COMET RIDGE LIMITED — Capital/Financing Update 2007

Jun 13, 2007

Comet Ridge Limited ASX Announcement

ASX CODE: COI

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

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 44% Top 20: Directors: :12% *40 cents expire June 29 2007

The Company Announcements Officer Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

By Electronic Lodgement

June 14, 2007

OPTION TO SELL TIPTON WEST ROYALTY

• Comet Ridge agrees to sell Tipton West royalty for \$3 million
• Proceeds to be invested in high impact US projects

Comet Ridge Limited (ASX Code: COI) today announces an agreement. via an option letter, to sell its royalty over gas sales from the Tipton West field and associated permits in south-east Queensland to Pure Energy Resources Limited for AUD\$3.0 million

The option, which is subject to normal due diligence, is to be exercised by June 29, 2007.

The \$3 million cash consideration represents the fair value of forecasted royalty payments which are capped at \$8 million. Based on current contracted sales volumes it will take many years to receive the full \$8 million.

Realising the royalty value upfront is consistent with the Company's strategy of focusing its capital resources on high impact projects. Proceeds from the option exercise will be redeployed to advance exploration activities on the Company's projects in the USA.

The immediate focus is to advance the Gray's Harbor and Cedar Creek/Vader projects in the Pacific Northwest and the Tow Creek, Bear River and Florence prospects in the Rockies.

ABN 47 106 092 577

Email: comet@cometridge.com.au Website: www.cometridge.com.au

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

600 17^th Street, Suite 600-S Denver, Colorado 80202 Phone: +1 (303) 226 1300 Fax: +1 (303) 226 1301

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For further information regarding Comet Ridge's US and Australian projects go to our website at www.cometridge.com.au or contact:

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Andy Lydyard Managing Director Phone: +1 (303) 226 1303 +1 (303) 226 1301 Fax: Mobile: +1 (303) 547 4478 Email: andyl@cometridgeusa.com

Disclaimer

This report may contain forward-looking statements; as such terms are defined in Section 27A of the Securities Act of 1933, as amended. You can rins report may contain toward-looking statements, as such terminology such 27A or the securities Act of the state and projections. The condition of "statement" in the continue," "condition," "condition," "containe," "expe known and unknown risks and uncertainties, many of which are beyond the Company's control.

Comet Ridge Limited has taken all reasonable care in producing the text and images contained in this report but do not warrant that the information contained herein is accurate or up to date. The information in this report is based on publicly available information, internal data and information from
other sources. It is not intended to give investment or other advice from the use of information provided in this report.