RAREX LIMITED — AGM Information 2013

May 23, 2013

ASX: CLY Clancy Exploration Limited

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2013 AGM Managing Director’s Presentation Gordon Barnes 24 May 2013 Orange

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Disclaimer

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The material in this presentation (“material”) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase, any security in Clancy Exploration Limited (“CLY”) nor does it form the basis of any contract or commitment. CLY makes no representation or warranty, express or implied, as to the accuracy, reliability or completeness of this material. CLY, its directors, employees, agents and consultants, shall have no liability, including liability to any person by reason of negligence or negligent misstatement, for any statements, opinions, information or matters, express or implied, arising out of, contained in or derived from, or for any omissions from this material except liability under statute that cannot be excluded.

Statements contained in this material, particularly those regarding possible or assumed future performance, costs, prices, resources, reserves or potential growth of CLY or, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors and risks, many of which are outside the control of CLY and its directors. Investment in the securities of CLY is considered to be highly speculative.

The information in this material that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Gordon Barnes who is a Member of the Australian Institute of Geoscientists. Mr Barnes is a fulltime employee of Clancy Exploration Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Gordon Barnes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Investment Highlights

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Clancy is a quality explorer with a scientific and strategic approach

• Clancy holds a commanding position in a world class mineral province, the highly prospective Lachlan Fold Belt in NSW

• Primarily targeting porphyry and epithermal gold, copper, silver and base metals

• Mix of self-funded and partner funded exploration in NSW:

• Six 100% owned projects in NSW

• Three JV’s with Mitsubishi in NSW

• One JV with High Power Exploration in NSW

• Promising drill results at Meritilga prospect at the Codobolin project with further results pending:

• 4m @ 20g/t Au & 30.2g/t Ag ; incl 1m @ 62g/t Au and 60g/t Ag (2012 drilling)

• 2,118m of follow-up RC drilling completed in early May 2013

• Results expected in late-May to early-June 2013

• Experienced board and management with supportive shareholders who are committed to growing the business through discovery and M&A

• Several M&A opportunities reviewed for an advanced project

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Clancy Snapshot

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Clancy is a quality exploration company with:

• High quality exploration assets

CLY share price and volume

• A promising outlook for targeted commodities

• A focussed exploration strategy

• Talented and experienced management team

• Risk managed exploration

• Robust project targets

• Project identification and assessment capability for M&A

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8.6%
6.5%
6.4%
4.8%
64.5% 4.6%
4.5%
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1. Closing price 21 May 2013

St Ives Gold HSBC Nominees Wallis-Mance Sandhurst Trustees Citicorp Nominees Board & Management Others

Company Structure	Company Structure
Market Capitalisation	$2,471,881
Share price1	$0.012
Shares on issue	205,990,049
Top 20	61.3%
Listed Options (ASX:CLYO)	94,134,786
Unlisted Options	4,800,000
Cash2	$2.91m
Debt	-

1. As at 31 March 2013

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The Team

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Non-Executive Chairman PhD, FTSE, FAICD, FAIG, FGSA Mike is a geologist who has had a varied career in academia, a government research organisation and in industry. Mike is Dr Mike Etheridge currently non-executive chairman of ABM Resources Ltd (ASX: ABU), deputy chairman of Zeus Resources Ltd (ASX: ZEU) and a non-executive director of DET CRC Ltd. Mike’s previous directorships include Ballarat Goldfields NL, Lihir Gold Ltd, Consolidated Minerals Ltd and Ariana Resources Plc. Managing Director BSc, MSc, GAICD, MAIG, MSEG Gordon is an exploration geologist with a background in exploration project management and technical consulting services. He has over 25 years of practical experience, ranging from active field based projects through to multi-commodity project Mr Gordon Barnes generation initiatives. Gordon was a Senior Geologist with Normandy Exploration before co-founding the Insight Geoscience Group. Gordon was Australasian Exploration Manager with Geoinformatics Exploration prior to joining Clancy when it listed in 2007. Non-Executive Director BA (Hon), MSc, PhD, PGeo, FSEG James has over 35 years of experience in the global exploration and mining industries. James is currently non-executive chairman of International Base Metals Ltd and Craton Mining and Exploration Ltd. He is a geoscientist who has operated a Dr James Macdonald consultancy business providing professional geoscientific services to exploration and mining companies for several years. He has held chief Geoscientist and Management positions with a number of companies, including BHP Billiton, AGIP Resources, and Homestake Mining Company. Executive Director & Chief Financial Officer B.Bus, M.Bus, GAICD Natalie is an investment professional with over 20 years experience in investment banking and private equity investment. Ms Natalie Forsyth-Stock Natalie is a non-executive director of Bounty Mining Ltd (ASX: BNT) and was previously a Director of Allco Equity Partners Management Limited and Gresham Rabo Management Limited (both private equity managers), and the corporate advisory division of Gresham Partners Limited, where she specialised in mergers and acquisitions, fund raisings and valuations. Exploration Manager BSc (Hons), PhD, MGSA, MAIG Jeff is an exploration geologist with 10 years practical experience in studying and exploring the Lachlan Orogen in NSW. Jeff was Dr Jeff Vassallo previously the Team Leader of regional mapping for the Geological Survey of NSW. He has been with Clancy actively exploring in NSW since 2008. Company Secretary Rowan Caren Senior Management Senior Geologist Kristy Vassallo Office Manager Clarissa Lark

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Project Portfolio Overview

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NSW – Lachlan Fold Belt

• Clancy – six 100% owned projects managed by Clancy; porphyry Cu-Au, epithermal Au-Ag and base metals

• Mitsubishi – three JV projects managed by Clancy; porphyry Cu-Au

• HPX – one JV project managed by Clancy; porphyry Cu-Au

Tasmania – Mt Read Volcanic Belt

• TNT Mines – one JV project managed by TNT Mines; tin

• Bass Metals – two JV projects managed by Bass Metals; base metals

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Clancy Project Locations in Australia

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Flagship project

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• Clancy believes that a clearly articulated growth strategy to build scale, either through project acquisition or corporate activity, will enable it to raise the capital required to advance its business and deliver value to shareholders

• Over the last year, several opportunities have been assessed and one opportunity, the Plavica project held by Genesis Resources Limited, was seen as particularly attractive

• Clancy pursued the opportunity through an off-market takeover offer for Genesis Resources Limited. Unfortunately the offer was unsuccessful, but Clancy has retained a 5.8% shareholding in that company and is encouraged by recent progress on the Plavica project by Genesis Resources

• The Company is continuing its search for a more advanced project and hopes to be in a position to undertake a transaction during the course of 2013

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NSW Projects

Macquarie Arc

• Macquarie Arc has endowment (production + resources) of over 80 Moz of gold and 13 Mt of copper

• Most discovered in the last 18 years

• Clancy has ~1,800km[2] in this richly endowed terrain

• Targeting porphyry copper-gold and epithermal gold-silver systems

• Companies currently mining in the area include:

• Rio Tinto at Northparkes (>2.9 Moz Au, >2.1 Mt Cu)

• Newcrest at Cadia (>67 Moz Au, >10Mt Cu)

• Barrick at Cowal (> 4.5 Moz Au)

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Condobolin EL7748 – 100% owned

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Background

• Mined in the 1890’s to early 1900’s

• Shallow drilled in 1970’s to 2000’s

• Ordovician Girilambone Group (poorly understood)

• Mineralisation at Condobolin shows strong similarities to the Mineral Hill mine:

• Owned by Kimberley Metals Ltd (ASX:KBL)

• Producing of Cu, Ag, Au, Pb and Zn from Pearse and Parkers Hill deposits

• Annual production of 4,000t Cu, 20,000oz Au and 150,000oz Ag

• Mineral Hill Volcanics (Silurian)

Condobolin Project

• EL7748 – 363km[2]

• Covers entire Condobolin Mineral Field

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Condobolin Work Program CONDOBOLIN Upcoming work

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Promising early drill results (2011 & 2012):

• All 5 prospects drill tested to date have yielded promising results

• Virgin high-grade gold discovery at Meritilga:

• 4m @ 20g/t Au & 30.2g/t Ag from 75m; incl 1m @ 62g/t Au & 60g/t Ag

• Confirmed depth extension to gold mineralisation at the Phoenix prospect:

Phoenix rock sample 22.5 g/t Au, 56g/t Ag, 1.15% Pb

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• 9m @ 4.08g/t Au from 72m; incl 2m @ 14.18g/t Au

• The host rock sequence is most likely Silurian in age

• Suggests the mineralisation is the same age as Mineral Hill

• Confirmed extensions to base metal mineralisation at the Potters prospect:

• 2m @ 7.1% Pb, 2.4% Zn and 83.5g/t Ag from 51m

Phoenix rock sample 8.52% Cu, 56g/t Ag, 0.95% Pb

• 4m @ 4.1% Zn, 2.87% Pb and 29.6g/t Ag from 136m

• Visible gold in AC hole at Eureka NE of Meritilga

• Several other basement AC intercepts to be followed up:

• 2m @ 3.99 g/t Au from 28m

• 1m @ 4.75 g/t Au from 44m

• Potential for alluvial gold identified in shallow AC drilling

• 1m @ 28.4 g/t Au from 4m

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Eureka aircore chip Visible gold (grain is 3mm across)

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Condobolin – 2011 & 2012 drilling

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2012: 4m @ 20g/t Au;
incl 1m @ 62g/t Au
2011: 9m @ 4.08g/t Au;
incl 2m @ 14.18g/t Au
2011 drill hole
2012 drill hole
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Condobolin – K radiometric anomaly at Meritilga

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Next slide
K enrichment associated with
Meritilga alteration system
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Meritilga – 2012 drill results and IP chargeability

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Meritilga upside

• 600m strike length, multiple lodes, high-grade plus low grade, polymetallic (zoned?)

• Prior to 2013 only 11 RC holes into Meritilga zone – barely scratched!

• Open down dip and along strike

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Meritilga – drill section looking to northeast

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Condobolin – 2013 work program

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• Work completed in the March 2013 quarter:

• Ground gravity survey:

• 125m to 250m offset gravity survey (1,183 stations)

• complex network of structures coincident with significant intercepts of gold and copper at the Meritilga, Bluebell and Phoenix prospects identified

• Processing and inversion modelling of the gravity data is in progress

Extension of 3D IP surveys:

  - additional four arrays were completed to extend the 2011 survey to the south-west to the Bluebell prospect

  - Two arrays were completed north of Meritilga over the palaeochannel area where an aircore drilling program in November 2011 identified alluvial and basement gold

  - Results show that the Bluebell prospect lies on the prospective Meritilga Fault confirming its strike length to now be 2km

• Work in progress in the June 2013 quarter:

• RC drilling (2,118m) completed in May 2013

• Following up Meritilga high-grade intercept – down-dip and along strike

• Also drilling completed at Bluebell

• Results expected in late-May and early-June 2013

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Condobolin Telescoped System

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The emerging concept is that there is a deep intrusive which could be driving a large hydrothermal system

• MERITILGA •

This system generated the numerous polymetallic historic mines and workings

The numerous styles of Au, Cu, Pb, Ag and Zn mineralisation in the district could be a manifestation of a substantial zoned hydrothermal system

Mineralisation and alteration identified to date is consistent with a low-sulphidation epithermal system

Skarn mineralisation is also present

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Condobolin – Summary

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Excellent potential

• High-grade gold drill intercepts at Meritilga and Phoenix

• Significant untested strike potential at Mertilga

• Results for 2,118m RC drill program expected in the coming weeks

• Polymetallic (gold, silver and base metal) mineralisation – zoned intrusive related system?

• Strong similarities to Mineral Hill

• Easy to explore

• Owned 100% by Clancy

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Joint venture strategy in NSW

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• Clancy’s strategy is to partner with parties that:

• are amenable to Clancy retaining management rights

• have the demonstrated financial capacity to actively explore a project

• have specific technical knowledge and access to proprietary technical tools which may have a particular relevance to specific projects

• Minority JV interests that are not delivering value are exited with royalty rights retained if possible

• Clancy delivered on this strategy in 2012/2013:

• Formed JV with Mitsubishi Materials Corporation of Japan (Mitsubishi) on three coppergold projects in August 2012

• Formed JV with High Power Exploration Inc (HPX) on one copper-gold project in May 2013

• The HPX JV on the Fairholme project will see the project-wide deployment of HPX’s proprietary geophysical survey technology

• The Mitsubishi and HPX JV’s involve up to $8 million partner funded exploration expenditure over a three year period

• Sold minority JV interests in seven JV’s to Gold Fields for $1.5 million (combination of cash and equity placement to Gold Fields) with Clancy retaining royalties

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Mitsubishi JV’s

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Genaren
CLY: 100%, Mitsubishi earning 49%
Three JV’s formed Aug 2012 Gravity survey completed – targets defined. Initial drilling completed in April 2013. Results
• Porphyry copper-gold projects: pending.
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• Porphyry copper-gold projects:

• Cundumbul

• Genaren

• Currumburrama

• Mitsubishi can earn 49% by spending $3 million

• Minimum spend $500,000 before withdrawal

• Clancy is project manager

• Geophysical and geochemical surveys completed

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Cundumbul
CLY: 100%, Mitsubishi earning 49%
Major mapping project and helimag survey
completed in March 2013. 3D IP surveys
recently completed over targets. Drilling in
June 2103 quarter.
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• Major geological and structural study completed at Cundumbul by SRK consultants

• Drill targets defined at all three projects

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Currumburrama
CLY: 100%, Mitsubishi earning 49%
Gravity and helimag surveys completed –
targets defined. Initial drilling completed in
May 2013. Results pending.
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• Initial drilling recently completed at Genaren and Currumburrama

• 3D IP survey recently completed at Cundumbul

• Results expected in June 2013 quarter

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HPX JV

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Fairholme JV

• Formed May 2013

• Staged earn-in for HPX:

• $1 million to earn 49% in first year ($500,000 minimum spend before withdrawal)

• $4 million over next two years aimed at delineating a scoping study to earn 65%

• HPX can earn 80-85% by sole funding a pre-feasibility study (cost dependent)

• Clancy is project manager for the $5 million earn-in stage

• Project-wide deployment of HPX’s proprietary geophysical survey technology

Fairholme

CLY: 100%, HPX earning 65% HPX have cutting edge geophysical technology that will penetrate the conductive overburden, which has hindered exploration previously at Fairholme, to define deep porphyry Cu-Au drill targets. The technology has been used successfully around the world and Fairholme will be the first project in Australia to use it.

• Planning and permitting for surveys in progress

• Aiming for geophysical survey works to commence in the September 2013 quarter

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HPX Technology

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Source: hpxploration.com

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Clancy Summary

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Clancy is an active explorer with outstanding prospects

• High quality exploration assets with a commanding position in a world class mineral province – Lachlan Fold Belt NSW

• Focussed exploration strategy, robust targets and risk managed exploration – mix of self-funded and partner-funded exploration

• Excellent early-stage drilling results at 100% owned Condobolin project:

• Virgin Meritilga prospect 4m @ 20g/t Au & 30.2g/t Ag; incl 1m @ 62g/t Au & 60g/t Ag

• 2,118m of follow-up RC drilling completed in May 2013; results pending

• Partner funded exploration – up to $8 million over three years:

• Three JV’s with Mitsubishi

• One JV with HPX

• Cutting edge proprietary exploration technology

• Talented and experienced board and management team

• Project identification and assessment capability through M&A

• Looking forward to growing the business in 2013

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Contact details

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Contact details Phone: +61 2 6361 1285 Fax: +61 2 6361 1202 Email: info@clancyexploration.com www.clancyexploration.com Orange NSW head office 3 Corporation Place Orange NSW 2800 PO Box 7040 Orange NSW 2800

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