RAREX LIMITED — Interim / Quarterly Report 2011

Apr 27, 2011

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 March 2011

ABN	Quarter ended ("current quarter")
65 105 578 756	31 March 2011

Year to date (3.months)

Current quarter $A'000

Consolidated statement of cash flows

Cash flows related to operating activities

			$A'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a) exploration and evaluation(b) development	(573)	(573)
	(c) production(d) administration	(219)	(219)
1.3	Dividends received
1.4	Interest and other items of a similar naturereceived	24	24
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net Operating Cash Flows	(768)	(768)
1.81.91.101.111.12	Cash flows related to investing activitiesPayment for purchases of: (a)prospects(b)equity investments(c)other fixed assetsProceeds from sale of:(a)prospects(b)equity investments(c)other fixed assetsLoans to other entitiesLoans repaid by other entitiesOther (provide details if material)	(8)	(8)
	Net investing cash flows	(8)	(8)
1.13	Total operating and investing cash flows (carriedforward)	(776)	(776)

+ See chapter 19 for defined terms.

1.13	Totaloperatingandinvestingcashflows(brought forward)	(776)	(776)
	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)
	ATO R&D Rebate (net of fees)	316	316
	Other	43	43
	Net financing cash flows	359	359
	Net increase (decrease) in cash held	(417)	(417)
1.20	Cash at beginning of quarter/year to date	1,660	1,660
1.21	Exchange rate adjustments to item 1.20
1.22	Cash at end of quarter	1,243	1,243

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	91
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. Partpayment of fees in lieu of notice and statutory entitlements to Mark Stewart following resignation.

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	612
4.4	Administration	166
4.3	Production	-
4.2	Development	-
4.1	Exploration and evaluation	446
		$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	1,243	741
5.2	Deposits at call	-	919
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,243	1,660

Changes in interests in mining tenements

		Tenement	Nature of interest	Interest at	Interest
		reference	(note (2))	beginning	at end
				of quarter	quarter
6.1	Interests in mining	EL 7675	Gold Fields JV: Moorefield	0%	20%
	tenements relinquished,	EL 7676	Gold Fields JV: Parkes	0%	20%
	reduced or lapsed	EL 7677	Gold Fields JV: Parkes	0%	20%
6.2	Interests in mining	EL 6823	Gold Fields JV: Parkes	20%	0%
	tenements acquired or	EL 6824	Gold Fields JV: Parkes	20%	0%
	increased	EL 6938	Gold Fields JV: Moorefield	20%	0%
		EL 6987	Gold Fields JV: Parkes	20%	0%
		EL 7199	Gold Fields JV: Parkes	20%	0%
		EL 7433	Gold Fields JV: Parkes	20%	0%

+ 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 note	Amount paid up persecurity (see note 3)
				3) (cents)	(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	109,513,447	109,513,447
	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 duringquarter
	(a) Increases
	through issues
	(b) Decreases
	through securities
	matured,
	converted
7.7	OptionsCLYO	27,378,362	27,378,362	Exercise Price$0.15	Expiry Date31 July 2013
	Broker	2,000,000	-	$0.20	10 July 2011
	Other	2,250,000	-	$0.20	30 September 2011
	Officers	2,050,000	-	$0.175	10 August 2013
	Directors	1,650,000	-	$0.195	31 December 2013
	ESOP	1,100,000	-	$0.185	30 September 2013
7.8	Issued during
	quarter
7.9	Exercised duringquarter
7.10	Expired/cancelled
	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.

Sign here:

Company Secretary

Date: 28 April 2011

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.