RAREX LIMITED — AGM Information 2014

May 6, 2014

Clancy Exploration Limited ASX: CLY

2014 AGM Managing Director's Presentation Gordon Barnes 7 May 2014 Orange

Disclaimer

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 Initial Exploration Results is based on information compiled by Mr Gordon Barnes who is a Member of the Australian Institute of Geoscientists. Mr Barnes is a full-time 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 2012 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.

Clancy is a quality explorer with a scientific and strategic approach

• Commanding ground position in highly prospective mineral provinces:
  • Lachlan Fold Belt in NSW 10 projects; 1,563km2
  • North Arunta in NT 5 projects; 13,418km2 (to be acquired from ABM)
• Targeting gold, copper, silver and base metals
• Mix of self-funded and partner funded exploration:
  • Five projects to be acquired from ABM in the NT
  • Seven 100% owned projects in NSW
  • Two JV's with Mitsubishi in NSW
  • One JV with Kazien Discovery in NSW
  • Three base metal JV's in Tasmania (Bass Metals and TNT Mines)
  • JV partners currently contributing funding of ~$2.4m per annum
  • Clancy is manager of the NSW JV's
• Deployment of leading-edge exploration technology:
  • HPX Typhoon IP system at Fairholme NSW (Kaizen JV)
  • Model driven probabilistic targeting strategy

Clancy Snapshot

Clancy is a quality exploration company with:

• High quality exploration assets
• Leading-edge exploration technology
• A focussed exploration strategy
• Talented and experienced management team
• Risk managed exploration
• Robust project targets
• Commanding ground position in emerging frontier terrain

HSBC Nominees Motte & Bailey PL Gold Fields Ltd Wallis-Mance PL Board & Management Citicorp Nominees Others

MarketCapitalisation	$2,887,561
Share price1	$0.014
Shares on issue	206,254,392
Top20	62%
Cash2	$1.58m
Debt	-

1. Closing price 2 May 2014 2. As at 31 March 2014

The Team

DrMike Etheridge	Non-Executive Chairman PhD, FTSE, FAICD, FAIG, FGSAMike is a geologist who has had a varied career in academia, a government research organisationand in industry. Mike iscurrently non-executive chairman of ABM Resources Ltd (ASX: ABU). Mike's previous directorships include Zeus Resources Ltd,DET CRC Ltd, BallaratGoldfieldsNL, LihirGold Ltd, Consolidated Minerals Ltd and Ariana Resources Plc.
MrGordon Barnes	Managing Director BSc, MSc, MAIG, MSEG,GAICDGordon is an exploration geologist with a backgroundin exploration project management and technical consulting services. Hehas over 26 years of practical experience, ranging from active field based projects through to multi-commodity projectgeneration initiatives. Gordon was a Senior Geologistwith Normandy Exploration before co-founding the Insight GeoscienceGroup. Gordon was Australasian Exploration Manager with Geoinformatics Exploration prior to joining Clancy when it listed in2007.
DrJamesMacdonald	Non-Executive Director BA (Hon), MSc, PhD, PGeo, FSEGJames has over 35 years of experience in the global exploration and mining industries. He is a geoscientist who has operated aconsultancy business providing professional geoscientific services to exploration and mining companies for several years. Hehas held chief Geoscientistand Management positions with a number of companies, including BHP Billiton, AGIP Resources,and Homestake Mining Company. James' previous directorships include James International Base Metals Ltd andCratonMiningand Exploration Ltd.
MsNatalie Forsyth-Stock	Executive Director & Chief FinancialOfficerB.Bus, M.Bus, GAICDNatalie is an investment professional with over 20 years experience in investment banking and private equity investment.Natalie was previously a Director of Bounty Mining, AllcoEquity Partners Management Limited and Gresham RaboManagement Limited (both private equity managers), and the corporate advisory division of Gresham Partners Limited, whereshe specialised in mergers and acquisitions, fund raisings and valuations.
DrJeff Vassallo	Exploration Manager BSc (Hons),PhD, MGSA, MAIGJeff is an exploration geologist with 10 years practical experience in studying and exploring the Lachlan Orogenin NSW. Jeff waspreviously the Team Leader of regional mapping for the Geological Survey of NSW. He has been with Clancy actively exploringin NSW since 2008.
Senior Management	Company Secretary	Rowan Caren
	Senior Geologist	Kristy Vassallo
	SeniorField Coordinator	EuanScott

Project Locations – Arunta & Lachlan Orogen's

NSW – Lachlan Fold Belt Projects

Macquarie Arc

• The Macquarie Arc has over 85 Moz of gold and 15 Mt of copper
• Most of this gold and copper was discovered in the last 19 years
• Clancy has 10 projects (1,563km2 ) in this richly endowed terrain
• Newcrest at Cadia Valley (>67 Moz Au, >10Mt Cu)
• CMOC at Northparkes (>2.9 Moz Au, >2.1 Mt Cu)
• Barrick at Cowal (> 4.5 Moz Au)
• Newcrest, Alkane, Regis and Straits also have resources defined
• Clancy has recently been active on the Kaizen Discovery and Mitsubishi JV projects
• With JV funding Clancy will manage a very active field program in NSW in 2014

• 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
• Kaizen Discovery Inc JV Fairholme:
  • A$1M Phase 1 earn-in completed in 2013; Kaizen interest 49%
  • Typhoon gradient array IP survey covering 74km2completed
  • Nine anomalies identified for follow-up; two drilled to date
  • A$4M Phase 2 earn-in has commenced to take Kaizen's interest to 65%
  • Typhoon 3D IP survey scheduled for mid-2014; diamond drilling late 2014
• Mitsubishi JV's Cundumbul and Genaren:
  • A$3M earn-in over 3 years from September 2012 to earn 49%; $2.3M contributed to date
  • Geophysical surveys (IP, gravity & magnetics) and drilling completed in 2013; targets defined
  • Drilling of targets at Cundumbul and Genaren scheduled September and December quarters 2014

NSW – Fairholme JV, Kaizen Discovery Inc

Typhoon IP survey

• HPX TechCo (HPX) has the proprietary Typhoon IP system
• JV initiated with HPX in May 2013; HPX transferred its interest to Kaizen in December 2013; HPX is Kaizen's controlling shareholder
• Typhoon gradient IP survey was completed in August 2013, which was the first use of the technology in Australia
• The Typhoon IP survey succesfully penetrated highly conductive overburden where conventional IP had previously failed
• Nine anomalies defined to date a follow-up Typhoon 3D IP survey is planned for mid-2014 to deliver porphyry copper-gold drill targets for testing in late 2014

NSW – Cundumbul & Genaren JV's, Mitsubishi

Porphyry copper-gold

• Cundumbul:
  • Systematic exploration in 2013/2014
  • Drill targets defined at the Andrews and Mehruda Mo prospects
  • Drilling planned for the second half of 2014
• Genaren:
  • Structural and stratigraphic interpretation has identified Wombin Volcanics equivalents (Northparkes host rocks)
  • These areas will be drill tested in late 2014

NSW – 100% owned projects

Highlights

• Condobolin:
  • Low sulphidation epithermal polymetallic system
  • Alteration and geochemical footprint 3 x 3km
  • Significant drill intercepts at the Meritilga prospect
    • 4m @ 20g/t Au1
    • 10m @ 5.78g/t Au & 26.70g/t Ag2
• Trundle:
  • Porphyry and skarn coppergold targets defined
  • Geophysics and drilling planned in second half of 2014
• New projects acquired in 2013/2014 (free peg):
  • Mt Tennyson, Mt Pleasant, Kiola & Koobah

1 ASX release 20 March 2012

NT – North Arunta Acquisition from ABM

• ABM's North Arunta Project is located in the Proterozoic Tanami-Arunta Orogen in the NT:
  • Over 11.5Moz of gold has been discovered since 1985
  • Highly prospective for Au, Cu and Ni ± Sn, W, Sb
  • Shares many similarities with the Albany-Fraser Orogen in WA, a current exploration hotspot
• The North Arunta Project is prospective for deposit styles which may have been overlooked in the past:
  • Intrusion Related Gold Systems (IRGS) Au-Sn-Sb-W and base metals
  • Magmatic nickel deposits
• Modern techniques and technologies, a new exploration model and a fresh approach could provide the key to discovery:
  • Previous drilling has intersected medium- to high-grade, but low-tonnage gold mineralisation at Kroda and Sabre in the Barrow Creek project
  • It is possible that the current prospects are peripheral or secondary to a larger scale mineral system that remains undiscovered
• CLY exercised an option to acquire the project from ABM on 31 January 2014:
  • Shareholder approval to be sought at the AGM on 7 May 2014
  • Completion subject to financing
  • Fieldwork expected to commence in June 2014

Proterozoic Orogenic Belts

• Form on margins of Archean cratons during major tectonic events
• Host significant mineral resources globally, particularly gold, copper and nickel
• Key Proterozoic Orogenic belts in Australia:
  • Albany-Fraser, Tanami-Arunta, Paterson and Delamerian
• New insights into the potential of these belts has been driven by discovery, although in general, they remain very poorly explored
• Recent discoveries in Proterozoic Orogenic belts in Australia:
  • Albany Fraser: Tropicana gold (2005), Nova nickel (2012)
  • Tanami-Arunta: numerous gold mines The Granites (1985), Callie (1991), Dead Bullock Soak (1992), Groundrush (1999), Coyote (2002), Oberon (2009), Twin Bonanza (2010)
• Clancy believes that the Arunta region has the potential to become Australia's next exploration hotspot

Australian Proterozoic Orogenic Belts

Tanami – Arunta Regional Magnetics

Tanami – Arunta Regional Magnetics

Tanami – Arunta Correlation1

North Arunta Project Magnetics & Prospects

North Arunta Project Mineral Occurrences

North Arunta Project Nickel Occurrences

North Arunta Project Nickel Occurrences

Albany-Fraser Nova Nickel discovery

Regional setting and exploration potential

• The North Arunta project is located in the Proterozoic Tanami-Arunta Orogen over 11.5Moz of gold has been discovered in the Tanami since 1985
• Tanami rocks associated with the Stafford Event unequivocally extend into the North Arunta Project area
• The Tanami-Arunta Orogen is highly prospective for Au, Cu & Ni, and is similar in scale and prospectivity to the Albany-Fraser Orogen, the current exploration hotspot
• The North Arunta Project has many characteristics that suggest it is prospective for Intrusion Related Gold Systems (IRGS), which may have been overlooked in the past
• It also has potential for magmatic nickel deposits; e.g. Nova-style in terms of host rocks, tectonic setting and geophysical anomalies (gravity)

Previous exploration

• Early exploration relied heavily on vacuum drilling and BLEG sampling both of these techniques have demonstrated flaws suggesting that many areas may have been incorrectly downgraded
• A relatively new technique, ionic leach geochemistry (Deep Penetrating Geochemistry DPG) was successfully deployed by ABM with a number of anomalies defined – however the DPG program was suspended in 2013 when trial mining commenced at Old Pirate
• The DPG anomalies defined to date remain to be followed up; e.g. Tulsa and further DPG programs were planned but not completed
• DPG combined with other technologies, a new exploration model and approach could provide the key to discovery
• Previous drilling has intersected medium- to high-grade, but low-tonnage gold mineralisation at Kroda and Sabre:
  • e.g. Kroda 57m @ 3.83g/t Au, including 29m @ 6.83g/t Au
  • It is possible that the current prospects are peripheral or secondary to a larger scale mineral system that remains undiscovered; e.g. IRGS

Kroda 3 leapfrog model

Over 300m strike length of Au anomalism with significant breaks in strike continuity due to lack of drilling on some sections.

Kroda 3 leapfrog model

North Arunta Acquisition – next steps

Transaction timeline

• 7 May 2014 shareholder approval
• May July 2014:
  • Placement to be completed ($2.5m to $4m raised)
  • Final conditions to be satisfied
  • Completion of acquisition
• Field program
• May 2014:
  • Commence framework/targeting study
  • Prepare and submit work programs for 2014 field season
  • Liaise with the CLC to ensure land clearances can be initiated early
• July to November 2014 subject to receipt of all required regulatory, CLC and shareholder approvals:
  • Commence field work

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, Arunta Region NT
• 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:
  • Meritilga prospect 4m @ 20g/t Au and 10m @ 5.78g/t Au & 26.70g/t Ag
• Partner funded exploration up to $8 million over three years:
  • Two JV's with Mitsubishi
  • One JV with Kaizen
• 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 2014/2015

References

• Ahmad, M. & Scrimgeour, I.R. 2013 Chapter 2: Geological framework ; in Ahmad M. & Munson T.J. (compilers) – Geology and mineral resources of the Northern Territory. Northern Territory Geological Survey, Special Publication 5.
• Hart, C. J.R. 2005 Classifying, distinguishing and exploring for intrusion-related gold systems. The Gangue issue 87. GAC – Mineral Deposits Division CIM – Geological Society.
• Scrimgeour, I.R. 2013 Chapter 12: Aileron Province ; in Ahmad M. & Munson T.J. (compilers) Geology and mineral resources of the Northern Territory. Northern Territory Geological Survey, Special Publication 5.
• Williams, P.R. 2013 Review of the ABM North Arunta Tenements Clancy Exploration Limited. Unpubl. Aurel Consulting technical report.
• Wygralak, A.S., Mernagh, T.P., Huston, D.L. & Ahmad, M. 2005 Gold mineral system of the Tanami region. Northern Territory Geological Survey, Report 18.

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