RAREX LIMITED — AGM Information 2013

May 23, 2013

ASX / MEDIA ANNOUNCEMENT 24 May 2013

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CLANCY ANNUAL GENERAL MEETING 2013 CHAIRMAN’S ADDRESS

Dear Fellow Shareholders

On behalf of the board, I would like to welcome you to the 2013 Annual General Meeting of Clancy Exploration Limited and would like to present to you the 2012 Annual Report for Clancy Exploration Limited (“Clancy”).

Strategic Review

The Company’s current share price is a great concern to the Board, all of whom are also shareholders. Rest assured that our view is aligned with that of the broader shareholder group.

Your Directors have identified the need to acquire an advanced “flagship” project. 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 offmarket 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. Commodity and gold capital markets in recent times have returned to the volatility evident in the global financial crisis. This makes the choice of a new project ever more challenging. The ability to fund a new acquisition will be critical.

Exploration Progress

The greatest exploration encouragement during the year came from the Company’s 100%-owned Condobolin project. Almost 4,000 metres of drilling were completed during 2012 with a further 2,118 metres completed so far in 2013. The best intercept returned to date from the project was 4m @ 20g/t Au and 30.2g/t Ag from 75m. Results from the latest round of drilling will be reported over the coming weeks.

During the year, the Company has actively sought quality joint venture partners for a number of its existing projects. The Company’s strategy is to partner with parties that have the demonstrated financial capacity to actively explore a project and/or specific technical knowledge and access to proprietary technical tools which may have a particular relevance to specific projects. In addition the clear preference is for joint venture partners that are amenable to allowing Clancy to retain management rights. Consistent with this strategy, the Company entered into a joint venture with Mitsubishi Materials Corporation of Japan (MMC) in August 2012, in respect of the Cundumbul, Currumburrama and Genaren projects. The joint venture has ensured that a high level of funding will be available for each of these projects, while allowing Clancy to drive exploration towards testing the best possible targets.

Another significant development that occurred in February 2013 was the disposal of the residual joint venture interests on several projects in NSW to Gold Fields Pty Ltd. The transaction, which included a placement to Gold Fields at a 75% premium to the then market price, resulted in a cash payment to Clancy of $1.5 million. The rationale for the transaction was to allow Clancy to focus on 100% owned projects,

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

while retaining some interest in the potential upside in the projects through a 2.5% Net Smelter Return. The Board believes applying its available expenditure funds to 100% owned projects (existing and new flagship) will provide the company with the most leverage to increase shareholder value.

Just this week we announced that the Company has entered another joint venture, this time on the Fairholme project, with High Power Exploration Inc. (HPX). The joint venture will see the project-wide deployment of HPX’s proprietary technology at Fairholme. HPX operates an in-house, geophysical technological cluster capable of rapid and effective geophysical imaging of buried geological targets, and has successfully deployed the technology in Mongolia, Namibia and Chile.

Corporate Changes

Further to the transfer of corporate and operational management to Orange in NSW, Natalie Forsyth-Stock joined the Board, taking over from Mark Lester during 2012.

Conclusion

Clancy Exploration looks forward to taking significant strides in 2013, based on the hard work done over recent years in furthering its existing projects and identifying strategic opportunities to deliver value to its shareholders.

We trust that as investors and shareholders you will continue to support Clancy over the coming year as we work hard to deliver on this strategy.

Dr Mike Etheridge

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