RAREX LIMITED — Interim / Quarterly Report 2007

Jan 29, 2008

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

65 105 578 756 31 December 2007

ABN Quarter ended ("current quarter")

Year to date

Current quarter $A'000

Consolidated statement of cash flows

Cash flows related to operating activities

Cash flows related to operating activities		$A'000	(12.months)$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation(b) development(c) production	(618)	(1,198)
1.3	(d) administrationDividends received	(159)	(415)
1.4	Interest and other items of a similar nature
1.5	receivedInterest and other costs of finance paid	65	131
1.6	Income taxes paid
1.7	Other (provide details if material)Monies received from partners	480	1,036
	Net Operating Cash Flows	(232)	(446)
1.8	Cash flows related to investing activitiesPayment for purchases of: (a)prospects(b)equity investments(c)other fixed assets	(62)-	(62)(86)
1.9	Proceeds from sale of:(a)prospects(b)equity investments(c)other fixed assets
1.10	Loans to other entities
1.111.12	Loans repaid by other entitiesOther (provide details if material)
	Net investing cash flows	(62)	(148)
1.13	Total operating and investing cash flows (carried
	forward)	(294)	(594)

+ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows(brought forward)	(294)	(594)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	5,000
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings	-	289
1.17	Repayment of borrowings	-	(315)
1.18	Dividends paid
1.19	Other (provide details if material)
	Costs of Issue	-	(613)
	Net financing cash flows	-	4,361
	Net increase (decrease) in cash held	(294)	3,767
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	4,061	-
1.22	Cash at end of quarter	3,767	3,767

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	78
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.

At quarter end, the Company's cash balance includes $146,000 which has been contributed by joint venture partner in advance of expenditure.

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	1,119
4.2	Development	-
4.1	Exploration and evaluation	1,119
		$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	3,767	4,061
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	3,767	4,061

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	Issuepriceper	Amount paid up per
				security (see note	security (see note 3)
7.1	Preference			3) (cents)	(cents)
	+securities
	(description)
7.2	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy
	backs,
7.3	redemptions+Ordinary	47,805,506	26,450,000
	securities
7.4	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs
7.5	+Convertible
	debt securities(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through securities
	matured,
	converted
7.7	Options			Exercise Price	Expiry Date
	Incentive	1,900,000	-	$0.20	30 April 2010
	Performance #1	500,000	-	$0.30	30 April 2010
	Performance #2Broker	500,0002,000,000	--	$0.40$0.20	30 April 201010 July 2011
7.8	Issued during
	quarter
	Incentive	100,000	-	$0.20	30 April 2010
	Performance #1	100,000	-	$0.30	30 April 2010
	Performance #2	100,000	-	$0.40	30 April 2010
7.9	Exercised during
	quarter
7.10	Expired during
	quarter
7.11	Debentures
	(totals only)
7.12	Unsecured notes
	(totals only)

+ 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: 30 January 2008

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.

== == == == ==

• See chapter 19 for defined terms.