COMET RIDGE LIMITED — Capital/Financing Update 2008

Mar 18, 2008

ASX Announcement

Comet Ridge Limited | ABN 47 106 092 577

Comet Ridge

19 March 2008 ASX CODE: COI Operations Update

TOW CREEK / BEAR RIVER PROJECT UPDATE

• I Funding secured for Tow Creek/Bear River drilling

• I Farminee to fund 100% of drilling one new well and re-entering and completing another I Drilling to commence by July 1, 2008

• I Comet Ridge to retain 6.25 to 10% interest I Company has secured free carries on 9 wells for 2008/9: 7 in the US and 2 in Australia

The Board of Directors of Comet Ridge Limited (ASX Code: COI) is pleased to announce the execution of a Letter of Intent between its 100% owned US subsidiary, Comet Ridge USA, Inc. and Freedom Natural Resources, Inc., a Fort Worth, Texas based oil and gas exploration company (“FNR”), providing for further drilling and other well operations in the Tow Creek and Bear River Areas of Routt County, Colorado. Colorado Strike Corporation, a 100% owned subsidiary of Strike Oil Limited (ASX Code: STX), an equivalent interest owner to Comet Ridge is joining in the transaction with FNR.

The transaction will progress both the continuing exploration of the area though new drilling and further evaluate previous drilling by Comet Ridge through additional operations in an existing wellbore.

The new well is to be commenced by July 1, 2008 and will be drilled close to the crest of the Tow Creek anticline offsetting a number of productive wells. The well will be drilled to a depth sufficient to penetrate the base of the Niobrara formation which is the primary pay zone in this area with a number of wells having produced in the order of 500,000 barrels of oil.

The second operation, to be commenced by August 15, 2008, will be in the Peltier 11-12 well located in the Bear River

Area. This well was previously drilled by Comet Ridge, but only produced at marginal rates from the Niobrara. FNR will conduct a proprietary operation in the wellbore in an effort to increase its productive capability.

Success with the above program will likely result in the drilling of a sidetrack of the CVU 31-4 well later in the year or in summer of 2009.

The working interests of Comet and Strike (a combined 75% in Tow Creek and 67.5% in Bear River) will be carried by FNR through of the completion of the two operations with Comet Ridge and Strike to have reduced working interests in each well from the first date of completion. The resultant working interests will be a combined 20% in Tow Creek and 12.5% in Bear River. FNR Resources will earn in all leases, existing wells and applicable contracts and shall become operator of the two projects. The closing of the transaction is expected to be on or before March 28, 2008.

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Andrew Lydyard Managing Director Comet Ridge Limited

COMET RIDGE OPERATIONS & PROJECTS

Comet Ridge is an Australian-listed oil and gas explorer transitioning to producer with projects in Australia and USA.

The Company’s strategy is to control large acreage positions covering oil and gas opportunities in mature fields and in proven, but overlooked basins. As much as possible, it operates these projects in order to directly control desired outcomes.

USA Pacific NW | Grays Harbor (100%); Chehalis Basin (40%) USA Rocky Mountains | Florence (39%); Tow Creek (37.5%); Bear River (33.75%) AUSTRALIA Queensland | Mahalo (40%); Galilee Basin (100%) AUSTRALIA New South Wales | Gunnedah Basin (60-70%)

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

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Figure 1 – Location of Tow Creek / Bear River

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 600 17th Street Suite 800-S Denver, Colorado 80202 USA Phone: +1 (303) 226.1300 Fax: +1 (303) 226.1301

ASX CODE: COI

ASX Listed: 19 April 04 Shares on Issue: 105 million Unlisted Options: 10.25 million Top 20: 44% Directors: 12%

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