ARCHER MATERIALS LIMITED — Investor Presentation 2014

Nov 30, 2014

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ARCHER EXPLORATION LIMITED

Investor Presentation

December 2014

Gerard Anderson

Managing Director

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Corporate snapshot

Experienced board and management, appropriately funded and tight capital structure

Capital structure	Capital structure		Board & management	Board & management
Shares on issue	84.3m		Chairman	Greg English
Performance Rights (exp. 31/7/16)	2.32m		Managing Director	Gerard Anderson
			Non-Executive Director	Tom Phillips AM
Share price (25/11/14)	$0.15
			Non-Executive Director	Alice McCleary
Market capitalisation	$12.6m
			Company Secretary	Damien Connor
Cash (as at 30/9/14)	$4.0m
Enterprise value	$8.6m

Share ownership summary Board & management 17.2% Other Top 20 (excl. board & shareholders 62.6% management) 20.2%

Archer is well positioned to progress work on Australia’s largest Graphite Project

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Graphite - The Eyre Peninsula Project

Significant graphite tenements

• Australia’s largest JORC 2012 graphite resource

• 8.55Mt at a 5% Cg lower cut-off grade

• Substantial tenement position (≈2,100km[2] )

• Well located with respect to critical infrastructure

• Highly prospective graphite province

• Key projects include Campoona Shaft, Central Campoona, and Wilclo South

• large exploration upside

• quality EM shows numerous distinct linear conductors

• an additional 10 graphite prospects

• contained resource likely to grow

• currently drilling to prioritise targets based on large

  • flake distribution

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Large flake graphite

Waddikee: acquisition adds large flake graphite and increases graphite resources

• Drilling at Wilclo South has produced Extra Large, Large, Medium and Fine Flake graphite at grades of 91-93% Cg

• grades to improve with additional standard processing

• preliminary laboratory tests show excellent flake recovery

• inferred 42-55% of the graphite recoverable as Flake

• Argent deposit has shown the presence of exceptionally coarse graphite

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+425µm fraction showing Extra Large –

Jumbo flake

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Large Flake +180µm

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Extra Large Flake +300µm

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Fine Flake +125µm

Indicative Flake distribution from the oxide profile at Wilclo South

Graphite size (µm)	Grade (% Cg)	Graphite distribution in flake product (%)
Extra large / Jumbo flake +425µm	92.2	5%
Extra large flake +300µm	91.6	10%
Large flake +180µm	91.8	29%
Fine & Medium flake +75µm	92.3	56%

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Fine Flake +75µm

Argent graphite prospect ultra-coarse graphite released by knapping a surface rock. Note: the square scale grid is 1 millimeter

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Current drilling program targeting large flake

Waddikee: strong likelihood for further resource growth

• Drilling is currently underway or completed at Argent, Wilclo, Balumbah, Lacroma and Ridgestone

• Other areas are under crop and will be drilled in January following the harvest

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Francis
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Strong investment case for graphite

6 key factors used to evaluate graphite companies

• Australia’s largest JORC 2012 Resource

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Deposit size
and quality
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• 8.55Mt @ 9.0 Cg% (5% Cg lower cut-off grade)

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Location
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• all assets located in South Australia with access to power, water, roads and ports

• Archer owns the land needed for initial mining and long-term mineral processing

• a range of flake sizes contained within the Eyre Peninsula Project

• further work to prove the distribution and mining priorities

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Product
purity
Product off
take
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• bulk flotation tests provided Campoona concentrates grading 92 - 98% TGC and acid cleaning upgrades concentrates to 98 - 99.7% TGC

• Wilclo South has produced graphite at grades of 91- 93% Cg that will improve with further processing

• product testing continuing by prospective buyers/JV partners.

• off-take agreements to be secured prior to commencement of production.

• Campoona MLP, modified to accommodate flake graphite production, expected to be lodged Q3 FY15

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Timeframe to
production
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• Approval expected by mid 2015

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Broad range of project opportunities

High quality exploration prospects in SA

Magnesite

• World class cryptocrystalline magnesite deposit

Copper

• Spring Creek – full supergene copper suite

• North Cowell – covering historic Morrowie workings

• World’s End – including Robertstown & Mimic

Gold

• Wildhorse Plain –epithermal gold anomaly at Bartel

• early exploration with best intercept of 29m @ 0.57g/t Au

• Napoleon’s Hat & Watervale – early stage targets

Manganese

• 100% interest in 7 manganese deposits and prospects

• High grades (15%-20% Mn) in 3 advanced prospects

• Potential divestment or JV opportunities

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Magnesite - Leigh Creek a world class deposit

Archer Exploration owns the world’s largest cryptocrystalline magnesite deposit

• 100% interest in Leigh Creek deposit

• JORC Resource of 453Mt grading 41.4% MgO

• almost 50% of the world’s known cryptocrystalline magnesite resources

• cryptocrystalline magnesite’s superior qualities produce higher value

  • magnesia products than macrocrystalline magnesite

• Ernst & Young is undertaking a strategic review of Leigh Creek

 Close proximity to world class infrastructure

• 20 kms from a privately owned standard gauge rail line to Port Pire

• Port Pirie has access to national rail and road infrastructure, bulk

• shipping facilities, gas, power and skilled labour

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Copper - Spring Creek

Spring Creek – historic mine with full supergene copper suite

• Request made to commence diamond drill testing at the historic

• high grade mine

• Drilling would test the copper mineralisation in the breccia zone

  • The breccia zone is approximately 70m in width and runs East - West

• Spring Creek has history of high grade copper

  • Copper was historically mined at grades of +10% Cu

  • Copper mining ceased in 1918

  • It currently provides a source of water to Wilmington

  • The Spring Creek copper mine is 100% owned by Archer

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Proposed location of holes and their azimuths around the underground workings

View of the Spring Creek main drive showing malachite development

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Schematic of Spring Creek Mine in plan and section, showing mine workings

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Strategic priorities

Progress graphite prospects, unlock magnesite potential and test feasibility of Spring Creek

• Drill identified large flake graphite targets in Waddikee to increase resources and understand flake geology

• Market engagement commenced for Campoona graphite for off-take and/or JV partners

• Complete Eyre Peninsula scoping study

• Drill Spring Creek to determine if economic copper exists

• Near-term monetisation of non-core projects

• Progress graphite/graphene research into agricultural and environmental remediation products

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Archer graphite concentrates Chemically intercalated graphite Thermally intercalated graphite

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Summary

Track record of identifying resource projects and creating value Portfolio of high quality assets Australia’s largest graphite resource with growth potential

Low sovereign risk and access to infrastructure

Well funded

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APPENDIX

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Graphite JORC 2012 Resource

Australia’s largest combined JORC 2012 graphite resource

8.55Mt @ 9.0 Cg% (lower cut-off grade of 5% Cg)*

Area	Resource Category	Tonnes (Mt)	Graphite (% Cg)	Contained Graphite (tonnes)
Campoona Shaft	Measured	0.32	12.7	40,600
	Indicated	0.78	8.2	64,000
	Inferred	0.55	8.5	46,800
Central Campoona	Indicated	0.22	12.3	27,100
	Inferred	0.30	10.3	30,900
Wilclo South	Inferred	6.38	8.8	561,400
Combined	Total	8.55	9.0	770,800

* This information was prepared and first disclosed under the JORC Code 2012 (Archer Exploration Limited, ASX Announcement)

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Central Campoona
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Campoona Shaft
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Drilling at Central Campoona
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Diamond drill cores from CSDD12_002

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Disclaimer

Competent persons statement

The exploration results and Exploration Target 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.

The information in this report that relates to the Mineral Resource estimation has been prepared by Mr B Godsmark who is a Member of the AusIMM and peer reviewed by Mr G Reed who is also a Member of the AusIMM (CP). Mr Godsmark is a full time employee of Mining Plus Pty Ltd and Mr Reed is a sub-contractor to Mining Plus Pty Ltd., both have more than five years’ experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Godsmark and Mr Reed have consented in writing to the inclusion in this announcement of the Mineral Resource estimation 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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www.archerexploration.com.au

Contact details

Archer Exploration Limited

Gerard Anderson Managing Director

Ph: +61 8 8272 3288

Fax: +61 8 8272 3888

Email: ganderson@archerexploration.com.au

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