RAREX LIMITED — Capital/Financing Update 2015

May 4, 2015

ASX / MEDIA ANNOUNCEMENT 5 May 2015

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CLANCY SIGNS PLACEMENT AND JOINT VENTURE AGREEMENT WITH HPX ON THE TRUNDLE COPPER-GOLD PROJECT IN NSW

Clancy Exploration Limited ( ASX: CLY ) is pleased to announce that it has entered into a farm-in and joint venture agreement with High Power Exploration Inc. (HPX) on the Trundle copper-gold project in NSW.

Under the terms of the agreement, HPX is to subscribe for 50,000,000 Clancy shares at 1.5 cents ($0.015) each to raise $750,000[1] . An Appendix 3B will be provided in due course.

HPX and Clancy will then form a joint venture for HPX to earn into the Trundle project which is presently held 100% by Clancy. HPX will fund $1,000,000 on exploration over 12 months to earn an initial 51% of the Trundle project with a minimum spend of $750,000 (Phase 1). HPX may then sole fund an additional $4,000,000 over 3 years (Phase 2) to earn an additional 29% of the Trundle project, for a total of 80%. Failure to meet the Phase 2 commitment will result in 100% of the Trundle project reverting to Clancy. After the completion of Phase 2, Clancy will have the right to contribute its 20% share of costs, or dilute according to standard industry provisions. If Clancy’s interest dilutes to 5%, its interest in the project will convert to a 2% Net Smelter Royalty.

A total of 70% of the placement proceeds ($525,000) will be expended by the Company and credited to the joint venture as part of the minimum exploration spend. The remaining 30% ($225,000) will be available to fund Clancy’s working capital.

Clancy’s Managing Director, Mr Gordon Barnes, said that Trundle is the second joint venture that Clancy has undertaken with HPX utilising its Typhoon technology and its expertise.

“Typhoon was successfully deployed at the Fairholme JV with Kaizen and we are confident that it will help us zero in on drill targets at Trundle where our previous drilling has demonstrated the potential for porphyry copper-gold and related skarn mineralisation” said Mr Barnes.

Trundle is located 25km west of the Northparkes copper-gold mine. It has many similarities to Northparkes and is separated from the Northparkes district by a north-south trending Devonian rift basin. Interpretation of geophysical data suggests that Trundle may have originally been part of the Northparkes complex, which was subsequently dismembered during development of the rift.

The partners expect work to commence in the June 2015 quarter.

1 In the Notice of Meeting for a general meeting of shareholders held on 27 February 2015, it was anticipated that Iskandia Holdings SCA would be the subscriber for the placement. The subscriber will be a nominee of HPX.

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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Map showing the location of Clancy’s exploration projects in NSW with Trundle highlighted.

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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

About Trundle

The Trundle project consists of a single exploration licence EL8222 located 25km west of the Northparkes copper-gold mine. 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

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

gold geochemistry. Previous drilling by Clancy has demonstrated the potential at the Trundle Park prospect with intercepts[2] such as:

• 2m @ 20g/t Au, 6.97% Cu and 81g/t Ag from 64m;

• 42m @ 0.45g/t Au from 32m; and

• 58m @ 0.44g/t Au, 0.17% Cu from 22m.

Significant potential remains at Trundle Park and there are several other important 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 7 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., 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

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.

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2 See ASX release dated 28 February 2011 for further details