COMET RIDGE LIMITED — Capital/Financing Update 2008

Aug 25, 2008

ASX Announcement

Comet Ridge Limited | ABN 47 106 092 577

25 August 2008 ASX CODE: COI

Comet Ridge

Operations Update - Florence

I RAINBOW 23-20 DRILLED TO PLANNED TOTAL DEPTH AND CASED FOR PRODUCTION TESTING

I PRODUCTION TESTING OF GOLDEN, APACHE AND RAINBOW WELLS DUE TO COMMENCE IN EARLY SEPTEMBER I BULL 42-4 DRILLING AHEAD AT 646 FEET AFTER SETTING SURFACE CASING

Comet Ridge Limited (ASX Code: COI) has been provided the following operations update by Pine Ridge Oil & Gas, LLC, operator of the Florence project in south eastern Colorado.

Well Information: Well Name: Rainbow #23-20

Operator: Pine Ridge Oil & Gas, LLC Location: Well is within the limits of the Florence oil field approximately 1km south west of the town of Florence, Fremont County, CO. Current Operation: Perforated liner installed to total depth Final Total Depth: 3,700 feet (measured depth) Progress since last report: 0 feet Hydrocarbon indications: Oil observed in reserve pit, gas shows Comet Ridge Limited Interest: 43.75%* equity in Comet Ridge Resources, LLC which has a 97.25% working interest Report Time: 6:00am Monday 25th August, 2008 Mountain Daylight Standard Time Next routine report: After production testing commences

Well Name:

Bull 42-4

Operator: Pine Ridge Oil & Gas, LLC Location: Well is within the limits of the Florence oil field approximately 5.5km south of the town of Florence, Fremont County, CO. Current Operation: Drilling ahead at 646 feet after setting surface casing and testing BOPS Planned Total Depth: 4,530 feet Progress since last report: 646 feet Hydrocarbon indications: None to date Comet Ridge Limited Interest: 43.75%* equity in Comet Ridge Resources, LLC which has a 97.25% working interest Report Time: 10:00 am Monday 25th August, 2008 Mountain Daylight Standard Time Next routine report: 2nd September, 2008 (Monday 1st Sept is a public holiday in the US)

* Pine Ridge Oil & Gas, LLC now the operating entity for Comet Ridge Resources, LLC’s Rocky Mountain activities

** Comet Ridge Limited’s current equity interest in Comet Ridge Resources, LLC

Newly formed Pine Ridge Oil and Gas, LLC, a wholly owned subsidiary of Comet Ridge Resources, LLC controls and operates the Florence project with a 97.25% working interest.

For further information please contact:

Andy Lydyard, Managing Director andyl@cometridgeusa.com +1 303.226.1303

David Waterhouse, Waterhouse IR dwaterhouse@waterhouseir.com.au +613 9639 9099

AUSTRALIA

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

UNITED STATES

ASX CODE: COI

600 17th Street ASX Listed: 19 April 04 Suite 800-S Shares on Issue: 105 million Denver, Colorado 80202 USA Unlisted Options: 9.775 million Phone: +1 (303) 226.1300 Top 20: 44% Fax: +1 (303) 226.1301 Directors: 12%

Comet Ridge Limited |

E-mail: comet@cometridge.com.au Website: www.cometridge.com.au USA Phone: 1-303-226-1300