GENESIS RESOURCES LIMITED — M&A Activity 2012

Aug 20, 2012

ASX / MEDIA ANNOUNCEMENT 21 August 2012

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----- Start of picture text ----- Clancy Exploration Limited Phone: (02) 6361 12853 Corporation Place Fax: (02) 6361 1202Orange NSW 2800 www.clancyexploration.comAustralia info@clancyexploration.com----- End of picture text -----

OFFER BY CLANCY EXPLORATION LIMITED FOR GENESIS RESOURCES LIMITED NOW ENDED

Clancy Exploration Limited (ASX: CLY) announces that its off-market takeover bid for Genesis Resources Limited (ASX: GES) closed on 20 August 2012.

Clancy has not become entitled to more than 50% of Genesis Shares as a result of the bid and, as foreshadowed in the second supplementary Bidders Statement issued on 20 July 2012, Clancy now intends to engage with the board of Genesis to establish a dialogue in relation to reconstituting the board of Genesis.

If these discussions are unsuccessful, Clancy intends to exercise its rights to requisition a meeting to pass resolutions to reconstitute the board of Genesis to more closely reflect the shareholding base of the Company to provide the expertise and experience required to progress the Plavica Project. No decision has been made as to the identity of these nominees.

Clancy remains of the view that

• Genesis’ board and management do not have the technical experience required to unlock the value in the Plavica Project.

• Genesis’ board and management have not evidenced a strong track record of raising capital which will be necessary to develop the Plavica Project.

As at the close of the offer, Clancy’s voting interest in Genesis Resources Limited is 8.92%, or 8,157,000 shares. A final Form 604, Notice of Change of Interests of Substantial Shareholder, follows.

--ENDS—

Please direct enquiries to:

Gordon Barnes Managing Director Phone: +61 2 6361 1285 Email: info@clancyexploration.com Web: www.clancyexploration.com

About Clancy Exploration

Clancy Exploration (ASX: CLY) is an Australian-focused copper, gold, base metals and tin explorer. The Company’s portfolio consists of copper-gold projects in the Lachlan Fold Belt of NSW, base metal and tin projects in the Mount Read Volcanic Belt of Tasmania, Nadbuck near Broken Hill in NSW and Yalgoo, adjacent to the Golden Grove mine in Western Australia.

In NSW, Clancy has 9 wholly owned and managed projects, 3 joint ventures with Mitsubishi Materials Corporation that are managed by Clancy and 7 joint venture projects which are managed by Gold Fields

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

Australasia Pty Ltd. In Tasmania, Clancy has 2 base metal joint venture projects with Bass Metals and 2 tin joint venture projects with TNT Mines Pty Ltd (a wholly owned subsidiary of Minemakers Ltd). The Tasmanian projects are managed by Clancy's joint venture partners. This mix of Clancy and joint venture project funding allows a high level of exploration activity to be maintained, whilst prudently managing Clancy’s financial resources. Details of Clancy’s projects can be found at the Company's website: www.clancyexploration.com

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