RAREX LIMITED — Capital/Financing Update 2016

Feb 18, 2016

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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 19 February 2016

HPX WITHDRAWS FROM THE TRUNDLE PORPHYRY COPPER-GOLD PROJECT IN NSW

Clancy Exploration Limited ( ASX: CLY ) advises that it has received notice from High Powered Exploration ( HPX via its nominee Macquarie Holdings No.2 Pty Limited) advising of its withdrawal from the Trundle Farm-In arrangement.

The Trundle project consists of a single exploration licence EL8222 located 25km west of the Northparkes copper-gold mine. There is extensive evidence of porphyry and skarn-style copper-gold mineralisation similar to the Cadia Valley and Northparkes.

As announced previously two encouraging zones of broad anomalous induced polarisation (IP) chargeability have been defined in the Trundle Park and Mordialloc areas.

During the December quarter the Mordialloc NE IP chargeability anomaly was tested with a single air core pre-collar diamond hole to a depth of 589.35m. The hole intersected andesitic volcaniclastic rocks and a series of gently dipping garnet-rich calc-silicate skarn and silica hornfels horizons intruded by a porphyritic monzonite dyke. The rocks are crosscut by carbonate-sulphide bearing veins and disseminated sulphides are also present in the matrix, dominated by pyrite. These sulphides are likely to be the source of the IP chargeability anomaly. Samples were submitted to the laboratory, however no significant assay results were returned.

HPX were to 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 have met the minimum spending requirement but have not yet earned an interest in the project. Therefore ownership of the Trundle Project will revert 100% to Clancy.

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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Trundle
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Figure 1 – Map showing the location of Clancy’s exploration projects in NSW with Trundle highlighted.

--ENDS—

The information in this announcement that relates to Initial Exploration Results is based on information compiled by Mr Gordon Barnes who is a Member of the Australian Institute of Geoscientists. Mr Barnes is a full-time employee of Clancy Exploration Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Gordon Barnes consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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ASX / Media Announcement

Clancy Exploration Limited (ASX: CLY)

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 gold geochemistry. There is significant potential for porphyry copper-gold discovery at depth and numerous 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 (following HPX’s withdrawal from Trundle), 2 joint venture projects with Mitsubishi Materials Corporation (MMC) of Japan and 1 joint venture project with Kaizen Discovery Inc. 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

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