COMET RIDGE LIMITED — Capital/Financing Update 2009

May 17, 2009

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18 May 2009

The Manager Company Announcements Office ASX Limited Level 8, Exchange Plaza 2 The Esplanade Perth WA 6000

Dear Sir/Madam,

Comet Ridge Limited (ASX Code: COI) Notification under section 708AA(2)(f) of the Corporations Act 2001 (Cth)

Non-renounceable Entitlement Offer

Comet Ridge Limited (Comet Ridge or the Company) is making a pro-rata nonrenounceable entitlement offer (the Entitlement Offer) to eligible security holders with registered addresses in Australia and New Zealand and other locations where the Company considers it is reasonable to make the offer. The Entitlement Offer is being made on the basis of 1 New Share for every 5 shares held at the Record Date (27 May 2009).

The Entitlement Offer is underwritten by Wilson HTM Corporate Finance Limited (Wilson HTM). The underwriting agreement is subject to a number of termination events, a summary of which are set out in the Offer Booklet to be sent to all eligible shareholders.

Comet Ridge confirms that pursuant to section 708AA(2)(f) of the Corporations Act 2001 (Cth) (Corporations Act) that:

1. Comet Ridge will offer approximately 51,225,190 fully paid ordinary shares for issue without disclosure to investors under Part 6D.2 of the Corporations Act pursuant to a non-renounceable Entitlement Offer announced to ASX on 18 May 2009.

2. As at today's date Comet Ridge has complied with:

   • (a) the provisions of Chapter 2M of the Corporations Act as they apply to Comet Ridge; and

   • (b) section 674 of the Corporations Act.

Australia

ASX CODE: COI

Comet Ridge Limited Brisbane Office: C/- Endeavour Corporate 210 Alice Street ASX Listed: 19 April 2004 Suite 8,7 The Esplanade Mt Pleasant Brisbane QLD 4000 Shares on issue: 234 million Western Australia 6153 Unlisted options: 32.8 million Phone : +61 8 9316 9100 Fax:- +61 8 9315 5475

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

1. As at the date of this notice, there is no information which is "excluded information" within the meaning of sections 708AA(8) and 708AA(9) of the Corporations Act which is required to be disclosed under section 708AA(7)(d) of the Corporations Act:

   • (a) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules; and

   • (b) that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

     • (i) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

     • (ii) the rights and liabilities attaching to the shares for issue.

Control

The Entitlement Offer being made by Comet Ridge will mean up to 51,225,190 New Shares (subject to rounding) are issued. Upon completion of the Entitlement Offer the issued capital of Comet Ridge will be approximately 307.4 million ordinary shares.

If all security holders take up their entitlements under the Entitlement Offer, there will be no effect on the control of Comet Ridge. If not all the security holders take up their entitlements under the Entitlement Offer, the underwriter is required pursuant to the underwriting agreement to take up any shortfall. The underwriter has in turn entered into a number of sub underwriting agreements.

Control will be affected by the level of applications under the Entitlement Offer. Based on current disclosures made by substantial shareholders in Comet Ridge (and as set out in the Offer Booklet) the maximum percentage shareholding any existing shareholder could attain through taking up their entitlement or through a sub-underwriting agreement would be 20.9%.

The final percentage interests held by substantial shareholders of Comet Ridge is entirely dependant on the extent to which other shareholders take up their entitlements. On consideration of the matters summarized above and as a result of the Entitlement Offer being underwritten, Comet Ridge expects that the potential effect of the issue of New Shares under the Entitlement Offer on the control of Comet Ridge will be minimal and that there is not likely to be any consequence of that effect.

Yours faithfully

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Stephen Rodgers Company Secretary

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