COMET RIDGE LIMITED — Capital/Financing Update 2004

Mar 22, 2004

ASX re-Perilva Priority Offer Closs early 220304.doc

23 March 2004

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

Dear Sirs

COMET RIDGE IPO - PERILYA PRIORITY OFFER CLOSES EARLY & OVERSUBSCRIBED

The Priority Offer to Perilya Limited shareholders for 7.5 million shares in the Comet Ridge Limited ("Comet Ridge") initial public offering (IPO) has closed early and oversubscribed.

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

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 Queensland.

Comet Ridge raised \$2 million in seed capital in late 2003 and issued a prospectus on 24 February 2004 to raise \$5 million in preparation for an active drilling program in 2004 and 2005.

Final allocation of Comet Ridge shares to Perilya shareholders is at the absolute discretion of the Directors of Comet Ridge.

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

Yours faithfully PERILYA LIMITED

JOHN TRAICOS Company Secretary