RAREX LIMITED — Capital/Financing Update 2012

Aug 12, 2012

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ASX / MEDIA ANNOUNCEMENT 13 August 2012

CLANCY ENTERS NEW $3M JOINT VENTURE IN NSW WITH MITSUBISHI Cundumbul, Currumburrama and Genaren Projects

Clancy Exploration Limited ( ASX: CLY ) is pleased to announce that it has entered into a joint venture with Mitsubishi Materials Corporation of Japan (Mitsubishi) on three copper-gold projects in NSW.

Under the terms of the agreement, Mitsubishi has the right to earn 49% of the Cundumbul, Currumburrama and Genaren projects by funding A$3 million over three years with A$500,000 minimum commitment in the first year. Clancy will manage the projects on behalf of the joint venturers.

Clancy’s Managing Director, Mr Gordon Barnes, said that the joint venture with Mitsubishi will strengthen Clancy’s exploration program in NSW by providing the exploration funding to test copper-gold targets on all three projects.

“We are very pleased to have formed this partnership with Mitsubishi in what is a challenging capital market for junior exploration companies. This joint venture funding will enable Clancy to rapidly advance exploration on these projects, while we continue to advance our Condobolin and Trundle projects,” said Mr Barnes.

Mitsubishi has interests in copper mines and smelters across the globe and has invested in some of the world’s largest copper deposits such as Escondida in Chile.

The three joint-ventured projects contain porphyry copper-gold targets. The Cundumbul project consists of two exploration licenses (EL6661 and EL7399) in the Molong Volcanic Belt between Molong and Wellington. The Molong Volcanic Belt is host to the giant Cadia porphyry Cu-Au deposits (Newcrest) south of Orange that have a combined endowment of >65Moz Au and >10Mt Cu. The Currumburrama project (EL6784) is located in the Currumburrama Volcanics 40km east of West Wyalong. The Genaren project (EL7927) is located at the northern end of the Northparkes Igneous Complex 29km NNW of Rio Tinto's Northparkes copper-gold mine.

Clancy has already commenced work on the Cundumbul project with auger soil sampling, rock chip sampling and geological mapping in progress. Geophysical surveys at all three projects will commence in the September quarter.

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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Map showing the location of the Cundumbul, Currumburrama and Genaren projects

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Please direct enquiries to:

Gordon Barnes Managing Director Phone: +61 2 6361 1285 Email: info@clancyexploration.com Web: www.clancyexploration.com

The information in this document 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 full-time employee of Clancy Exploration Limited and has

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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.

About Clancy Exploration

Clancy Exploration (ASX: CLY) is an Australian-focused copper, gold, base metals and tin explorer. The Company’s portfolio consists of copper-gold projects in the Lachlan Fold Belt of NSW, base metal and tin projects in the Mount Read Volcanic Belt of Tasmania, Nadbuck near Broken Hill in NSW and Yalgoo, adjacent to the Golden Grove mine in Western Australia.

In NSW, Clancy has 9 wholly owned and managed projects, 3 joint ventures with Mitsubishi Materials Corporation that are managed by Clancy and 7 joint venture projects which are managed by Gold Fields Australasia Pty Ltd. In Tasmania, Clancy has 2 base metal joint venture projects with Bass Metals and 2 tin joint venture projects with TNT Mines Pty Ltd (a wholly owned subsidiary of Minemakers Ltd). The Tasmanian projects are managed by Clancy's joint venture partners. This mix of Clancy and joint venture project funding allows a high level of exploration activity to be maintained, whilst prudently managing Clancy’s financial resources. Details of Clancy’s projects can be found at the Company's website: www.clancyexploration.com

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