RAREX LIMITED — Capital/Financing Update 2016

May 5, 2016

ASX / MEDIA ANNOUNCEMENT 5 May 2016

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Completion of $2M Rights Issue

The Directors of Clancy Exploration Limited (Clancy or the Company) are pleased to advise that the Company has successfully closed its 7 for 1 renounceable Rights Issue. The Directors would like to thank all shareholders who participated in the Rights Issue and Patersons Securities Ltd (Patersons or Underwriter) who underwrote the Rights Issue.

1,154,710,176 shares were applied for by shareholders and accepted by the Company (which raised $1,154,710) under the Rights Issue. The Directors, in conjunction with the Underwriter, have accepted applications by existing shareholders for shortfall shares to the extent of 87,564,144 shares ($87,564). The balance of the Rights Issue, being 820,573,637 shares to raise $820,574, will be placed by the Underwriter under the terms of the Underwriting Agreement. The total cash raised by the Company by way of the Rights Issue will be $2,062,848 (before expenses).

The Company will have a total of 2,357,540,408 shares on issue following allotment of all shares. In addition it will have a total of 687,615,952 listed options on issue. The resultant new capital structure of the Company is set out in the Appendix 3B lodged on 11 April 2016.

Nathan Featherby Chairman

—ENDS—

Please direct enquiries to:

Rowan Caren Company Secretary Phone: +61 8 6102 2609 Email: info@clancyexploration.com Web: www.clancyexploration.com

About Clancy Exploration

Clancy Exploration (ASX: CLY) is an Australian-focused copper, gold and base metals explorer. The Company’s portfolio consists of copper-gold projects in the Lachlan Fold Belt of NSW where Clancy has 6 wholly owned and managed projects and 1 joint venture project each with Alkane Resources Ltd (ASX: ALK). 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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