COMET RIDGE LIMITED — AGM Information 2012

Nov 14, 2012

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MANAGING DIRECTOR’S AGM ADDRESS 2012

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This has been a very busy year for the whole team at Comet Ridge and one of working to position the company for growth. We have a very large gas resource base, particularly in Queensland, and our focus is squarely on moving our resources to reserves.

We are in an environment where the gas market continues to tighten in Eastern Australia. At last year’s AGM, we spoke at some length about gas markets and the direction of pricing, and those trends have continued, where we are another year closer to the first LNG cargoes from Gladstone.

After a great deal of hard work behind the scenes over the last couple of years, the Company has gained a much higher profile in the investment community with the announcement of some very exciting developments in a few areas.

Over the past year we have undertaken:

• The completion of a 5% sale of Mahalo, which brought in cash to the company, secured funding for the key pilot stage of the project and also permitted Comet Ridge

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Comet Ridge Limited Managing Directors AGM Address 2012

to retain part of the significant upside that we feel has always been inherent in this block;

• An acquisition in NSW where we are significantly increasing our equity in our two Gunnedah Basin blocks and entering a third;

• A farm-in to a new block in the Galilee Basin which we felt could see an extension of the Gunn Project Area (and indeed has);

• Drilling of the first four pilot wells in the Mahalo Block, which showed coal continuity and excellent productivity;

• And drilling of a three well programme in the Galilee basin where the first two wells have given us exciting results and one of these wells will become the first Galilee Basin production well for the Company.

During the year we also completed a very successful capital raising, already mentioned by our Chairman in his address.

Let me run through each of our project areas briefly.

Galilee Basin

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In July we announced the execution of an agreement with QER to farm-in to part of ATP 1015P. This farm-in area covers 825 km[2] and lies immediately east of the Gunn Project Area where we hold 100% equity. Through a series of three steps, the farm-in gives Comet Ridge the option to move up to 75% equity in this area. The Schmitt 1 and Cernan 1 wells, which I will mention shortly, meet the first Phase requirements for the farm-in and will earn Comet Ridge 20% in the Farm-in Area.

Comet Ridge Limited Managing Directors AGM Address 2012

Our three-well Galilee Basin drilling campaign commenced with the spud of the Gunn 2 well on 10 October in ATP 744P. The well is located 93km NE of Aramac and 576 km NW of Gladstone.

A total net coal thickness of 16 metres was intersected in the Permian Betts Creek Beds with five potential reservoir coals contained in this interval.

After wireline logging was conducted, a formation scanner was run to identify natural fractures in the coals and we flow tested four separate coal intervals in the Betts Creek, including two coals in the base of the section that had not been previously tested. Good to excellent coal productivity resulted from all four of these short flow tests, an outcome which we are very pleased about.

This well is significant for the Company as it is soon to become the first long term production test well for Comet Ridge in the Galilee Basin. We are now moving to complete the well (by running tubing and a pump) and will put the well on production for an Extended Production Test. This will enable us to obtain good quality water samples and also to critically assess our completion methodology for future pilot production wells. We expect to have a service rig in the field to start this work next week.

Our second Galilee Basin well spudded at Schmitt 1 in late October. This well is located 17 km SE of Gunn 2. We saw a significant thickening of coal in this well, up to 22 metres, and based on the raw gas data from the well, have confirmed the extension of the Gunn Project Area to the east into the Farm-in Area. Significantly, the target coals from the Gunn Project Area are present, giving confidence in the lateral extent of these coals over a wide area.

The third and final well in the current programme was spudded at Cernan 1 only a few days ago. Cernan 1 is 13 km further east of Schmitt 1 and is expected to reach a total depth around 930 metres. This will complete the requirements of Phase 1 of the farm-in, which extends our footprint over this highly prospective part of the Galilee Basin.

To be able to talk to you in detail today about Gunn 2, our first production well in the Galilee Basin, is a very important milestone for the Company. Our plan is to design a full pilot production scheme next year with the objective of starting to move our significant contingent resources over to reserves.

And the final key piece of our discussion on the Galilee Basin, is how we as a company, and as individuals, interact with and relate to, the local community.

Gas exploration and production in Queensland is by no means a new phenomenon – with over four decades of gas production from the Roma area already, and coal seam gas being produced in the state for over 15 years.

Our interaction with the Galilee Basin community is conducted across a number of levels which includes boards like RAPAD (the Central West Remote Area Planning and Development Board), the Barcaldine Regional Council and also directly with landowners and community groups. This year we participated in community forum events in Barcaldine and Longreach and also conducted an open day while drilling the Schmitt 1 well, so that local landowners

Comet Ridge Limited Managing Directors AGM Address 2012

could come and look at our drilling operations in some detail, and have any questions answered directly by our technical team.

We have been very fortunate in having developed excellent relationships with landowners in the Galilee Basin and it is our objective to do this in every community in which we operate. We strongly believe that it is only through open and constructive communication that myths are separated from science based facts and the long term benefits to the community – which may include CSG water being available for agriculture, are shown.

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Community Field Day – Schmitt 1 site Galilee Basin
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Well pad site rehabilitation following drilling

Stock on local road – Gunn Project Area

Comet Ridge Limited Managing Directors AGM Address 2012

Mahalo

Following the agreement we executed late last year to sell 5% of our stake in Mahalo, the JV moved ahead this year with an aggressive plan to book reserves in the block.

In July we finished a successful four-well drilling programme – with all four pilot wells exhibiting good continuity and thickness of coal across the main reservoir section and excellent productivity seen from the Castor-Pollux reservoir.

The joint venture will be drilling again shortly, with a drilling rig expected to arrive late this month to commence an eight well programme – four Mira pilot wells followed by four stepout coreholes. In addition, construction will commence in December on the field facilities and tanks needed at the Mahalo pilot with start-up of that facility planned for the New Year.

The objective of this work is to convert the considerable resources at Mahalo to reserves.

Through the agreement that we have in place with Stanwell on Mahalo, this asset could provide significant value to the Company next year.

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Comet Ridge Limited Managing Directors AGM Address 2012

Gunnedah Basin - NSW

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I won’t spend a lot of time talking about Gunnedah Basin and NSW today, as our Chairman has already mentioned the new policy initiatives in NSW that I expect will lead to a commencement of work on the ground in NSW in the New Year.

Related to the ongoing analysis that our technical team has been undertaking in NSW in terms of identification of prospects for drilling, we also expanded our acreage position in the Gunnedah Basin in northern NSW, with the addition of PEL 6, and increased equity in the blocks PEL 427 and PEL 428 that we already hold. We will hold these blocks with Santos as the CSG operator and our equity in the latter two blocks will move up to 50% and 60% respectively, a significant position in the basin.

Our permits are strategically located, and have the potential to become the source of significant gas production, regardless of whether the gas ultimately flows north to LNG projects in Gladstone or south to Newcastle and Sydney, or both.

Comet Ridge Limited Managing Directors AGM Address 2012

Assets Outside Australia

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Oil Storage Tanks – Southern Colorado

In New Zealand, earlier in the year Comet Ridge made an application to NZP&M (NZ Petroleum and Minerals) to extend the five year licence term for a further five years on both exploration blocks and is anticipating formal feedback shortly.

In the USA, Comet Ridge Limited elected not to pay a US cash call and consequently our interest in Comet Ridge Resources LLC (CRR) has been reduced by approximately 2% to approximately 15.2%. In July, Denver-based CRR (through its subsidiary Pine Ridge Oil and Gas, LLC) completed the sale of the Florence oil field for US$12.25 million. CRR has commenced its de-risking program on its large acreage positions in the Rockies including the acquisition of 3D seismic and preparations to drill exploratory wells in both project areas by year end. In the Pacific Northwest, the Yeti 1 well at Grays Harbor was drilled to a total depth of 1381 metres in September and was plugged and abandoned following logging. CRR is now evaluating the technical data from this well and assessing the merits of further drilling on its large acreage position in the Grays Harbor area.

Comet Ridge Limited Managing Directors AGM Address 2012

Conclusions

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The board and team at Comet Ridge has had a very busy year this year. Our focus remains on conversion of our large resource base to reserves. Many areas of our work have started to bear fruit this year and we are currently in a period of high operational tempo. With our own operated work going on in the Galilee Basin, and with Mahalo drilling and construction about to commence, we are likely to remain at a high operational tempo well into 2013.

We have a tremendously experienced board and technical team in place, and an exciting asset base with material upside and remaining exploration and appraisal opportunities.

Such is our confidence that we added to our portfolio during the year in the Galilee and Gunnedah Basins and improved our funding capability, all with the purpose of positioning the company for growth.

The year ahead promises to be an exciting one for Comet Ridge, but not without risks and uncertainties – such is the nature of the business. We will continue to be focussed on the conversion of resources to reserves which in turn should add significant value to the company.

Tor McCaul

Managing Director