COMET RIDGE LIMITED — Capital/Financing Update 2010

Oct 5, 2010

ASX ANNOUNCEMENT

6 October 2010

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COMET RIDGE ADVANCES PIONEER AERIAL SURVEYS FOR NZ CSG PROJECTS

Coal Seam Gas (CSG) explorer Comet Ridge Limited has today announced it is advancing its New Zealand exploration programme utilising what is believed to be the country’s first aerial imaging of CSG coals.

Comet Ridge said it had awarded a contract to Perth-based Fugro Airborne Surveys Pty Ltd to conduct the extensive aerial collection of data over an area covering between 1,000 and 2,000 km[2] .

The programme will begin towards the end of 2010, or early 2011 with the first drilling expected to occur in the second half of the 2011 calendar year.

The data collection is the second phase of the programme which first began with preliminary aerial surveys in late 2009.

Comet Ridge Managing Director Tor McCaul said the airborne exploration was an exciting project for both the Company and the broader New Zealand minerals exploration sector.

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“I believe this airborne exploration approach is a first in New Zealand for specifically imaging coals for CSG exploration,” Mr McCaul said. “Because our permit areas are very extensive, these surveys are an extremely efficient way of defining the most substantive target areas for our drilling programmes.

“The exploration work is taking placing in several phases over 18 months so

we can obtain the best possible sub-surface images. The first drilling of identified targets is expected to commence in the second half of the 2011 calendar year.”

AUSTRALIA Level 1 283 Elizabeth Street Brisbane Qld 4000 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

ASX ANNOUNCEMENT

Mr McCaul said the images were expected to provide his team with a number of high-value CSG drilling targets in both the Waikato and West Coast regions of the country. The Company would prioritise targets giving consideration to the best combination of gas resource potential and proximity to infrastructure and markets.

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Under the terms of the contract announced today, Comet Ridge will acquire airborne gravity gradiometry (AGG) data for all three of its New Zealand Coal Seam Gas (CSG) permits (PMP50100 – Greymouth, PEP50279 – West Coast, and PEP50280 – North Waikato). The acquisition flying will take place during the summer season to maximise the opportunity for clear weather, which is particularly important for

the aerial acquisition of data in the West Coast region of New Zealand.

During the last summer season in late 2009, Fugro and Comet Ridge Limited flew and acquired approximately 27,000 line km of airborne magnetic and radiometric data right across the Company’s three New Zealand CSG permits. Comet Ridge Limited holds 100% equity in these three exploration blocks, which have a significant area of approximately 8,600 km[2] .

The five phases of the aerial survey programme are as follows:

• Phase 1 – Acquisition of airborne magnetic and radiometric data over the entire permit areas (work completed end 2009);

• Phase 2 – Interpretation of the magnetic data and integration into current models using existing well and seismic data for calibration, identifying key target areas for further exploration (work underway currently);

• Phase 3 – Acquisition of airborne gravity and gradiometry (AGG) data over the selected key target areas (work planned for end 2010/early 2011 summer season) with contract recently signed;

• Phase 4 – Interpretation of the new data and incorporation into the latest models to obtain the best quality sub-surface images (work planned for first half 2011).

• Phase 5 – Exploration drilling into key target areas (drilling planned to commence second half 2011).

Exploration studies work to date in Phase 2 (data interpretation and integration) has identified significant sub-basins and has already provided a high level of sub-surface detail, particularly in the West Coast region of the South Island. This has given the Company confidence to move forward with Phase 3 (further aerial acquisition) in the coming summer season.

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ASX ANNOUNCEMENT

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The survey areas for end 2010/early 2011 are yet to be fully defined, however it is expected that the acquisition programme will total between 1,000 to 2,000 km[2] .

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 McCaul Managing Director Comet Ridge Limited tor.mccaul@cometridge.com.au +61 7 3221 3661

Media: Rhyll Cronin Associate Three Plus rhyll@threeplus.com.au +61 7 3503 5700

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