COMET RIDGE LIMITED — Capital/Financing Update 2008

Jun 18, 2008

Attention ASX Company Announcements Platform Lodgement of Open Briefing[®]

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Comet Ridge Limited Suite 8, 7 The Esplanade Mt Pleasant Western Australia 6153

Date of lodgement: 19-Jun-2008

Title: Open Briefing[®] . MD Explains Recent US Transaction & Outlook

Record of interview:

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Comet Ridge Limited (ASX Code: COI) has announced securing a significant capital partner and funding for future exploration and development of its projects in the Rocky Mountains and the Pacific Northwest. Can you summarise the key elements of the deal and the new funding agreements? Why has it been necessary for COI to pursue such an arrangement? Are there any conditions?

MD Andy Lydyard

Comet Ridge Limited will contribute its US assets, valued at US$7 million, to a newly formed company, Comet Ridge Resources, LLC (CRR), including the companies Rocky Mountains and Pacific Northwest assets.

COI will receive 43.75% of the equity in CRR with the balance held by private equity firm, Pine Brook Road Partners, LLC. Pine Brook will support exploration and development of Comet’s US assets and provide up to US$100 million of funding toward its equity stake.

There are no conditions other than that Pine Brook has the right to increase its ownership in CRR to 80% by investing another US$19 million in the portfolio. COI can elect to fund 20% of any additional capital spending to maintain its 20% interest or be diluted down to a minimum of 5% without being required to fund any additional capital spending.

This is a great outcome for COI shareholders who retain exposure to the Company’s US projects without any anticipated requirement for equity in the nearterm. Pine Brook, who has extensive energy industry experience, has recognised the depth of quality in our US portfolio and is keen to help us explore and develop this acreage. With Pine Brook on board, CRR now has the immediate capacity to fund the exploration and development activity previously planned by COI.

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Comet Ridge Resources, LLC (CRR), will focus on exploration drilling and development on the US projects. Where will the initial funds be employed? How can Australian shareholders in COI participate in any future exploration success in the US?

MD Andy Lydyard

The initial focus will be on the Florence and Grays Harbor projects. We expect to drill 3 to 4 wells in the near term on Florence and commence acquisition of key geophysical information over Grays Harbor in the late (Northern) summer - early autumn of this year. Another well is planned for the Tow Creek anticline in northern Colorado. Further drilling at Florence and Tow Creek is likely later in the year once we digest the results of the initial drilling. We will be evaluating a number of concepts and ideas during this initial program – each of which can lead to an expansion of the program. Pine Brook focuses on people and intellectual capital and they are highly focused on supporting the expansion of ideas that will be tested shortly at Florence throughout the Rockies.

COI shareholders will always be exposed to the US projects via their equity position. The deal is structured in such a way that our shareholders will benefit from being carried on the next US$26 million of capital spending (the initial US$7 million plus another US$19 million) before having to fund further activity. The level of exposure COI and its shareholders will be exposed to depend on the success of the program and the Company’s desire and ability to raise capital to maintain its 20% share. Don’t forget, COI has the option to invest and maintain its 20% interest after seeing the results of the higher risk exploration drilling. This is extremely favourable from a risk perspective.

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Pine Brook Road Partners, LLC, has the option to acquire an additional 20% in CRR for expenditure of a further US$19 million. Is this additional commitment contingent upon achieving exploration success from the initial investment? What would be your goals and expectations under an expanded drilling program? What is the likely timing of this additional investment?

MD Andy Lydyard

Pine Brook is interested in making a significant return on its money and is looking to deploy significant capital. Based on current projections and success, it is likely that spending beyond the initial US$7 million cash contribution will occur within a few months. The intent is to create significant value through proving up our ideas; moving to development as quickly as possible and initiating production and cash flow. The real value is created however in the development of technical/operational intellectual capital and being able to replicate success beyond our current acreage positions. We are already targeting a number of key growth areas.

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Part of the restructure will see CRR move to increased equity positions in the Rocky Mountains Joint Venture projects at Tow Creek/Bear River and Florence. As operator at each project, what are your objectives under this new structure? How will you direct your funding priorities?

MD Andy Lydyard

After closing the transaction, CRR will control 75% of Tow Creek, 77.5% of Bear River and 97.25% of Florence. Part of the discussion with Pine Brook was on how to best maximise the value of our Rocky Mountain portfolio.

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We had previously planned a planned a multi-well drilling program on this acreage, which had to be put on hold whilst these arrangements were negotiated. A rig is under contract and will be on location by the end of the month. All landowner approvals are in place and we have a number of drilling permits in hand.

Our objective in the Rockies is to establish a robust production and cash flow base. The initial drilling campaign will generate significant follow-up targets, with further 3D seismic capture work planned for later in the year.

With funding through CRR, this presents an enormous opportunity for COI shareholders. Again, it is also relatively low risk.

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Comet Ridge Resources will also control the interests of the Pacific Northwest assets at Gray’s Harbor and Chehalis under this new agreement. What is planned at each of these projects?

MD Andy Lydyard

Through 100%-owned St. Helens Energy LLC, CRR has secured a twelve month extension to the lease option on 420,000 acres at Grays Harbor. As part of this agreement we have committed to undertake US$350,000 in new exploration work, including the acquisition of new seismic data over a number of prospects ahead of commencing a multi-well drilling program in 2009. CRR controls in excess of 475,000 acres (~1920 sq km) with the 50,000 acres being under oil and gas lease.

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Comet Ridge Limited will retain 100% interest in its Australian assets, including prospective coal seam methane leases in New South Wales and Queensland. What are your plans for these projects? How will you fund your local exploration effort?

MD Andy Lydyard

COI is excited about the potential of its Australian portfolio. We have identified a large contingent coal seam gas (CSG) resource at Mahalo (upwards of 1,000 PJ in place) in the Bowen Basin of Queensland and the two permits in the Galilee Basin in central Queensland are prospective for coal seam gas and also deeper conventional oil and gas. We have recently conducted some resource estimates (that need additional drilling and further data to confirm) that suggest that the Permian coals in the Galilee Basin offer potential for in excess of 35,000 PJ of gas. With their proximity to a number of potential LNG projects these prospects offer COI an excellent opportunity to capitalise on the growing demand for CSG and once the Aussie team is in place we will evaluate the opportunities open to us in these areas. Our permits in the Gunnedah Basin of northern NSW are also under review.

Our funding for these campaigns will be secured in Australia. We have a number of broking houses expressing interest in supporting the Company and a number of shareholders have put their hands up expressing the same.

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How will management resources and responsibilities be divided between Comet Ridge Limited and Comet Ridge Resources? What are the opportunities for Comet Ridge Limited in remaining as an ASX-listed junior explorer? What are the immediate priorities?

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MD Andy Lydyard

The US-based management team of Comet Ridge Ltd will resign their positions at Comet Ridge Ltd and become employees of CRR. We will shortly initiate the search for a new team to head up the Australian operations; in the meantime I will be managing that transition. It is important that a locally-based team be established to evaluate our Australian assets, in particular the growing market and demand for coal seam gas.

This transaction has created many opportunities for COI shareholders. The funding risk is now removed from our US assets, allowing us to focus on drilling. Our increased equity in these key project areas means greater returns in shareholder value.

In Australia, there has been unprecedented growth in interest in coal seam gas with a number of significant transactions announced in Queensland with major international players. Our assets are strategically located near some of the major infrastructure proposed and our new Australian team will be identifying the acreage that offers the best opportunity to maximise shareholder value.

Our immediate priorities are drilling. The best results are those that come through the drill bit and we are very keen to get moving at Florence and Tow Creek.

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Thank you Andy.

For further information on Comet Ridge please call:

Andy Lydyard Telephone: 0011 1 303 226 1303 Email: andyl@cometridgeusa.com

or

David Waterhouse Waterhouse Investor Relations Telephone: +613 9639 9099 Mobile/Cell: +613 040788 0937 Email: dwaterhouse@waterhouseir.com.au

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