COMET RIDGE LIMITED — Capital/Financing Update 2012

Sep 2, 2012

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3 September 2012 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

Comet Ridge Limited completes Retail Entitlement Offer

• The retail component of Comet Ridge’s 1 for 4 accelerated non-renounceable entitlement offer (Entitlement Offer) has been completed, raising approximately $3.1 million

• The Company has raised gross proceeds of approximately $9.4 million from the equity raising

Coal seam gas explorer Comet Ridge Limited (ASX:COI) (“Comet Ridge” or the “Company”) is pleased to announce the completion of the retail component of the previously announced 1 for 4 non-renounceable entitlement offer (“Retail Entitlement Offer”), raising approximately $3.1 million.

The institutional component of the equity raising (being the Institutional Entitlement Offer and Placement) was completed on 16 August 2012 and raised approximately $6.3 million.

The Company has therefore raised gross proceeds of approximately $9.4 million from the Entitlement Offer and Placement which will be used to fund the Company’s exploration and appraisal activities for 2012/13 and provide for additional working capital.

Comet Ridge received valid applications in the Retail Entitlement Offer for approximately 32.86 million shares ($3.29 million), representing 84% of the 38,979,591 shares offered to eligible retail shareholders. Included in the valid applications received were applications for approximately 10.74 million shares ($1.07 million) in addition to eligible shareholder’s entitlements (“Additional Shares”). The Company has exercised its discretion to scale back some applications for Additional Shares from a small number of shareholders having regard to their shareholding compared to the number of Additional Shares applied for. After this scale back, Comet Ridge will allot approximately 30.85 million shares under the Retail Entitlement Offer.

As announced on 9 August 2012, the Retail Entitlement Offer was partly underwritten for the first $1.8 million of subscriptions from eligible retail shareholders. As Comet Ridge has received valid applications in excess of the underwritten amount, there is no shortfall to be subscribed for by the underwriter or subunderwriters.

The allotment of new shares under the Retail Entitlement Offer will occur Wednesday, 5 September 2012 and ASX trading of the new shares is expected to commence on Thursday, 6 September 2012.

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Stephen Rodgers Company Secretary Comet Ridge Limited

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

For further information please contact:

Media: Tor McCaul Dianne Monopoli Managing Director Principal Consultant Comet Ridge Limited Three Plus tor.mccaul@cometridge.com.au dianne@threeplus.com.au +61 7 3221 3661 +61 7 3503 5700

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, 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 consent to transfer.

Work Program

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 2012/13.

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