COMET RIDGE LIMITED — Capital/Financing Update 2004

Mar 28, 2004

29 March 2004

Company Announcements Office Australian Stock Exchange $10^th$ Floor 20 Bond Street SYDNEY NSW 2000

Dear Sirs

COMET RIDGE LIMITED INITIAL PUBLIC OFFERING CLOSES EARLY & OVERSUBSCRIBED

The Board of Comet Ridge has advised Perilya Limited that it closed its initial public offer early and oversubscribed at the close of business Friday 26 March 2004, raising \$5 million in preparation for an active drilling program in 2004 and 2005. It is expected that Comet Ridge shares will be quoted on the ASX by the $23^{rd}$ April 2004.

Perilya currently owns 34.93% of Comet Ridge and will hold 16.22% of the Shares on a fully diluted basis following listing.

Comet Ridge Limited is a new energy company formed by Strike Oil NL (Perilya 35.6%) to exploit the coal seam gas potential in the energy markets of the eastern states of Australia.

Comet Ridge holds coal seam gas interests in the Bowen Basin in Queensland (on trend with Australia's largest coal seam gas field at Fairview/ Durham Ranch) and in the Walloon Coal Measures in South East Oueensland.

Further details on Comet Ridge can be obtained from its website at www.cometridge.com.au.

Yours faithfully PERILYA LIMITED

JOHN TRAICOS Company Secretary