RAREX LIMITED — Capital/Financing Update 2015

Feb 17, 2015

ASX / MEDIA ANNOUNCEMENT 18 February 2015

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UPDATE ON HPX DISCUSSIONS

Clancy Exploration Limited (ASX: CLY) is pleased to provide an update on the ongoing discussions between Clancy and HPX TechCo Incorporated (‘HPX’) ahead of the General Meeting of Clancy shareholders to be held in Sydney on 27 February 2015. A placement with Iskandia Holdings SCA, which, if approved, is expected to lead to an earn-in by HPX and Iskandia into Clancy’s Trundle Project in NSW, is the subject of the second resolution to be put to shareholders at the General Meeting.

In the Notice of Meeting sent to shareholders on 21 January 2015, it was stated that Clancy and HPX have been discussing a range of opportunities that combine Clancy's targeting, field geology and exploration management skills with HPX's deep-search Induced Polarisation and Electro Magnetic geophysical capability, and fund-raising capacity and networks. Clancy is now in a position to provide further information about some of these potential opportunities.

HPX has varying stakes in a portfolio of copper-gold porphyry projects in Australia, Canada, Chile and Mongolia. Fact sheets for some of these projects can be found on the HPX website at the following URL: http://hpxploration.com/activities (copy the URL into your browser). Clancy and HPX are discussing the possibility of combining parts of the HPX exploration portfolio with that of Clancy and raising additional capital to create a well-funded, copper-gold exploration company, with access to HPX proprietary technology.

It is likely that a deal with HPX will require further shareholder approvals and independent technical reports and valuations. It should be noted that discussions are still early-stage and no commitments have been made by either party, however, Clancy believes it is important to provide shareholders with as much information as is available ahead of the general meeting.

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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 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, 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

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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 TechCo

HPX is a metals-focused exploration company deploying proprietary geophysical technologies to rapidly evaluate buried targets. HPX has evolved rapidly and today applies a cluster of technological solutions to dramatically increase the depth, quality, efficiency and success of base metals-focused exploration campaigns. HPX is a privately owned company indirectly controlled by Robert Friedland which is led by CEO Mark Gibson, with an experienced board and management team.

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