ARCHER MATERIALS LIMITED — Share Issue/Capital Change 2010

Dec 2, 2010

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3 December 2010

General Manager The Company Announcements Office Australian Securities Exchange

UNLISTED SHARE OPTIONS ISSUED TO A DIRECTOR

Archer Exploration Limited advises that it has today issued 5,000,000 unlisted options to Managing Director, Gerard Anderson, following shareholder approval at the Company’s EGM held today.

The options have been issued in accordance with the terms as approved by shareholders and summarised below:

• options are exercisable at 20 cents compared with a recent AXE share price of 14.5 cents

• 2,000,000 options may be exercised on issue, 1,000,000 are exercisable after 31 October 2011, 1,000,000 are exercisable after 31 October 2012 and the final 1,000,000 after 31 October 2013. All unexercised options expire on 30 November 2013.

Yours truly,

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Archer Exploration Limited Craig Gooden Company Secretary