RAREX LIMITED — Capital/Financing Update 2015

Jul 8, 2015

Clancy Exploration Limited 3 Corporation Place Orange NSW 2800 Australia

ASX / MEDIA ANNOUNCEMENT 9 July 2015

TYPHOON IP SURVEY IN PROGRESS AT THE TRUNDLE PORPHYRY COPPER-GOLD PROJECT IN NSW

Highlights

• Previous drilling has identified widespread porphyry- and skarn-style copper-gold anomalism
• Shallow drill intercepts of copper-gold skarn mineralisation are similar in style to the peripheral skarn mineralisation in the world-class Cadia porphyry deposits in NSW
• Typhoon IP survey will assist with defining the deeper source of the copper-gold anomalism and vectoring to the richer potassic core of the porphyry system
• The Typhoon IP survey will cover approximately 50km2 and is expected to be completed in August, followed by data processing and drill target selection
• Drilling of key targets likely to commence in the December 2015 quarter

Clancy Exploration Limited (ASX: CLY) is pleased to announce that a Typhoon IP survey has commenced on the Trundle copper-gold project in NSW, which is a joint venture with High Power Exploration Inc. (HPX). The survey will cover approximately 50km2 of a 12.5km long prospective corridor of porphyry and skarn prospects extending from Botfield in the south to Pig Pen in the north (Figure 2).

Previous drilling at Trundle has established that low-grade porphyry copper-gold systems are associated with coarse grained monzonite porphyry intrusions hosted by andesitic fragmental and flow units at Mordialloc and Bloomfields. Numerous skarn-style copper-gold occurrences are also present at Trundle Park, Willcoxs, Dunns, Waynes and Mordialloc (Figure 2). At Trundle Park, monzonite with quartz-calcite-molybdenitepyrite-chalcopyrite veins at depth, indicate a transition from shallow skarn mineralisation to deeper porphyry mineralisation1 .

The tenor and style of the skarn copper-gold intercepts are consistent with the outer zone of a gold-rich Ordovician porphyry system. At Trundle Park these intercepts are associated with magnetite skarn, similar in style to the Big Cadia skarn that is peripheral to the world-class Cadia porphyry copper-gold deposits near Orange in NSW. Significant previous skarn intercepts at Trundle Park include:

• 60m @ 0.54g/t Au from 1m2
• 39m @ 0.55g/t Au, 0.14% Cu from surface1
• 35m @ 0.55g/t Au, 0.25% Cu from 12m1
• 51m @ 0.58g/t Au, 0.14% Cu from 33m1
• 58m @ 0.44g/t Au, 0.17% Cu from 22m3

Higher grade vein-style mineralisation has also been intersected at Trundle Park; e.g. 2m @ 20g/t Au, 6.97% Cu and 81g/t Ag from 64m2 . At Cadia, the skarn mineralisation is up to 1.5km away from the causative

1 See ASX release dated 25 June 2010 for further details

2 See ASX release dated 9 March 2010 for further details

3 See ASX release dated 28 February 2011 for further details

porphyry intrusion4 ; however the skarn mineral assemblages at Trundle suggest the causative intrusions are proximal rather than distal.

The source of the skarn mineralisation along the 12.5km long prospective corridor is likely to be monzonite porphyry intrusions at depth, similar to the Northparkes porphyry mine, which is located 25km to the east of Trundle. Similarities between Trundle and Northparkes have been highlighted previously and the two areas may once have been part of the same porphyry complex4 .

Limited previous drilling at Trundle Park, Bloomfields and Mordialloc has tested to depths of up to 400m vertical, however most previous drill holes are less than 50m deep. Therefore, significant scope remains for porphyry discovery at depth along the prospective corridor.

The Typhoon IP survey will cover the prospective corridor and will detect chargeable bodies down to a vertical depth of up to 1500m. This will assist with defining the deeper source of the copper-gold anomalism and vectoring to the richer potassic core of the porphyry system.

The Typhoon IP survey is expected to be completed in August, followed by data processing, inversion modelling and drill target selection in September. Drilling of targets is likely to commence in the December 2015 quarter.

Figure 1 – Map showing the location of Clancy's exploration projects in NSW with Trundle highlighted.

4 See ASX release AGM presentation dated 31 May 2011 for further details

Figure 2 – Trundle EL8222 (black perimeter) showing the area that will be covered by the Typhoon IP survey (yellow perimeter), the RTP ground magnetic image with the prospective corridor highlighted (white dashes) and skarn and porphyry prospects (labelled). The background image is the aerial photograph.

The information in this announcement 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 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.

Please direct enquiries to:

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

About Trundle

The Trundle project consists of a single exploration licence EL8222 located 25km west of the Northparkes copper-gold mine and is a joint venture with High Power Exploration (HPX). HPX may earn an 80% interest by spending $5M. The project covers an arc fragment that was rifted to the west off the Northparkes complex. There is extensive evidence of porphyry and skarn-style copper-gold mineralisation similar to the Cadia Valley and Northparkes. Several prospects at Trundle have strong similarities to the porphyry deposits at Northparkes, with characteristic magnetic and gravity anomalies and coincident anomalous copper and gold geochemistry. There is significant potential for porphyry copper-gold discovery at depth and numerous copper-gold anomalies on the Trundle licence that remain under-explored.

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 6 wholly owned and managed projects, 2 joint venture projects with Mitsubishi Materials Corporation (MMC) of Japan and 1 joint venture project with Kaizen Discovery Inc. and 1 joint venture with High Power Exploration (HPX). 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

About HPX

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 and is indirectly controlled by international financier and mining entrepreneur Robert Friedland. 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.