RAREX LIMITED — Capital/Financing Update 2018

Oct 24, 2018

25 October 2018

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ASX / MEDIA ANNOUNCEMENT

COBALT LICENCES IN MOROCCO UPDATE

Clancy completes acquisition of an initial 20% ownership interest in Atlas Managem, which holds 3 licences prospective for Cobalt in Morocco, and aims to commence diamond drilling in November

HIGHLIGHTS

• Clancy completes Stage 1 of the Moroccan licence acquisition by acquiring an initial 20% interest in Atlas Managem S.A.R.L, which holds three Moroccan licences adjacent to the famous Bou Azzer Cobalt Mine.

• Clancy, at its sole discretion, can acquire further interests of up to 100% of Atlas Managem.

• The Bou Azzer Cobalt Mine is famous for being a primary cobalt producer and highquality cobalt cathode and has been in operation since the 1930’s.

• Clancy aims to commence diamond drilling on the Moroccan licences in November 2018.

David Lenigas, Clancy Exploration’s Chairman, commented: “the process in Morocco to register a foreign entity’s interest in a Moroccan entity is time consuming, however Clancy has navigated a clear path through this process and is pleased to have now completed stage 1 of its initial acquisition in this vastly unexplored area. A senior expat. geologist has now been engaged in country and Clancy is aiming to commence drilling to the west of the Bou Azzer mining area.”

Clancy Exploration Limited (ASX: CLY) ( Clancy or the Company ) is pleased to announce that further to the announcement of 10 April 2018 and the shareholder meeting of 3 August 2018, it has completed stage 1 of its acquisition of Atlas Managem S.A.R.L ( Atlas Managem ) by acquiring 20% of the fully paid issued capital in Atlas Managem ( 20% Interest ). All details of the acquisition have been previously disclosed, and no new terms have been incorporated.

In consideration for the 20% Interest, Clancy has issued 130,000,000 fully paid ordinary shares ( Stage 1 Shares ) and paid US$175,000 to the vendors of Atlas Managem. The Stage 1 Shares were issued subject to the shareholder approval received on 3 August 2018.

In order to register the acquisition of the 20% Interest, Clancy has filed documents with the Moroccan tax office. Clancy understands that the registration of such an interest generally takes around 2 weeks and does not anticipate any issues with the registration process.

Clancy Exploration Limited www.clancyexploration.com

Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756

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Clancy can acquire up to a 100% indirect interest in the 3 licences in Morocco through a staged acquisition of Atlas Managem ( Acquisition ). For full details of the Acquisition see the Company’s ASX announcement dated 10 April 2018.

Each of the licences (highlighted in “red” in Figure 1) is 16 km[2] in size, 2 of which (the Bou Amzil and Tizi Belhaj licences) are located immediately to the west and adjacent to the famous Bou Azzer Cobalt Mine. The third licence (the Imdere licence) is located approximately 20 km northwest of Bou Azzer.

In addition, the Company advises that it anticipates closing the transaction to acquire 100% of the licence area highlighted in “blue” in Figure 1 soon, as per the Company’s ASX announcement dated 23 July 2018.

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Figure 1: Location of the 3 Atlas Managem S.A.R.L Moroccan licences the subject of this 20% Acquisition (red outline) and the additional newly granted licence (blue shading).

Clancy Exploration Limited www.clancyexploration.com Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756

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The adjacent Bou Azzer Cobalt Mine has Co-Ni Arsenide deposits with Au & Ag and is currently one of the world’s only operating primary cobalt mines with:

• more than 50 deposits in the district, mined over 75 years with production of over 100kt of cobalt, 1,000’s of tonnes of silver and tens of tonnes of gold; and

• current production of ~2ktpa of cobalt at an estimated head grade of 1.3% cobalt and up to ~3-4 g/t gold, total current resources and reserves of 17,800 tonnes of cobalt.[1]

Information on the Bou Azzer Cobalt Mine is available on Managem’s website at www.managemgroup.com.

Please direct enquiries to:

David Lenigas/Scott Patrizi Phone: +61 8 6143 6720 Email: info@clancyexploration.com Web: www.clancyexploration.com

1 ASX news release by Blackstone Minerals dated 27 March 2018 – Investor Presentation – Goldman Sachs Battery Day Clancy Exploration Limited www.clancyexploration.com

Suite 23, 513 Hay Street, Subiaco WA 6008 Ph: 08 6143 6720 ACN: 105 578 756