COMET RIDGE LIMITED — Capital/Financing Update 2011

Sep 13, 2011

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14 September 2011

Galilee Basin Seismic Programme Commences

• Large Seismic acquisition programme commences

• Objective to better define Gunn Project Area structural nose & additional resource area

• This programme a critical step in locating a pilot production scheme

Coal Seam Gas (CSG) explorer Comet Ridge Limited (ASX:COI) today announced it has commenced a 2D seismic survey in Queensland’s prospective Galilee Basin as part of its plan to develop a successful pilot project and upgrade its existing Contingent and Prospective Resources to 2P and 3P Reserves. This follows the drilling of five wells over a very large area, last year.

The company last November became one of the first to announce a CSG resource certification in the Galilee Basin, which was 67 PJ (2C) and 1870 PJ (3C) Contingent Resource (net recoverable) with an additional 597 PJ of Prospective Resource over an area of approximately 1500 km[2] . The company holds a total acreage position in the Galilee Basin of approximately 13,000 km[2] (3.2 million acres).

Comet Ridge Managing Director, Tor McCaul said the seismic survey was the next step in the continuing appraisal programme in the Gunn Project Area, located within ATP 744P, and the Company’s plans to develop a Galilee Basin gas project.

“The Galilee Basin has the potential to provide natural gas for power and also for LNG expansion in Gladstone and we are advancing our project after being very encouraged by the coal and core data already obtained in initial drilling,” Mr McCaul said.

“The Hergenrother 1 and Gunn 1 wells, 17 km apart in the Gunn Project Area in the southwest portion of our acreage, has indicated a structural nose in this area. We believe that good quality 2D seismic will help further define this structure and enable us to better locate future pilot production and appraisal wells. All of this work is designed to allow the best quality subsurface decisions leading towards our objective of implementing a successful pilot project and progressing to 2P and 3P Reserves.”

Comet Ridge has awarded the seismic acquisition contract to Brisbane-based contractor Geokinetics (Australasia) Pty Ltd to conduct a 280 km high resolution 2D seismic survey across the southern part of ATP 744P.

The field acquisition programme began on 13 September and will be undertaken in conjunction with another Galilee Basin exploration company, bringing improved economies of scale in this very large and relatively remote area. It is expected the survey will take approximately 25 to 30 days to fully acquire.

Mr McCaul said “While the main seismic acquisition focus is on the Gunn Project Area in the southwest, we will also be shooting a 76 km long, dip seismic line out to the eastern edge of our permit boundary to better define structure in this yet to be explored area. The Permian coals shallow as we move east and are worthy of analysis and consideration for further resource booking.”

Comet Ridge Limited T: +61 7 3221 3661 E: info@cometridge.com.au 283 Elizabeth St, Brisbane, Qld, 4000 Australia ABN 47 106 092 577 F: +61 7 3221 3668 W: www.cometridge.com.au GPO Box 798, Brisbane, Qld, 4001 Australia

ASX CODE: COI

Comet Ridge Limited

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Comet Ridge Limited has landowner agreements in place with all landowners where seismic activity will occur. Approximately half of the seismic acquisition will be obtained on roads, minimising any impact to landowners and the environment. Seismic to be conducted on private land will predominantly be acquired along existing fence lines where fire breaks already exist. Mr McCaul said Comet Ridge had sought input from the local landowners when designing the seismic programme and the company was working constructively with the local community.

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Stephen Rodgers Company Secretary

For further information please contact:

Media: Tor McCaul Rhyll Cronin Managing Director Associate Comet Ridge Limited Three Plus tor.mccaul@cometridge.com.au rhyll@threeplus.com.au +61 7 3221 3661 +61 7 3503 5700

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COMET RIDGE LIMITED - OVERVIEW

Comet Ridge Limited has significant Coal Seam Gas (CSG) projects in key regions of Queensland, northern New South Wales and New Zealand, as well as oil and gas interests in the United States. Gas resources have been independently certified at three projects. The company is listed on the Australian Securities Exchange (ASX Code: COI) and is based in Brisbane. The Board and Management are experienced in establishing and developing energy projects.

Corporate Strategy

Comet Ridge has gained early entry into well-located exploration areas, allowing shareholders to gain substantial leverage into the upside value potential associated with exploration success.

Comet Ridge conducts CSG exploration and appraisal, with the aim of maturing exploration acreage from Gas Resources into Proven and Probable Gas Reserves. This process initially involves drilling wells in order to certify Prospective and Contingent Resources and then through further appraisal via Pilot Projects, progressing into certified Reserves.

Where possible, Comet Ridge takes high equity positions in its large exploration permits, including a 100% interest in both its Galilee Basin and New Zealand assets. Comet Ridge has 40% equity in the ATP 337P Mahalo block in the Bowen Basin, and holds 25% and 40% equity respectively in PEL 427 and PEL 428 in NSW.

Certified Resources

In executing our strategy, Comet Ridge has successfully independently certified the following Prospective and Contingent Resources:

Comet Ridge Limited – Net Recoverable Resources	Comet Ridge Limited – Net Recoverable Resources	Comet Ridge Limited – Net Recoverable Resources
Project	Location	Contingent Resource(PJ)	Prospective Resource(PJ)
Gunn Project Area(ATP 744P)	Galilee Basin, Qld	1,870	597*
Mahalo Block(ATP 337P)	Bowen Basin, Qld	442	-
PEL 427 and PEL 428	Northern NSW	231	1022
Total		2,543	1,619

*Where the auditor has detailed Prospective Resources in a range (low, middle and high) the mid-range case has been listed in the table.

Work Program

Comet Ridge has an active exploration and appraisal work program for CSG projects in Queensland, northern NSW and New Zealand. The first Pilot Project for ATP 337P Mahalo is planned for 2011, with additional exploration and appraisal work planned for the Galilee Basin, northern NSW and NZ.

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Comet Ridge Limited T: +61 7 3221 3661 E: info@cometridge.com.au 283 Elizabeth St, Brisbane, Qld, 4000 Australia ABN 47 106 092 577 F: +61 7 3221 3668 W: www.cometridge.com.au GPO Box 798, Brisbane, Qld, 4001 Australia

ASX CODE: COI

Comet Ridge Limited