COMET RIDGE LIMITED — Capital/Financing Update 2007

Jun 27, 2007

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GRAYS

>ASX Announcement

ASX CODE: COI

Niako 1976

DRAFT

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

Sale of Tipton West Royalty

Highlight

Pure Energy exercises option to purchase Tipton West Rovalty

The directors of Comet Ridge Limited are pleased to advise that the Company has received notice from Pure Energy Resources Limited of its intent to exercise its option to purchase the Tipton West Gross Royalty for AUD\$3.0 million.

The \$3 million represents the fair value of future revenues (up to a maximum of AUD\$8 million) from the Tipton West coal seam gas development and associated permits, ATP's 683, 689 and PL198, in southeastern Queensland. Proceeds from the sale are expected to be received by Friday this week.

Realising the cash value of this rovalty now enables the Company to advance exploration activities on its high potential impact projects in the USA. Details of progress and upcoming activities on these projects were released to the market this morning.

ANDREW LYDYARD Managing Director Comet Ridge Limited

Australia C/- Endeavour Corporate Suite 8, 7 The Esplanade Mt Pleasant, Western Australia 6153 Phone: +61 8 9316 9100 Fax: +61 8 9315 5475

usa

600 17th Street, Suite 600-S Denver, Colorado 80202 Phone: +1 [303] 226.1300 Fax: 41 [303] 226.1301

ABOUT COMET RIDGE

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

The Company's strategy is to capture meaningful interests and, via operatorship, control of large acreage positions covering high potential impact oil and gas opportunities, in both mature fields and in proven. but overlooked, basins

Comet Ridge is capitalising on its local experience in the USA through development of its Pacific Northwest & Rocky Mountain projects

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

USA

• Pacific Northwest
• · Grays Harbor (COI: 100%)
• · Cedar Creek/Vader (40%)
• Rocky Mountains . Tow Creek (37.5%)
• Bear River (33.75%)
• · Florence (39%)
• AUSTRALIA Queensland
• Mahalo (40%)
• Galilee Basin (100%)

New South Wales

· Gunnedah Basin (20 - 25 %)

ASX Listed:	19 April 04
Shares on issue:	104 million
Listed options	$14.2$ million*
Unlisted options:	.8 million
Top 20:	44%
Directors:	12%

*40 cents expire June 29 2007

E mall comet Communication av www.cometridge.com.au