🕐12.03.10 - 11:13 Uhr

New Archer drilling confirms 1km long nickel?chrome anomaly on



12th March 2010 New Archer drilling confirms 1km long nickel‐chrome anomaly on South Australia’s Eyre Peninsula  Drilling identifies 1km long nickel / chrome anomaly which is open to the west at 100%‐owned Pindari Project  Maximum values of 0.37% nickel and 0.34% chromium  Follow‐up drilling planned second half of 2010  Campaign comprised 1,711 metres aircore drilling Summary A new drilling program completed last month has defined a 1 km long coincident nickel/chrome anomaly (greater than 1,000 ppm nickel and chrome) at Archer Exploration Limited’s (ASX:AXE) 100%‐owned Pindari project on South Australia’s Eyre Peninsula. The anomaly is open to the west and has peak values of 0.37% Ni and 0.34% Cr, confirming Pindari’s nickel potential, and warranting further new drilling. The results follow a207 hole 1,711 metre aircore drilling program conducted by Archer in the eastern portion of Pindari – part of the Carappee Hill tenement (EL3711) south of Kimba. The outline of the nickel/chrome anomaly mirrors the shape of the core of the Pindari magnetic anomaly. Bedrock rare earth (REE) values, whilst not correlating with the nickel and chrome geochemistry were elevated over a wide area.

Peak REE values were generally 10‐20 times REE crustal abundance. These geochemical results confirm Pindari’s nickel potential, originally identified from a 1987 Stockdale hole recovered from the PIRSA core library, and show a close association with the core of the Pindari magnetic anomaly. Future work will involve aircore drilling and sampling the western portion of the Pindari magnetic anomaly.

A Reverse Circulation (RC) drilling program will be undertaken in the third quarter of 2010 to test the magnetic, electromagnetic and nickel/chrome geochemical Pindari anomaly at depth. Background On the 26th November 2009, Archer released the nickel and chrome analysis results from two diamond holes originally drilled by Stockdale Prospecting Ltd in 1987 to test a prominent, regional, 3 kilometre diameter, circular magnetic anomaly on an area now covered by Archer Exploration’s 100% owned Pindari Project. Archer reported that the 9‐31m interval in hole, Pindari 1, averaged 0.19% nickel and 0.24% chrome. Petrology investigations indicated nickel sulphides, pentlandite and violarite (Fe2N23S4 – a supergene nickel sulphide after pentlandite) were present within this Ni/Cr anomalous zone.

The host rock is an ultramafic protolith probably rich in olivine and clinopyroxene, which has been metamorphosed and veined. Commencing on the 28th January 2010, Archer carried out a 1,711m aircore drilling program to sample bedrock, through the shallow, variable, (1‐10m) transported sand cover, which covers the Pindari magnetic anomaly.

The geochemical survey covered the eastern portion of the 3km diameter coincident magnetic (fig 1) and electromagnetic anomalies at Pindari. Samples were taken approximately 2 metres below the cover materials on a 100x100 metre grid over the eastern portion of the 3 kilometre diameter Pindari magnetic anomaly.

The objective of this program was to define multi‐element geochemical anomalies, which together with the magnetic and electromagnetic survey data, would define targets to be tested with deeper drilling during the second or third quarter of 2010. Geochemical Survey Results 1.

Nickel and Chrome Bedrock/Soil Geochemistry Bedrock/soil samples were strongly anomalous for nickel and chrome (fig 2 and 3) peaking at 3,670 ppm Ni and 3,350 ppm Cr.

Nickel and Chrome were associated with elevated copper, calcium, magnesium and titanium.

There was a strong contrast between background Ni and Cr values and the anomalous results. The nickel and chrome anomalism is closely associated with the core of the Pindari magnetic anomaly (fig 1). Fig 1: Pindari Magnetic anomaly with aircore sample nickel contours Fig 2: Pindari Nickel aircore soil/bedrock geochemistry Fig 3: Pindari Chrome Aircore soil/bedrock geochemistry 2.

REE geochemistry REE (rare earth elements) were anomalous in the Pindari aircore survey when compared with crustal abundance as illustrated in table 1. REE Maximum Pindari Survey Crustal Abundance Lanthanum 264 ppm (18ppm) Yttrium 481 ppm (28ppm) Dysprosium 71 ppm (5 ppm) Europium 43.7 ppm (4 ppm) Erbium 13.2 ppm (0.5 ppm) Gadolinium 68.4 ppm (6.4 ppm) Holmium 16.3 ppm (1.2 ppm) Lutecium 6.4 ppm (0.8 ppm) Neodymium 281 ppm (24 ppm) Praeseodymium 69.7 ppm (5.5 ppm) Samarium 58.5 ppm (6.5 ppm) Terbium 0.9 ppm (12.2 ppm) Thulium 7.2 ppm (0.4 ppm) Ytterbium 39.9 ppm (2.7 ppm) Cerium 583 ppm (46 ppm) Table 1 Maximum Rare Earth ‐ Aircore survey Pindari compared with Rare Earth Crustal Abundance Bedrock rare earth (REE) values, whilst not directly correlating with the nickel and chrome geochemistry were elevated over a wide area trending WNW.

Peak REE values were generally 10‐20 times REE crustal abundance. Archer is currently evaluating the significance of the REE values and their possible associations. 3.

Tungsten For 205 of the 206 aircore bedrock samples collected, Tungsten values ranged from 0.4 ‐ 19.2 ppm W, with an average of 3 ppm W.

One sample, significantly collected from weathered granite, returned 3,860ppm (0.39% W).

In this area, samples were collected on 100m line spacing and no samples were collected west of the highly anomalous tungsten result. However, for the anomalous tungsten sample, the only other associated anomalous element was silver.

Other common tungsten‐associated elements including tin, lithium, niobium antimony etc.

were at background levels, leading to the possible conclusion that the tungsten came from drill bit contamination. Forward program Archer will analyse the results of the recent drill program at Pindari in order to plan follow up work.

Additional aircore drilling and bedrock sampling over the untested western portion of the Pindari magnetic anomaly is likely to be the next step, followed by RC drilling in the third quarter of 2010. For further information please contact: Mr Greg English Chairman Archer Exploration Limited Tel: (08) 8332 5033 Mr Mike Hatcher Chief Executive Officer Archer Exploration Limited Tel: (08) 8332 5033 The exploration results 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 Member of the Australasian Institute of Mining and Metallurgy who has more than fifteen years experience in the field of activity being reported.

Mr.

Bollenhagen consents to the inclusion in the report of matters based on his information in the form and context in which it appears. Figure 4: Tenement Plan showing Carappee Hill EL3711(Pindari Project) and other Archer Project areas



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