RAREX LIMITED — Interim / Quarterly Report 2014

Jul 28, 2014

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Clancy Exploration Limited Phone: (02) 6361 1285
3 Corporation Place Fax: (02) 6361 1202
Orange NSW 2800 www.clancyexploration.com
Australia info@clancyexploration.com
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QUARTERLY ACTIVITIES and CASHFLOW REPORT For the period ending 30 June 2014

The Board of Clancy Exploration Limited is pleased to release its Quarterly Activities report for the period ending 30 June 2014.

Highlights

• A Typhoon 3D IP survey at the Fairholme JV commenced in late June 2014. Heli-borne magnetic survey completed.

• A 3D IP survey and detailed mapping was completed at the Andrews and Mehruda Mo prospects within the Cundumbul JV . Follow up RC drilling is due to commence in September 2014.

• Assay results from reconnaissance air core drilling at the Genaren JV were received, with a significant intercept of 3m @ 0.26g/t Au (from 31m, GAAC002). The air core program is due for completion in Spring-Summer 2014.

Exploration

Fairholme EL6552 and EL6915

(NSW, Clancy 51%; Kaizen Discovery Inc 49%, earning 65% and funding 100%)

The Fairholme project covers 172km[2] of the Fairholme Igneous Complex and is located 12km north of the Cowal gold mine. The geophysical characteristics of the Fairholme Igneous Complex are similar to the Cowal Complex to the south, which hosts the Cowal gold mine (Barrick) and the Marsden copper-gold deposit (Newcrest).

A 100m line-spaced heli-borne magnetic survey, for a total of 1990 line kilometres, was completed during May 2014. The data was processed and gridded on a 25m cell size. Interpretation of the resultant images is in progress at quarter end.

A Typhoon 3D Induced Polarisation survey commenced on the 26[th] June 2014. The 3D survey covers areas of interest defined by last year’s Typhoon gradient array IP survey, with the main areas of interest being the porphyry-style prospects of Dungarvan, Gateway and Boundary. The survey is in progress at quarter end, with expected completion in early August 2014.

Cundumbul EL6661 and EL7399

(NSW, Clancy 100%; Mitsubishi earning 49% and funding 100%)

The Cundumbul project covers 204.9km[2] of prospective arc units in the Molong Volcanic Belt between Molong and Wellington. There are numerous intrusive complexes at Cundumbul that have anomalous copper and/or gold associated with them. Work during the June quarter advanced the Mehruda Mo and Andrews prospects to RC drilling stage.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2014

A 3D Induced Polarisation survey was completed at the Andrews Prospect. A prominent N-S oriented, subvertical structure was mapped by the resistivity component of the survey, through the middle of the area. One dominant chargeability anomaly was defined in the north of the prospect area, with a maximum value of 46mV/V (Figure 1). The anomaly has an interesting ‘horseshoe’ shape which, when viewed with other datasets, wraps around a subsidiary NE-oriented fault with Au-Sb anomalies.

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250m
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Figure 1: 3D IP Model for Andrews Prospect chargeability anomaly

Aspect: Looking south. Resistivity (purple) = 3.4ohm-m. Chargeability (orange) = 14mV/V. Coordinates are in GDA94 Zone 55.

A total of sixteen (16) RC drill holes have been designed to test the structural, geophysical and geochemical anomalies at the Andrews prospect. Drilling is planned for September 2014.

A detailed mapping study, which included petrographic analysis of mineralised RC drill chips and outcropping geology, over and around the Mehruda Mo prospect concluded that the area contains features compatible with a mineralised system at depth, including an inferred larger body of diorite/microdiorite, associated with a magnetic low and Bouguer gravity low, the occurrence of a transitional propylitic to phyllic alteration system with increased depth, visible pyrite at surface and in drill holes, anomalous molybdenum values, quartz veins (although barren) at surface and potential fluid pathways provided by several mapped faults in the immediate area.

Four deep RC holes have been designed to further test the Mehruda Mo prospect in September 2014.

Genaren EL7927

(NSW, Clancy 100%; Mitsubishi earning 49% and funding 100%)

Genaren is located at the northern end of the Northparkes Igneous Complex 29km north of the Northparkes copper-gold mine. In the March quarter 2014, Clancy completed 18 out of a planned 55, reconnaissance air core (AC) drill holes to test three prospects. The program was curtailed prematurely due to unseasonable wet weather. Results of the 18 reconnaissance air core holes drilled at the Cora Lynn target were received during the current quarter.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2014

A large body of coherent Ordovician porphyritic trachyandesite, with strong coincident sericite-hematite alteration, has been defined in the centre of the Cora Lynn target area (Figure 2). The most notable result was from GAAC002 with the intersection of low grade gold at the top of the saprolite layer. The intersection returned 3m @ 0.26 g/t Au from 31m. The anomaly resides in a previously undrilled area and is open to the east. Drilling is planned to recommence in the spring of 2014 in order to complete the planned program.

Table 1: Genaren AC Collars

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Hole ID MGA_E MGA_N RL (m) Depth (m) Dip°
GAAC001 585900 6381749 243 66 -90
GAAC002 586398 6381498 244 59 -90
GAAC003 586399 6380998 249 64 -90
GAAC004 586850 6380776 253 62 -90
GAAC005 586403 6380496 254 58 -90
GAAC006 585400 6381003 254 78 -90
GAAC007 584900 6381245 258 71 -90
GAAC008 584899 6380749 263 41 -90
GAAC009 585398 6381502 252 71 -90
GAAC010 585396 6382000 254 66 -90
GAAC011 584899 6381752 251 71 -90
GAAC012 585879 6381245 255 68 -90
GAAC013 585896 6380747 255 48 -90
GAAC014 585949 6382739 249 29 -90
GAAC015 585394 6382493 242 35 -90
GAAC016 585898 6382147 244 69 -90
GAAC017 585398 6380502 256 52 -90
GAAC018 584902 6380256 267 18 -90
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Table 2: Genaren Intercepts[1]

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Hole From (m) To (m) Intercept (m) True width (m) Au (ppm)
GAAC002 31 34 3 not determined 0.26
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1 Refer to Data aggregation methods section of Appendix I for intercept calculation details

Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2014

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Figure 2: Genaren AC Drill Collars and Bottom of Hole Interpreted Geology at the Cora Lynn Target Background image is Clancy detailed RTP magnetics, and shows the circular magnetic high feature of the Cora Lynn target (red/purple).

Corporate

As at 30 June 2014, the company held cash and restricted cash of $1,595,000.

In November 2013, the Company announced that it had entered into an agreement with ABM Resources NL (ASX: ABU) (ABM) whereby Clancy will have the option to acquire 100% of ABM’s interests in the North Arunta Project Region in the Northern Territory. Clancy shareholder approval for the transaction was granted at the AGM on 7th May 2014. The key remaining condition requires Clancy to complete a capital raising of not less than $2.5 million. Due to the challenging state of the equity markets it is unlikely that the capital raising will be completed before the deadline of 2 August 2014. Therefore it is also unlikely that the transaction will proceed on the current terms. Clancy and ABM are currently investigating alternative deal structures and the companies will keep the market informed of developments.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2014

Clancy Tenement Listing

(As at 30 June 2014)

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State Project Lease No Status ProjectJV Manager interestClancy (km2)Area Note
NSW Condobolin EL7748 Renewed No Clancy 100% 362.8
Renewal Mitsubishi Materials
NSW Genaren EL7927 Yes Clancy 100% 193.6
Pending Corp earning 49%
Mitsubishi Materials
NSW Cundumbul EL6661 Renewed Yes Clancy 100% 141.4
Corp earning 49%
Mitsubishi Materials
NSW Cundumbul EL7399 Renewed Yes Clancy 100% 63.5
Corp earning 49%
Renewal Kaizen Discovery Inc
NSW Fairholme EL6552 Yes Clancy 51% 54.5
Pending earning 65%
NSW Fairholme EL6915 Renewed Yes Clancy 51% 117.5 Kaizen Discovery Inc
earning 65%
NSW Kiola EL8151 Granted No Clancy 100% 284.2
NSW Orange East EL6181 Renewed No Clancy 100% 40.2
NSW Trundle EL8222 Granted No Clancy 100% 167.2
Mount
NSW EL8226 Granted No Clancy 100% 45.8
Tennyson
NSW Mount Pleasant EL8237 Granted No Clancy 100% 63.5
NSW Koobah ELA4996 Application No Clancy 100% 28.6
NT Reynolds Range EL30297 Application No Clancy 100% 639.7
Lennon South
NT EL30422 Application No Clancy 100% 326.8
(Lander River)
NT Stapletons EL30445 Application No Clancy 100% 735.7
(Barrow Creek)
TAS Lake Margaret EL28/2009 Granted Yes Bass 25% 59.0 Clancy interest carried
Metals to Prefeasibility study
TAS Sock Creek EL20/2010 Granted Yes Bass 25% 11.0 Clancy interest carried
Metals to Prefeasibility study
Niuminco
TAS Oonah EL63/2004 Renewed Yes Group 25% 24.0 Clancy contributing
Limited
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Please direct enquiries to:

Gordon Barnes

Managing Director Phone: +61 2 6361 1285

Email: info@clancyexploration.com Web: www.clancyexploration.com

The information in this announcement that relates to Initial Exploration Results is based on information compiled by Dr Jeff Vassallo who is a Member of the Australian Institute of Geoscientists. Dr Vassallo is a full-time employee of Clancy Exploration Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Dr Jeff Vassallo consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2014

About Clancy Exploration

Clancy Exploration (ASX: CLY) is an Australian-focused copper, gold, base metals and tin explorer. The Company’s portfolio consists of copper-gold projects in the Lachlan Fold Belt of NSW and the Arunta region of the NT and base metal and tin projects in the Mount Read Volcanic Belt of Tasmania.

In NSW, Clancy has 6 wholly owned and managed projects, 2 joint venture projects with Mitsubishi Materials Corporation (MMC) of Japan and 1 joint venture project with Kaizen Discovery Inc., all of which are managed by Clancy. In Tasmania, Clancy has 2 base metal joint venture projects with Bass Metals (ASX: BSM) and 1 tin joint venture project with Niuminco Group Limited (ASX: NIU). The Tasmanian projects are managed by Clancy's joint venture partners. This mix of Clancy and joint venture project funding allows a high level of exploration activity to be maintained, whilst prudently managing Clancy’s financial resources. Details of Clancy’s projects can be found at the Company's website: www.clancyexploration.com

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Appendix I – JORC Code, 2012 Edition – Table 1 Australia

Section 1 Sampling Techniques and Data: Genaren Project

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Criteria JORC Code explanation Commentary
Sampling Nature and quality of sampling (eg cut channels, random chips, or specific Air core drilling was used to obtain samples at nominal 1m intervals. Nominal 3m
techniques specialised industry standard measurement tools appropriate to the minerals composite samples were taken using a PVC spear.
under investigation, such as down hole gamma sondes, or handheld XRF
instruments, etc). These examples should not be taken as limiting the broad Samples were transported to ALS Chemex Orange for preparation and assay.
meaning of sampling.
Include reference to measures taken to ensure sample representivity and the One assay standard was inserted for at least every 40 samples. Laboratory
appropriate calibration of any measurement tools or systems used. standards and blanks are analysed with sample batches as a secondary
performance check. One standard is included with every fire assay batch.
Aspects of the determination of mineralisation that are Material to the Public Air core drilling was used to obtain samples at nominal 1m intervals. Samples are
Report. then crushed to 70% nominal -6mm and pulverized where up to 85% is less than
75 microns. Samples are then homogenized by light pulverizing. Quality control
testing on pulverizing efficiency is conducted on random samples.
Gold was analysed using a 50g sample via fire assay with AAS finish, (Method
Au – AA22) with a detection level of 0.002ppm. Samples returning >1 g/t are
analysed by method Au-AA26 with a detection level of 0.01ppm. A further 48
elements are analysed from a 0.25g charge which is dissolved using a near total
four acid digest with AAS and ICPMS finish (Method ME-MS61). Samples
returning >1% Cu, Pb, Zn and > 100g/t Ag are analysed by method Aqua Regia
Digestion with ICP-AES finish (ME-OG46).
In cases where ‘industry standard’ work has been done this would be relatively Air core drilling was used to obtain 1 m samples from which 2 – 2.5kg was
simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from pulverized to produce a 50g charge for fire assay and a 0.25g charge for acidic
which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other digestion.
cases more explanation may be required, such as where there is coarse gold
that has inherent sampling problems. Unusual commodities or mineralisation
types (eg submarine nodules) may warrant disclosure of detailed information.
Drilling Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Drilling was by air core methods. Surface holes were collared into transported
techniques Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth cover, with a 6m pre-collar. PVC casing was utilized to collar the hole. A 4 ½”
of diamond tails, face-sampling bit or other type, whether core is oriented and if blade drill bit and HQ diameter rods were used to drill holes up to 78m vertical
so, by what method, etc). depth.
Drill sample Method of recording and assessing core and chip sample recoveries and results Samples were bagged as separate 1 metre intervals. Visual checks on sample
recovery assessed. sizes assisted with determining sufficient recoveries.
Measures taken to maximise sample recovery and ensure representative nature Visual checks on sample sizes assisted with determining sufficient recoveries
of the samples. and alert to sample mixing. Minimal water injection was used to lubricate the
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Criteria JORC Code explanation Commentary
samples.
Whether a relationship exists between sample recovery and grade and whether No analysis of recovery versus grade has been undertaken.
sample bias may have occurred due to preferential loss/gain of fine/coarse
material.
Logging Whether core and chip samples have been geologically and geotechnically Systematic geological logging was undertaken. Data collected included:
logged to a level of detail to support appropriate Mineral Resource estimation,  Nature and extent of lithologies
mining studies and metallurgical studies.  Relationship between lithologies
 Amount and mode of occurrence of any visible ore minerals
 Magnetic susceptibility recorded at 1m intervals in samples
No geotechnical logging is undertaken as all prospects are considered
exploration targets.
Whether logging is qualitative or quantitative in nature. Core (or costean, Logging was qualitative on fine sample chips.
channel, etc) photography.
The total length and percentage of the relevant intersections logged. All samples were geologically logged.
Sub-sampling If core, whether cut or sawn and whether quarter, half or all core taken. N/A
techniques and
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled All samples were representatively selected using a PVC spear. Samples were
sample
wet or dry. mostly dry.
preparation
For all sample types, the nature, quality and appropriateness of the sample Samples were dried crushed and pulverised to 85% passing 75 microns, then
preparation technique. homogenized. This is considered appropriate to blend the material prior to
laboratory analysis.
Quality control procedures adopted for all sub-sampling stages to maximise One Certified Standard Reference Material sample was inserted at least every 40
representivity of samples. samples to assess the accuracy and reproducibility of results. The results of the
standards are to be within ±10% variance from known certified result. ALS
conducts internal check samples. These are checked by Clancy employees.
Assay grades are compared with mineralogy logging estimates.
Measures taken to ensure that the sampling is representative of the in situ Representative composite samples were taken for down hole intervals of 3m.
material collected, including for instance results for field duplicate/second-half This is considered representative of the in situ material. The sample is crushed
sampling. and pulverised to 85% passing 75 microns and then homogenized. This is
considered appropriate for the sample material.
Whether sample sizes are appropriate to the grain size of the material being Sample sizes are considered appropriate to the grain sizes of the minerals
sampled. encountered.
Quality of The nature, quality and appropriateness of the assaying and laboratory Standard assay procedures performed by a reputable assay lab, (ALS Group),
assay data and procedures used and whether the technique is considered partial or total. were undertaken. Gold assays are initially by 50g fire assay with AAS finish,
laboratory tests (method Au-AA22). For samples with a gold value greater than 1ppm method
AU-AA26 is employed. Method ME-MS61 utilizes a near total four acid digest for
a further 48 element suite. Ore grade Ag and base metals are analysed using
method ME-OG46.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the KT10 magnetic susceptibility meter is used for susceptibility measurements in 3
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Criteria JORC Code explanation Commentary
parameters used in determining the analysis including instrument make and second readings.
model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks, duplicates, Certified reference material or blanks are inserted at least every 40 samples.
external laboratory checks) and whether acceptable levels of accuracy (ie lack of Standards are purchased from Certified Reference Material manufacture
bias) and precision have been established. companies: Ore Research and Exploration, and Geostats Pty Ltd. Standards
were purchased in foil lined packets of between 60g and 100g. The standard
names on the foil packages were erased before going into the pre numbered
sample bag and the standards are submitted to the lab blind.
Verification of The verification of significant intersections by either independent or alternative The raw assay data forming significant intercepts are examined by at least two
sampling and company personnel. company personnel. Intercepts are calculated via a database query method.
assaying
The use of twinned holes. Twinned holes have not been used since this work is intended to test areas not
previously explored.
Documentation of primary data, data entry procedures, data verification, data Drill hole data including meta data, orientation methods, lithological, mineral,
storage (physical and electronic) protocols. sampling and magnetic susceptibility is collected and entered directly into an
excel spread sheet using drop down codes. When complete the spreadsheet is
emailed to the geological database administrator, the data is validated and
uploaded into an SQL database.
Assay data is provided by ALS via electronic spreadsheet. The data is validated
using the results received from the known certified reference material. Using an
SQL based query the assay data is merged into the database. Hard copies of the
assay certificates are stored with drill hole data.
Discuss any adjustment to assay data. Assay data is not adjusted.
Location of Accuracy and quality of surveys used to locate drill holes (collar and down-hole Drill hole collars are located using hand held GPS to ±5m.
data points surveys), trenches, mine workings and other locations used in Mineral Resource
estimation.
Specification of the grid system used. All coordinates are based on Map Grid of Australia 1994 Zone 55.
Quality and adequacy of topographic control. Topographic control is maintained by use of State government datasets.
Data spacing Data spacing for reporting of Exploration Results. Drill results are generally widely spaced in the nature of greenfields exploration.
and distribution
Whether the data spacing and distribution is sufficient to establish the degree of The mineralized areas are yet to demonstrate sufficient grade or continuity to
geological and grade continuity appropriate for the Mineral Resource and Ore support the definition of a Mineral Resource and the classifications applied under
Reserve estimation procedure(s) and classifications applied. the 2012 JORC code.
Whether sample compositing has been applied. Sample compositing is not applied.
Orientation of Whether the orientation of sampling achieves unbiased sampling of possible Where known, drilling is generally orientated to cross the geological trends at
data in relation structures and the extent to which this is known, considering the deposit type. high angles to strike.
to geological
structure If the relationship between the drilling orientation and the orientation of key No sample bias due to drilling orientation is known.
mineralised structures is considered to have introduced a sampling bias, this
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Criteria JORC Code explanation Commentary
should be assessed and reported if material.
Sample The measures taken to ensure sample security. Chain of custody is managed by Clancy. Samples are placed in tied calico bags
security with sample numbers that provide no information on the location of the sample.
Samples are delivered by Clancy personnel to the assay lab.
Audits or The results of any audits or reviews of sampling techniques and data. No audits or reviews have been conducted at this stage.
reviews
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Section 2 Reporting of Exploration Results

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Criteria JORC Code explanation Commentary
Mineral Type, reference name/number, location and ownership including agreements or See Clancy tenement listing section in main body of announcement.
tenement and material issues with third parties such as joint ventures, partnerships, overriding
land tenure royalties, native title interests, historical sites, wilderness or national park and
status environmental settings.
The security of the tenure held at the time of reporting along with any known
impediments to obtaining a licence to operate in the area.
Exploration Acknowledgment and appraisal of exploration by other parties. At Genaren, previous work was completed by Geopeko and North Ltd.
done by other
parties
Geology Deposit type, geological setting and style of mineralisation. The targets are Ordovician porphyry Cu-Au deposits in the Macquarie Arc and
post-Ordovician gold-base metal deposits along faults.
Drill hole A summary of all information material to the understanding of the exploration See tables 1 and 2 in main body of announcement.
Information results including a tabulation of the following information for all Material drill
holes:
 easting and northing of the drill hole collar
 elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collar
 dip and azimuth of the hole
 down hole length and interception depth
 hole length.
If the exclusion of this information is justified on the basis that the information is All holes are reported.
not Material and this exclusion does not detract from the understanding of the
report, the Competent Person should clearly explain why this is the case.
Data In reporting Exploration Results, weighting averaging techniques, maximum All reported assays have been length-weighted. All intervals are calculated with a
aggregation and/or minimum grade truncations (eg cutting of high grades) and cut-off grades 0.1 g/t Au and 0.1% Cu cut-off. No upper cut-offs have been applied.
methods are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results and Intercepts are length-weighted with no cutting of grades. This may lead to
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Criteria JORC Code explanation Commentary
longer lengths of low grade results, the procedure used for such aggregation elevation of intercept grades due to the presence of a narrow interval of high
should be stated and some typical examples of such aggregations should be grade material. Such high grade zones are reported as included intercepts inside
shown in detail. the broader intercept.
The assumptions used for any reporting of metal equivalent values should be No metal equivalences quoted.
clearly stated.
Relationship These relationships are particularly important in the reporting of Exploration Where possible orientated drill core used to allow determination of orientation of
between Results. structures and mineralisation.
mineralisation
widths and If the geometry of the mineralisation with respect to the drill hole angle is known, Only preliminary information is currently available due to the lack of drill density.
its nature should be reported.
intercept
lengths
If it is not known and only the down hole lengths are reported, there should be a See table in body of report.
clear statement to this effect (eg ‘down hole length, true width not known’).
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should See figures in body of report.
be included for any significant discovery being reported These should include,
but not be limited to a plan view of drill hole collar locations and appropriate
sectional views.
Balanced Where comprehensive reporting of all Exploration Results is not practicable, See table in body of report.
reporting representative reporting of both low and high grades and/or widths should be
practiced to avoid misleading reporting of Exploration Results.
Other Other exploration data, if meaningful and material, should be reported including See table in body of report.
substantive (but not limited to): geological observations; geophysical survey results;
exploration geochemical survey results; bulk samples – size and method of treatment;
data metallurgical test results; bulk density, groundwater, geotechnical and rock
characteristics; potential deleterious or contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral extensions or See body of report.
depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main See figures in body of report.
geological interpretations and future drilling areas, provided this information is not
commercially sensitive.
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Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

CLANCY EXPLORATION LIMITED

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ABN Quarter ended (“current quarter”)
65 105 578 756 30 June 2014
Consolidated statement of cash flows
Current quarter Year to date
Cash flows related to operating activities $A’000 (6 months)
$A’000
1.1 Receipts from product sales and related 99 133
debtors
1.2 Payments for (a) exploration & evaluation (315) (778)
(b) development
(c) production
(189) (391)
(d) administration
1.3 Dividends received
1.4 Interest and other items of a similar nature
received 12 21
1.5 Interest and other costs of finance paid
1.6 Income taxes (paid)/refunded
1.7 Other
Cash calls received from JV partners 408 708
Net Operating Cash Flows 15 (307)
Cash flows related to investing activities
1.8 Payment for purchases of: (a) prospects
(b) equity investments
(c) other fixed assets
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)
Costs associated with ABM Acquisition - (104)
-
Exercise fee paid to ABM (150)
-
Net investing cash flows (254)
1.13 Total operating and investing cash flows
(carried forward) 15 (561)
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• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

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1.13 Total operating and investing cash flows (brought
forward) 15 (561)
Cash flows related to financing activities
1.14 Proceeds from issues of shares,options, etc.
1.15 Proceeds from sale of forfeited shares - 5
1.16 Proceeds from borrowings
1.17 Repayment of borrowings
1.18 Dividends paid
1.19 Other
Net financing cash flows - 5
Net increase (decrease) in cash held 15 (556)
1.20 Cash at beginning of quarter/year to date 1,280 1,851
1.21 Exchange rate adjustments to item 1.20
1.22 Cash at end of quarter
1,295 1,295
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 86
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 salaries, 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
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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 - -
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• See chapter 19 for defined terms.

Appendix 5B Page 2

17/12/2010

Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

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$A’000
4.1 Exploration and evaluation 1,160
(includes approximately $770,000
which is to be funded by JV partners
pursuant to cash calls during the
quarter )
4.2 Development -
4.3 Production -
4.4 Administration 190
Total 1,350
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Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. 5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details) Total: cash at end of quarter(item 1.22) *Excludes $300,000 of restricted cash.	Current quarter $A’000 1,045 250 - - 1,295*	Previous quarter $A’000 1,030 250 - - 1,280*

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 EL 6784 Currumburrama EL 30422 Lennon South EL 30445 Stapletons	Nature of interest (note (2))	Interest at beginning of quarter 100% (Mitsubishi Materials Corp earning 49%) Nil Nil	Interest at end of quarter Nil 100% 100%

• See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

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.

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Total number Number quoted Issue price per Amount paid up per
security (see note security (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 206,254,392 206,254,392
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
(description and
conversion
factor)
7.8 Issued during
quarter
7.9 Exercised during
quarter
7.10 Expired during
quarter
7.11 Debentures
(totals only)
7.12 Unsecured
notes (totals
only)
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• See chapter 19 for defined terms.

Appendix 5B Page 4

17/12/2010

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 5).

• 2 This statement does / ~~does not~~ * (delete one) give a true and fair view of the matters disclosed.

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Sign here: ............................................................ Date: 29 July 2014 ( ~~Director~~ /Company secretary)

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 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting 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.

17/12/2010 Appendix 5B Page 5