COMET RIDGE LIMITED — Capital/Financing Update 2008

Feb 18, 2008

ASX Announcement

Comet Ridge Limited | ABN 47 106 092 577

Comet Ridge

19 February 2008 ASX CODE: COI Operations Update

COMET RIDGE CLOSES CHEHALIS BASIN TRANSACTION

I Transaction closed on schedule

I US$463,000 in cash received

I Comet to be free carried through 5 wells

I Drilling anticipated in the second quarter of 2008

The Board of Directors of Comet Ridge Limited (ASX Code: COI) is pleased to announce that the lease purchase and exchange agreement announced on February 6, 2008 between its 100% owned US subsidiary, St. Helens Energy, LLC (St. Helens), and a consortium of US based coal seam gas exploration companies, headed up by Oklahoma based Oklaco Holding, LLC (Oklaco), closed on February 15, 2008 as scheduled.

As previously announced the transaction will advance the delineation of potentially significant coal seam gas resource in the Chehalis Basin in Lewis and Cowlitz counties, southern Washington (Figure 1).

Oklaco and its partners are experienced coal seam gas and shale gas developers with projects in Eastern Oklahoma and North Texas. They have developed and expect to apply horizontal drilling techniques to the Chehalis Basin play.

The Company’s efforts to secure project capital are advancing and it expects to make further announcements in the coming weeks.

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Andrew Lydyard Managing Director Comet Ridge Limited

St. Helens now has a 10% working interest in over 140,000 acres on the western and northern flanks of the basin (Figure 2). In addition to the cash payment, St. Helens will be free-carried through the drilling of 5 holes. Four will be coal seam gas resource delineation wells and one will target interpreted oil pay encountered in an old oil exploration well.

As well as accelerating drilling activity, this transaction provides Comet Ridge with additional working capital for use on its higher priority, operated projects such as Florence and Grays Harbor.

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 Chehalis (Vader/Cedar Creek)

Figure 2 – St. Helens Energy Chehalis Basin Leasehold Position

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: 10.25 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