ARCHER MATERIALS LIMITED — Investor Presentation 2021

Mar 24, 2021

Corporate Company Presentation

Archer Materials Limited (ACN: 123 993 233) Ground Floor, 28 Greenhill Road, SA 5034

25 March 2021

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ASX Announcement (ASX: AXE )

Corporate presentation

Archer Materials Limited (“Archer”, the “Company”, “ASX: AXE ”) is pleased to provide the attached presentation for the purpose of outlining the Company’s strategic priorities, its principal activities and significant recent developments.

Archer CEO, Dr Mohammad Choucair, will be presenting the attached Corporate Presentation at a Company event, on-site where the Company builds and develops prototypes of its semiconductor devices, namely its[12] CQ quantum computing chip and A1 Biochip lab-on-a-chip technologies.

About Archer

A materials technology company developing innovative deep tech in quantum computing, biotechnology, and reliable energy. The Company has strong intellectual property, world-class in-house expertise, a unique materials inventory, and access to Tier 1 technology development infrastructure.

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?lang=en 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 Tel: +61 2 8091 3240

TechKnow Conference Dec 200

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

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/ Company Overview

Archer is a technology company. The Company’s core business is in developing and commercialising innovative deep tech, including quantum computing and biotech. Archer is long-term value driven and creates maximum value by[†] :

• • Progressing its world-first technology development, including its 12CQ[®] quantum computing chip and A1 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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First components of the 12CQ chip, which is smaller
than the width of a human hair.
Archer staff, affiliates, materials, technology, and 3
laboratories.
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• / Experienced Board and Management

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QUANTUM COMPUTING IS REVOLUTIONARY DEEP-TECH

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/ Classical Computing vs. Quantum Computing

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

Archer’s[12] CQ 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. Archer Quantum Technology Manager since Feb 2019. PhD in Physics (UNSW). 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 single-atom transistor. Honorary Associate of the University of Sydney.

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Archer staff and affiliates working in semiconductor chip foundry facilities.

/ Quantum Computing at the Edge

Archer is in the pre-market development stage of building an operational quantum computing qubit processor chip ([12] CQ[®] ):

• • Archer is currently building and testing the qubit control components required to successfully fabricate working prototypes of the[12] CQ[®] chip.
• • The[12] CQ[®] chip would allow for quantum computing onboard mobile devices for speed ups and increased power in AI, Big Data, and Fintech applications.

• 12 ®

• • CQ would not require dilution refrigeration or

• other expensive and complex infrastructure that currently limits the development of quantum computing powered devices.

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

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Microscopy image of thousands of Archer’s carbon-
based qubit material from bulk powder form.
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/ Unique Technological Advantage

Electron-spin qubits in Archer’s carbon nanomaterial are one of the most promising solutions to the widespread use of quantum computing powered mobile devices:

• • Archer uses a qubit material with the proven potential to enable chip operation at room-temperature and integration onboard modern electronic devices[⨍] :
• • Qubit material is easily produced, is low cost, with workable dimensions for building devices, allowing for rapid speed of execution in device development.
• • 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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Hallmarks of the computing industry.

/ Era of Quantum Computing

According to BCG[† ] and Goldman Sachs[‡] , value for investors in the multi-billion dollar quantum computing economy is expected to increase rapidly as the commercial viability of quantum hardware matures:

• • The CSIRO[§] reported Australian quantum tech could create $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*.
• • The US is strengthening investments in quantum tech and preparing a quantum-ready workforce.
• • 100+ companies in the UK active in quantum computing & over £1 billion ($1.8 billion) of investment expected**.

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• 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.quantum.gov/

• ** https://uknqt.epsrc.ac.uk/

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/ The World is Data and Mobile Centric

According to BCG[†] , a growing number of financial institutions are positioning themselves for a quantum future:

• • US$70 billion ($95 billion) opportunity for additional income for banks and other financial-services companies.
• • Quantum computing can solve problems like options pricing and cash management in ATM networks.
• • BBVA, CaixaBank, and JPMorgan Chase have announced or publicly discussed experiments in quantum computing.
• • Financial institutions are building their quantum capabilities and exploring partnerships in the quantum ecosystem.

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• https://www.bcg.com/en-au/publications/2020/how-financial-institutions-canutilize-quantum-computing

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Qubit control devices built for the [12] CQ chip qubit
measurements and characterisation. 12
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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® processors and to participate in the global IBM Q 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] CQ[®] ) 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.

• https://archerx.com.au//src/uploads/2020/05/20200505_Quantum-computingagreement-with-IBM-ASX-Release.pdf

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/ Unlocking Commercialisation

Archer has made rapid, internationally recognised progress building the[12] CQ[®] chip over the past year, towards a viable qubit processor chip technology:

• • Archer has commercial access to prototyping chip foundries (Australia & Switzerland), and established collaborative partnerships (85+ personnel) to build prototypes of the[12] CQ[®] qubit processor chip.
• • Patent granted in Japan[⨍] and international patent applications protecting Archer’s global competitive advantage are currently advancing in the EU, US, Australia, China, Hong Kong, and South Korea.
• • Single and few-qubits have been nanofabricated into arrays; single qubit component conductivity completed; and qubit control devices recently built: key early-stage quantum computing chip development success factors.

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⨍ Patent No. 6809670

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WELL PROTECTED IP IS CHARACTERISTIC OF SUCCESSFUL DEEP TECHS

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/ Global Competitive Advantage

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As of 1 March 2021.

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ARCHER IS BUILDING ADVANCED SEMICONDUCTOR DEVICES

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/ Lab-on-a-Chip Diagnostics

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*More information on Australian regulations related to IVDs: https://www.tga.gov.au/medical-devices-ivds

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LAB-ON-A-CHIP TECH IS A PARADIGM SHIFT IN MEDICAL DIAGNOSTICS

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/ Building a Biochip

Archer is in the early stages of building a graphene based lab-on-a-chip device (A1 Biochip™):

• • Archer owns IP to commercialise the only reported graphene materials capable of stable and robust selective hierarchal chemistries compatible to the single molecule level[⨍] .
• • Microfluidic channels & sensing areas reduced to few-hundred nanometer size, sample volumes as low as 3 uL, and biologically relevant molecules a few atoms from the surface accurately detected[†] .
• • The A1 Biochip™would allow for the possibility of miniaturising medical lab tests onto an integrated circuit, a single chip, to make complex detection of disease safer and more reliable.

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• ⨍ https://patentscope.wipo.int/search/en/detail.jsf?docId=WO2020163921 † https://onlinelibrary.wiley.com/doi/abs/10.1002/chem.201404309 https://pubs.acs.org/doi/10.1021/nl202866q

Archer prototyping components of its A1 Biochip™ with microfluidic channels containing blue dye leading to microfabricated sensing areas.

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/ Significant Socio-economic Impacts

The A1 Biochip™end-use is initially aimed at the complex detection of diseases affecting the respiratory system, as they remain one of the world’s most deadly communicable diseases[†] :

• • Archer works with a German Biotech partner[††] to determine potential candidate biomolecules relevant to in-demand disease diagnostic tests, as part of the commercial development of Archer’s A1 Biochip™.
• • Archer’s sophisticated manufacturing of its technology at world-class facilities, directly aligns to National strategic manufacturing priorities[§] , and facilitates its scale-up in the global semiconductor industry[‡] .

• https://www.who.int/news-room/fact-sheets/detail/the-top-10-causes-of-death †† https://archerx.com.au/src/uploads/2018/09/20180927_MTA-signed-with-Germanbiotech-ASX-Release.pdf

• §https://www.industry.gov.au/data-and-publications/medical-products-nationalmanufacturing-priority-road-map/road-map-at-a-glance

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• ‡https://www.chiefscientist.nsw.gov.au/independent-reports/australian-semiconductorsector-study

Note: The World Health Organization provides a guide to aid the selection of medical diagnostic tests: https://www.who.int/bulletin/volumes/95/9/16-187468/en/

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Independent research by Archer advisors:

https://archerx.com.au/src/uploads/2020/06/20200611_Progress-towardsgraphene-biosensors-for-disease-detection-ASX-Release.pdf

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Nanofabricated biosensor components on silicon
which translate to millions of components per cm [2] .
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/ Nanofabrication is a Prerequisite

Archer has made rapid progress over the past 6-12 months towards building the A1 Biochip™, and is now able to miniaturise its biosensing processes to chip-formats, a key barrier to commercialising lab-on-a-chip devices[†] :

• Successfully demonstrated fabrication of nanosize biosensor components of ca. 100 nanometer features on silicon wafers, which would enable high volume chip production – required for any future retail applications.

• • Company has used and expanded in-house capability to miniaturise key biosensor components from 1 sensor component per cm[2] to approx. over 1 million sensor components within a 1 cm[2] area.
• • Archer’s team includes cross-functional expertise in semiconductor device fabrication, nanotech, advanced materials engineering, and molecular biology, to grow a world-class patent portfolio.

†https://archerx.com.au/src/uploads/2021/03/20210322_Archerstrengthens-biochip-nanofabrication-capabilities-ASX-Release.pdf

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/ Graphene Impact on Biotechnology

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^ Nature Commun., 9, 1577 (2018) ** Nature Nanotech., 11, 127–136 (2016)

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/ High-value Graphene Materials

Archer’s biochip design principles involve using proprietary graphene-based materials as integrated circuits, to form the key sensing elements in its biochip:

• • Graphene[1] has a combination of exceptional materials’ properties that could make it useful and valuable[2] .
• • Archer can produce graphene from a number of chemical feedstocks, including graphite, alcohols, and gases.
• • The largest technological barriers to commercialising such devices involve high-value advanced manufacturing, e.g. the fabrication and integration of graphene materials.
• • During his PhD at UNSW, Archer CEO, Dr Mohammad Choucair, was the first in the world to directly synthesise graphene in bulk-scale quantities; and not use graphite[3] .

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• 1 https://goldbook.iupac.org/terms/view/G02683

• 2 https://www.nature.com/articles/nnano.2014.225/ 3 https://www.nature.com/articles/nnano.2008.365

IFFT representing the top layer structure of near-perfect hexagonally 24

THE GLOBAL VALUE CHAIN IN COMMERCIALISING DEEP TECH IS GROWING

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Quantum control instrumentation built to perform the
sophisticated quantum measurements and testing.
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/ Archer’s Accelerated Advance

Over the next 12 months key aspects of the Company’s strategy involves:

• • Progressing the Company’s deep-tech development with a focus on high-value added milestones in the operation of the[12] CQ[®] chip & nanofabrication of the A1 Biochip™.
• • Advancing with international prosecution of patent applications towards granting in Australasia, the EU, and the US for the[12] CQ[®] chip & A1 Biochip™.
• • Exploring commercial opportunities with new and existing partners to develop our processor devices, algorithms, applications, and business use cases.
• • Exploring opportunities to add value for shareholders through the introduction of new deep-tech assets, while selling or divesting the Company’s historical mineral exploration tenements.

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The Board of Archer authorised this announcement to be given to ASX.

ASX Code: AXE ACN: 123 993 233

ADELAIDE

Ground Floor, 28 Greenhill Road Wayville SA 5034 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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Appendices

Board and Executive Management (Slide 5)

Greg English LLB, BE (Mining) Executive Chairman

Greg English is the co-founder and Executive Chairman of Archer. He has been Chairman of the board since 2008 and has overseen Archer’s transition from a South Australian focussed minerals exploration company to a diverse materials technology company. He has more than 25 years of engineering and legal experience and has held senior roles for Australian and multinational companies. Greg has received recognition for his work as a lawyer in The Best Lawyers® in Australia, 2020 Edition in the area of Commercial Law. Greg is an experienced company director and also serves on the boards of other ASX listed companies. He holds a bachelor’s degree in mining engineering and a law degree.

Alice McCleary DUniv, BEc FCA FTIA FACID Non-executive Director

Alice McCleary is a Chartered Accountant. She is a director of .au Domain Administration Limited, and Deputy Chair of the Uniting Church of South Australia’s Resources Board. She is a former Chairman of ASX Listed Company Twenty Seven Co. Limited (ASX:TSC) and former Director of Adelaide Community Healthcare Alliance Inc. (ACHA), Benefund Ltd and Forestry Corporation of South Australia. Previous leadership roles include Vice-President of the South Australian Chamber of Mines and Energy (SACOME), Deputy Chancellor of the University of South Australia and National President of the Taxation Institute of Australia. Alice’s professional interests include financial management and corporate governance.

Kenneth Williams BEc (Hons), M APP FIN, FAICD Non-executive Director

Ken Williams has 30 years’ experience in corporate finance, is a Fellow of the Australian Institute of Company Directors, and is currently the Independent Chair of Statewide Super, a Director of the Lifetime Support Authority (LSA) of SA, Chair of the Finance & Investment Committee of the LSA and a member of the Council of the University of Adelaide. He has held senior finance executive roles with Normandy Mining Limited, Qantas Airways Limited and Renison Goldfields Limited, among other companies. Specialising in treasury and financial risk management, his directorship experience has spanned both large and small listed and private companies, not-for-profit organisations, and superannuation funds.

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Appendices

Board and Executive Management (Slide 5)

Mohammad Choucair PhD, FRACI FRSN GAICD Chief Executive Officer

Damien Connor CA GAICD AGIA B.Com Chief Financial Officer & Company Secretary

Dr Mohammad Choucair was appointed Chief Executive Officer on 1st December 2017. Dr Choucair is alumni of the AGSM UNSW Business School and has a deep-tech background in nanotechnology. He has spent the last decade implementing governance, control and key compliance requirements for the commercial development of innovative technologies with global impact. Dr Choucair served a 2-year mandate on the World Economic Forum Global Council for Advanced Materials and is a Fellow of both The Royal Society of New South Wales and The Royal Australian Chemical Institute. He has a strong record of delivering innovation and has been recognised internationally as a forward thinker.

Damien Connor was appointed Company Secretary on 1 August 2014. Damien performs the financial/accounting role in the Company as well as the secretarial duties. Damien has been a member of the Institute of Chartered Accountants since 2002 and is a Graduate of the Australian Institute of Company Directors and a Member of the Governance Institute of Australia. He also provides Company Secretary and Chief Financial Officer services to other ASX-listed and unlisted entities.

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