RAREX LIMITED — Capital/Financing Update 2013

May 19, 2013

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ASX / MEDIA ANNOUNCEMENT 20 May 2013

CLANCY SIGNS JOINT VENTURE AGREEMENT WITH HIGH POWER EXPLORATION ON FAIRHOLME COPPER-GOLD PROJECT IN NSW

Clancy Exploration Limited ( ASX: CLY ) is pleased to announce that it has signed a Farm-In and joint venture agreement with High Power Exploration Inc. (HPX) on the Fairholme copper-gold project in New South Wales.

Under the terms of the Agreement, HPX has the right to earn an initial 49% of the Fairholme project by funding A$1 million in exploration over one year, with a minimum spending commitment of A$500,000. HPX then will have the right to fund a further A$4 million in exploration over the subsequent two years with the aim of delineating a scoping study to take HPX’s stake to 65%. Clancy will manage the project on behalf of the joint venturers during the first two earn-in phases. HPX can increase its stake to 80% or 85% by funding a Prefeasibility Study (depending on the cost of the study).

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.

Clancy’s Managing Director, Mr Gordon Barnes, said that attracting a joint-venture partner with the technical credentials and successful track record of HPX will provide the step-change in exploration approach that the Fairholme project requires.

“Fairholme has excellent exploration potential but it has been a difficult project to explore due to the variable cover sequences and the conductive overburden which has prevented previous electrical surveys from effectively testing the basement rocks. Clancy is excited about the potential of the HPX technology to see through the conductive overburden and define high-priority, basement drill targets. We are looking forward to partnering with HPX to test these targets,” said Mr Barnes.

Mr Mark Gibson, Chief Executive Officer of HPX, said the joint venture will be a productive opportunity for Clancy to benefit from the advanced and specialised HPX technology.

“Our technology is capable of high survey productivity, at great depths and at high accuracy, and has been successfully deployed in demanding field exploration environments in Namibia, Chile and Mongolia. We relish challenges and Clancy’s Fairholme search is a good fit with our capabilities.”

Preparations for the geophysical survey have started and it is anticipated that survey works will commence in the September 2013 quarter.

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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Location of Clancy projects in the Macquarie Arc with the Fairholme project shown in red.

--ENDS—

Please direct enquiries to:

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

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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 High Power Exploration Inc

HPX is a privately owned, metals focussed exploration company deploying proprietary in-house geophysical technologies to rapidly evaluate buried geophysical targets. The HPX technology cluster comprises geological and geophysical systems for targeting, modelling, survey optimisation, acquisition, processing and interpretation. HPX has a highly experienced board and management team. The company is led by CEO Mark Gibson, a geoscientist formerly with Anglo American, and is chaired by Ian Cockerill, a former CEO of Gold Fields Ltd. More details about HPX can be found at www.hpxploration.com

About Fairholme

The Fairholme project is located 12km north of the Cowal gold mine in central NSW. The project consists of two tenements, EL6552 and EL6915 that cover 172km[2] of the Fairholme Igneous Complex, part of the Macquarie Arc that hosts porphyry copper-gold deposits at Cadia and Northparkes. The geophysical characteristics of the Fairholme Igneous Complex are similar to the Cowal Complex to the south, which hosts the Cowal gold mine (Barrick) and the Marsden copper-gold prospect (Newcrest).

About Clancy Exploration

Clancy Exploration (ASX: CLY) is an Australia-focused copper, gold, base metals and tin explorer. The Company’s portfolio consists of copper-gold projects in the Lachlan Fold Belt of NSW and base metal and tin projects in the Mount Read Volcanic Belt of Tasmania. In NSW, Clancy has 7 wholly owned projects, 3 joint ventures with Mitsubishi Materials Corporation and 1 joint venture 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 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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