RAREX LIMITED — Interim / Quarterly Report 2010

Jan 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 December 2010

ABN	Quarter ended ("current quarter")

Year to date (12.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	(440)	(2,129)
1.3	(c) production(d) administrationDividends received	(280)	(888)
1.4	Interest and other items of a similar nature
	received	33	81
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	(687)	(2,936)
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)	(85)	(92)
	Net investing cash flows	(85)	(92)
1.13	Total operating and investing cash flows (carried
	forward)	(772)	(3,028)

+ See chapter 19 for defined terms.

1.13	Totaloperatingandinvestingcashflows
	(brought forward)	(772)	(3,028)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	-	3,090
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	11	(302)
	Net financing cash flows	11	2,788
	Net increase (decrease) in cash held	(761)	(240)
1.201.21	Cash at beginning of quarter/year to dateExchange rate adjustments to item 1.20	2,429	1,908
1.22	Cash at end of quarter	1,668	1,668

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	134
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. Payment 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	900
4.4	Administration	185
4.3	Production	-
4.2	Development	-
4.1	Exploration and evaluation	715
		$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	741	1,245
5.2	Deposits at call	927	1,184
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	1,668	2,429

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 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,
	redemptions
7.3	+Ordinary	109,513,447	109,513,447
	securities
7.4	Changes duringquarter
	(a) Increases
	through issues
	(b) Decreases
	through returns of
	capital, buy-backs
7.5	+Convertibledebt securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues
	(b) Decreases
	through securitiesmatured,
	converted
7.7	Options			Exercise Price	Expiry Date
	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
	DirectorsESOP	1,650,0001,100,000	--	$0.195$0.185	31 December 201330 September 2013
7.8	Issued during
	quarter
7.9	Exercised during
	quarter
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 January 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.