ARCHER MATERIALS LIMITED — Investor Presentation 2021

Oct 25, 2021

Corporate Company Presentation

Archer Materials Limited (ACN: 123 993 233) Lot Fourteen, Frome Road, Adelaide SA 5000

26 October 2021

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ASX Announcement (ASX: AXE )

Corporate Presentation

Archer Materials Limited (“Archer”, the “Company”, “ASX: AXE ”) is pleased to provide shareholders the attached Corporate Presentation. The updated Corporate Presentation better reflects the Company’s focus, strategic priorities, and activities as a pure-play deep technology company after having recently completed a A$25 million capital raise (before costs), sold its mineral exploration business, and changed its GICS code to ‘Semiconductors’.

About Archer

Archer is a technology company developing advanced semiconductor devices, including chips that are relevant to quantum computing and medical diagnostics. Archer’s flagship development, the[12] CQ chip, is a world-first qubit processor technology that could allow for quantum computing powered mobile devices (‘QPMDs’).

The Board of Archer authorised this For more information about Archer’s activities, announcement to be given to ASX. please visit our: General Enquiries Website: Mr Greg English https://archerx.com.au/ Executive Chairman Twitter: Dr Mohammad Choucair https://twitter.com/archerxau Chief Executive Officer YouTube: Tel: +61 8 8272 3288 https://bit.ly/2UKBBmG Media Enquiries Sign up to our Newsletter: Mr James Galvin http://eepurl.com/dKosXI Communications Officer Email: hello@archerx.com.au

TechKnow Conference Dec 200

/ Disclaimer

The material contained in this document is a presentation of general information about the activities of Archer Materials Ltd and its related bodies corporate (together the “Archer Group”), current as at the date of this presentation. It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes, as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice, when deciding if an investment is appropriate. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by the Archer Group, including any of its related bodies corporate.

This document may contain forward-looking statements with respect to the financial condition, results of operations, and business strategy of the Archer Group. These forward-looking statements are based on estimates, projections and assumptions made by the Archer Group about circumstances and events that have not yet taken place. Although the Archer Group believes the forward-looking statements to be reasonable, they are not certain. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond the Archer Group’s control, and which may cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results). The Archer Group makes no representation or warranty as to the accuracy of any forward-looking statements in this presentation and undue reliance should not be placed upon such statements. Forward-looking statements may be identified by words such as “aim”, “anticipate”, “assume”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “should”, “will”, or “would” or the negative of such terms or other similar expressions that are predictions of or otherwise indicate future events or trends. The forward-looking statements included in this presentation speak only as of the date of this presentation. The Archer Group does not intend to update the forward-looking statements in this presentation in the future.

This presentation contains information which was reported in ASX announcements lodged between 1 October 2017 and 25 October 2021 (together the “Announcements”). All material assumptions and technical parameters set out in the Announcements continue to apply and have not materially changed. The Announcements can be viewed online at https://www.archerx.com.au.

Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified.

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ARCHER IS ONE OF A FEW COMPANIES IN THE WORLD DEVELOPING A QUANTUM COMPUTING PROCESSOR

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/ Company Overview

Archer is a technology company that is developing advanced semiconductor devices, including chips relevant to quantum computing and medical diagnostics. Archer is long-term value driven and creates maximum value by[†] :

• • Progressing its technology development, including its[12] CQ quantum computing processor chip (“[12] CQ chip”) and graphene-based biosensor chip (“biochip”).
• • Utilising Tier 1 tech development infrastructure and facilities, R&D, people and IP, to support pre-market development.
• • Protecting key intellectual property assets ( e.g. patents and patent applications) with global competitive advantages.
• • Applying a business model that values partnerships, as a key player[‡] in global networks coordinated by large companies.

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• https://www.bcg.com/en-au/publications/2019/dawn-deep-tech-ecosystem

• https://www.nature.com/articles/s42254-020-00247-5; also

• https://www.ibm.com/quantum-computing/network/members/

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/ Experienced Board and Management

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† Alice McCleary to retire at Company 2021 AGM.

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/ Company Strategy in Action

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Share Price
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As of 25 October 2021.
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ARCHER IS DEVELOPING ADVANCED SEMICONDUCTOR DEVICES

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Source: KPMG Global Semiconductor Industry Survey Findings, 2021 (n=156); 2020 (n=195).

/ Semiconductor Industry

Archer is a technology company that operates within the semiconductor industry:

• • The Office of the NSW Chief Scientist & Engineer[†] presents a positive long-term outlook for the potential of increased participation by companies such as Archer in the global semiconductor sector.
• • The largest areas of opportunity for the scaleup of companies such as Archer in the global semiconductor industry, includes enhancing domestic capability in semiconductor design, fabrication, and prototyping.
• • According to KPMG*, the top issues facing the semiconductor industry over the next three years include supply chain disruption, talent risk, and cross border regulations.

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• https://www.chiefscientist.nsw.gov.au/independent-reports/australian-semiconductor-sector-study Further Insights: https://www.mckinsey.com/industries/semiconductors/our-insights Also; *https://advisory.kpmg.us/articles/2021/global-semiconductor-industry-outlook-2021.html

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QUANTUM COMPUTING IS REVOLUTIONARY DEEP-TECH

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/ Quantum Computing vs. Classical Computing

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*More information, by Dr M. Choucair, Mar 26 2021: https://www.ibm.com/blogs/ibm-anz/why-quantum-deserves-your-attention/

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Archer staff and affiliates working in semiconductor chip foundry facilities.

/ Unique Technological Advantage

Archer is in the developmental stage of building an operational quantum computing qubit processor chip ([12] CQchip):

• • Using a qubit material with the proven potential to enable chip operation at room-temperature and integration onboard electronic devices[†] .
• • The[12] CQ chip would potentially allow for practicality and miniaturisation of a quantum computing processor device onboard mobile devices for faster and increased power in AI, Big Data, and Fintech applications.

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• • CQ qubit advantageous to other qubit systems, which

• require low temperatures, high/low pressures, well-defined crystals, atomic manipulation, photonics, lasers, or metals to currently operate and scale.

† https://www.nature.com/articles/ncomms12232

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/ Accessibility and Use in Quantum Computing

Cloud-based

Edge and/or Cloud-based

• • Require ultra-low temperatures and infrastructure to operate. Accessed via the cloud.
• • Operate at room temperature but are difficult to integrate into modern devices. Installed on-site. e.g. Photonic, ion-traps, diamond.

e.g. Superconductor, silicon, topological.

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In-depth analysis:https://www.bcg.com/en-au/publications/2021/building-quantum-advantage

Quantum Powered Mobile Devices

• • QPMDs will require practical qubit processors that integrate into modern devices.

e.g.[12] CQ chip development.

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/ Record Setting Innovation

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† References: https://www.nature.com/articles/nnano.2008.365; https://www.nature.com/articles/nnano.2012.21; https://www.nature.com/articles/ncomms12232; https://pubs.acs.org/doi/10.1021/nl202866q; https://doi.org/10.1016/j.carbon.2014.03.046

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Archer has access to institutional deep tech infrastructure across
Australia to build and test its quantum materials and devices.
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Archer has access to some of the most advanced instrumentation in
the world to perform quantum measurements and testing.
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/ Era of Quantum Computing

According to BCG[† ] and Goldman Sachs[‡] , value for investors in the quantum computing economy is expected to increase rapidly as quantum hardware is developed:

• • The CSIRO[§] reported Australian quantum tech could create A$4 billion revenue and 16,000 new jobs by 2040.
• • The US National Quantum Initiative Act was signed into US law on Dec 21, 2018 with the US planning to invest US$170+ billion on advanced tech and semiconductors including quantum computing*.
• • The International Roadmap for Devices and Systems lists Quantum Computing a key tech in the ‘post-Moore’ era[⨎] .

• https://www.bcg.com/en-au/publications/2019/quantum-computers-create-value-when.aspx

• http://www.goldmansachs.com/our-thinking/pages/toshiya-hari-quantum-computing.html § https://www.csiro.au/en/Showcase/quantum/

• https://www.congress.gov/bill/115th-congress/house-bill/6227

• ** https://www.congress.gov/bill/117th-congress/senate-bill/1260

• ⨎ https://en.wikipedia.org/wiki/International_Roadmap_for_Devices_and_Systems

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Application Areas

Mobile-centric quantum powered applications

Autonomous Technology

Over the next decade, quantum powered devices could enable safer, more reliable, and truly autonomous systems.

Mobile end-uses include automotive, maritime, aviation, robotics, and security, requiring integration of sensors and memory with quantum processors and control algorithms, embedded with secure communication and connectivity.

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Number of publications from members of the IBM Quantum Network as of April 2021. Nature includes the fields of physics and chemistry.

Quantum Computing Collaborations

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Archer is a member of the IBM Quantum Network and the associated Quantum StartupProgram.

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ARCHER’S TECHNOLOGY DEVELOPMENT IS LED BY PIONEERING INNOVATORS

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Dr Mohammad Choucair (left) and Dr Martin Fuechsle (right).
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/ Innovation and Leadership

The Archer team works with nanotechnologists, physicists, chemists, semiconductor foundry engineers, and quantum algorithm developers from around the world. Archer’s[12] CQ chip development is led by:

Dr Mohammad Choucair FRACI FRSN GAICD . Archer CEO since Dec 2017. PhD in Chemistry (UNSW). Alumni of AGSM UNSW Business School. Former World Economic Forum Global Councillor. Inventor of the[12] CQ quantum computing technology. RACI Cornforth Medallist for the most outstanding Chemistry PhD in Australia. Honorary Fellow of the University of Sydney.

Dr Martin Fuechsle MRSN . Archer Quantum Technology Manager since Feb 2019. PhD in Physics (UNSW). Over 10 years experience in building quantum computing devices and technology. AIP Bragg Gold Medallist for the most outstanding Physics PhD in Australia. Inventor of the singleatom transistor. Honorary Associate of the University of Sydney.

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/ Global Partnerships

Archer entered into an agreement with IBM to collaborate on the advancement of quantum computing, supporting:

• • Archer’s plans to use Qiskit as the software stack for 12CQ chip processors and to participate in the global IBM Quantum Network[†] .
• • The Company’s access to the IBM Quantum Computation Center, which includes the most advanced quantum computers available to explore practical applications.
• • The demonstration of Qiskit’s flexibility, integrating with different quantum hardware ( e.g.[12] CQchip processors) to accomplish the goal of enabling practical quantum computing applications.

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IBM’s Qiskit interface showing a quantum computing gate compiler. Image sourced from IBM website.

†ASX announcement 4 May 2021.

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WELL PROTECTED IP IS CHARACTERISTIC OF DEEP TECHNOLOGY

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As of 25 Oct 2021.[12] CQ chip related patent portfolio exclusively licenced to Archer from the University of Sydney. Biochip patent applications 100% owned by Archer.

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Quantum control instrumentation built to perform the
sophisticated quantum measurements and testing. 22
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LAB-ON-A-CHIP TECH: A PARADIGM SHIFT IN MEDICAL DIAGNOSTICS

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/ Lab-on-a-Chip Diagnostics

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*More information on Australian regulations related to In-vitro Diagnostics (IVDs): https://www.tga.gov.au/medical-devices-ivds Learn more about Lab-on-a-Chip technology developments: https://www.rsc.org/journals-books-databases/about-journals/lab-on-a-chip/

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/ Developing Archer’s Biochip

Archer’s biochip is in early-stage development and its design principles involve using proprietary graphene materials in integrated circuits, to form key biosensing elements:

• • Archer continues to strategically secure access to local institutional deep-tech infrastructure to grow its capability in semiconductor prototyping production.
• • The Company is working towards developing foundry fabricated graphene transistors using 100% owned IP, at the limits of what can be achieved technologically[‡] .
• • During his PhD at UNSW Sydney, Archer CEO, Dr Mohammad Choucair, was the first in the world to directly synthesise graphene in bulk-scale quantities; and not use graphite[†] .

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• International Patent Application No. PCT/AU2020/050128

• https://www.nature.com/articles/nnano.2008.365

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Nanofabricated biosensor components on silicon which
potentially translate to millions of components per cm [2] .
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/ Two-dimensional Miniaturisation

Archer has made rapid progress over the past 12 months and is now able to miniaturise its biosensing components to chip-formats, overcoming a key barrier to entry in lab-on-achip device development:

• • Successfully demonstrated fabrication of biosensor components of ca. 100 nm features on silicon wafers*, which could enable high volume chip production.
• • Company has used and expanded in-house capability to miniaturise key biosensor components from 1 sensor component per cm[2] to potentially 1 million+ sensor components per cm[2.] .
• • Archer’s team includes cross-functional expertise in semiconductor device fabrication, nanotech, advanced materials engineering, and molecular biology, to grow a world-class IP portfolio.

• The Company is currently working towards achieving best-in-class sub-10 nm feature sizes. ASX announcement 8 April 2021.

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ASX Code: AXE

ACN: 123 993 233 The Board of Archer authorised this announcement to be given to ASX.

ADELAIDE

Lot Fourteen, Frome Road Adelaide SA 5000 Australia Phone: +61 8 8272 3288

SYDNEY

Level 4, 17-19 Bridge Street Sydney NSW 2000 Australia Phone: +61 2 8091 3240

Email: hello@archerx.com.au Website: www.archerx.com.au

Twitter: https://twitter.com/archerxau?lang=en LinkedIn: https://www.linkedin.com/company/archerxau YouTube: https://bit.ly/2UKBBmG

Sign up to our Newsletter: http://eepurl.com/dKosXI

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