Archer Materials Limited

Archer Exploration Limited (ASX:AXE) through its wholly owned subsidiary Kensington Exploration Pty Ltd, this morning completed the sale of the Company's five West Roxby exploration tenements to BHP Billiton (ASX:BHP). At Completion Archer received a payment of $8.0 million resulting in the Company having over $13.0 million cash in bank to fund its work programs.

The Board of Archer Exploration Limited (ASX:AXE) is pleased to announce the appointment of Dr David Lock effective today to head the Company's metallurgical testing, process flow sheet definition, pilot plant testing and operating plant design for the Campoona Graphite Deposit.

Archer Exploration Limited (ASX:AXE) advises that initial metallurgical test work results from Campoona drill samples drilled in February and April 2012 have been received. The Company's 100% owned Campoona Graphite Project is located approximately 12km north of the township of Cleve on Eyre Peninsula, South Australia.

Archer Exploration Limited (ASX:AXE) advises that following the sale of the remaining shares held in Archer by Hudson Resources Limited ("Hudson and related companies"), Mr. Peter Meers has resigned as a Director of Archer, effective immediately. The Honourable John Dawkins AO is currently overseas but has notified the Chairman that he intends to resign as a Director of Archer within the next week. Archer will notify ASX upon receiving a signed written resignation from John Dawkins. Both Directors were appointees of Hudson and their appointments were conditional on Hudson maintaining a substantial share holding in Archer.

Archer Exploration Limited (ASX:AXE) advises that resource drilling recommenced on the 23rd May 2012 at the Company's 100% owned Campoona Graphite Project located approximately 12km north of the township of Cleve on Eyre Peninsula, South Australia.

As advised in the release to the ASX on 3 May 2012, the Archer Exploration Limited (ASX:AXE) Share Purchase Plan (SPP) was oversubscribed and closed early with applications received by mail postmarked 3 May 2012 or earlier, or BPay up to 6.00 pm on 3 May 2012 to be accepted. Application monies received after the close will be fully refunded.

On the 15th March 2012 Archer Exploration Limited (ASX:AXE) announced that it had commenced a staged resource drilling programme at the Company's 100% owned Campoona Graphite Deposit located approximately 12km north of the township of Cleve on Eyre Peninsula, South Australia.

Archer Exploration Limited (ASX:AXE) through its wholly owned subsidiary Kensington Exploration Pty Ltd, has signed a Sale and Purchase Agreement with BHP Billiton relating to the sale of five (5) exploration tenements.

Two drill programmes were completed at Archer Exploration Limited's (ASX:AXE) high priority Campoona Graphite Deposit. Six RC aircore drill holes were completed in mid February to test the Campoona graphite deposit north beyond the Campoona South outcrop. That programme was followed by second larger 30 hole drill programme which was in progress at Quarter's end. The second drill campaign targeted mostly the northern and central Campoona areas where high grade graphite had been intersected in the February 2012 drilling. No results for the second drill campaign were to hand at Quarter's end.

On the 15th March 2012 the Archer Exploration Limited (ASX:AXE) announced that it had commenced a staged resource drilling programme at the Company's 100% owned Campoona Graphite Deposit located approximately 12km north of the township of Cleve on Eyre Peninsula, South Australia.