COMET RIDGE LIMITED — Capital/Financing Update 2007

Nov 19, 2007

ASX CODE: COI

ABOUT COMET RIDGE

The Company Announcement Officer Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 By Electronic Lodgement

CRITICAL LEASE POSITION SECURED AT GRAYS HARBOR, WESTERN WASHINGTON STATE, USA

Comet Ridge is an Australian-listed oil and gas explorer transitioning to producer with projects in Australia & USA

The Company’s strategy is to control large acreage positions covering oil and gas opportunities in mature fields and in proven, but overlooked, basins. As much as possible, it operates these projects in order to directly control desired outcomes.

Highlights

• Comet Ridge successful bidder on four new oil and gas leases

• Acquisition concludes major leasing program and provides complete control of prospects to be drilled in 2008

• 17,225 acres acquired at $7.13 per acre and with ten year lease terms

The Directors of Comet Ridge Limited are pleased to advise that the Company’s wholly owned subsidiary, St. Helens Energy, LLC (St. Helens), was successful bidder on four leases in the Grays Harbor County oil and gas lease auction held on November 16, 2007. The four leases cover a total of 17,225 acres and provide critical lease coverage over a number of the Company’s prospects including two that are to be drilled in 2008. The leases have ten year terms and were acquired at an average cost of US$7.13 per acre. A large percentage of the proceeds from the sale go towards supporting the public schools in the area.

This important lease acquisition, when added to leases the Company has acquired from private mineral owners, the State of Washington (two separate lease sales) and the original 420,000 acre lease option, brings the controlled acreage to in excess of 475,000 acres (1,922 sq km) and provides Comet Ridge with complete control of the prospects and leads the Company has developed (Figure 1).

Comet Ridge draws on considerable prior experience in the USA to develop its Pacific Northwest & Rocky Mountain projects

Comet Ridge is also advancing a number of key projects in Australia

USA

Pacific Northwest

• Grays Harbor (100%)

• Chehalis Basin (40%)

Rocky Mountains

• Florence (39%)

• Tow Creek (37.5%)

• Bear River (33.75%)

AUSTRALIA Queensland

• Mahalo (40%)

• Galilee Basin (100%)

New South Wales

• Gunnedah Basin (60 – 70 %)

The lease acquisition phase is now, for all intents and purposes, complete. The 2008 programme for the Grays Harbor Project comprises the following:

• 10 square mile 3D seismic survey over the Caldwell Creek structure

• 60 miles of 2D seismic lines over a number of structures in the Black Creek area

• Drilling of 2 wells

ASX CODE: COI

ASX Listed: ……………….19 April 04 Shares on issue: ………..105 million Unlisted options: ……… 9.9 million Top 20: …………………… 44% Directors: ………………… 12%

St. Helens has secured the services of Tesla Geophysical to acquire the data. Surface use permits for the seismic acquisition have been acquired (over 100 separate permits) and an application to the State of Washington to permit seismic activities is in final draft. Acquisition of the data is expected to commence in late March – mid April to avoid the wetter winter months. At the same time St. Helens is permitting a number of well locations for drilling immediately after the seismic has been processed and interpreted. The specific locations to be drilled will be determined by the results of the seismic surveys.

The acquisition of County leases has removed concerns over revealing the location of open acreage over key prospects to potential competitors and now allows for an aggressive marketing campaign to secure financial/industry partner/s for the project.

Background

The Grays Harbor Basin is a very lightly explored sedimentary basin in Western Washington State. Exploration for oil and gas commenced in the region in 1901 and continued up until the mid 1980’s. No work has been done in the basin since then despite numerous indications of oil and gas, including the occurrence of a number of gas blowouts. Natural gas prices prior to the 1980’s were typically US$0.05 per mcf providing no economic incentive for higher levels of activity. Even during the mid 1980’s when Amoco conducted the last activities, gas prices were around US$2 per mcf and falling (Figure 1). With current prices in the range of US$7 to $8 per mcf and pipeline infrastructure already in place, exploration of this proven hydrocarbon province is an attractive financial proposition.

Over the past year, St. Helens has reprocessed approximately 450 miles of 2D seismic and developed a portfolio of prospects and leads that has been assessed to offer a prospective resource of around 1.7 trillion cubic feet of recoverable gas (P50)*

Two of the prospects designated for drilling in 2008, Caldwell Creek and Black Creek, offer a combined un-risked prospective recoverable gas resource of around 210 billion cubic feet (BCF) of gas (P50)* . To provide shareholders with a sense of the potential value of a gas development in the Grays Harbor Basin, recent transactions involving the sale of gas reserves has seen industry paying around US$2 per mcf or $2 million per BCF for proven reserves. Clearly exploration success on this project will lead to significant shareholder value.

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ANDREW LYDYARD Managing Director Comet Ridge Limited

*P50 – a mid range or best estimate of the recoverable prospective resource for an exploration play or prospect determined from probabilistic Monte Carlo simulations.

LOCATION MAP FOR GRAYS HARBOR BASIN

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FIGURE 1. MAP SHOWING COMET RIDGE (ST. HELENS ENERGY LLC) CONTROLLED ACREAGE AND CURRENTLY MAPPED PROSPECTS AND LEADS

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FIGURE 2. HISTORICAL GAS PRICES SINCE 1920 SHOWING PERIODS OF DRILLING ACTIVITY AND SOME KEY INDICATIONS OF THE PRESENCE OF GAS IN THE GRAYS HARBOR BASIN. CURRENT HIGH GAS PRICES JUSTIFY REVISITING THIS PROVEN HYDROCARBON BEARING BASIN