A new type of magnetic anisotropy has been discovered which is best described as an exchange anisotropy. This anisotropy is the result of an interaction between an antiferromagnetic material and a ferromagnetic material. The material that exhibits this exchange anisotropy is a compact of fine particles of cobalt with a cobaltous oxide shell. The effect occurs only below the Néel temperature of the antiferromagnetic material, which is essentially room temperature for the cobaltous oxide. An exchange torque is inferred to exist between the metal and oxide which has a maximum value at 77°K of ~2 dyne-cm/cm2 of interface.