COMET RIDGE LIMITED — Capital/Financing Update 2011

Apr 14, 2011

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15 April 2011

OPERATIONAL UPDATE – NZ AERIAL SURVEYING

• Imaging data soon to be analysed from pioneering aerial survey of New Zealand CSG areas

• Aerial survey continuing on schedule with more than 6,400 km[2 ] so far completed

• Drilling programme on track to begin prior to end of 2011 calendar year

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Australia and New Zealand Coal Seam Gas (CSG) explorer Comet Ridge Limited (ASX:COI) today announced analysis would soon begin on data being gathered from its pioneering airborne survey of New Zealand CSG areas.

Comet Ridge Managing Director Tor McCaul said the company was pleased to announce that most of the Airborne Gravity Gradiometry (AGG) survey programme had now been successfully completed to schedule.

In the first four weeks of the programme, which began in March, aerial surveying was completed at Comet Ridge’s Waikato permit area on the North Island, with over 2460km[2] covered.

Figure 1 - North Waikato survey area

Surveying had also been completed over 4000km[2] of the company’s South Island permits in the Buller and Greymouth areas of the West Coast.

“We have so far successfully completed aerial surveys over approximately 6,400 line kilometers of our CSG exploration areas in New Zealand during the past month,” Mr McCaul said.

“This means we have so far surveyed most of the initial target areas across the 8,600 square kilometers we have under licence at our three exploration blocks in New Zealand.

“The data collection program is meeting our expectations by proving to be a very efficient method of defining the most substantive target areas for our drilling programme.”

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

The remainder of the surveying programme was expected to be completed by the end of April, depending on weather conditions.

Mr McCaul said he was extremely pleased with the progress to date and was looking forward to having the data set interpreted and integrated into Comet Ridge’s current geological models across the company’s New Zealand exploration blocks.

“The aerial surveying programme will provide valuable data to assist in locating CSG exploration and appraisal wells,” he said.

“We expect to define a number of highvalue CSG targets across all three New Zealand permits which will allow us to prioritise drilling targets.”

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Figure 2 – Cessna Grand Caravan

Drilling is currently planned to begin before the end of the 2011 calendar year. The survey is being conducted using a Cessna 208 Caravan aircraft and is the first extensive airborne survey for CSG conducted in New Zealand.

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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 35035700

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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 Resource 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 is currently increasing its interest in PEL 428 to 40% 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	ContingentResource(PJ)	ProspectiveResource(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	209	818
Total		2,521	1,415

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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