RAREX LIMITED — AGM Information 2012

May 30, 2012

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CLANCY EXPLORATION LIMITED ABN 65 105 578 756

3 Corporation Place Orange NSW 2800 Australia

PO Box 7040 Orange NSW 2800 Australia

Tel: +61 (2) 6361 1285 Fax: +61 (2) 6361 1202 www.clancyexploration.com

31 May 2012

Dear Fellow Shareholders

On behalf of the board, I would like to welcome you to the 2012 Annual General Meeting of Clancy Exploration Limited.

Corporate Changes

Further to the transfer of corporate and operational management to Orange, NSW in late 2010, Gordon Barnes was appointed as Managing Director on 1[st] January 2011, while retaining his role as Exploration Manager. In addition, I joined the board as a non-executive director on 11[th] March 2011, subsequently taking over from Dr James Macdonald (who remained on as non-executive director) as non-executive chairman on 22[nd] July 2011. I am a Clancy shareholder and my relationship with Clancy stretches back to 2004 when I was the founding non-executive chairman of Geoinformatics Exploration Inc, from which Clancy Exploration was spun out in 2007.

Exploration Progress

The Company made significant progress on several of its NSW tenements during 2011. The highlights have been at the Condobolin project, where all five targets drilled during the year and early in 2012 have yielded promising results, including what was effectively a virgin prospect at Meritilga. Meritilga yielded both high-grade (4m @ 20g/t gold, 0.26% copper and 30.2g/t silver) and broader, lower grade intersections (incl. 18m @ 0.33g/t gold, 0.6% copper and 8.2 g/t silver; 31m @ 0.4g/t gold, 0.18% copper and 16g/t silver), in addition to widespread zinc and lead mineralisation over a strike length exceeding 600m.

At the direction of the Board, the management undertook a thorough review of OH&S policies and procedures during 2011. A revised and updated OH&S Manual has been reviewed and approved by the board and is nearing finalisation.

Financing

The Company completed a fully underwritten non-renounceable rights issue that raised $4.38 million (before issue costs) during May-June 2011. The issue was fully underwritten jointly by Patersons Securities Limited and Soaring Securities Pty Limited, and we greatly appreciate their support for the Company.

In addition, the Company entered into a Drilling Earn-in Agreement with Australian Mineral and Waterwell Drilling Pty Ltd (AMWD), whereby AMWD became CLY’s preferred drilling contractor for a $5 million drilling contract or a three year period, whichever occurs first. Under the terms of the agreement, AMWD will invoice CLY monthly for a cash amount equivalent to 75% of all agreed costs associated with drilling and CLY will issue fully paid ordinary shares in CLY to AMWD for the balance of 25%.

Strategic Review

During the second half of the year, the Board undertook a strategic review of the Company’s business. As a result, we have commenced a search for a flagship, more advanced project to bring into the Company. Several opportunities have been assessed to date, and subsequent to year-end (2[nd] April 2012), the Company announced its intention to make an off-market takeover bid for Genesis Resources Ltd (ASX:GES), having been attracted to Genesis by the Plavica gold-copper-silver project in Macedonia.

The Clancy Board is making this Offer for the following reasons.

• It believes that the Plavica Project, in which Genesis is earning a 62% interest, will benefit greatly from Clancy’s technical expertise, management capability and access to adequate finance. Our assessment is that the Genesis management and board has yet to demonstrate the capacity to materially advance the project, and therefore to extract value for Genesis Shareholders by reducing the risk and uncertainty in the project. The recently announced (11 May 2012) expansion of the Genesis board and management team was notable for its lack of core mineral exploration and development skills. We note that Dr Kerim Sener, who originally brought the project to Genesis’ attention, who has planned and overseen the technical work undertaken by Genesis on the project, and who was until early 2012 a director of Genesis, has granted an option over his Genesis Shares to Clancy which will terminate if he accepts this Offer.

• If Clancy acquires Genesis, it would have a diverse and attractive portfolio of Australian exploration projects. Our view is that Clancy has the management and technical expertise to rationalise the portfolio and to progress those projects with the highest potential, thereby extracting maximum value.

• We have a strong strategic view that listed junior exploration companies must aspire to the scale necessary to enable the adequate funding of an aggressive exploration program and the pursuit of quality, preferably more advanced, projects. Arguably, both Genesis and Clancy are sub-optimal in scale, and we consider that the combination will be both more capable and will form an attractive launching pad for further growth.

Clancy Exploration looks forward to a very positive year in 2012, both by advancing its current projects and by its pursuit of other opportunities to deliver value to its shareholders.

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Dr Mike Etheridge