Slide 1: Archer Exploration Limited
For personal use only ARCHER EXPLORATION LIMITED August 2014 Greg English Chairman Archer Exploration Limited Gerard Anderson Managing Director Archer Exploration Limited
Slide 2: Well positioned to create significant value
Well positioned to create significant value Archer’s strategy is to discover, add value and monetise For personal use only 1 Track record of identifying resource projects and creating value 2 Portfolio of high quality assets 3 Australia’s largest graphite resource with further growth potential 4 Low
Slide 3: Corporate snapshot
Corporate snapshot Experienced board and management, well funded and tight capital structure For personal use only Capital structure Board & management Share ownership summary Shares on issue 84.3m Chairman Greg English Performance Rights (exp. 2.32m Managing Director Gerard Anderson Board & managem
Slide 4: Project development
Project development Track record of identifying projects and creating value For personal use only • Began precious metal exploration at Sugarloaf tenement 2008 • Land opportunities identified – manganese prospects 2009 • Leigh Creek magnesite acquired – manganese drilling – graphite intersections at
Slide 5: Project Locations
Project Locations A diverse portfolio of high quality assets For personal use only Eyre Peninsula Project 5
Slide 6: Graphite demand
Graphite demand Macro environment: a growing market with a bright future For personal use only Chinese supply (~70% of market) is declining due to mine closures, increasing costs and environmental challenges Emerging production capacity especially in Africa & Australia Graphite identified as a
Slide 7: Strong investment case for graphite
Strong investment case for graphite Archer scores on 4 of the 6 key factors used to evaluate graphite companies For personal use only Deposit size and quality Australia’s largest JORC 2012 Resource 8.55Mt @ 9.0 Cg% (5% Cg lower cut-off grade) Location All assets located in South Australia with a
Slide 8: The Eyre Peninsula Project
The Eyre Peninsula Project Significant graphite tenements For personal use only Substantial tenement position (≈2,100km2) in graphite province recently extended with the purchase of the Waddikee tenement Key projects include Campoona Shaft, Central Campoona, and Wilclo South There are an add
Slide 9: High grade graphite
High grade graphite Campoona: high grade, fine flake graphite For personal use only High quality fine flake graphite concentrates on both Campoona Shaft and Central Campoona Bulk flotation tests provided concentrates grading 92 – 98% Cg acid cleaning upgrades concentrates >98% Cg – 99.7% Cg
Slide 10: Large flake graphite
Large flake graphite Waddikee: acquisition adds large flake graphite and increases graphite resources For personal use only Recently completed acquisition of neighbouring EL4662 from Monax Mining Limited JORC 2012 Indicated Resource at Wilclo South of 6.4Mt grading 8.8% Cg (561,400t of contained
Slide 11: Additional graphite targets
Additional graphite targets Waddikee: expanding the potential of world class graphite asset For personal use only Significant potential exists for further resource growth. High quality magnetic and electromagnetic database outlines ≈ 20kms of distinct linear conductive bodies that remain to be f
Slide 12: Graphite JORC 2012 Resource
Graphite JORC 2012 Resource Australia’s largest combined JORC 2012 graphite resource For personal use only 8.55Mt @ 9.0 Cg% (lower cut-off grade of 5% Cg)* Resource Tonnes Graphite Contained Graphite Area Category (Mt) (% Cg) (tonnes) Measured 0.32 12.7 40,600 Campoona Shaft Indicated 0.78 8.2 64,00
Slide 13: Well located assets
Well located assets Access to critical infrastructure Eyre Peninsula Project For personal use only Major power lines within reach Various port options Good road network Company owns land at Sugarloaf and Campoona Shaft, and has a binding HoA over the freehold land needed to commence operatio
Slide 14: Graphite valuation
Graphite valuation Peer comparison For personal use only JORC 2012 Resource of 8.55Mt @ 9.0 Cg% (5% GC lower cut-off grade) with significant exploration upside Flake and high purity fine graphite Deep oxidation ≈ 100m provides high degree of natural liberation of graphite from gangue Largely
Slide 15: Eyre Peninsula graphite project plan
Eyre Peninsula graphite project plan Progressing Campoona Mining Lease Proposal for submission in Q4 2014 For personal use only Task Work undertaken to date Work in progress Spring & Winter baseline surveys Completed Ecology Impact assessment Completed Air quality Project reviewed & GAP analysis
Slide 16: Magnesite
Magnesite Macro environment: market demand expected to exceed supply For personal use only Magnesia demand is expected to exceed supply by 2,800 Chinese Magnesia Exports and Quota ('000mt) 1.22Mtpa by 2017 – more than 10% of global magnesia 2,400 production 2,000 Quota Exports Calcined magnesia
Slide 17: World class magnesite
World class magnesite Archer Exploration owns the world’s largest cryptocrystalline magnesite deposit For personal use only 100% interest in Leigh Creek deposit – world’s largest cryptocrystalline magnesite deposit JORC Resource of 453Mt grading 41.4% MgO – an almost inexhaustible supply source
Slide 18: Precious metals & manganese
Precious metals & manganese Broad range of high quality copper and gold exploration prospects in SA For personal use only Gold Wildhorse Plain – several km epithermal gold anomaly at Bartel early exploration with best intercept of 29m @ 0.57g/t Au Napoleon’s Hat & Watervale – early stage targe
Slide 19: Strategic priorities
Strategic priorities Progress graphite prospects and unlock magnesite potential For personal use only Market engagement commenced for Campoona graphite for off-take and/or JV partners Flake graphite recovery tests Complete Concept/Scoping Study Drill out of graphite deposits and prospects to
Slide 20: Summary
Summary For personal use only 1 Track record of identifying resource projects and creating value 2 Portfolio of high quality assets 3 Australia’s largest graphite resource with growth potential 4 Low sovereign risk and access to infrastructure 5 Well funded 20
Slide 21: Contact details
www.archerexploration.com.au Contact details For personal use only Archer Exploration Limited Gerard Anderson Managing Director Ph: +61 8 8272 3288 Fax: +61 8 8272 3888 Email: ganderson@archerexploration.com.au 21
Slide 22: Disclaimer
Disclaimer Competent persons statement For personal use only The exploration results and Exploration Target reported herein, insofar as they relate to mineralisation, are based on information compiled by Mr Wade Bollenhagen, Exploration Manager of Archer Exploration Limited. Mr Bollenhagen is a Memb
Slide 23: Appendix
For personal use only APPENDIX
Slide 24: Graphite: Project development process
Graphite: Project development process Progressing the development of a potential new high purity graphite and graphene For personal use only supply source Resource & Mining Define Resource Mining o Open cut mining Processing & Testing o Predominately free dig Conduct metallurgical test o Low o
Slide 25: Graphite: Campoona geology
Graphite: Campoona geology Prospective graphite zones For personal use only Graphite outcrops 10-50m thick highly graphitic schist Deep complete oxidation Upper Claystone - ≈5m thick clay-rich highly graphitic zone of graphite + kaolin + quartz Upper BOCO - porous graphite + quartz + kaoli
Slide 26: Graphite: Campoona product options
Graphite: Campoona product options Two-year research program with University of Adelaide commenced into graphite For personal use only and graphene related products Graphite Prepared Semi- Prepared Archer Graphene Materials products Products Product Examples Graphene Nanosheets Graphene Oxide Sheets
Slide 27: Graphite: land ownership
Graphite: land ownership Archer owns the land needed for mining and mineral processing For personal use only Campoona Shaft and Sugarloaf both occur on freehold pastoral land Archer owns Sugarloaf (1,403 acres) and has binding HoA over sufficient land at Campoona Shaft for mining to proceed Ea
Slide 28: Magnesite: Leigh Creek geology
Magnesite: Leigh Creek geology World’s largest cryptocrystalline magnesite deposit For personal use only Up to 86 beds of magnesite within the Skillogalee Dolomite Uppermost 17 beds assessed as being of economic significance Magnesite (MgCO3) beds deposited in quiet, shallow lagoon setting giv