ARCHER MATERIALS LIMITED — Share Issue/Capital Change 2008

Jan 31, 2008

ASX Code AXE

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1 February 2008

AUSTRALIAN SECURITIES EXCHANGE LIMITED COMPANY ANNOUNCEMENTS OFFICE

Re: Bonus Options

Archer Exploration Limited is pleased to confirm that today it has lodged with the Australian Securities and Investments Commission a prospectus relating to the issue of Bonus Options.

The Bonus Option Issue is a non-renounceable issue at no cost to shareholders, of one (1) Bonus Option for every two (2) Archer Exploration Limited ordinary shares held at the record date of 13 February 2008.

Each Bonus Option will entitle the holder to subscribe for one fully paid ordinary share with an exercise price of 25 cents, and will expire on 13 February 2010.

We intend to issue the holding statements, showing each holders entitlement to Bonus Options, on 22 February 2008, or such other date as the Directors may determine in accordance with the ASX Listing Rules.

Yours faithfully,

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Tom Phillips AM Chairman Archer Exploration Limited