COMET RIDGE LIMITED — Capital/Financing Update 2010

May 31, 2010

ASX ANNOUNCEMENT

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1 June 2010

FIRST NZ PILOT PRODUCTION WELL COMPLETED - COMET RIDGE MOVES TO 50% IN NEW ZEALAND PMP 50100

Key Points

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• The Macdonald 4P pilot well has been completed and fitted for production testing

• Rig now preparing to move to drill the Macdonald 6P pilot production well

• Pressure monitoring gauges now installed on two observation wells

• Conditions of Phase 2 of farm-in agreement met to take Chartwell NZ Pty Ltd’s equity level in PMP 50100 from 20% to 50%.

Comet Ridge Limited (ASX Code: COI) is pleased to provide an update on the Company’s Coal Seam Gas (CSG) Pilot Production Scheme in PMP50100 Westcoast, New Zealand.

PMP 50100 – Westcoast, New Zealand (Comet Ridge Group: increasing to 50%)

The Macdonald 4P pilot well has been completed for production of coal seam gas (CSG) after having production tubing and a pump run in the well.

The rig was released on Sunday 30 May 2010 and is currently undergoing maintenance work before being moved to the site of Macdonald 6P so that well can be similarly drilled and completed for production of CSG.

Pressure monitoring gauges have also now been installed on two nearby observation wells (Macdonald 5C and RM 1) with the intention of proving the continuity of the productive coals in this area of the block.

Figure 1 on the following page indicates the location of the four wells.

This drilling and pilot production scheme is being operated by Chartwell NZ Pty Ltd, a wholly-owned Comet Ridge Limited subsidiary, as part of the Phase 2 Farm-in program.

Chartwell NZ Pty Ltd is the Operator of PMP50100 and currently holds a 20 per cent equity stake in the permit with the remaining 80 per cent being held by Macdonald Investments Limited.

The recent drilling operation means Chartwell NZ Pty Ltd has now met the requirements of Phase 2 of the farm-in and subsequently the additional 30 per cent equity is in the process of being released from escrow to take Chartwell NZ Pty Ltd’s equity level in PMP 50100 to 50 per cent.

ASX CODE: COI

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

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

ASX ANNOUNCEMENT

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Figure 1: Map of Westcoast NZ Pilot Production Scheme well locations relative to power infrastructure

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

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ASX ANNOUNCEMENT

For further information please contact:

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

Media: Richard Owen Associate Three Plus richard@threeplus.com.au +61 412 869 937

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