Archer Exploration

Graphite presents a significant and rapidly emerging opportunity for Archer.

EYRE PENINSULA GRAPHITE
The Eyre Peninsula Graphite Projects comprise the Campoona Project and the Carappee Hill Project. Campoona has a JORC Resource of 5.27 million tonnes @ 7.6% TGC (based on 2% cut off). Carappee Hill has an Exploration Target* of 37-70Mt grading 10-12% C.

CAMPOONA PROJECT
What sets Campoona apart from almost all other graphite deposits in the world is its ability to deliver ultra pure, high value, highly crystalline ultra-fine graphite using conventional mechanical cell flotation.

The Campoona Graphite Project comprises the Campoona Shaft and Campoona Central project areas, located 15km north of Cleve on Eyre Peninsula, South Australia. The Eyre Peninsula has a demonstrated history of graphite production. The Uley deposit, located near Port Lincoln, was discovered in the 1910s and has been worked intermittently since the late 1920s. A sharp decline in world graphite prices in 1992 saw the operation placed on care and maintenance in 1993.

Proximity to infrastructure
Campoona is located close to infrastructure with existing high voltage power line and gazetted truck routes running through the tenement area (refer to map).

JORC Resource
In December 2012, the Company announced a JORC Resource at Campoona. The JORC Resource was achieved within 9 months of the drilling of the discovery hole.

Campoona JORC Resource (2%TGC lower cut-off grade)

Area	Resource Category	Tonnes (Mt)	Graphite( (% TGC)	Contained Graphite (tonnes)
Campoona Shaft	Measured	0.339	14.8	50,200
	Indicated	1.059	12.7	134,500
	Inferred	3.475	5.0	173,800
Central Campoona*	Inferred	0.397	10.1	40,100
Combined	Total Resource	5.270	7.6	397,600

Campoona JORC Resource (5%TGC lower cut-off grade)

Area	Resource Category	Tonnes (Mt)	Graphite (% TGC)	Contained Graphite (tonnes)
Campoona Shaft	Measured	0.339	14.8	50,200
	Indicated	1.056	12.7	134,100
	Inferred	0.837	10.7	89,600
Central Campoona*	Inferred	0.295	12.5	36,900
Combined	Total Resource	2.527	12.3	310,800

*Central Campoona Resource estimation confined to 200m of known strike of 1,400m

Metallurgy
Campoona is unique in that it can deliver very high quality graphite from a low cost, high yielding extractive process. Metallurgical bench-scale testing of representative diamond drill core samples of Campoona graphite has resulted in recoveries of >99% TGA (total Graphitic carbon completed using Thermogravimetric Analysis accurate to ±1%carbon).

Summary of Campoona Graphite Flotation Tests

Graphite Ore Type	Sample	Float Assay %TGC (LECO)	Float Assay %TGC (TGA)	HF Digest (% Insolubles)	Post digest (TGA )
Upper Claystone	5th Cleaner Con 1	99	99.0	Con 1+2 98.9	99
	5th Cleaner Con 2	100	99.1	Con 1+2 98.9	99
	5th Cleaner Con 3	98	98.3	Con 3+4 99.1	99
	5th Cleaner Con 4	97	97.9	Con 3+4 99.1	99
	5th Cleaner Con 5	93	97.8	Con 5+6 99.0	99
	5th Cleaner Con 6	95	97.5	Con 5+6 99.0	99

BOCO	5th Cleaner Con 1		96	98.5	98
	5th Cleaner Con 2		96	98.3	98
	5th Cleaner Con 3		97	98.4	98
	5th Cleaner Con 4		96	98.3	98

Campoona can deliver very high quality natural graphite powders from a low cost, high yielding extractive process. This means that Archer is very likely to enter the higher value end of the graphite market (see graph below) where unit margins are likely to give the project robustness in almost any price regime.

SUGARLOAF PROJECT
The Carappee Hill (Sugarloaf graphite deposit) Project (EL 3711) is located within 15km of the Campoona Project. Drilling at Carappee Hill has identified an Exploration Target* of 37-70Mt grading 10-12% C.

Archer Exploration

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