COMET RIDGE LIMITED — Capital/Financing Update 2012

Aug 8, 2012

==> picture [596 x 119] intentionally omitted <==

9 August 2012 NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES

Comet Ridge Limited completes the institutional component of its Entitlement Offer and adds an institutional placement due to strong demand

• The institution component of the 1 for 4 accelerated non-renounceable entitlement offer (Entitlement Offer) has been completed, raising $3.8 million

• Due to strong demand received for the institutional offer, a placement of $2.5 million has also been completed

• The $3.9m retail component of the Entitlement Offer has also been partly underwritten to $1.8m

• Following the completion of the equity raising, the Company will raise a minimum of $8.1m

Institutional Entitlement Offer

Coal seam gas explorer Comet Ridge Limited (ASX:COI) (“Comet Ridge” or the “Company”) is pleased to announce the successful completion of the $3.8 million accelerated institutional component of the previously announced 1 for 4 non-renounceable entitlement offer (“Institutional Entitlement Offer”).

The Institutional Entitlement Offer attracted strong demand from existing and new investors and as a result, Comet Ridge has also completed a $2.5 million placement to institutional and sophisticated investors (“Placement”). The retail component of the Entitlement Offer (“Retail Entitlement Offer”) has also been partly underwritten. The Placement and Institutional Entitlement Offer will raise approximately $6.3 million and will be used to fund the Company’s exploration and appraisal activities for 2012/13 and provide for additional working capital.

The offer price for the shares (“New Shares”) to be issued under the Institutional Entitlement Offer and Placement is $0.10 per New Share (“Offer Price”).

Commenting on the outcome of the institutional component, Managing Director Tor McCaul said, “We thank our existing major shareholders for their ongoing support, and we are delighted to welcome several new high quality institutional investors to the share register.”

Directors of Comet Ridge, Mr James McKay (Chairman) and Mr Anthony Gilby (Non-Executive Director) participated in the Institutional Entitlement Offer for all or part of their entitlements as an indication of their ongoing support of the Company. The other Directors of the Company intend to participate in the Retail Entitlement Offer for all or part of their entitlements.

Retail Entitlement Offer

The Retail Entitlement Offer opens on Wednesday, 15 August 2012 and closes at 5.00pm (AEST) on Wednesday, 29 August 2012. Eligible retail shareholders will be able to subscribe for 1 New Share for every 4 Comet Ridge ordinary shares held at 7.00pm (AEST) on Friday, 10 August 2012 (“Record Date”), at the same Offer Price as the Institutional Entitlement Offer and Placement, being A$0.10 per New Share.

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

Comet Ridge has also entered into an Underwriting Agreement with Wilson HTM Corporate Finance Limited (“Underwriter”) to partly underwrite the Retail Entitlement Offer, whereby the Underwriter agrees to underwrite the first $1.8 million of subscriptions from eligible retail shareholders under the Retail Entitlement Offer (subject to customary termination events). As a result the Company will raise a minimum of $8.1m from the equity raising. Mr Anthony Gilby, a Director of Comet Ridge, has entered into a sub-underwriting agreement with the Underwriter for a maximum of $350,000 of sub-underwriting on the same terms as other non-related sub-underwriters. Further details of this sub-underwriting arrangement will be set out in the Retail Entitlement Offer Booklet.

Eligible retail shareholders wishing to participate in the Retail Entitlement Offer should carefully read the Retail Entitlement Offer Booklet, which will be sent on Wednesday, 15 August 2012, and follow the instructions set out on the accompanying personalised entitlement and acceptance form. The Retail Entitlement Offer will include a top up facility under which eligible retail shareholders who take up their full entitlement may apply for additional New Shares from a pool of entitlement shares not taken up by other eligible retail shareholders. There is no guarantee that applicants under this top up facility will receive all or any of the additional shares they apply for under the facility.

Comet Ridge expects its trading halt to be lifted today and for COI shares to recommence trading today on an ex-entitlement basis.

The key dates for the equity raising are:

Entitlement Offer	Date
Announce completion of the Institutional Entitlement Offer and Placement	9 August 2012
COI shares resume tradingon an ex-entitlement basis	9 August 2012
Record Date for the Entitlement Offer(7.00pm AEST)	10 August 2012
Retail Entitlement Offer opens	15 August 2012
Settlement of the Institutional Entitlement Offer and Placement	16 August 2012
Allotment and normal trading of New Shares issued under the Institutional	17 August 2012
Entitlement Offer and Placement
Retail Entitlement Offer closes(5.00pm AEST)	29 August 2012
Allotment of New Shares issued under the Retail Entitlement Offer	5 September 2012
Normal tradingof New Shares issued under the Retail Entitlement Offer	6 September 2012

All dates are indicative and subject to change. COI reserves the right to withdraw or vary the timetable without notice. All references to time are to Australian Eastern Standard Time (AEST). The commencement of quotation of New Shares is subject to confirmation from ASX.

Wilson HTM Corporate Finance Limited is the Lead Manager of the equity raising and is partly underwriting the Retail Entitlement Offer.

Comet Ridge Limited has appointed Integra Advisory Partners Pty Ltd as corporate adviser and Porter Davies Lawyers as legal adviser to the equity raising.

Important Information

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States, or in any jurisdiction in which such an offer would be illegal. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the “Securities Act”), or under the securities laws of any state or jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States, unless the securities have been registered under the Securities Act or an exemption from the registration requirements of the Securities Act is available.

This document may not be distributed or released in the United States.

2 of 3

This announcement contains certain “forward-looking statements” within the meaning of the securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “should”, “expect”, “anticipate”, “estimate”, “scheduled” or “continue” or the negative thereof of comparable terminology. Any forecasts or other forward looking statements contained in the announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future event which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. COI does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements.

==> picture [145 x 43] intentionally omitted <==

Stephen Rodgers Company Secretary 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.

3 of 3