Archer Exploration Limited

GraphiteMagnesite

Manganese

AIMEX 2011 MINING MISSION TO AUSTRALIA from India

September 2011

Gerard Anderson Managing Director

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Disclaimer

Competent persons statement

The exploration results reported herein, insofar as they relate to mineralisation, are based on informationcompiled by Mr. Wade Bollenhagen, Exploration Manager of Archer Exploration Limited. Mr. Bollenhagenis a Member of the Australasian Institute of Mining and Metallurgy who has more than fifteen yearsexperience in the field of activity being reported. Mr. Bollenhagen consents to the inclusion in the reportof matters based on his 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 itsactivities. Some statements in this presentation regarding estimates or future events are forward lookingstatements.

Although Archer Exploration Limited believes that its expectations reflected in these forward-lookingstatements are reasonable, such statements involve risks and uncertainties and no assurance can be giventhat actual results and outcomes will be consistent with these forward-looking statements.

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Corporate

ASX Code AXE

Shares on Issue 67,142,763

Unlisted Options on Issue 6,270,000

Share price at 28/8/2011 $0.20

Market Capitalisation $13.4 million

Cash at Bank as at 30/6/2011 ≈$2.7million

Directors

Chairman Greg English

Non – Executive Directors Tom PhillipsAlice McLeary

Hon. John DawkinsPeter Meers

Gerard Anderson

3The limited number of shares on issue and commodity exposure offers shareholders

considerable leverage as exploration advances and deposits mature

Mineral Exposure

• Graphite • Uranium

• Magnesite/magnesia • Iron Ore

• Manganese ± REE • Phosphate

• Copper ± IOCG • Coal ± CTL

• Gold • Barite

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AssetsExploration Tenements• 100% of 19 tenements covering ≈9,500km2 covering Eyre

Peninsula, Leigh Creek, West Roxby, Burra and World’s End.• 100% of 3 ELA’s covering >1,100km2.• 100% of minerals other than uranium on Wildhorse Plain and

Elbow Hill covering 895km2.

Graphite• 100% owned Sugarloaf deposit. Exploration Potential of 24 –

37Mt grading 10-12% total carbon*. Petrology indicates fine fine flake graphite averaging 100µm.

• 100% of several large flake to ultra coarse flake (250µm –1,000µm) graphite occurrences on Wildhorse Plain.*The potential quantities and grades presented are conceptual in nature, there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource

MagnesiteJORC Measured, Indicated and Inferred Resources at Leigh

Creek of 413Mt grading 41.3% MgO. (Source MDL 2001 Report)

ManganeseSeven manganese prospects including Ketchowla and Salt Creekplus Farm-Out JV with OMM Holdings over EL3711.

4Portfolio of prospective tenements hosting outstanding mineral deposits

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Archer is an exploration company. The principal assets of the Company are its significant mineral tenements and mineral deposits.

Shareholder value is increased by;

- moving projects up the

development pyramid,

- discovering new deposits,

- joint ventures,

- project acquisition,

- asset sale.

Reserve*

Resource*

Advanced Exploration Project

Mineralised Project

Geophysical / Geochemical Anomaly

Tenement / Geological Target

Concept / Project Review

Cost

Probability of Development at T0

where To = April 2011

Probability of Success

≈ 100%

≈ 70%

≈ 30%

≈ 10%

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Actual # of Projects

Mt Hutton

Pug Hill

Mt Playfair

Termination Hill

Ketchowla Mn / REE

WHP Fe

Sugarloaf Graphite

Bender Au/Cu

Watervale Au

Salt Ck MnWHP Cu

Pindari Ni / REEApollo U

Evelyn Dam IOCG

19 Granted Tenements3 ELA’s (Phosphate & Barite, REE, Coal)

Commodity ReviewsIndustrial Minerals – Graphite,Magnesite, Phosphate, BariteWest Roxby IOCGStrategic Minerals REE

Island Lagoon IOCG

Napoleon’s Hat Au

Project Status

Witchelina

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* Refer Slide 8

World’s End Cu

Archer has an several mineral projects at various stages of evaluation

WHP - Au

Wildhorse Plain Graphite

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Graphite exhibits both metallic and nonmetallic properties:Metallic properties:- Excellent conductor of heat and electricity- Highest natural strength and stiffness of any material

Nonmetallic properties:- High natural lubricity- Maintains strength and stability to temperatures in excess of 3,600oC- One of the lightest reinforcing agents- Highly resistant to chemical attack

Graphite Market

Amorphous Graphite

Microcrystalline graphite ≈70% of world graphite production and consumption. Graphite content ranges from 15% to 99% . Widely used in industrial applications for its high melting point, resistance to thermal shock and lubrication.

Crystalline Flake Graphite

Flake graphite occurs only in a few locations around the world usually as flat platy crystals disseminated in metamorphic rocks. Total carbon grades are generally low ranging mostly from 2-6% C and rarely >10% C.

Flake graphite is classified and marketed based on the size of the graphite crystals (flake size) and by the carbon content (generally >94%C). Strong growth from high tech uses. Three main flake sizes:

Fine flake (-100 mesh or <149µm) Medium flake (+100 -80 mesh or 149–177µm)Large flake (+80 mesh or >177µm)

Substitution of graphite by other minerals is highly unlikely as there is simply no other mineral so versatile and with such unique physical and chemical properties.

Graphite & the Graphite market

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Photomicrograph - Growth spirals in graphite crystal

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Graphite crucibles

Refractory bricks to line blast furnaces

Uses for Graphite

Dry cell batteries

Pencils

Electric motor brushes

Graphite brake pads

Carbon steel forging

Valves

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Emerging New Technology Uses for Graphite

Construction of a high temperature PEMFC: Bipolar plate as electrode with in-milled gas channel structure, fabricated from conductive composites(enhanced with graphite, carbon black, carbon fiber, and/or carbon nanotubes for more conductivity);[5] Porous carbon papers; reactive layer, usually on the polymer membrane applied; polymer membrane

Graphite stripes are deposited onto silicon with industry-standard lithography to obtain a densely-packed memory.

Zero EV motor cycles

EVs & HEVs - Tesla’s Roadster and the Tesla SCeramics

Ceramic fibresSuper high strength composites

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Graphene - the new super material

Film of graphene an atom thick

Graphene molecular structure

Graphene is a unique atom-thick carbon-based material derived from graphite that has exceptional physical and chemical properties. Applications are continually being generated as research unlocks its unique attributes:

• Superior composite materials that have high-specific stiffness and strength.

• Nano-electronics for logic, memory and interconnects.

• Transparent and electrically conductive films for image display and solar photovoltaic devices.

• Energy storage devices such as batteries and ultra-capacitors.

• Thermal management.

Nearly 200 companies, including Intel and IBM, are currently involved in graphene research. Super fast graphene computer chips

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Graphite supply* – China first, then daylight….

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China produces around 75% of the world’s graphite. Quality is declining as surface oxide deposits are depleted resulting in increasing costs as mines go deeper. Supply suffers from the seasonal closure of mines in northern China over winter.

China has a 20% export duty plus a 17% VAT and has instituted an export licensing system to ensure supply to its domestic economy.

The dominance of China as a producer coupled with measures introduced by the Chinese government are creating supply concerns for the rest of the world. Supply issues are

exacerbated by the lack of exploration and new mine development over decades.

Country Mine Production 2009 (kt) Mine Production 2010e (kt) Reserves (kt)

Unites States - - -

Brazil 76 76 360

Canada 25 25 (4)

China 800 800 55,000

India 130 130 5,200

North Korea 30 30 (4)

Madagascar 5 5 940

Mexico 5 5 3,100

Norway 2 2 (4)

Sri Lanka 11 11 (4)

Ukraine 6 6 (4)

Other Countries 3 3 6,400

World Total (rounded) 1,100 1,100 71,000

* Source - USGS

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Graphite prices

Graphite Prices Rising on Strong Demand:

Graphite has a posted price however prices are negotiated between the buyer and seller based on graphite crystal size and the carbon content with settled prices generally around the posted price level.

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Graphite Product Carbon Content (%) Graphite Size (µm) Price (US$/t)

Large Flake 94-97% >177µm $2,500 - $3,000

Medium Flake 94-97% 149µm - 177µm $2,200 - $2,500

Fine Flake 94-97% <149µm $2,000 - $2,400

Amorphous 80-85% ≈ >37µm $850

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Graphite demand trends

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• Traditional uses in steelmaking, refractories, auto parts, gaskets, composites, batteries, semiconductors, carbonbrushes and oils and greases is increasing with increasing industrial output.

Growth in the flake market from increased demand from high value strategic applications in electronics and computers and high tech uses constantly being identified.

• Lithium-ion battery market having a significant impact on the graphite market especially for the prized flake graphiteas the demand for mobile energy storage systems increases. Lithium-ion batteries for EV and HEVs - USA has 200,000,000 of the estimated 750,000,000 cars in the world. UCLA research predicts that by 2030, 64% of all US made cars will be electric. US government has provided billions of dollars in loans, grants, and tax incentives forresearch in support of US auto industry and battery manufacture.(Each HEV requires ≈ 11kgs spherical graphite. Up to 70% of flake is destroyed making spherical graphite)

EVs and HEVs don’t have to be ugly

Audi e-Tron concept car (EV)BMW i8 (HV)

Porsche HV 918 Spyder718 horsepower, mid-engine V-8 and two electric motors. Claim 78.4 mpg.

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Graphite demand trends

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Growth in the flake market also coming from green energy initiatives including fuel cells and new generation nuclear power and from the evolving applications for graphene.

• Green energy initiatives especially fuel cells and solar electricity applications. Governments worldwide are backing green energy initiatives in response to the threat of climate change. Fuel cell technology is seen as the future for sustainable, portable, self- contained energy solutions.

• Pebble bed nuclear reactors (PBNR) offer a solution for safe nuclear power. In PNBRs the fuel is embedded in graphite balls . PNBRs are cheaper to build and operate than conventional reactors, use inert gases as coolants rather than complex water cooling systems and cool naturally when shut down. They operate at highertemperatures giving more fuel efficiency and they can directly heat fluids for low pressure gas turbines.

• Graphene is set to have a profound impact on the future development of mankind. Potential applications includereplacement of silicon in semi-conductors; replacing of carbon fibers in composite materials to enable lighter and stronger aircraft; an additive or coating to plastics to enable them to conduct electricity; increasing the efficiency of electric batteries; transparent conductive coatings for solar cells etc. The list is expanding all the time.

Graphite and graphene are very much minerals of the “new age” offering a growing array of opportunities in the worldwide push for green energy solutions.

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Graphite market trends

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Anyone can have 20:20 vision in hindsight.

Graphite is facing increasing demand worldwide from growing traditional uses and rapidly emerging new technological applications.

Archer likens the emerging importance of graphite to that of the recent history of Rare Earth Elements (“REE”) and lithium. Few people realized how quickly REE and lithium

would increase in importance as more and more advanced applications were discovered. Fewer understood the strategic importance of REEs and lithium.

The Company with its extensive landholding hosting a large number of high grade, wide, outcropping graphite occurrences (including rare and prized large flake graphite) is in a strong position to rapidly advance exploration and capitalize on the surging demand .F

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Significant Land Position in “Graphite Province”

Large & medium flake potential – Campoona, Campoona South - Grid 2, Mt Shannan, Wicklow & Others

15Archer has a substantial land position in “graphite province”

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Sugarloaf Graphite

Exploration Potential

• 100% owned Sugarloaf deposit has Exploration Potential of 24 – 37Mt grading 10-12% total carbon*. Petrology indicates deposit consists of fine crystalline flake graphite averaging 100µm in size.

*The potential quantities and grades presented are conceptual in nature, there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource

• Deposit outcrops, is sub-vertically dipping with a consistent aggregate true width of 40 metres.

• Graphite structure shows no sign of thinning or decreasing in graphite content with depth.

• Open along strike to the north and south and at depth.

• High probability that the eventual Exploration Potential to be >40Mt.

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Sugarloaf is shaping to be a very large graphite deposit

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In the mid 1980s airborne electro-magnetic surveys were conducted as part of exploration focused on base metals. A highly conductive graphitic schist over 4km long was identified adjacent to Lower Middleback jaspilite at Campoona Hill . A small historic shaft exists on the graphitic schist.

Other elongate EM conductors, which are parallel to the

graphitic schist were drilled by ESSO at High Bluff and

were confirmed as graphitic in origin.

A 1991 petrology report identified the graphite ranging in

size 100µm to 300µm with an average flake size of 200µm

(large flake).

Two samples collected in June 2011 and were submitted

for petrological examination by Pontifex and Associates

in Adelaide. Results confirm the 1999 observations.

Graphite content was reported as 25-30%. Size ranged

mostly 10µm-50µm (width) x 250µm (length).

Wildhorse Plain Graphite

Significant potential – Campoona

17Large flake graphite identified in several locations on Wildhorse Plain

associated with high grade metamorphic rocks

Photomicrograph - reflected light, graphite is the white mineral, scale is 100µm (0.1mm)

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At the southern end of the Campoona EM anomalies lies a graphite outcrop thatassayed 25.4% C .

Hand specimens had visible large flake graphite to 1,000µm (1mm).

Petrological examination reported graphite content at 15-20%. Overall graphite size ranged from 5µm to 80µm (width) x 300µm (length) with anaverage size estimated at 50µm x 250µm (large flake).

Graphite occurs within “heterogeneous, fine layered quartz-feldspar microgneiss, together with quartz-graphite schist”.

Wildhorse Plain GraphiteSignificant potential – Campoona South

18Large flake graphite identified in several locations on Wildhorse Plain associated with high grade metamorphic rocks

Photomicrograph - reflected light, graphite clots are the white aggregates, scale is

200µm (0.2mm)

Prominent outcrop of high grade coarse grained graphite at Campoona South.

Hand specimen from Campoona South showing coarse graphite flakes up to 1mm

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The Council Pit is a disused historic borrow pit.

The graphite content was reported between 15-20%. The

overall size of graphite ranges from 2µm to 50µm (width) x

1,000µm (length) with the average 20µm x 300µm (large

flake). The range in length to 1,000µm is classified in the

graphite market as Super Large graphite.

The graphite occurs within “schistose micro-gneiss, with

thin intricately intercalated schistose layers of

quartz-feldspar-graphite and scattered amphiboles”.

Wildhorse Plain Graphite

Significant potential – Council Pit

19Large flake graphite identified in several locations on Wildhorse Plain

associated with high grade metamorphic rocks

Photomicrograph - reflected light photograph, graphite is white to light yellowish, scale is 50µmFor

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Sugarloaf is more than competitive

Archer Graphite Summary

Deposit Comparison

Company Deposit Lower Cut-off Grade (%C)

Resource(t)

ResourceGrade (%C)

Graphite Size(µm)

Archer Exploration Sugarloaf 1%C 40Mt* 11.7%C* Fine

Northern Graphite Bissett Creek 1%C 20Mt 1.97%C Large

2%C 8.8Mt 2.58% Large

3%C 1.3Mt 3.27% Large

SER – Mega Graphite Uley Main Road1 3.8%C 6.6Mt 8.7%C Medium and Large

*The potential quantities and grades presented are conceptual in nature, there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource

1 Uley Exploration Potential 25-150Mt (Recent sale/demerger with Mega Graphite values Uleyat >AUD$70 million)F

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21Outstanding potential exists for large flake graphite from high grade metamorphic host rocks on Wildhorse Plain.

Archer Graphite Summary

Huge land bank in emerging graphite province

• Archer has 924km2 of the highly prospective Cleve Uplands.

• Sugarloaf deposit :- Exploration Potential *of ≈40Mt @10-12% C and is open along strike and at depth. - Graphite occurring mostly as well liberated free fine flakes averaging 100µm – liberation tests in progress.- Continuous outcropping steeply dipping deposit averaging ≈40m in true width.- Depth of complete oxidation from 70-80m.- Limited drilling to deliver a JORC Inferred Resource.

The Company tested 3 graphite occurrences on Wildhorse Plain and each has shown through petrology, to have average crystal sizes being LARGE FLAKE.

• Campoona – average flake size 250µm • Campoona South - average flake size 250-300µm from outcropping very high grade graphite grading >25% C• Council Pit - average flake size 300µm with a maximum of 1,000µm

• Several more occurrences on Wildhorse Plain are being evaluated.

• Airborne EM completed on 29th July 2011 to better define the Campoona – Campoona South trend. Highly encouraging as defined continuous high level electrical responses. Drilling set for mid-late September.

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Magnesium carbonate (MgCO3) was deposited as a chemical precipitate in shallow, marginal marine lagoons and mudflats, and occurs predominantly as cryptocrystalline particles 1–5 µm in size. 86 separate magnesite interbeds within the Skillogalee Dolomite have been recorded at Leigh Creek.

Magnesia (MgO) is produced by heating magnesite typically above 1000oC. Magnesia occurs in three forms:

1. Caustic Calcined Magnesia (CCM) is formed by heating magnesite to temperatures up to 1,000oC. It is reactive and that reactivity is important for construction materials, industrial applications, in fertilizers and as a soil conditioning agent in agriculture, for water purification and waste water treatment and in the paper and rubber industries.

2. Deadburn magnesia (DBM) is produced by heating CCM to temperatures of 2,300oC to produce inert magnesia used for the production of refractory bricks.

3. Electrofused magnesia (EM) is produced by melting CCM to 2,800 - 3,000oC to produce crystalline magnesia used primarily in arduous steelmaking applications.

What is Magnesite and Magnesia?

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Magnesite / magnesia products are widely used across a number of high growth industries and widely used in high technology consumer goods

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Magnesia Market Growth

23MgO Market grows at ≈330ktpa. 63% of market in refractories; 23% in chemicals

and 14% into magnesium metal

MgO Refractory Bricks

MgO growth closely mirrors that of the steel industry

• Industrial applications - concrete• Building products – Mg board• Fertilizers and soil conditioners – strong local market• Water purification• Waste water treatment• Acid mine water and acid tailings neutralisation • Consumer electronics - Mobile phones, laptops, cameras,

iPods, PDAs• High tech alloys – AM-lite• Magnesium batteries which hold twice the energy of

lithium-ion cells likely to be used to power electric cars• Liquid magnesium battery offers promising solar energy

storage technique

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Archer’s Leigh Creek Magnesite Deposits

• High quality (>42% MgO)• Consistent chemical composition over 80 kms strike• $millions spent on BFS for Mg metal production

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Mt Hutton

“World Class” is often self-bestowed but rarely deserved – Leigh Creek is an exception

Mt Playfair

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Leigh Creek 1999 Resource Estimate

Area Measured*(Mt)

Indicated*(Mt)

Inferred*(Mt)

MgO1

Mt Hutton 18.3 42 53 42.9%

Mt Playfair 11 23 42.5%

Pug Hill 10 10 42.7%

Termination Hill 4 5 20 42.8%

Witchelina 23.7 94 99 40.0%

Total 46 162 205

*Source: Reproduced from MDL Report “Economic Evaluation of the Pug Hill Magnesite Deposit, North Flinders Ranges, South Australia. 2001. Note full BFS completed and JORC resources for 5 deposits and JORC reserve for Mt Hutton calculated. The independent resource estimates were completed by Mr. Colin Arthur (BSc, MSc, FGS, MAusIMM, CGeol, CEng) Manager, MicromineResource Centre, August 1999. The estimates were based on 69 fully cored DDHs and all other attendant studies required to support resource and reserve estimation.

1 Pure magnesite is 47.8% MgO

25413Mt JORC Measured, Indicated and Inferred Resource

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Growing the Magnesite / Magnesia Business

Caustic Calcined (>$600/t)

Mine

ROM MgCO3

Steadily Growing Market

Crushed MgCO3

Crushing Plant

Rail to Spencer GulfFlotation? & Calcination

± DSO magnesite

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Crushed MgCO3

Focus is on producing either DSO magnesite or high value intermediate products

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Leigh Creek Development Options

Key Attributes

• High grade magnesite deposits • Huge JORC Resource can support large scale operation for

many hundreds of years• Low capital entry

• Good supply chain logistics• Proximal to Leigh Creek

Funding Options

Archer has 100% ownership of the magnesite deposits on Termination Hill and Witchelina Els.

Will consider joint venture options to co-develop the deposits.

27100% ownership affords Archer flexibility in project development

Leigh Creek magnesite supply chain logistics

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Leigh Creek Magnesite

Calcining Test Work• Calcining tests to 1000oC on run-of-mine magnesite produced magnesia grading:

> 92% MgO≈ 4.5% SiO2

≈ 0.3% Al2O3

≈ 0.6% CaO≈ 0.4% Fe2O3

• To maximise the marketability of magnesia produced the SiO2 level needs to be reduced to ≤3.0% (ideally≤1.5%) and the magnesia (MgO) increased to ≥95% MgO.

• Talc - hydrated magnesium silicate H2Mg3(SiO3)4 or Mg3Si4O10(OH)2 accounts for much of the SiO2.

• Further test work being undertaken to determine the optimum process flow sheet.

• Results should be available Q3 2011.

28Further test work being scoped to increase product capability

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Archer Manganese

Ketchowla – DSO quality manganese• 5 main manganese deposits with ≈28kms strike potential.

• Medium grade (≈ 20% Mn ± Ni, Co, Cu & Zn, REE).

• Dense media separation and gravity concentration upgraded

K1 drill cuttings from 17.47% Mn to ≈38% Mn at a 23%

recovery. Ni, Co, Cu, Zn and Y also upgraded:

o Ni (0.258% to 0.412%);

o Co (0.175% to 0.296%);

o Cu (0.226% to 0.377%);

o Zn (0.164% to 0.277%);

o Yttrium 113.2ppm to 204ppm.

• 90% – 95% recovery of Mn, Ni, Co, Cu & Zn in

agitated acid leach tests.

• Peak assays of 0.47% REE (from rock chip samples) and

0.36% REE in drill cuttings at K1, K2, K3 and K9 deposits.

• Elevated REEs at K9 not related to manganese and

occur within a weathered intrusive?

• Manganese deposits open at depth and along strike.

• Recently completed ground gravity survey has

identified drill targets extending under surficial cover.

29Ketchowla one of several Archer manganese projects

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Archer Manganese

Salt Creek manganese• Drilling highlighted that manganese occurs in three different rock units:

- High iron manganese associated with banded iron formation.- Fine manganese in weathered pelitic sediments (clays & schists).- 5mm fine manganese nodules within transported silica-rich sand.

• The manganese units comprise two limbs of an overturned synclinewith a western limb consisting of outcrops of high-iron manganese and an eastern limb of manganese and silica-rich manganese adjacent to quartzite/leached BIF.

• +0.5mm grades 20-25% MnO with recoveries to 30%.

• Strike length consists of 4kms (confirmed) and up to 10kms based onregional historic sampling.

30Salt Creek – significant undrilled resource potential

A plan view of the trace of the fold structures, with regional rock chip results

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Thank You

If you would like additional information please contact:

Gerard AndersonManaging Director Archer Exploration Limitedganderson@archerexploration.com.au

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