COMET RIDGE LIMITED — Capital/Financing Update 2009

Nov 1, 2009

ASX ANNOUNCEMENT

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2 November 2009

New Zealand drilling of Macdonald 5C well commences in Greymouth PMP 50100

Comet Ridge Limited (ASX Code: COI) is pleased to advise that the Macdonald 5C appraisal core well commenced drilling in PMP 50100 in the Greymouth area of New Zealand’s South Island at 17:00 hours (NZT) on 30 October 2009. As at 06:00 (NZT) hours this morning, the well was at a depth of 105 m and preparing to drill ahead having set the 168 mm (6-5/8”) surface casing string.

Macdonald 5C has been designed to assess the commercial Coal Seam Gas (CSG) potential of the Brunner and Paparoa Coal Measure Sequences with a planned total depth of approximately 1170 metres and will take approximately 20 days to drill and test.

Chartwell NZ Pty Ltd, a wholly-owned Comet Ridge Limited subsidiary, is the operator of PMP50100 and currently holds a 20 per cent equity stake in the permit with Macdonald Investments Limited holding 80%.

Depending on the results, Macdonald 5C may be either plugged and abandoned or suspended as a future pressure observation well. The well is being drilled as part of the Phase 2 farm-in program which will earn Comet Ridge a further 30 per cent equity in the permit to go to 50 per cent.

COMET RIDGE LIMITED - OVERVIEW

Comet Ridge Limited is a Brisbane based, ASX-listed (ASX Code: COI) coal seam gas (CSG) exploration and development company with a focus on Queensland, NSW and New Zealand. The Company also has exposure to prospective conventional oil and gas fields in the United States via a joint venture.

The Company has several projects in various stages of maturity. Comet Ridge Limited plans to grow shareholder value through the establishment and development of gas reserves from the significant resource potential of its projects.

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Stephen Rodgers Company Secretary Comet Ridge Limited For further information please contact:

Tor McCaulManaging DirectorComet Ridge Limitedtor.mccaul@cometridge.com.au +61 7 3221 3661	Investor Relations:David WaterhousePrincipalWaterhouse Investor Relationsdwaterhouse@waterhouseir.com.au+61 3 9670 5008	Media:Richard OwenAssociateThree Plusrichard@threeplus.com.au
		0412 869 937

AUSTRALIA GPO Box 798 Brisbane Qld 4001 Phone: +61 7 3221 3661 Facsimile: +61 7 3221 3668

ASX CODE: COI

Comet Ridge Limited ABN 47 106 092 577 E-mail: comet@cometridge.com.au Website: www.cometridge.com.au