COMET RIDGE LIMITED — Capital/Financing Update 2007

Mar 7, 2007

COMET RIDGE LIMITED ASX ANNOUNCEMENT 8 MARCH 2007

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

PROJECT UPDATE, ATP'S 743 AND 744P GALILEE BASIN, QLD

MAIN POINT

Comet Ridge signs farm out agreements on Galilee permits

The directors of Comet Ridge Limited (ASX Code: COI) are pleased to provide the following project update for its two 100% owned, oil and gas permit applications (ATP's 743 and 744P) located in the Galilee Basin, Queensland (Figure 1). The permits cover over 13,000 sq km and are located in the eastern part of the basin. Thick Permian aged coals, similar to those being developed for coal seam gas in the Bowen Basin to the east, underlay much of the area and oil and gas shows have been recorded in a number of oil and gas exploration wells drilled in the past.

Comet Ridge has entered into farm out arrangements with Clark Oil and Gas Pty Ltd (Clark Oil) that will see Comet Ridge carried through a multi-year seismic and drilling work program on both permits.

Under the terms of the agreements, which are subject to Clark Oil successfully listing on the Australian Stock Exchange later this year, Clark Oil can earn up to 40% in both permits via a staged work program and up to 75% in a 64 sg km block surrounding any well drilled.

Clark Oil will also lead negotiation of land access and cultural heritage management agreements with registered native title claimants over the permits.

Yours sincerelv

ANDREW LYDYARD Managing Director

AUSTRALIA Level 9, Wesfarmers House 40 The Esplanade, Perth WA 6000 Phone: 61 8 6464 0499 61 8 6464 0498 Fax:

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

Comet Ridge Limited ABN 47 106 092 577 Email: comet@cometridge.com.au Website: www.cometridge.com.au

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Figure 1. Location of Galilee Basin Permit Applications