COMET RIDGE LIMITED — Capital/Financing Update 2011

Mar 16, 2011

ASX ANNOUNCEMENT

17 March 2011

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Pioneering NZ aerial survey for Coal Seam Gas starts new phase

Australia and New Zealand Coal Seam Gas (CSG) explorer Comet Ridge Limited (ASX:COI) has announced the start of a new phase in New Zealand’s first extensive airborne survey for CSG.

The company said the Airborne Gravity Gradiometry (AGG) survey commenced this week using a Cessna 208 Caravan aircraft from Perth-based Fugro Airborne Surveys Pty Limited.

The aircraft recently arrived in the country and, after certification and calibration of acquisition equipment, this week began the Waikato portion of the survey.

In all, Comet Ridge plans to conduct six weeks of survey flights, acquiring approximately 2500 km[2] of aerial gravity data from the company’s three CSG exploration blocks.

The data collection exercise is the second phase of an exploration programme which commenced in late 2009 when preliminary aerial surveys began.

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Figure 1 – Comet Ridge New Zealand CSG Permits

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Comet Ridge’s Managing Director, Tor McCaul, said the company was pleased to advance what is a significant project for both the company and New Zealand CSG exploration.

“We believe these airborne surveys are a first in New Zealand for specifically imaging coals for CSG exploration,” Mr McCaul said.

“Our permit areas are very extensive and these surveys are an extremely efficient way of defining the most substantive target areas for our drilling programme.

Figure 2 – Cessna 208 Caravan in Hamilton

AUSTRALIA

ASX CODE: COI

Level 1 283 Elizabeth Street Brisbane Qld 4000 GPO Box 798 Brisbane Qld 4001 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

We are very excited about the potential for locating high-value CSG targets.

“Once the data acquired from the images is interpreted and integrated it is expected to provide our team with a number of high-value CSG targets across all three NZ permits in the Waikato and West Coast regions,” he said.

The company will then prioritise drilling targets based on the best combination of gas resource potential and proximity to infrastructure and markets. Drilling is currently planned to commence before the end of the 2011 calendar year.

Mr McCaul said although the survey was set down for six weeks, the final timeframe remained dependent on weather conditions and technical acquisition parameters.

Comet Ridge holds three blocks in NZ, two of which are very large, with a total area under license of approximately 8600 km[2] .

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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 Principal Consultant Three Plus rhyll@threeplus.com.au +61 7 3503 5700

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ASX ANNOUNCEMENT

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:

and Contingent Resources:	and Contingent Resources:	and Contingent Resources:
Comet Ridge	Limited – Net Recovera	ble Resources
Project	Location	Contingent	Prospective
		Resource(PJ)	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	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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