Archer Materials Limited

Archer Exploration Limited (ASX:AXE) has a 100% interest in EL3711 Carappee Hill located 10km east of Darke Peak in northern Eyre Peninsula, South Australia that hosts the Sugarloaf graphite deposit. Sugarloaf has an Exploration Target of 24-37Mt grading 10-12% total carbon which, in terms of tonnes and grade, make the deposit very large in world terms.

Archer Exploration Limited (ASX:AXE) is pleased to announce it has successfully completed a share placement of 2,714,286 fully paid ordinary shares at 17.5cents to raise A$475,000 before costs. The issue has been placed with sophisticated investors by Bligh Capital Pty Ltd. Cash at bank as at 30 June 2011 was A$2.4 million prior to the Share Placement.

Archer Exploration Limited (ASX:AXE) is pleased to announce that the Eyre Peninsula has long been explored for its uranium and base metal potential. Many companies including Kerr McGee, Esso, BHP (NYSE:BHP) and Shell (NYSE:RDS.A) explored the area and reported graphitic rocks.

Archer Exploration Limited (ASX:AXE) completed a 19 hole RC drilling program over the Salt Creek manganese deposit located near Cleve on Eyre Peninsula, South Australia during April 2011. Results from that drilling were released to the market in April 2011.

Archer Exploration Limited (ASX:AXE) is pleased to announce that previous detailed petrology by Pontifex and Associates in Adelaide on a sample of graphitic schist taken from the collar of a historic shaft within the Sugarloaf graphite deposit revealed the presence of fine, medium and coarse flake sized graphite. The presence of crystalline flake graphite greatly increases both the marketability and price of graphite.

Archer Exploration Limited (ASX:AXE) received assay results from recent drilling at the Jamieson Tank JV. Monax Exploration Limited completed 14 Rotary Air Blast holes on EL 3711 in March 2011.

Archer Exploration Limited (ASX:AXE) has drilled three RC drill holes at Emu Plains located on EL4693 near Cleve on Eyre Peninsula, South Australia. The purpose of the drilling was to test the presence and extent of primary copper sulphide mineralisation adjacent to the historic Emu Plain Copper mine. The Emu Plain copper mine was first developed in the early 1900s and last re-developed in the 1950s. No production records have been located.

The Sugarloaf graphite deposit is located on Carappee Hill EL (3711) near Darke Peak on Eyre Peninsula, South Australia. Prior to Archer Exploration Limited (ASX:AXE) acquiring the tenement, drilling had recorded numerous intercepts of graphite. As graphite was not a focus the intervals were never assayed for carbon.

Archer Exploration Limited (ASX:AXE) has completed four RC drill holes at Sugarloaf during April 2011. The Sugarloaf graphite deposit is located on Carappee Hill EL 3711 near Darke Peak on Eyre Peninsula, South Australia.

Archer Exploration Limited (ASX:AXE) completed a 19 hole RC drilling program over the Salt Creek manganese deposit located near Cleve on Eyre Peninsula, South Australia during April 2011.