COMET RIDGE LIMITED — Capital/Financing Update 2008

Jul 21, 2008

ASX Announcement

Comet Ridge Limited | ABN 47 106 092 577

21 July 2008 ASX CODE: COI

Comet Ridge

Operations Update - Florence

I GOLDEN #33-20, DRILLING AHEAD AT 1,485 FEET IN SIDETRACKED HOLE

The board of Directors of Comet Ridge Limited (ASX Code: COI) provides the following update on drilling operations on the Florence project in south eastern Colorado.

Well Information:

Well Name: Golden #33-20 (ST1) Operator: Comet Ridge USA* 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: Drilling ahead in sidetracked hole. Proposed Total Depth: 4,926 feet measured depth (md) 4,500 feet true vertical depth (tvd) Current Depth: 1,485 feet md, ~ 1,400 feet tvd - Progress since last report: Hydrocarbon indications: Oil and gas shows encountered in original hole. Controlled flows of flammable gas flared at the surface. Comet Ridge Limited Interest: 43.75% equity in Comet Ridge Resources, LLC** which has a 97.25% working interest Report Time: 2pm Monday 14th July, 2008 Mountain Daylight Standard Time Next routine report: Tuesday 29th July, 2008

* Comet Ridge USA is operating on behalf of Comet Ridge Resources, LLC/Pine Ridge Oil &Gas, LLC

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

This well is being drilled as a directional well through fractured intervals. The original wellbore deviated from the planned well course and is being corrected with the side track.

Newly formed Pine Ridge Oil and Gas, LLC, a wholly owned subsidiary of Comet Ridge Resources, LLC, (COI 43.75%** equity interest) is paying 100% of the well costs and will own a 97.25% interest in the Florence project after drilling this well.

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