COMET RIDGE LIMITED — Capital/Financing Update 2007

Feb 7, 2007

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

PROJECT UPDATE VADER/CEDAR CREEK COALSEAM GAS PROJECT LEWIS & COWLITZ COUNTIES, WASHINGTON, USA

MAIN POINTS

• Drilling to commence on Vader prospect before the end of the first quarter
• 3 well programme designed to assess a large potential gas resource in shallow coals and inter-bedded sandstone reservoirs
• Comet Ridge owns 40%

The directors of Comet Ridge Limited (ASX Code: COI) are pleased to provide the following project update for the Vader and Cedar Creek coal seam gas project area in southern Washington, USA. Comet Ridge, via wholly owned St. Helens Energy LLC, owns a 40% non-operated interest in the project.

The operator, Cascadia Energy Corp (a wholly owned subsidiary of US listed company Torrent Energy Corporation, stock code OTCBB: TREN) has secured a drilling rig for an initial three well drilling programme expected to commence before the end of the first quarter. Drilling permits have been submitted and are expected to be approved by the beginning of March.

The three-well programme is designed to:

• 1. Assess the gas content and permeability of coals in the Cowlitz Formation leading to an assessment of the potential gas resource, and
• 1. Test the extent of a shallow gas bearing sand that flowed gas at rates as high as 700 mcfd in a well drilled on an adjacent lease

Planned depths for the wells range between 1,600 and 2,700 feet.

St. Helens and Cascadia have over 155,000 acres (630 sq km) under lease or option in the Vader/Cedar Creek area in southern Washington (see attached map).

The partners were attracted to the Vader/Cedar Creek area due to its similarity to the Powder River Basin in Wyoming. That basin produces almost 1 billion cubic feet of gas per day (~1 PJ/day which is roughly the volume of gas that the State of Queensland consumes over a 4 day period) from shallow, low rank coals.

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

The Vader area has been extensively explored for coal resources and numerous coal holes and water wells have encountered gas in the coals and in shallow inter-bedded sands.

The planned drilling programme is expected to provide critical input to the computation of an in place gas resource in the coals and in doing so add significant value to the acreage position the Company controls.

Further updates will be issued closer to the commencement of operations.

Yours sincerely

مجمعت n Arger

ANDREW LYDYARD Managing Director Comet Ridge Limited

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

For further information on the Company and its projects please visit our website at www.cometridge.com.au Comet Ridge's stock price can be accessed from the USA either through the Company's website, the Australian Štock Exchange's website www.asx.com.au or via various US based websites offering stock quotes using the codes AU:COI (MSN) or COI.AX (Yahoo).

Location Map for Vader/Cedar Creek area in southern Washington