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RAREX LIMITED Capital/Financing Update 2013

Jun 16, 2013

65681_rns_2013-06-16_a9713641-068c-4255-8b3a-32ed067041e1.pdf

Capital/Financing Update

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Clancy Exploration Limited Phone: (02) 6361 1285
3 Corporation Place Fax: (02) 6361 1202
Orange NSW 2800 www.clancyexploration.com
Australia [email protected]
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ASX / MEDIA ANNOUNCEMENT 17 June 2013

GOLD AND SILVER HITS EXTEND MERITILGA LODE Mineralised System Confirmed at Condobolin Project

Clancy Exploration Limited (ASX: CLY) is pleased to announce results from recent reverse circulation drilling (RC) at its 100% owned Condobolin project (EL7748) in central New South Wales.

Highlights

  • Significant gold and silver intercepts extend the Meritilga lode at depth: o 10m @ 5.78 g/t Gold & 26.79 g/t Silver from 80m, including;  4m @ 14.16 g/t Gold & 61.7 g/t Silver from 83m

  • 15m @ 2.76 g/t Gold & 8.78 g/t Silver from 90m, including:

    • 5m @ 7.89 g/t Gold & 22.28 g/t Silver from 99m.
  • Silver and gold within wide mineralised halos extend Meritilga lode up-dip: o 23m @ 0.36 g/t Gold & 46.15 g/t Silver from 24m, including:  4m @ 0.83 g/t Gold & 226.93 g/t Silver from 42m.

  • 28m @ 0.76 g/t Gold and 3.99 g/t Silver from 26m, including:

    • 6m @ 2.87 g/t Gold & 15.54 g/t Silver from 45m .

Results have now been received from all RC holes drilled at the Meritilga and Bluebell Prospects in April and May 2013. Clancy’s Managing Director, Mr Gordon Barnes, said the recent assay results have confirmed the existence of a fertile epithermal-style system at the Meritilga Prospect.

“The high-grade zone at Meritilga, which we discovered through RC drilling early last year, has been extended up and down dip, as well as along strike. It’s got some variability of gold grade within the zone, which is to be expected in these types of systems, but overall it’s reasonably consistent,” said Mr Barnes.

“The strike extent of this lode has been constrained, but it remains open up and down dip. This round of drilling has also identified a correlation between gold and molybdenum suggesting we may have a deeper magmatic source for the mineralisation. Indications are that there may be another lens at around 130 vertical metres depth and we believe there is potential to define further mineralisation beyond that,” Mr Barnes said.

The maiden RC drill program in early 2012 returned several intercepts at Meritilga, including the discovery lens with an intercept of 4m @ 20 g/t Gold , 30.1 g/t Silver and 0.26% Copper (from 75m, CORC029). The latest drilling has extended the lens up- and down-dip and along strike.

Hole CORC041, drilled 25m down-dip, intersected 5m @ 7.89 g/t Gold , 22.28 g/t Silver and 14.04ppm Molybdenum (from 99m) within a broader interval of 15m @ 2.76 g/t Gold , 8.78 g/t Silver, 6.48ppm Molybdenum (from 90m, Figure 2).

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Hole CORC044, drilled 15m along strike to the north of hole CORC029, intersected 4m @ 14.16 g/t Gold, 61.7 g/t Silver and 11.65ppm Molybdenum (from 83m) within a broader interval of 10m @ 5.78 g/t Gold , 26.79 g/t Silver , 0.1% Copper and 7.42ppm Molybdenum (from 80m).

At depth, intercepts become significantly wider in a lower-grade halo with higher concentrations of base metals, such as in hole CORC052: 29m @ 0.58g/t Gold , 7.07 g/t Silver and 5.95ppm Molybdenum (from 127m), including: 6m @ 1.29 g/t Gold , 19.97 g/t Silver, 0.23% Zinc and 6.58ppm Molybdenum (from 129m), and, 2m @ 2.5 g/t Gold , 15.42 g/t Silver and 34.65ppm Molybdenum (from 154m).

The lens has also been extended up-dip, and remains open, with intercepts such as 23m @ 0.36 g/t Gold, 46.15 g/t Silver and 0.1% Lead (from 24m, CORC043), including: 4m @ 0.83 g/t Gold, 226.93 g/t Silver and 0.33% Lead (from 42m); and, 28m @ 0.76 g/t Gold and 3.99 g/t Silver (from 26m, CORC042), including, 6m @ 2.87 g/t Gold , 15.54 g/t Silver, 0.12% Lead (from 45m) . The high-grade silver intercept in hole CORC043 introduces an oxide-upgrade component to the system.

The drilling has further defined the geometry of the lenses, with the SE-dipping high-grade zone now projected to also plunge to the south. The area due south of holes CORC041, CORC052 and CORC053 (Figure 1) is currently open and will be targeted in a future drilling campaign.

The host structure for the mineralisation has also been delineated as shown in the cross-sections (Figures 2 and 3). The mineralised bodies are hosted within tightly folded Silurian volcaniclastic sandstone, which has been disrupted by SE-dipping, NE-SW oriented, thrusts. The mineralisation is inferred to have been emplaced syn-thrusting, possibly with multiple pulses of mineralisation. The source of the mineralisation is likely to be magmatic, with a correlation between gold and molybdenum in the system. Molybdenum is generally introduced into a system from magmatic sources. The implication is that the magmatic source is fertile, with the potential for further mineralisation at depth.

“This round of drilling also further tested intercepts received previously at the Bluebell prospect. Bluebell is a gold-copper prospect, and warranted follow up drilling as it is thought to sit along the same structural trend as the Meritilga Prospect”, said Mr Barnes.

Drilling at the Bluebell Prospect followed up on hits received in 2012, such as 4m @ 0.51 g/t Gold, 1.24% Copper , 10.4 g/t Silver (from 105m, CORC039). Recent drilling intersected further shoot-style gold and copper, with the addition of silver and molybdenum, not previously seen:

  • 1m @ 0.41 g/t Gold, 4.8 % Copper , 39.7 g/t Silver and 4.37ppm Molybdenum (from 100m, CORC056),

  • 1m @ 0.35 g/t Gold, 1.34% Copper , 15.95 g/t Silver and 8.29ppm Molybdenum (from 81m, CORC055),

  • 2m @ 1.4 g/t Gold, 0.14% Copper , 2.31 g/t Silver and 3.96ppm Molybdenum (from 70m, CORC057).

A comprehensive list of significant intercepts is provided in Table 1.

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Lower-grade halo
Section
See Figure 3
High-Grade Section
See Figure 2
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Figure 1 - Plan view of RC drill program over the Meritilga Prospect lode zone. Included are drill collars from the 2012 RC program, some of which are depicted on cross – sections in Figures 2 & 3. All collar locations are summarised in Table 2.

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OPEN
2m @2.66g/t Au
3m @2.21g/t Au
28m @ 0.76g/t
Au incl. 6m @
2.87g/t Au
4m @20g/t Au
10m @ 5.78g/t
Au, incl. 4m
@14.16g/t Au
5m @ 7.89g/t Au
2m @ 2.5g/t Au &
15.42g/t Ag, 29m @ 0.52g/t Au,
34.7ppm Mo incl. 6m @1.29 g/t Au
OPEN
5m @ 0.98g/t Au &
2m @ 2.43g/t Au
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Figure 2 - Meritilga Prospect Cross-Section – High-grade zone. Looking North. Current intercepts denoted in blue boxes , 2012 intercepts denoted in red boxes.

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OPEN 31m @ 0.4 g/t Au, incl.
3m @ 1.42 g/t Au
18m @ 0.33 g/t Au,
incl. 10m @ 0.5 g/t Au
13m @ 0.76 g/t Au, &
23m @ 0.36g/t 8m @ 0.21 g/t Au 10m @ 0.28 g/t Au
Au & 46.15g/t Ag,
including 4m @
0.83 g/t Au, & 4m @ 1.85 g/t Au, 10.58 g/t
226.93 g/t Ag Ag & 9.09ppm Mo
3m @ 1.42 g/t Au & OPEN
23.8 g/t Ag
Figure 3 - Meritilga Prospect Cross-Section – Gold-polymetallic halo. Looking North. Current intercepts denoted
in blue boxes , 2012 intercepts denoted in red boxes.
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Table 1 - Significant intercepts for Condobolin RC Drilling

1 -Significa nt intercept s for Cond obolin RC Drilling
Hole ID Interval
(m)
Au (g/t) Cu % Ag (g/t) Pb (%) Zn (%) Mo
(ppm)
From (m)
CORC0411 11 0.73 2.03 2.71 71
including2 3 2.21 4.76 4.91 72
CORC0411 15 2.76 8.78 6.48 90
including2 5 7.89 22.28 0.15 14.04 99
CORC0411 4 0.19 1.65 3.86 106
CORC0413 4 0.32 2.99 6.09 127
including4 1 0.82 8.29 10.7 129
CORC0421 2 0.14 4.13 2.43 8
CORC0421 2 0.26 8.59 2.51 14
CORC0421 28 0.76 3.99 1.27 26
including2 1 0.88 41
including2 6 2.87 15.54 0.12 2.53 45
CORC0431 2 0.14 1.92 0
CORC0431 23 0.36 46.15 0.1 2.05 24
including2 1 0.73 37
including2 4 0.83 226.93 0.33 4.56 42
CORC0431 2 0.23 10.55 0.26 48
CORC0431 2 0.18 1.84 70
CORC0441 2 0.19 2.46 0.13 1.03 8
CORC0441 2 0.25 11.9 1.03 40
CORC0441 1 0.14 5.9
CORC0441 5 0.29 1.28 1.18 55
including2 1 1.05 3.35 1.73 56
CORC0441 1 0.2 1.86 1.57 69
CORC0441 2 0.15 8.77 16.24 75
CORC0441 10 5.78 0.1 26.79 7.42 80
including2 4 14.16 61.4 11.65 83
CORC0451 4 0.39 0.13 22.03 3.77 48
including2 1 0.58 0.1 29.2 4.46 49
CORC0455 6 0.37 1.17 1.09 65
including6 1 1.25 1.94 1.28 69
CORC0451 3 0.18 3.16 2.16 83
CORC0461 10 0.22 1.36 1.99 22
CORC0461 4 0.14 1.95 1.09 52
CORC0461 4 0.2 3.34 2.29 62
CORC0461 2 0.14 2 72
CORC0461 2 0.12 1.01 5.65 78
CORC0461 13 0.76 5.18 0.16 3.97 96
including2 4 1.85 10.58 0.27 9.09 105
CORC0461 8 0.21 2.19 3.7 112
CORC0461 2 0.19 1.44 5.11 137
CORC0471 2 0.2 1.09 24
CORC0491 2 0.52 4.32 0.13 4.38 100
CORC0491 10 0.59 8.45 0.25 0.66 3.81 118
including2 4 1.16 18.31 0.58 1.45 6.49 119
CORC0491 1 0.19 1.88 1.42 138
CORC0501 4 0.13 1.05 1.17 56
CORC0501 2 0.37 1.51 3.27 66
CORC0501 2 0.52 2.49 2.87 76
CORC0501 2 0.21 2.57 1.94 83
CORC0501 2 0.22 1.32 1.46 98
CORC0501 4 0.14 2.49 0.32 0.28 1.11 108
CORC0501 2 0.11 1.35 118

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CORC0501 4 0.28 0.1 5.16 0.15 2.18 125
including2 1 0.57 0.14 5.59 0.28 2.22 127
CORC0511 2 0.13 1.25 1.57 8
CORC0511 2 0.3 1.51 1.11 48
CORC0511 1 0.24 23.3 5.39 57
CORC0511 6 0.75 1.27 2.65 70
including2 2 1.81 1.88 3.74 70
CORC0511 4 0.11 1.01 1.63 84
CORC0511 4 0.21 1.59 3.09 94
CORC0511 9 0.35 2.85 3.89 101
including2 5 0.57 4.18 4.89 101
CORC0521 6 0.18 1.38 1.56 16
CORC0521 2 0.15 1.4 3.26 46
CORC0521 5 0.33 4.65 3.68 71
including2 1 0.87 7.26 3.56 75
CORC0521 2 0.14 1.73 0.11 1.76 84
CORC0521 8 0.15 2.53 0.12 2.68 104
CORC0521 2 0.19 1.77 2.07 117
CORC0521 29 0.58 7.07 5.95 127
including2 6 1.29 19.97 0.23 6.58 129
including2 2 2.5 15.42 34.65 154
CORC0531 2 0.32 1.21 32
CORC0531 2 0.1 1.6 0.12 1.01 76
CORC0531 4 0.12 1.07 84
CORC0531 15 0.75 7.24 0.44 0.67 3.45 165
including2 5 0.98 7.32 0.12 0.42 5.2 166
including2 2 2.43 6.21 0.49 0.8 3.45 176
CORC0531 2 0.1 1.22 2.3 184
CORC0541 2 0.38 4.77 7.05 36
CORC0541 2 0.2 0.25 4.32 5.28 104
CORC0551 2 0.15 2.49 2
CORC0551 2 1.18 2.32 2.58 8
CORC0551 1 0.35 1.34 15.95 8.29 81
CORC0551 2 0.17 1.46 94
CORC0561 2 0.17 2.02 34
CORC0561 1 0.41 4.8 39.7 4.37 100
CORC0561 4 0.15 0.18 9.47 2.92 104
CORC0561 2 0.26 0.13 2.12 2.96 128
CORC0571 2 0.17 0.12 2.89 3.11 10
CORC0571 2 0.31 3.32 62
CORC0571 2 1.4 0.14 2.31 3.96 70
CORC0571 4 0.15 1.79 92
CORC0571 2 0.15 0.36 3.33 2.83 148

Samples are 2m and 1m riffle split RC samples. 1 - Intercepts based on 0.1g/t Au cutoffs with a maximum internal dilution of 2 times the minimum sample (2m). 2- Intercepts based on 0.5g/t Au cutoffs with a maximum internal dilution of 2 times the minimum sample (2m). 3-Au only has been calculated from the average of 3 repeat fire assay analyses on the same 1m sample for the intervals 128-129m and 129-130m. Intercepts based on 0.1g/t Au cutoffs with a maximum internal dilution of 2 times the minimum sample (2m). 4-Au only has been calculated from the average of 3 repeat fire assay analyses on the same 1m sample for the interval 129-130m. Intercepts based on 0.5g/t Au cutoffs with a maximum internal dilution of 2 times the minimum sample (2m). 5-Au only has been calculated from the average of 3 repeat fire assay analyses on the same 1m sample for the intervals 68-69m and 6970m . Intercepts based on 0.1g/t Au cutoffs with a maximum internal dilution of 2 times the minimum sample (2m). 6-Au only has been calculated from the average of 3 repeat fire assay analyses on the same 1m sample for the interval 69-70m. Intercepts based on 0.5g/t Au cutoffs with a maximum internal dilution of 2 times the minimum sample (2m). Intercepts >0.5 g/t Au in bold text. Au was analysed by ALS Orange by fire assay / AAS finish, and for the other elements by ALS Brisbane by four acid digest ICP AES/OES. Standards and duplicates are inserted into the sample stream to monitor laboratory performance. Refer to Table 2 for collar location data.

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Table 2 - Condobolin EL7748 drill hole collars.

Hole ID Easting
(m)
Northing
(m)
RL
(m ASL)
Dip
(Deg)
Azimuth - Mag
(Deg)
Depth
(m)
CORC041 513696 6343745 239 -60 308 156
CORC042 513657 6343791 241 -70 308 60
CORC043 513681 6343808 241 -70 308 72
CORC044 513693 6343772 240 -65 308 108
CORC045 513666 6343757 241 -70 308 90
CORC046 513725 6343762 241 -60 308 156
CORC047 513631 6343678 238 -60 268 90
CORC048 513715 6343652 240 -60 078 114
CORC049 513644 6343704 240 -60 358 150
CORC050 513790 6343810 247 -60 268 144
CORC051 513707 6343757 240 -65 308 120
CORC052 513716 6343722 240 -60 308 168
CORC053 513746 6343689 241 -55 307 186
CORC054 512366 6342492 215 -65 319 114
CORC055 512400 6342546 215 -65 319 102
CORC056 512424 6342601 216 -60 318 132
CORC057 512300 6342422 215 -58 008 156

--ENDS--

Please direct enquiries to:

Gordon Barnes Managing Director Phone: +61 2 6361 1285 Email: [email protected] 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 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 Condobolin

Located north of the township of Condobolin, NSW, EL7748 spans two target styles including narrow structurally-hosted high grade gold-base metals, as well as epithermal gold-copper. Numerous old workings cross the area in a general north-east oriented trend. The area has been mined at various times since the early 1890’s, producing high-grade gold, copper, silver, lead and zinc.

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 and around the Lachlan Fold Belt of NSW and base metal and tin projects in the Mount Read Volcanic Belt of Tasmania. In NSW, Clancy has 5 wholly owned and managed projects, 3 joint venture projects with Mitsubishi Materials Corporation (MMC) of Japan and 1 joint venture project with High-Power Exploration Inc., all of which are managed by Clancy. In Tasmania, Clancy has 2 base metal joint venture projects with Bass Metals and 1 tin joint venture project with TNT Mines Pty

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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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