COMET RIDGE LIMITED — Capital/Financing Update 2004

Dec 2, 2004

3^rd December 2004

Number of Pages: 1

AUSTRALIAN STOCK EXCHANGE Via Electronic Lodgement

Dear Sir/Madam:

Operations Update Walloon Coal Measure Project, SE Queensland

ATP 683P - Dalby South (Comet Ridge 20%, Arrow 80%)

The Joint Venture partners are planning to drill two additional producing wells on the Tipton West Pilot. These wells are designed to test further completion design modifications and to accelerate water production from the eastern side of the pilot. The completion design of these two wells will be variations on that used in the TWP-13 well, which is currently producing around 140 mcfd and 700 BWPD.

Overall the pilot is producing approximately 250 mcfd and 1800 BWPD.

ATP 689P (Comet Ridge 30%, Arrow 70%)

JD Drilling Rig 15 has completed drilling operations and moved off of the Trapyard -1 exploration well. The well, located 30 km south-west of Millmerran power station, in SE Queensland, was drilled to test the extent of the Walloon Coal Measures sequence in this area. The well reached a total depth of 265 metres. Drill cuttings and wireline logs confirm the presence of the coals.

The rig has now moved on to the Glen Haven -1 location, 50 km to the south-east of Millmerran. This well will be drilled to approx 450m and is also targeting the Walloon Coal Measures.

Yours faithfully

ANDY LYDYARD Managing Director - Comet Ridge Limited

Further information:

For further information contact:

Andy Lydyard Comet Ridge Limited Ph: (08) 9225 7108 Fx: (08) 9225 6100 Web: www.cometridge.com.au Tony Dawe Ward Holt Ph: (08) 9221 8722 Mob: 0413 322 110