RAREX LIMITED — Capital/Financing Update 2016

Apr 10, 2016

==> picture [562 x 60] intentionally omitted <==

----- Start of picture text -----

Clancy Exploration Limited Phone: (02) 6361 1285
3 Corporation Place Fax: (02) 6361 1202
Orange NSW 2800 www.clancyexploration.com
Australia info@clancyexploration.com
----- End of picture text -----

ASX / MEDIA ANNOUNCEMENT 11 April 2016

UNDERWRITTEN RENOUNCEABLE RIGHTS ISSUE

TO RAISE $2.06 MILLION

Key Points

• Renounceable rights issue and placement to raise $2.1 million

• The Offer price is 0.1 cent per new share

• Successful applicants will also receive one free attaching option for every three shares subscribed

• The Offer is fully underwritten by Paterson Securities Limited

• Chairman appointed

Clancy Exploration Limited (Clancy or the Company), advises that it will be undertaking a renounceable prorata entitlement issue (Entitlement Issue) to raise $2.06 million. The Entitlements Issue is fully underwritten and managed by Patersons Securities Limited (Patersons). Eligible shareholders will be able to subscribe for 7 new shares in Clancy for every existing share they hold at the Record Date, at an issue price of $0.001 per share, together with 1 free attaching option for every 3 shares subscribed for. The free attaching options will have an exercise price of $0.004 each and a term of three years from the date of issue.

Funds raised will be used predominantly to continue exploration of the Company’s existing projects, fund the search for a new project, working capital and the costs of the Offer.

A placement utilising the Company’s 15% capacity to raise an additional $38,000 will also be undertaken to sophisticated investor clients of Patersons. The placement is to be completed in coming days ahead of the record date for the rights issue.

Eligible Shareholders and Sale of Rights

The Company has determined that given the number and value of the securities that would be offered to shareholders outside of Australia and New Zealand, and the cost of complying with the legal requirements and the requirements of regulatory authorities in such overseas jurisdictions, the Entitlement Issue will only be extended to shareholders with registered addresses in Australia or New Zealand.

Subject to ASIC approval of Patersons as nominee, Patersons will sell the entitlements of ineligible shareholders, with the net proceeds, if any, to be distributed to the ineligible shareholders in due course.

Indicative Offer timetable

The key dates for the Entitlement Issue are below. These dates are indicative only and the Company reserves the right to vary them, subject to the requirements of the ASX Listing Rules.

Lodgement of Appendix 3B and Prospectus with ASX	11 April 2016
Notice of Entitlement Offer sent to Shareholders	12 April 2016

==> picture [561 x 21] intentionally omitted <==

----- Start of picture text -----

1
----- End of picture text -----

ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

Shares quoted on an “EX” basis	13 April 2016
Rights start trading on a deferred settlement basis	13 April 2016
Record Date for determining Entitlements and Quoted Options	15 April 2016
Prospectus and Entitlement and Acceptance Form despatched to Eligible Shareholders	20 April 2016
Right trading ends	22 April 2016
Securities quoted on a deferred settlement basis	26 April 2016
Last day to extend the offer closing date	27 April 2016
Closing Date of Entitlement Offer (5pm WST)*	2 May 2016
Notification of Shortfall	5 May 2016
Anticipated date for issue of the Securities. Deferred settlement trading ends	9 May 2016
Anticipated date for commencement of Shares and Quoted Options trading on a normal settlement basis	10 May 2016

A Prospectus and Appendix 3B will follow.

Chairman Appointed

Nathan Featherby has been appointed Non-Executive Chairman of the Company.

—ENDS—

Please direct enquiries to:

Nathan Featherby Non-executive Chairman 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 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.

==> picture [562 x 20] intentionally omitted <==

----- Start of picture text -----

2
----- End of picture text -----