RAREX LIMITED — Interim / Quarterly Report 2008

Oct 13, 2008

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

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

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Clancy Exploration Limited
ABN Quarter ended (“current quarter”)
65 105 578 756 30 Sep 2008
Consolidated statement of cash flows
Current quarter Year to date
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 (1,285) (2,825)
(b) development
(c) production
(d) administration (243) (768)
1.3 Dividends received
1.4 Interest and other items of a similar nature
received 48 165
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 1,395 3,215
Net Operating Cash Flows (85) (213)
Cash flows related to investing activities
1.8 Payment for purchases of: (a)prospects
(b)equity investments
(c)other fixed assets (1) (68)
1.9 Proceeds from sale of: (a)prospects
(b)equity investments
(c)other fixed assets 1 1
1.10 Loans to other entities (1) (1)
1.11 Loans repaid by other entities 5 5
1.12 Other (provide details if material)
Net investing cash flows 4 (63)
1.13 Total operating and investing cash flows (carried
forward) (81) (276)
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• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(81)	(276)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other (provide details if material) Costs of Issue Net financing cash flows
	-	-
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	(81) 3,572	(276) 3,767
	3,491	3,491

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

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		82
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Payments of consulting fees and directors fees to directors and director related entities. At the quarter end, the Company’s cash balance includes $1,061,000 which has been contributed by a joint venture partner in advance of expenditure.

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows
	None
	Details of outlays made by other entities to establish or increase their share in projects in which the reportingentityhas an interest
	None

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

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Amount available Amount used
$A’000 $A’000
3.1 Loan facilities - -
3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A’000
4.1 Exploration and evaluation
(of which $1302k which will be funded by a JV partner) 1,646
4.2 Development
Total 1,646
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as Current quarter Previous quarter
shown in the consolidated statement of cash flows) to $A’000 $A’000
the related items in the accounts is as follows.
5.1 Cash on hand and at bank 3,491 3,572
5.2 Deposits at call
5.3 Bank overdraft
5.4 Other (provide details)
Total: cash at end of quarter (item 1.22) 3,491 3,572
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Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning ofquarter	Interest at end of quarter
		Nil
	ELA 3589	Registered applicant	0%	100%

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital,buy-backs	47,805,506	26,450,000
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options Incentive Performance #1 Performance #2 Broker 7.8 Issued during quarter Incentive 7.9 Exercised during quarter 7.10 Expired during quarter	2,100,000 500,000 500,000 2,000,000	- - - -	Exercise Price $0.20 $0.30 $0.40 $0.20	Expiry Date 30 April 2010 30 April 2010 30 April 2010 10 July2011
	100,000	-	$0.20	30 April 2010
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

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.

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Sign here: Company Secretary

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Date: 14 October 2008
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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.

30/9/2001

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