RAREX LIMITED — Capital/Financing Update 2015

Apr 29, 2015

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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 info@clancyexploration.com
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ASX / MEDIA ANNOUNCEMENT 30 April 2015

CLANCY SIGNS $2M FARM-IN AGREEMENT ON THE CONDOBOLIN PROJECT IN NSW WITH RAMELIUS RESOURCES

Clancy Exploration Limited ( ASX: CLY ) is pleased to announce that it has entered into a farm-in agreement with Ramelius Resources Limited (ASX: RMS) on the Condobolin gold and base metal project in NSW.

Under the terms of the agreement, Ramelius has the right to earn 80% of the Condobolin project by funding A$2 million for exploration over four years. If Ramelius withdraws before earning 80%, the project ownership reverts 100% to Clancy. After the farm-in phase is completed, Clancy will be carried to a decision to mine, at which point Clancy will have the right to contribute its 20% share of costs post decision to mine, or dilute according to standard industry provisions. If Clancy’s interest dilutes to 5%, it converts to a 2% Net Smelter Royalty.

Ramelius will be project manager, however Clancy will be the project operator during the farm-in phase and will be entitled to a 10% management fee on services provided.

Clancy’s Managing Director, Mr Gordon Barnes, said that the farm-in agreement with Ramelius will strengthen Clancy’s exploration program in NSW by providing the exploration funding to test epithermal gold and base metal targets at Condobolin.

“We are pleased to have formed this partnership with Ramelius in what is a very challenging capital market for junior exploration companies. A review of the project completed late last year identified the requirement for a funding partner and we are looking forward to working with Ramelius to advance exploration at Condobolin,” said Mr Barnes.

Condobolin is located in the central west of NSW immediately north of the Condobolin township. It has a substantial mining history, predominantly as a base metals field (lead, zinc and copper), as well as gold. The mineralisation is hosted in epithermal-style quartz veins within the metasedimentary units of the Ordovician Girilambone Group.

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

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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Condobolin
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Map showing the location of Clancy’s exploration projects in NSW with Condobolin 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 Condobolin

Condobolin EL7399 is located in the central west of NSW immediately north of the Condobolin township. Condobolin has a substantial mining history, predominantly as a base metals field (lead, zinc and copper), as well as gold. The mineralisation is hosted in epithermal-style quartz veins within the metasedimentary units of the Ordovician Girilambone Group, associated with pyrite, sphalerite, galena, chalcopyrite, arsenopryrite and free gold.

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

Significant findings[1] to date have:

• confirmed the presence of a low sulphidation epithermal system;

• demonstrated that the mineralised system is polymetallic with significant drill intercepts of anomalous gold, silver, lead, zinc and copper across multiple prospects (see below);

• determined that the alteration and geochemical footprint of the currently defined system is 3km x 3km;

• identified that the system coincides with a ~20km diameter gravity anomaly which may be associated with a deep intrusive unit at the intersection of major regional faults; and

• shown that the host of the mineralisation is a volcanic sandstone which may be equivalent to the well mineralised Mineral Hill Volcanics further to the north.

Significant previous Clancy drill results at Condobolin include:

• Meritilga – where a high-grade gold lens up to 5m true width remains open up and down dip and visible gold is present adjacent to historic workings:

• 4m @ 20 g/t Au, 0.26% Cu, 30.2 g/t Ag from 75m[2] ;

• 10m @ 5.78 g/t Au & 26.79 g/t Ag from 80m[3] ; and

• 15m @ 2.76 g/t Au & 8.78 g/t Ag from 90m[2] .

• Phoenix – where gold and zinc intercepts are open to the south and down dip:

• 8m @ 3.7 g/t Au from 59m[4] ; and

• 8m @ 3.73 g/t Au from 72m[3] .

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

1 See 2014 annual report ASX release dated 20 October 2014.

2 Detailed drill results are contained in ASX release dated 20 March 2012.

3 Detailed drill results are contained in ASX release dated 17 June 2013.

4 Detailed drill results are contained in ASX release dated 23 March 2011.

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