RAREX LIMITED — Interim / Quarterly Report 2008

Oct 28, 2007

Appendix 5B

Rule 5.3

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Clancy Exploration Limited

ABN Quarter ended ("current quarter")

Year to date

65 105 578 756 30 September 2007

Current quarter

Consolidated statement of cash flows

Cash flows related to operating activities

Cash flows related to operating activities		$A'000	(9.months)$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation(b) development(c) production	(490)	(580)
	(d) administration	(167)	(256)
1.31.4	Dividends receivedInterest and other items of a similar nature
	received	66	66
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Monies received from partners	6	556
	Net Operating Cash Flows	(585)	(214)
1.8	Cash flows related to investing activitiesPayment for purchases of: (a)prospects
	(b)equity investments
	(c)other fixed assets	(86)	(86)
1.9	Proceeds from sale of:(a)prospects
	(b)equity investments(c)other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(86)	(86)
1.13	Total operating and investing cash flows (carried
	forward)	(671)	(300)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(671)	(300)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	5,000	5,000
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings	10	289
1.17	Repayment of borrowings	(266)	(315)
1.18	Dividends paid
1.19	Other (provide details if material)
	Costs of Issue	(393)	(613)
	Net financing cash flows	4,351	4,361
	Net increase (decrease) in cash held	3,680	4,061
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	381	-
1.22	Cash at end of quarter	4,061	4,061

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter$A'000
1.23	Aggregate amount of payments to the parties included in item 1.2	67
1.24	Aggregate amount of loans to the parties included in item 1.10	-

1.25 Explanation necessary for an understanding of the transactions

Payments of consulting fees and directors fees to directors and director related entities

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

None

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

None

+ See chapter 19 for defined terms.

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available$A'000	Amount used$A'000
3.1	Loan facilities	-	-
3.2	Credit standby arrangements	-	-

Estimated cash outflows for next quarter

	Total
		1,016
4.2	Development	-
4.1	Exploration and evaluation	1,016
		$A'000

Reconciliation of cash

Reconciliation of cash at the end of the quarter (asshown in the consolidated statement of cash flows) tothe related items in the accounts is as follows.		Current quarter$A'000	Previous quarter$A'000
5.1	Cash on hand and at bank	4,061	381
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	4,061	381

Changes in interests in mining tenements

		Tenementreference	Nature of interest(note (2))	Interest atbeginningof quarter	Interest atend ofquarter
6.1	Interests in miningtenements relinquished,reduced or lapsed		Nil
6.2	Interests in miningtenements acquired orincreased		Nil

+ See chapter 19 for defined terms.

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issuepricepersecurity (see note3) (cents)	Amount paid up persecurity (see note 3)(cents)
7.1	Preference+securities(description)
7.2	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks,redemptions
7.3	+Ordinarysecurities	47,805,506	26,450,000
7.4	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthrough returnsof capital, buybacks	25,000,000	25,000,000
7.5	+Convertibledebt securities(description)
7.6	Changes duringquarter(a) Increasesthrough issues(b) Decreasesthroughsecuritiesmatured,converted
7.7	OptionsIncentivePerformance #1Performance #2Broker	1,800,000400,000400,0002,000,000	----	Exercise Price$0.20$0.30$0.40$0.20	Expiry Date30 April 201030 April 201030 April 201010 July 2011
7.8	Issued duringquarter - Broker	2,000,000	-	$0.20	10 July 2011
7.9	Exercised duringquarter
7.10	Expired duringquarter
7.11	Debentures(totals only)
7.12	Unsecurednotes (totalsonly)

+ See chapter 19 for defined terms.

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).
• 2 This statement does give a true and fair view of the matters disclosed.

Company Secretary

Sign here: Date: 26 October 2007..

Print name: Rowan Caren

Notes

• 1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• 2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities*.*
• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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+ See chapter 19 for defined terms.