Archer Exploration Limited: Exploration Development Incentive Scheme

Adelaide, Australia - Archer Exploration Ltd. (ASX:AXE) has been advised by the Australian Taxation Office (ATO) that its application to participate in the EDI has been accepted.


Highlights:

- Archer has been successful in its application for participation in the Federal Government's Exploration and Development Incentive Scheme (EDI).

- ATO confirms modulation factor of 1, meaning 100% of 2015 EDI credits can be distributed to eligible shareholders.

- EDI credits will be issued to shareholders by Archer on Friday, 13 May 2016. To be eligible, shareholders must be on the Company's share register by Wednesday, 13 April 2016 (Record Date).

- The EDI credits will be applied by the ATO to income tax assessed for the year ended 30 June 2016.

In March 2015, the Federal Parliament passed legislation introducing the EDI scheme with effect from 1 July 2014 to run for three years based on an annual application process. The ATO is the administrator of the scheme.

The EDI scheme enables eligible exploration companies to create exploration credits to pass on to shareholders by forgoing a portion of the carried forward tax losses. The tax losses must have arisen from allowable expenditure on greenfield exploration.

Australian resident shareholders that are issued with exploration credits will generally be entitled to refundable tax offsets (for individual shareholders or superannuation funds) or franking credits (for companies). Non-residents receiving credits will not be able to use them.

The ATO has confirmed that a modulation factor of 1 has been applied to successful applicants, therefore one hundred percent of the amount applied for by the Company of $541,473 will be available. At the Company tax rate of 30%, this translates into $162,441 EDI credits that will be available for distribution to eligible shareholders on a pro rata basis. With 84,764,853 shares on issue, this equates to 0.1916 cents per share.

No performance rights are expected to vest or be exercised into shares prior to the Record Date of Wednesday, 13 April 2016.

The EDI credits will apply to the 2015-16 tax year and must be issued by Archer by 30 June 2016.

EDI credits are to be distributed to shareholders with equity interests based on the number of shares held by the shareholder as a proportion of the total equity interest of the company.

The relevant cut-off time to determine the number of shares that the shareholder holds is 30 days (Record Date) before the exploration credits are issued.


RECORD DATE - Wednesday, 13 April 2016

The Directors are pleased to confirm the Record Date for shareholder eligibility for EDI credits will be Wednesday, 13 April 2016.

For shareholders to be eligible to receive a pro-rata distribution of EDI tax credits from the Company they must hold ordinary shares in the Company as of 7pm (Adelaide time) on Wednesday, 13 April 2016.

Eligible shareholders will be notified by the Company of their EDI credit entitlement in the approved form on Friday, 13 May 2016, and the EDI credits will apply to income tax assessed for the year ended 30 June 2016.

For further information about the EDI refer to the ATO website at
http://www.ato.gov.au/Business/Exploration-Development-Incentive


About Archer Exploration Limited:

Archer Exploration Ltd. (ASX:AXE) is an Australian Stock Exchange listed company with 100% ownership of 15 tenements and one Exploration Licence Application all in South Australia covering 6,053 km2.

Archer also has the rights to all minerals other than uranium on EL4693 covering a further 816 km2. Archer's main project is the Campoona Graphite Project which is located within reach of established and major developing infrastructure. It has a JORC 2004 Resource of 5.27 million tonnes @ 7.6 % TC (based on 2% TC cut-off).



Contact:

Mr Greg English Chairman
Archer Exploration Ltd.
Tel: +61-8-8272-3288

Mr Gerard Anderson, Managing Director
Archer Exploration Ltd.
Tel: +61-8-8272-3288