COMET RIDGE LIMITED — Capital/Financing Update 2012

Oct 22, 2012

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23 October 2012

Gunn 2 Well Demonstrates Highly Productive Coals

• First Production Test Well, Gunn 2, drilled and cased in Galilee Basin

• Testing over four coal intervals demonstrates good to excellent coal productivity

• Well to be completed for Extended Production Test

Brisbane-based coal seam gas explorer Comet Ridge Limited (ASX:COI) is pleased to announce that the first well in its three-well drilling campaign in the Galilee Basin has been successfully drilled and tested in ATP 744P in the Galilee Basin, central Queensland, with the rig released on 22 October 2012.

Comet Ridge holds 100 per cent equity in ATP 744P.

The Gunn 2 well is located 93 km NNW of Aramac and 576 km WNW of Gladstone. The well was spudded on 10 October 2012 and reached a total depth of 1,050 metres. A total net coal thickness of 16.2 metres was intersected in the Permian Betts Creek Beds with five potential reservoir coals contained in this interval.

After wireline logging was conducted, a formation scanner was run to identify natural fractures in the coals. Wireline conveyed testing tools were then used to flow test four separate coal intervals in the Betts Creek Beds, including two coal intervals in the base of the section that had previously not been tested in the Gunn Project Area.

All four coal intervals tested demonstrated good to excellent productivity.

Seven-inch diameter production casing has been run and cemented in place and the well will be completed for production in early November with production tubing and a pump to be installed.

Managing Director, Tor McCaul, said he and the Comet Ridge technical team were extremely pleased with the productivity of the coals in this well. Mr McCaul also said that the well flags an important milestone for the Company, as the first production well for Comet Ridge in the Galilee Basin.

He commented, “Our forward plan, as outlined in the recent capital raising presentation in August, is to complete this well for production and then to conduct an Extended Production Test (EPT). This single well EPT is a significant step, ahead of our planned pilot scheme. The EPT on Gunn 2 will give us good quality water data and enable us to critically assess our completion methodology. These will be key inputs for designing our full pilot production scheme next year with the objective of starting to move our significant Contingent Resources over to Reserves.”

The rig will now move southeast to drill Schmitt 1, followed by Cernan 1, as Phase 1 of the farm-in to the Lake Galilee Farm-in Area (in ATP 1015P), announced in July 2012 (see map on page following). These two wells will be cored to measure key coal properties and whilst wireline conveyed testing tools may be utilised to examine coal productivity, there are no current plans for Extended Production Tests on these two wells.

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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Stephen Rodgers Company Secretary Comet Ridge Limited

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

Media: Dianne Monopoli Principal Consultant Three Plus dianne@threeplus.com.au +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 certified, by independent professional certifiers, at four 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, with the intention of 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 35% equity in the ATP 337P Mahalo block in the Bowen Basin, and announced on 21 June 2012 that it has signed an agreement to increase its equity to 22.5%, 50% and 60% respectively in PEL 6, PEL 427 and PEL 428 in the Gunnedah Basin in New South Wales. This transaction is subject to government and joint venture consent to transfer.

Work Programme

Comet Ridge has an active exploration and appraisal work program for CSG projects in Queensland, northern New South Wales and New Zealand. Drilling for the first Pilot Project for ATP 337P Mahalo was undertaken in July 2012, with additional exploration and appraisal work planned for the Galilee Basin and Mahalo in 2012 and 2013.

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