COMET RIDGE LIMITED — Capital/Financing Update 2012

Jun 5, 2012

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6 June 2012

OPERATIONAL UPDATE – COMET RIDGE RESOURCES LLC (US ACTIVITIES)

• Comet Ridge Limited’s US investment has consolidated its exploration growth strategy

• Florence oil field divested for US$12.25 million

• Grays Harbor well in the Pacific Northwest scheduled to spud late June 2012

• Three new assets added to the portfolio, in the Rockies

Brisbane-based Comet Ridge Limited (ASX:COI) today announced that Comet Ridge Resources LLC (CRR), in which it has a 17.257% interest , has made several transactions to strengthen its exploration portfolio.

The US company, based in Denver, Colorado, has recently undertaken a series of transactions that strengthens its cash position, divests a more mature producing asset and builds on its exploration potential.

Tor McCaul, Managing Director of Comet Ridge Limited, said that “we are very excited about the potential of the Comet Ridge Resources exploration portfolio and pleased that the forward exploration programme is fully funded by their strong cash position. The team at Comet Ridge Resources has done an excellent job in achieving this outcome.”

Florence Sale

CRR (through its subsidiary Pine Ridge Oil and Gas, LLC) has entered into an agreement to sell the Florence oil field for US$12.25 million. The company has had significant success in redeveloping the Florence oil field, having completed 22 wells and produced 630,000 bbl of oil. The sale of Florence allows CRR to focus on new exploration and development opportunities.

The transaction, in addition to the sale of Sweet Pea in 2011 for US$28.5 million, means the company is in a strong financial position to pursue other exploration and production activities.

Subject to due diligence, the transaction is expected to close on 29 June 2012.

Grays Harbor Exploration

Comet Ridge Resources is scheduled to spud the Yeti well in Washington State, on the Pacific Northwest, late in June. The well will be the first for CRR in the area, although it has mapped many other prospects and leads on this acreage. The Yeti well represents a material prospect for this region, which is 100% owned by CRR.

The drilling contract has been executed and construction of the drilling lease is nearing completion. All required permits and approvals have been obtained and service contractors secured.

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

New Business

In the past several months, Comet Ridge Resources has completed multiple transactions to materially grow its exploration portfolio in the Rockies.

In Colorado, the company has assembled a position in excess of 100,000 net acres. Planning and permitting of a 3D seismic acquisition survey is well advanced.

In the Northern Rockies, CRR has acquired a 20% operating interest in excess of 110,000 gross acres offering significant oil potential. The company can increase its interest to 50% through a combination of work and a second cash payment. CRR has already commenced a seismic acquisition programme over one prospect, and is preparing another prospect for drilling.

While CCR is focussed primarily on executing these current and related business opportunities, it is also continuing to look for superior investment opportunities elsewhere in the region.

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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: 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 independently certified 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 holds 25% and 40% equity respectively in PEL 427 and PEL 428 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	Contingent	Prospective
			Resource(PJ)	Resource(PJ)
Gunn Project Area(ATP 744P)		Galilee Basin, Qld	1,870	597*
Mahalo Block(ATP 337P)		Bowen Basin, Qld	387	-
PEL 427 and PEL 428		Northern NSW	231	1022
PMP 50100 and PEP	50279	West Coast,Sth Island,NZ	244	-
Total			2,732	1,619

*Where the auditor has detailed Prospective Resources in a range (low, middle and high) the mid-range case has been listed in the table.

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 2012, with additional exploration and appraisal work planned for the Galilee Basin and northern NSW.

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