RAREX LIMITED — Major Shareholding Notification 2016

May 19, 2016

Form 603

Corporations Act 2001 Section 671B

Notice of initial substantial holder

To Company Name/Scheme	CLANCY EXPLORATION LTD
ACN/ARSN	05 578 756
1. Details of substantial holder (1) Name	FLUE HOLDINGS ATY LTD
ACN/AFSN (if applicable)	009 236 266
The holder became a substantial holder on	10,5,16

2. Details of voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Class of securities (4)	Number of securities	Person's votes (5)	Voting power (6)
ORDINARY	123,098,895	123,098,895	$S.22\%$

3. Details of relevant interests

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

Holder of relevant interest	Class and number of securities Nature of relevant interest (7)
FLUE HOLDINGS	HOLDER OF SECURITIES	123,098,895 ORDS

4. Details of present registered holders

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevant interest	Pegistered holder of securities	Person entitled to be registered as holder (8)	Class and number of securities
FLUE HOLDINGS	FLUE HOLDINGS	FLUE HOLDINGS 123.098.895
			ORAS.

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of relevant interest	Date of acquisition	Consideration (9)		Class and number of securities
		Cash	Non-cash
FLUE HOLDINGS	$2$ MAY $2016$	10.001		$38,098,8440$ ORDS
FLUE HOLDINGS	10 MAY 2016	50.001		$79.557.359$ ORAS.

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

Name and ACN/ARSN (if applicable)	Nature of association

7 Addresses

The addresses of persons named in this form are as follows:

Name	Address
FLUE HOLDINGS P/L	PO BOX 930
	COTTESLOE WA 6911

Signature

print name CRAIG BROWLEY	capacity SOLE AIRECTOR.
$sign here$ $/$ $/$ $/$	date 191512016.

DIRECTIONS

• If there are a number of substantial holders with similar or related relevant interests (eg. a corporation and its related corporations, or the manager and trustee of an $(1)$ equity trust), the names could be included in an annexure to the form If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is dearly set out in paragraph 7 of the form
• See the definition of "associate" in section 9 of the Corporations Act 2001. $\circledcirc$
• See the definition of "relevant interest" in sections 608 and 671B(7) of the Corporations Act 2001. $(3)$
• The voting shares of a company constitute one class unless divided into separate classes. $(4)$
• The total number of votes attached to all the voting shares in the company or voting interests in the scheme (if any) that the person or an associate has a relevant $(5)$ interest in.
• The person's votes divided by the total votes in the body corporate or scheme multiplied by 100. $(6)$
• Indudedetails of: $(7)$
• any relevant agreement or other circumstances by which the relevant interest was acquired. If subsection 671B(4) applies, a copy of any document setting out $(a)$ the terms of any relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangement, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and
• any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or disposal of the securities to $(b)$ which the relevant interest relates (indicating dearly the particular securities to which the qualification applies).

See the definition of "relevant agreement" in section 9 of the Corporations Act 2001.

• If the substantial holder is unable to determine the identity of the person (eg. if the relevant interest arises because of an option) write "unknown". $(8)$
• Details of the consideration must include any and all benefits, money and other, that any person from whom a relevant interest was acquired has, or may, become $(9)$ entitled to receive in relation to that acquisition. Details must be included even if the benefit is conditional on the happening or not of a contingency. Details must be induded of any benefit paid on behalf of the substantial holder or its associate in relation to the acquisitions, even if they are not paid directly to the person from whom the relevant interest was acquired.