RAREX LIMITED — Interim / Quarterly Report 2017

Jul 30, 2017

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Clancy Exploration Limited Phone: (08) 6143 6720
Suite 23, 513 Hay Street Fax: (08) 9388 8824
Subiaco, WA 6008 www.clancyexploration.com
Australia info@clancyexploration.com
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QUARTERLY ACTIVITIES and CASHFLOW REPORT For the period ending 30 June 2017

The Board of Clancy Exploration Limited (“Clancy” or the “Company”) is pleased to release its Quarterly Activities report for the period ending 30 June 2017.

Summary

• Clancy acquired the high grade Leogang Cobalt‐Nickel Sulphide Project in Austria.

• Following completion of due diligence, Cadence Minerals acquired a 10% interest in Leogang with the right to acquire a further 10%.

• The Company has subsequently requested voluntary suspension of trading in its securities pending a corporate and licensing update in respect of the Leogang Project. The Company expects to be in a position to provide further disclosure within 2 weeks.

• Clancy has cash on hand at the end of the quarter of $1.4m.

Austrian Project

Acquisition

During the quarter, Clancy was granted exploration licences covering approximately 80km[2] in the Salzburg and Kitzbuhel regions of western Austria. The licences incorporate the historical and highly prospective Leogang Cobalt‐Nickel Sulphide Project (the Project).

This acquisition delivers a significant land position (80km[2] ) in the prospective dolomite belt in western Austria, with exploration targets generated based on several historical cobalt‐nickel mines.

• Nickel and cobalt were mined in the region from the mid‐16[th] century when Leogang was famed for the richness of its cobalt and nickel mineralisation;

• Mining peaked in the late 1700’s but the market fell away after the Napoleonic Wars;

• Licences have been targeted to cover each historical mine and further extensions of the host dolomitic mineralisation.

The Leogang Project is located within the mining friendly but environmentally sensitive jurisdiction of Austria in central Europe. Suitable infrastructure is widespread and particularly well established. These polymetallic mines were operated mainly in the 16th and 17th centuries, and sporadically until the first half of the 20th century. The mines consequently lack documentation on the historical production and grades.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

Clancy has been granted exploration licences (Schurfberechtigung) over the relevant area. Exploration licences grant the holder the exclusive licence to explore and are valid for five calendar years (including the year of application) and can be extended for a further five years if the exploration program has been carried out according to a program approved by the mining authorities. Work programs must be approved by the mining regulator and other relevant departments as well as landholders. The right to conduct mining operations are not included in an exploration licence. For these activities, a mining licence (“Bergwerksberechtigung”) must be obtained which is a separate legal process.

The initial exploration program will comprise an airborne geophysical survey, detailed geological mapping and geochemical sampling: all will have minimal impact on the local community and involve no ground disturbance.

The Leogang Project is located in the community of Hutten, some 75 km south of Salzburg.

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Figure 1: Regional Location Plan of Leogang Project

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

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Figure 2: Location Plan Leogang Project (Gauss‐Kruger Projection)

Cadence Minerals Plc Transaction

Clancy agreed to sell to Cadence Minerals Plc (AIM/NEX: KDNC; OTC: KDNCY), subject to a 14‐day due diligence period, 10% of the legal and beneficial interest in the Project Tenements (10% Acquisition). Cadence has elected to proceed with the exercise of the option for the 10% Acquisition. Under the terms of the agreement, Clancy will be issued 73,750,000 Cadence ordinary shares, valued at AUD$464,000 based on the last closing price of Cadence shares on 30 June 2017.

Along with an initial site visit, Cadence engaged an independent technical consulting firm to review the exploration potential of the area.

Based upon this initial review, Cadence advised that it believes that the area has good exploration potential in terms of depth extensions and strike extensions of the known historical mines and further potential in the wider license area which covers favourable outcropping geology, notably, the dolomite‐schist contact, which hosts the mineralisation in the historic mines.

Having completed the initial 10% Acquisition, Clancy has granted Cadence an exclusive option period of 6 months to acquire a further 10% interest in the Project. To exercise this option Cadence must pay Clancy $1,000,000 in cash, Cadence shares or a combination thereof at the election of Cadence.

The Way Forward

Clancy and Cadence will continue to prepare work programs and budgets for the Leogang area which will attempt to identify exploration targets within the license areas. An independent technical consultant is working to complete a review of the project mineralogy and metallurgy.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

NSW Projects

Orange East EL8442

(NSW, Clancy 100%; Alkane Resources Ltd, earning 60% and funding 100%)

Orange East is located 15km ESE of the city of Orange and contains several target styles including Ordovician porphyry copper‐gold and post‐Ordovician copper‐gold targets. Numerous old workings occur in the area and many are focused along the regional scale Godolphin Fault. Previous work by Clancy defined a soil anomaly at the Gunnarbee prospect, which has similar geochemical, structural and geological characteristics as the nearby McPhillamys gold deposit, 15km along strike to the south (Figure 1).

Alkane Resources Ltd (Alkane; ASX: ALK) can earn a 60% interest in the Orange East project by spending $500,000 on exploration over three years. Alkane can earn a further 20% interest (80% total) by spending an additional $500,000 on exploration over the subsequent three years. Alkane is managing the exploration program. The project was inactive during the quarter.

Trundle EL8222

(NSW, Clancy 100%)

The Trundle project consists of a single exploration licence EL8222 located 25km west of the Northparkes copper‐gold mine. There is extensive evidence of porphyry and skarn‐style copper‐gold mineralisation similar to the Cadia Valley and Northparkes. A 100% renewal of the exploration licence was granted by the Department of Industry, Resources and Energy during the quarter. Clancy is seeking to either divest or find a partner for the Trundle project.

Condobolin EL7748

(NSW, Clancy 100%)

Condobolin EL7748 is in the central west of NSW immediately north of the Condobolin township. Condobolin has a substantial mining history, predominantly as a base metals field (lead, zinc and copper), as well as gold. The mineralisation is hosted in epithermal‐style quartz veins within the metasedimentary units of the Ordovician Girilambone Group, associated with pyrite, sphalerite, galena, chalcopyrite, arsenopyrite and free gold. Clancy is seeking to either divest or find a partner for the Condobolin project.

Fairholme EL6552 & EL6915

(NSW, Clancy 100%)

The Fairholme project is located in the Fairholme Igneous Complex 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 and the Marsden porphyry copper‐gold deposit (Evolution). Clancy is seeking to either divest or find a partner for the Fairholme project.

NSW Royalty Projects

(NSW, Clancy NSR)

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

Following the sale of joint venture interests to Gold Fields in February 2013, Clancy held 2.5% Net Smelter Return (NSR) royalties on Jemalong, Cowal East (Wyrra and Koobah), Myall, Parkes East, Moorefield and Wellington North, subject to the tenement holder having the right at any time to purchase the NSR’s for A$20 million each (Buyout Right). NSR’s on the Koobah and Jemalong projects were extinguished when Clancy regained the project areas in 2014 and 2015, respectively, following the withdrawal of Gold Fields.

During 2016, Clancy agreed with the current tenement holder of Myall, Parkes East, Moorefield and Wellington North (Modeling Resources Pty Limited, a wholly owned subsidiary of ASX‐listed Magmatic Resources (ASX: MAG)) to reduce the NSR from 2.5% to 2% in return for removing the Buyout Right, but only in respect of any of the relevant tenements which Modeling Resources is in turn able to joint venture to a specified incoming party.

The Company has been notified that JOGMEC has joint ventured into the Parkes East project. Therefore, the NSR on Parkes East has been reduced to 2% and the buyout right has been removed.

The Company has not been notified that the specified incoming party has joint ventured into the Myall, Moorefield or Wellington North projects.

Clancy is encouraged by the results of Magmatic Resources recent RC drilling program at its Carlisle Reefs project located on the Moorefield project, as reported by Magmatic Resources in July. Clancy retains a 2.5% NSR, subject to a $20m buyout, on Moorefield.

The NSR over the Wyrra project remains in place and is unaffected by the above changes.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

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Figure 1 – Map showing location of Clancy projects in central NSW.

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

Cash Position

As at 30 June 2017, the Company had cash on hand of $1,463,000. For further details, refer to the Appendix 5B.

Please direct enquiries to:

Evan Cranston

Non‐Executive Director Phone: +61 8 6143 6720 Email: info@clancyexploration.com Web: www.clancyexploration.com

About Clancy Exploration

Clancy Exploration (ASX: CLY) is an Australian‐based minerals explorer. Clancy recently acquired the Leogang Cobalt‐Nickel‐Copper Project in Austria. The Leogang Project hosts high grade historical cobalt and nickel mines that have to date had very little modern exploration. The Company’s Australian portfolio consists of copper‐gold projects in the Lachlan Fold Belt of NSW where it has six wholly owned and managed projects and one joint venture project with Alkane Resources Ltd (ASX: ALK). The Company also retains NSR royalty interests over six licences in NSW. Details of Clancy’s projects can be found at the Company's website: www.clancyexploration.com

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

Austrian Tenement Schedule – Leogang and Kitzbuhel

Designation	Reference Meridian	Coordinates in Metres	Coordinates in Metres	Cadastral Municipalities	Cadastral Municipalities
		Y	X	Centre in the Cadastral Municipality	Other Cadastral
					Municipality
					Concerned
49/17/S (CLY- LEOG-001)	M 31	-47.949,45	5.255.194,95	Schwarzleo	Sonnberg
50/17/S (CLY- LEOG-002)	M 31	-48.648,10	5.255.198,14	Schwarzleo
51/17/S (CLY- LEOG-003)	M 31	-48.300,37	5.255.801,08	Schwarzleo
52/17/S (CLY- LEOG-004)	M 31	-48.297,18	5.254.598,39	Schwarzleo
53/17/S (CLY- LEOG-005)	M 31	-48.999,02	5.254.598,39	Schwarzleo
54/17/S (CLY- LEOG-006)	M 31	-48.644,91	5.253.995,45	Schwarzleo
55/17/S (CLY- LEOG-007)	M 31	-49.349,93	5.253.995,45	Schwarzleo
56/17/S (CLY- LEOG-008)	M 31	-47.598,54	5.255.801,08	Schwarzleo	Sonnberg, Pirzbichl
57/17/S (CLY- LEOG-009)	M 31	-48.999,02	5.255.797,89	Schwarzleo	Grießen
58/17/S (CLY- LEOG-010)	M 31	-49.698,06	5.255.794,71	Schwarzleo	Grießen
59/17/S (CLY- LEOG-011)	M 31	-49.348,40	5.255.197,62	Schwarzleo
60/17/S (CLY- LEOG-012)	M 31	-49.693,80	5.254.599,97	Schwarzleo
61/17/S (CLY- LEOG-013)	M 31	-50.046,95	5.255.201,50	Schwarzleo	Grießen
62/17/S (CLY- LEOG-014)	M 31	-50.050,42	5.254.001,55	Schwarzleo
63/17/S (CLY- LEOG-015)	M 31	-50.393,99	5.254.596,68	Schwarzleo
64/17/S (CLY- LEOG-016)	M 31	-50.400,13	5.255.799,19	Schwarzleo	Grießen
65/17/S (CLY- LEOG-017)	M 31	-50.755,97	5.255.191,80	Schwarzleo	Grießen
66/17/S (CLY- LEOG-018)	M 31	-50.749,84	5.254.001,56	Schwarzleo
67/17/S (CLY- LEOG-019)	M 31	-51.093,42	5.254.596,68	Schwarzleo
68/17/S (CLY- LEOG-020)	M 31	-51.093,42	5.255.793,06	Grießen
69/17/S (CLY- LEOG-021)	M 31	-51.449,26	5.254.001,56	Schwarzleo
70/17/S (CLY- LEOG-022)	M 31	-51.449,26	5.255.191,79	Schwarzleo	Grießen
71/17/S (CLY- LEOG-023)	M 31	-51.798,97	5.255.793,05	Grießen
72/17/S (CLY- LEOG-024)	M 31	-51.798,98	5.254.596,67	Schwarzleo
73/17/S (CLY- LEOG-025)	M 31	-52.142,55	5.255.197,93	Schwarzleo	Grießen

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

74/17/S (CLY- LEOG-026)	M 31	-52.498,40	5.255.799,19	Grießen	Hoch filzen
75/17/S (CLY- LEOG-027)	M 31	-51.099,55	5.253.400,30	Schwarzleo
76/17/S (CLY- LEOG-028)	M 31	-51.792,84	5.253.394,16	Schwarzleo
77/17/S (CLY- LEOG-029)	M 31	-52.142,55	5.254.001,56	Schwarzleo
78/17/S (CLY- LEOG-030)	M 31	-52.492,26	5.254.596,68	Schwarzleo
79/17/S (CLY- LEOG-031)	M 31	-52.492,26	5.253.394,16	Schwarzleo	Saalbach
80/17/S (CLY- LEOG-032)	M 31	-52.841,97	5.254.001,55	Schwarzleo	Saalbach
81/17/S (CLY- LEOG-033)	M 31	-52.848,10	5.255.197,93	Schwarzleo	Grießen, Hoch filzen, Fieberbrunn
82/17/S (CLY- LEOG-034)	M 31	-53.203,95	5.253.400,29	Schwarzleo	Saalbach
83/17/S (CLY- LEOG-035)	M 31	-53.191,68	5.254.596,68	Schwarzleo	Fieberbrunn
84/17/S (CLY- LEOG-036)	M 31	-53.547,53	5.254.001,56	Schwarzleo	Fieberbrunn, Saalbach
85/17/S (CLY- LEOG-037)	M 31	-53.541,39	5.255.191,80	Fieberbrunn
86/17/S (CLY- LEOG-038)	M 31	-53.205,07	5.255.798,61	Fieberbrunn	Hoch filzen
87/17/S (CLY- LEOG-039)	M 31	-53.900,65	5.254.602,23	Fieberbrunn
88/17/S (CLY- LEOG-040)	M 31	-54.253,07	5.255.195,78	Fieberbrunn
89/17/S (CLY- LEOG-041)	M 31	-53.890,53	5.255.792,75	Fieberbrunn
90/17/S (CLY- LEOG-042)	M 31	-53.897,23	5.253.400,97	Fieberbrunn	Saalbach
91/17/S (CLY- LEOG-043)	M 31	-54.252,31	5.253.997,24	Fieberbrunn
92/17/S (CLY- LEOG-044)	M 31	-54.593,99	5.254.600,21	Fieberbrunn
93/17/S (CLY- LEOG-045)	M 31	-54.593,99	5.255.799,44	Fieberbrunn
94/17/S (CLY- LEOG-046)	M 31	-54.942,37	5.253.990,54	Fieberbrunn
95/17/S (CLY- LEOG-047)	M 31	-54.600,69	5.253.400,97	Fieberbrunn	Saalbach
96/17/S (CLY- LEOG-048)	M 31	-54.949,08	5.255.203,18	Fieberbrunn
97/17/S (CLY- LEOG-049)	M 31	-55.290,75	5.254.600,21	Fieberbrunn
98/17/S (CLY- LEOG-050)	M 31	-55.290,76	5.255.799,44	Fieberbrunn
99/17/S (CLY- LEOG-051)	M 31	-55.297,46	5.253.400,97	Fieberbrunn	Saalbach
100/17/S (CLY- LEOG-052)	M 31	-55.652,54	5.253.997,24	Fieberbrunn
101/17/S (CLY- LEOG-053)	M 31	-55.652,54	5.255.196,48	Fieberbrunn
102/17/S (CLY- LEOG-054)	M 31	-55.994,22	5.254.600,21	Fieberbrunn
103/17/S (CLY- LEOG-055)	M 31	-56.000,92	5.253.400,97	Fieberbrunn
104/17/S (CLY- LEOG-056)	M 31	-56.000,92	5.255.799,45	Fieberbrunn
105/17/S (CLY- LEOG-057)	M 31	-56.349,30	5.255.203,18	Fieberbrunn
106/17/S (CLY- LEOG-058)	M 31	-55.659,24	5.256.402,41	Fieberbrunn

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

107/17/S (CLY- LEOG-059)	M 31	-54.949,07	5.256.395,71	Fieberbrunn
108/17/S (CLY- LEOG-060)	M 31	-56.342,60	5.256.395,71	Fieberbrunn
109/17/S (CLY- LEOG-061)	M 31	-56.690,98	5.255.792,75	Fieberbrunn
110/17/S (CLY- LEOG-062)	M 31	-56.697,68	5.254.600,21	Fieberbrunn
111/17/S (CLY- LEOG-063)	M 31	-57.052,77	5.256.395,72	Fieberbrunn
112/17/S (CLY- LEOG-064)	M 31	-57.052,76	5.255.209,88	Fieberbrunn
113/17/S (CLY- LEOG-065)	M 31	-56.349,30	5.253.997,24	Fieberbrunn
114/17/S (CLY- LEOG-066)	M 31	-57.401,15	5.255.799,44	Fieberbrunn
115/17/S (CLY- LEOG-067)	M 31	-57.401,15	5.254.606,91	Fieberbrunn
116/17/S (CLY- LEOG-068)	M 31	-56.697,68	5.256.998,68	Fieberbrunn
117/17/S (CLY- LEOG-069)	M 31	-57.749,53	5.256.395,71	Fieberbrunn
118/17/S (CLY- LEOG-070)	M 31	-57.749,53	5.255.203,18	Fieberbrunn
119/17/S (CLY- LEOG-071)	M 31	-57.052,76	5.253.997,24	Fieberbrunn
120/17/S (CLY- LEOG-072)	M 31	-57.401,14	5.256.998,68	Fieberbrunn
121/17/S (CLY- LEOG-073)	M 31	-58.097,91	5.256.998,68	Fieberbrunn
122/17/S (CLY- LEOG-074)	M 31	-58.459,69	5.256.395,71	Fieberbrunn
123/17/S (CLY- LEOG-075)	M 31	-58.091,21	5.255.799,44	Fieberbrunn
124/17/S (CLY- LEOG-076)	M 31	-58.452,99	5.255.196,47	Fieberbrunn
125/17/S (CLY- LEOG-077)	M 31	-58.801,37	5.255.799,45	Fieberbrunn
126/17/S (CLY- LEOG-078)	M 31	-58.097,91	5.254.600,20	Fieberbrunn
127/17/S (CLY- LEOG-079)	M 31	-59.143,06	5.255.203,17	Fieberbrunn
128/17/S (CLY- LEOG-080)	M 31	-56.697,68	5.253.400,97	Fieberbrunn
129/17/S (CLY- LEOG-081)	M 31	-57.394,45	5.253.400,97	Fieberbrunn
130/17/S (CLY- LEOG-082)	M 31	-57.749,52	5.253.997,24	Fieberbrunn
131/17/S (CLY- LEOG-083)	M 31	-58.091,21	5.253.400,97	Fieberbrunn
132/17/S (CLY- LEOG-084)	M 31	-58.446,29	5.253.997,24	Fieberbrunn
133/17/S (CLY- LEOG-085)	M 31	-58.801,37	5.254.593,51	Fieberbrunn
134/17/S (CLY- LEOG-086)	M 31	-59.149,75	5.253.997,24	Fieberbrunn
135/17/S (CLY- LEOG-087)	M 31	-59.498,13	5.254.600,21	Fieberbrunn
136/17/S (CLY- LEOG-088)	M 31	-58.801,37	5.253.400,97	Fieberbrunn
137/17/S (CLY- LEOG-089)	M 31	-59.498,13	5.253.400,97	Fieberbrunn	Aurach
138/17/S (CLY- LEOG-090)	M 31	-59.853,22	5.253.997,24	Fieberbrunn	Aurach
139/17/S (CLY- LEOG-091)	M 31	-59.853,22	5.255.203,17	Fieberbrunn

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

140/17/S (CLY- LEOG-092)	M 31	-59.498,14	5.255.799,44	Fieberbrunn
141/17/S (CLY- LEOG-093)	M 31	-55.653,82	5.252.803,35	Fieberbrunn	Saalbach
142/17/S (CLY- LEOG-094)	M 31	-56.338,36	5.252.803,34	Fieberbrunn
143/17/S (CLY- LEOG-095)	M 31	-52.843,60	5.256.382,17	Hochfilzen	Grießen
144/17/S (CLY- LEOG-096)	M 31	-52.145,01	5.256.394,15	Hochfilzen	Grießen
145/17/S (CLY- LEOG-097)	M 31	-54.947,60	5.252.798,07	Fieberbrunn	Saalbach
146/17/S (CLY- LEOG-098)	M 31	-56.000,44	5.257.001,49	Fieberbrunn
147/17/S (CLY- LEOG-099)	M 31	-58.450,18	5.257.599,58	Fieberbrunn
148/17/S (CLY- LEOG-1OO)	M 31	-57.749,83	5.257.599,58	Fieberbrunn

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Clancy Exploration Limited Phone: (08) 6143 6720
Suite 23, 513 Hay Street Fax: (08) 9388 8824
Subiaco, WA 6008 www.clancyexploration.com
Australia info@clancyexploration.com
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Designation	Reference	Coordinates in Metres	Coordinates in Metres	Cadastral Municipalities	Cadastral Municipalities
	Meridian	Y	X	Centre in the	Other Cadastral
				Cadastral Municipality	Municipality
					Concerned
38/17/T (CLY- KITZ-001)	M31	-58.798,58	5.257.006,95	Fieberbrunn
39/17/T (CLY- KITZ -002)	M31	-59.153,61	5.256.407,82	Fieberbrunn
40/17/T (CLY- KITZ -003)	M31	-59.153,61	5.257.598,68	Fieberbrunn
41/17/T (CLY- KITZ -004)	M31	-59.501,26	5.256.999,55	Fieberbrunn
42/17/T (CLY- KITZ-005)	M31	-59.501,26	5.258.197,80	Fieberbrunn
43/17/T (CLY- KITZ-006)	M31	-59.856,29	5.257.598,68	Fieberbrunn
44/17/T (CLY- KITZ -007)	M31	-59.856,29	5.258.811,73	Fieberbrunn
45/17/T (CLY- KITZ -008)	M31	-59.161,01	5.258.804,33	Fieberbrunn
46/17/T (CLY- KITZ -009)	M31	-60.203,94	5.258.197,80	Fieberbrunn
47/17/T (CLY- KITZ-010)	M31	-60.211,33	5.256.999,55	Fieberbrunn
48/17/T (CLY- KITZ -011)	M31	-59.863,69	5.256.407,82	Fieberbrunn
49/17/T (CLY- KITZ-012)	M31	-60.551,58	5.257.598,68	Fieberbrunn
50/17/T (CLY- KITZ-013)	M31	-60.551,58	5.258.804,32	Fieberbrunn
51/17/T (CLY- KITZ-014)	M31	-60.203,94	5.259.403,46	Fieberbrunn
52/17/T (CLY- KITZ -015)	M31	-59.501,26	5.259.403,46	Fieberbrunn
53/17/T (CLY- KITZ -016)	M31	-60.914,02	5.258.197,81	Fieberbrunn
54/17/T (CLY- KITZ -017)	M31	-61.254,26	5.258.804,32	Fieberbrunn
55/17/T (CLY- KITZ -018)	M31	-60.914,02	5.259.403,45	Fieberbrunn
56/17/T (CLY- KITZ-019)	M31	-60.194,72	5.255.800,21	Fieberbrunn
57/17/T (CLY- KITZ-020)	M31	-60.553,37	5.255.200,49	Fieberbrunn
58/17/T (CLY- KITZ-021)	M31	-60.553,38	5.256.399,93	Fieberbrunn
59/17/T (CLY- KITZ-022)	M31	-60.894,40	5.255.800,22	Fieberbrunn
60/17/T (CLY- KZTZ-023)	M31	-60.194,72	5.254.600,76	Fieberbrunn	Aurach
61/17/T (CLY- KITZ-024)	M31	-60.900,28	5.254.600,77	Fieberbrunn	Aurach

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12
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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

62/17/T (CLY- KITZ-025)	M 31	-61.247,17	5.255.200,49	Fieberbrunn	Aurach
63/17/T (CLY- KITZ-026)	M 31	-60.553,38	5.254.001,04	Fieberbrunn	Aurach
64/17/T (CLY- KITZ-027)	M 31	-61.599,95	5.254.594,89	Fieberbrunn	Aurach
65/17/T (CLY- KITZ-028)	M 31	-61.594,07	5.255.800,21	Fieberbrunn
66/17/T (CLY- KITZ-029)	M 31	-61.247,17	5.256.394,06	Fieberbrunn
67/17/T (CLY- KITZ-030)	M 31	-61.952,73	5.256.399,93	Fieberbrunn
68/17/T (CLY- KITZ-031)	M 31	-61.946,85	5.255.200,49	Fieberbrunn	Aurach
69/17/T (CLY- KITZ-032)	M 31	-62.299,63	5.255.800,21	Fieberbrunn	Aurach
70/17/T (CLY- KITZ-033)	M 31	-62.299,62	5.254.600,76	Aurach
71/17/T (CLY- KITZ-034)	M 31	-61.594,07	5.258.199,11	Fieberbrunn
72/17/T (CLY- KITZ-035)	M 31	-61.594,07	5.259.392,67	Fieberbrunn
73/17/T (CLY- KITZ-036)	M 31	-61.946,85	5.258.798,83	Fieberbrunn
74/17/T (CLY- KITZ-037)	M 31	-61.247,17	5.257.593,50	Fieberbrunn
75/17/T (CLY- KITZ-038)	M 31	-60.900,27	5.256.999,66	Fieberbrunn
76/17/T (CLY- KITZ-039)	M 31	-61.599,95	5.256.999,66	Fieberbrunn
77/17/T (CLY- KITZ-040)	M 31	-61.952,73	5.257.593,50	Fieberbrunn
78/17/T (CLY- KITZ-041)	M 31	-62.299,62	5.256.999,66	Kitzbühel Land	Fieberbrunn
79/17/T (CLY- KITZ-042)	M 31	-62.652,41	5.257.599,38	Kitzbühel Land	Fieberbrunn
80/17/T (CLY- KITZ-043)	M 31	-62.293,75	5.258.199,10	Fieberbrunn
81/17/T (CLY- KITZ-044)	M 31	-62.652,41	5.258.792,95	Fieberbrunn
82/17/T (CLY- KITZ-045)	M 31	-62.299,63	5.259.398,55	Fieberbrunn
83/17/T (CLY- KITZ-046)	M 31	-62.993,42	5.258.199,10	Kitzbühel Land	Fieberbrunn
84/17/T (CLY- KITZ-047)	M 31	-62.999,30	5.256.999,66	Kitzbühel Land
85/17/T (CLY- KITZ-048)	M 31	-63.352,08	5.257.599,38	Kitzbühel Land	Fieberbrunn
86/17/T (CLY- KITZ-049)	M 31	-63.352,08	5.258.798,82	Kitzbühel Land	Fieberbrunn
87/17/T (CLY- KITZ-050)	M 31	-63.005,18	5.259.398,55	Fieberbrunn
88/17/T (CLY- KITZ-051)	M 31	-62.650,00	5.256.400,26	Kitzbühel Land	Fieberbrunn, Aurach
89/17/T (CLY- KITZ-052)	M 31	-62.649,99	5.255.202,51	Aurach
90/17/T (CLY- KITZ-053)	M 31	-63.008,02	5.254.597,13	Aurach
91/17/T (CLY- KITZ-054)	M 31	-63.001,50	5.255.801,38	Kitzbühel Land	Aurach
92/17/T (CLY- KITZ-055)	M 31	-63.340,00	5.255.196,00	Aurach
93/17/T (CLY- KITZ-056)	M 31	-63.691,52	5.254.597,13	Aurach
94/17/T (CLY- KITZ-057)	M 31	-64.049,54	5.255.202,51	Kitzbühel Land	Aurach

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

95/17/T (CLY- KITZ-058)	M 31	-64.401,05	5.254.597,13	Aurach
96/17/T (CLY- KITZ-059)	M 31	-64.746,05	5.255.202,51	Kitzbühel Land	Aurach
97/17/T (CLY- KITZ-060)	M 31	-63.691,52	5.255.801,38	Kitzbühel Land	Aurach
98/17/T (CLY- KITZ-061)	M 31	-63.340,00	5.256.393,75	Kitzbühel Land	Aurach
99/17/T (CLY- KITZ-062)	M 31	-64.043,03	5.256.400,26	Kitzbühel Land
100/17/T (CLY- KITZ-063)	M 31	-64.401,05	5.255.801,38	Kitzbühel Land
101/17/T (CLY- KITZ-064)	M 31	-65.097,57	5.255.801,38	Kitzbühel Land	Aurach
102/17/T (CLY- KITZ-065)	M 31	-65.097,56	5.254.597,13	Aurach
103/17/T (CLY- KITZ-066)	M 31	-65.442,57	5.255.196,00	Kitzbühel Land	Aurach
104/17/T (CLY- KITZ-067)	M 31	-64.739,54	5.256.393,75	Kitzbühel Land
105/17/T (CLY- KITZ-068)	M 31	-65.442,57	5.256.400,25	Kitzbühel Land	Aurach
106/17/T (CLY- KITZ-069)	M 31	-65.800,59	5.255.801,38	Kitzbühel Land	Aurach
107/17/T (CLY- KITZ-070)	M 31	-66.145,60	5.256.400,26	Kitzbühel Land
108/17/T (CLY- KITZ-071)	M 31	-63.702,89	5.256.997,52	Kitzbühel Land
109/17/T (CLY- KITZ-072)	M 31	-64.402,07	5.257.002,51	Kitzbühel Land
110/17/T (CLY- KITZ-073)	M 31	-65.106,24	5.256.997,51	Kitzbühel Land
111/17/T (CLY- KITZ-074)	M 31	-64.052,48	5.257.596,81	Kitzbühel Land
112/17/T (CLY- KITZ-075)	M 31	-64.751,66	5.257.596,80	Kitzbühel Land
113/17/T (CLY- KITZ-076)	M 31	-63.702,89	5.258.206,09	Kitzbühel Land
114/17/T (CLY- KITZ-077)	M 31	-64.402,06	5.258.201,09	Kitzbühel Land
115/17/T (CLY- KITZ-078)	M 31	-65.450,83	5.257.596,81	Kitzbühel Land
116/17/T (CLY- KITZ-079)	M 31	-65.101,24	5.258.201,10	Kitzbühel Land
117/17/T (CLY- KITZ-080)	M 31	-64.052,48	5.258.805,38	Kitzbühel Land
118/17/T (CLY- KITZ-081)	M 31	-64.756,65	5.258.800,39	Kitzbühel Land
119/17/T (CLY- KITZ-082)	M 31	-65.450,83	5.258.800,39	St. Johann in Tirol	Kitzbühel Land
120/17/T (CLY- KITZ-083)	M 31	-65.800,42	5.258.201,09	Kitzbühel Land
121/17/T (CLY- KITZ-084)	M 31	-63.698,46	5.259.399,70	Kitzbühel Land	Fieberbrunn
122/17/T (CLY- KITZ-085)	M 31	-64.401,43	5.259.399,70	St. Johann in Tirol	Kitzbühel Land
123/17/T (CLY- KITZ-086)	M 31	-65.100,16	5.259.399,70	St. Johann in Tirol	Kitzbühel Land
124/17/T (CLY- KITZ-087)	M 31	-64.049,95	5.260.001,03	St. Johann in Tirol	Kitzbühel Land, Fieberbrunn
125/17/T (CLY- KITZ-088)	M 31	-64.748,68	5.260.001,03	St. Johann in Tirol
126/17/T (CLY- KITZ-089)	M 31	-65.455,89	5.260.001,03	St. Johann in Tirol

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Clancy Exploration Limited (ASX: CLY)

Quarterly Activities Report for period ending 30 June 2017

127/17/T (CLY- KITZ-090)	M 31	-64.401,43	5.260.606,61	St. Johann in Tirol
128/17/T (CLY- KITZ-091)	M 31	-65.104,40	5.260.602,37	St. Johann in Tirol
129/17/T (CLY- KITZ-092)	M 31	-65.798,89	5.260.606,60	St. Johann in Tirol
130/17/T (CLY- KITZ-093)	M 31	-65.807,36	5.259.399,70	St. Johann in Tirol	Kitzbühel Land
131/17/T (CLY- KITZ-094)	M 31	-65.450,97	5.261.204,52	St. Johann in Tirol
132/17/T (CLY- KITZ-095)	M 31	-66.148,70	5.261.202,29	St. Johann in Tirol
133/17/T (CLY- KITZ-096)	M 31	-66.150,93	5.260.003,62	St. Johann in Tirol
134/17/T (CLY- KITZ-097)	M 31	-66.153,17	5.258.802,72	St. Johann in Tirol	Kitzbühel Land
135/17/T (CLY- KITZ-098)	M 31	-65.801,79	5.257.002,86	Kitzbühel Land
136/17/T (CLY- KITZ-099)	M 31	-66.153,31	5.257.600,01	Kitzbühel Land
137/17/T (CLY- KITZ-100)	M 31	-60.203,85	5.253.403,67	Aurach

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Clancy NSW Tenement Listing

(As at 30 June 2017)

State	Project	Lease No	Status	JV Project	Manager	Clancy interest	Area **(km2) **	Note
NSW	Condobolin	EL7748	Renewal Sought	No	Clancy	100%	89.3
NSW	Genaren	EL7927	Renewed	No	Clancy	100%	46.2
NSW	Cundumbul	EL6661	Renewed	No	Clancy	100%	69.3
NSW	Cundumbul	EL7399	Renewed	No	Clancy	100%	26.0
NSW	Fairholme	EL6552	Renewed	No	Clancy	100%	54.5
NSW	Fairholme	EL6915	Renewed	No	Clancy	100%	114.7
NSW	Orange East	EL8442	Granted	Yes	Alkane	100%	40.2	Alkane earning 60%
NSW	Trundle	EL8222	Renewed	No	Clancy	100%	167.2
NSW	Jemalong	EL8502	Granted	No	Clancy	100%	91.6
NSW	Jemalong	EL8302	Granted	No	Clancy	100%	28.6
NSW	Wyrra	EL6554	Renewal Sought	No	Sandfire Resources	NSR	34.2	2.5% NSR, $20m buyout
NSW	Moorefield	EL7675	Renewed	No	Modeling Resources	NSR	288.5	2.5% NSR, $20m buyout *
NSW	Myall	EL6913	Renewed	No	Modeling Resources	NSR	243.7	2.5% NSR, $20m buyout *
NSW	Parkes East	EL7676	Renewed	No	Modeling Resources	NSR	95.0	2% NSR
NSW	Wellington North	EL6178	Renewed	No	Modeling Resources	NSR	113.0	2.5% NSR, $20m buyout *
NSW	Wellington North	EL7440	Renewed	No	Modeling Resources	NSR	17.4
* Subject to agreed reduction to 2% NSR and elimination of buyout as set out above.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas 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, 01/05/13, 01/09/16

Name of entity

Clancy Exploration limited

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ABN

Quarter ended (“current quarter”)

65 105 578 756 30 June 2017

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(..12..months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) exploration & evaluation	(40)	(288)
	(b) development
	(c) production
	(d) staff costs
	(e) administration and corporate costs	(123)	(483)
1.3	Dividends received (see note 3)
1.4	Interest received	5	22
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Research and development refunds
1.8	Other (provide details if material)
1.9	Net cash from / (used in) operating	(158)	(749)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) property, plant and equipment
	(b) tenements (see item 10)
	(c) investments
	(d) other non-current assets

• See chapter 19 for defined terms 1 September 2016

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(..12..months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) property, plant and equipment	-	5
	(b) tenements (see item 10)
	(c) investments
	(d) other non-current assets
2.3	Cash flows from loans to other entities
2.4	Dividends received (see note 3)
2.5	Other (provide details if material)
2.6	Net cash from / (used in) investing	-	5
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	-	350
3.2	Proceeds from issue of convertible notes
3.3	Proceeds from exercise of share options
3.4	Transaction costs related to issues of	-	(12)
	shares, convertible notes or options
3.5	Proceeds from borrowings
3.6	Repayment of borrowings
3.7	Transaction costs related to loans and
	borrowings
3.8	Dividends paid
3.9	Other (provide details if material)
3.10	Net cash from / (used in) financing	-	338
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of
	period	1,621	1,869
4.2	Net cash from / (used in) operating	(158)	(749)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	-	5
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	338
	(item 3.10 above)
4.5	Effect of movement in exchange rates on
	cash held
4.6	Cash and cash equivalents at end of	1,463	1,463
	period

• See chapter 19 for defined terms 1 September 2016

Page 2

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	1,263	1,421
5.2	Call deposits	200	200
5.3	Bank overdrafts
5.4	Other (provide details)
5.5	Cash and cash equivalents at end of	1,463#	1,621	#
	quarter (should equal item 4.6 above)
	#Excludes $130,000 of restricted cash.
6.	Payments to directors of the entity and	their associates	Current quarter
			$A'000
6.1	Aggregate amount of payments to these parties included in item 1.2		54
6.2	Aggregate amount of cash flow from loans to these parties included			-
	in item 2.3
6.3	Include below any explanation necessary to understand the transactions		included in
	items 6.1 and 6.2
Payments to directors/director associates for director fees, accounting and serviced office fees.
7.	Payments to related entities of the entity and their		Current quarter
	associates		$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2
7.2	Aggregate amount of cash flow from loans to these parties included
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions		included in
	items 7.1 and 7.2

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• See chapter 19 for defined terms 1 September 2016

Page 3

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

	Mining exploration entity	and oil andgas exploration	Appendix 5B entity quarterly repor
8.	Financing facilities available	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end	quarter end
	understanding of the position	$A’000	$A’000
8.1	Loan facilities
8.2	Credit standby arrangements
8.3	Other (please specify)
8.4	Include below a description of each facility above, including the lender,		interest rate and
	whether it is secured or unsecured. If any additional facilities have been entered into or are
	proposed to be entered into after quarter	end, include details of those facilities as well.

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9.	Estimated cash outflows for next quarter	$A’000
9.1	Exploration and evaluation		250
9.2	Development
9.3	Production
9.4	Staff costs
9.5	Administration and corporate costs		83
9.6	Other (provide details if material)
9.7	Total estimated cash outflows		333

10.	Changes in	Tenement	Nature of interest	Interest at	Interest
	tenements	reference		beginning	at end of
	(items 2.1(b) and	and location		of quarter	quarter
	2.2(b) above)
10.1	Interests in mining		Nil
	tenements and
	petroleum tenements
	lapsed, relinquished
	or reduced
10.2	Interests in mining		Nil
	tenements and
	petroleum tenements
	acquired or increased

• See chapter 19 for defined terms 1 September 2016

Page 4

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: Date: ....31 July 2017 ............... ( ~~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 that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, 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. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

Page 5