Archer Petroleum Corp. Enters Into Definitive Agreements for Acquisition of 25% Interest in Peak Project and International Pr...

Archer Petroleum Corp. (TSX VENTURE:ARK)(DBFrankfurt:A6VA) ("Archer" or the
"Company") is pleased to announce its entry into a purchase and sale agreement
(the "Acquisition Agreement") with Arrakis Oil Recovery, LLC ("Arrakis") for the
acquisition by Archer of a 25% interest in the Peak Project, and a sublicense
agreement (the "Sublicense Agreement") with Phoenix Metals, Inc. (dba Imperial
Chemical Company) ("ICC") for the acquisition of certain exclusive international
production and sales rights for Sandklene 950. Arrakis and ICC are subsidiaries
of Imperial Petroleum Inc. ("Imperial Petroleum").


The Peak Project, located in Logan County, Kentucky, totaling approximately 270
acres, is comprised of certain lands included in mining permit application
Number 071-9702 which are subject to a joint venture (the "Peak JV") between
Arrakis and Peak Concepts, LLC ("Peak"). The Peak JV is being carried out
through MidAmerica Oil Sands, LLC. 


Pursuant to the Acquisition Agreement, Arrakis agreed to sell a 25% interest in
the Peak JV to Archer in consideration for the issuance of 500,000 common shares
of Archer (collectively, the "Archer Shares") and US$300,000 of expenditures
being incurred on the operations of the Peak JV, which expenditures shall be
incurred on a timeline to be mutually agreed upon by Arrakis and Archer,
provided that Archer shall not be required to expend more than US$50,000 in the
six months following closing of the acquisition. On closing, the membership
interests in the Peak JV are expected to be held as to 25% by Arrakis, 25% by
Archer, and 50% by Peak. The Archer Shares to be issued on closing will be
subject to a statutory hold period expiring four months and one day after the
issuance of the Archer Shares.


Pursuant to the Sublicense Agreement, ICC has granted Archer an exclusive
sublicense and the exclusive right to utilize the License (as defined below) in
international markets to manufacture, sell and market Sandklene 950 in
international territories, except with respect to operations conducted by or
facilities owned in whole or in part, now or in the future, by certain existing
customers of ICC (the "Sublicense"). The Sublicense does not give Archer any
rights to manufacture, sell or market Sandklene 950 to any parties for use
within the United States, including operations or facilities owned or managed by
Archer. Sandklene 950 is a chemical wetting agent useful in the recovery of oil
from tar sands. The original license for Sandklene 950 was granted to Imperial
Petroleum by MDEChem, Inc. ("MDE"), and Imperial Petroleum assigned the
exclusive rights to manufacture, sell and market Sandklene 950 (the "License")
to ICC. 


In consideration of ICC granting Archer the Sublicense, Archer has agreed to
reserve and pay to ICC US$400,000 and a royalty of US$1.00 for each gallon of
Sandklene 950 manufactured by Archer, which royalty is in addition to the
royalty of US$1.75 per gallon reserved to MDE as provided for under the License.
ICC, however, has agreed to pay Archer a royalty of US$1.00 per gallon on all
sales of Sandklene 950 to existing customers for their operations outside of
Canada and the United States. Pursuant to the Sublicense Agreement, if Archer
defaults on its obligations under the Acquisition Agreement to spend $300,000 on
the operations of the Peak JV and issue 500,000 Archer Shares on or before
January 31, 2014, then Archer will be required to pay the balance of the
$300,000 that it has not spent on the operations of the Peak JV and to issue the
balance of the Archer Shares that it has not issued to ICC in order to maintain
the Sublicense. Also, MDE has agreed that in the event that Imperial Petroleum
defaults or otherwise terminates the License, MDE will allow Archer's rights to
manufacture, sell and market Sandklene 950 to continue as provided for in the
Sublicense Agreement.


Closing of the proposed transaction is subject to a number of conditions,
including the parties completing their respective due diligence and approval of
the TSX Venture Exchange. The Acquisition Agreement may be terminated at any
time by mutual agreement of the parties. Unless otherwise agreed to by the
parties, the Acquisition Agreement will automatically terminate in the event
that the closing conditions are not fulfilled or waived by the closing date or
if the proposed transaction does not close on or before July 15, 2013. The
Company expects that a portion of the funds raised pursuant to the private
placement financing of the Company announced on June 10, 2013 will be used to
fund the Company's obligations pursuant to the Acquisition Agreement.


About Archer Petroleum: 

Archer Petroleum Corp. is an independent energy company focused on exploration
and development in North America. The Company's shares are listed on the TSX
Venture Exchange under the symbol "ARK" and the DB Frankfurt exchange under
"A6VA". Further information on Archer can be found on the company's website at
www.archerpetroleum.com. 


ON BEHALF OF ARCHER PETROLEUM CORP.

Colin Bowkett, Director

Disclaimers

Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may" occur.
Forward-looking information in this press release includes, but is not limited
to, statements regarding expectations of management regarding the acquisition of
an interest in the Peak Project and the grant of the Sublicense, the
consideration for the acquisition of an interest in the Peak Project and the
granting of the Sublicense, the expiry of the hold period for Archer Shares to
be issued as consideration, and closing of the transactions contemplated by the
Acquisition Agreement and Sublicense Agreement. Although the Company believes
that the expectations reflected in the forward-looking information are
reasonable, there can be no assurance that such expectations will prove to be
correct. Such forward-looking statements are subject to risks and uncertainties
that may cause actual results, performance or developments to differ materially
from those contained in the statements including, without limitation, the risks
that the TSX Venture Exchange may not approve the transaction and that the
conditions to closing of the transaction may not be satisfied. 


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Archer Petroleum Corp.
Colin Bowkett
[phone]
[phone] (FAX)
[e-mail]
www.archerpetroleum.com