection to Port Pirie, Port Pirie gas lateral.

Options

• Archer has 100% ownership of the magnesite deposits on Termination Hill and Witchelina ELs. The Company considers that the project would best be developed with the aid of a senior joint venture partner.

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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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