GENESIS RESOURCES LIMITED — M&A Activity 2012

May 15, 2012

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Genesis Resources Limited is an Australian company with a portfolio (over 1,501 km[2] ) of quality iron, manganese, gold and base metal projects in the highly prospective Proterozoic and Palaeozoic metallogenic provinces of Australia.

Genesis has also signed a Joint Venture over the Plavica Project: an advanced project within Macedonia. The Plavica Project is highly prospective for gold, copper, silver, molybdenum, lead and zinc mineralisation.

Genesis is an exploration company committed to the creation of shareholder value through successful mineral exploration and development.

Registered Office

Level 3, 1 Collins Street, Melbourne VIC 3000 Australia

Tel: +61 3 9665 0411 Fax: +61 3 9650 5571 ABN: 22 114 787 469

Directors and Management

Mr Eddie Pang Chairman Mr Peter Kong Managing Director

Dr John Parker Non-Executive Director

Mr Patrick Volpe Non-Executive Director

Mr Deric Wee Non-Executive Director Mr John Zee Non-Executive Director

ASX ANNOUNCEMENT

16 May 2012

Genesis Response to Clancy Exploration Limited’s announcement earlier today

Clancy Exploration Limited ( ASX:CLY ) has today announced an increase in its unsolicited conditional off market takeover offer for all the fully paid ordinary shares in Genesis Resources Limited ( Company ).

In accordance with that announcement, the Company expects to receive CLY’s bidder’s statement in respect of the takeover offer today.

CLY will be required to send out its bidder’s statement to shareholders in a period of 14 to 28 days after the bidder’s statement has been given to the Company. The Company will be required to prepare and send out a target statement within 15 days after the Company has received notice from CLY that its bidder’s statement has been despatched.

The Board is considering the terms of the takeover offer and has engaged RSM Bird Cameron as an independent expert to prepare a report on whether the takeover offer is fair and reasonable, for inclusion in the Company’s target statement. The Board will consider the independent expert’s opinion before making any recommendation to shareholders with respect to CLY’s takeover offer.

At this stage, shareholders are advised to take no action with respect to the proposed takeover offer. Shareholders should wait until they have received the Company’s target statement, which will include the independent expert’s report on the offer, over the coming weeks before making any decision whether or not to accept the offer.

Any queries in relation to CLY’s proposed takeover bid should be directed to the Chairman.

Ms Sophie Karzis Company Secretary

ASX Code: GES Issued Capital: 79,621,128 shares

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For further information, please contact

Eddie Pang, Chairman on +61 3 9665 0403

GENESIS RESOURCES LIMITED ACN 114 787 469 Level 3, 1 Collins Street, Melbourne, Victoria 3000, Australia Tel: +61 3 9665 0411 | Fax: +61 3 9650 5571 | www.genesisresourcesltd.com.au