COMET RIDGE LIMITED — Capital/Financing Update 2013

Jan 20, 2013

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21 January 2013

Mira Pilot Drilling Programme Continues the Mahalo Block Success

• Successful four well pilot drilling programme concluded with the drilling & coring of Mira 2

• Mira 2 intersected 9.1 m coal & also demonstrated good coal productivity

• Mira field pilot drilling follows successful Mahalo field pilot drilling in 2012, demonstrating highly productive coals over a wide area of the block

• Mahalo JV will construct and operate second pilot scheme at Mira, also focussed on reserves

Following the recent series of Mira drilling announcements coal seam gas explorer Comet Ridge Limited (ASX:COI) is pleased to announce that the four pilot wells recently drilled at its Mira field pilot project in ATP 337P, have shown consistent coal thickness and good coal productivity, confirming Joint Venture (JV) plans to operate two pilot schemes in the block.

Completion operations have already commenced on the Mira wells to install pumps and tubing and set the wells up for production, so that the Mira pilot scheme can be brought on line soon after the Mahalo

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pilot, 13 km to the northwest of Mira.

The Mahalo pilot drilling results from 2012 and the Mira pilot drilling results recently concluded, demonstrate highly productive and continuous coals across a large area of the Mahalo block, and confirm the ingredients required for successful pilot testing and reserves booking are present in both areas of the block.

The objective of both these pilot production projects is to demonstrate commercial gas flows in ATP 337P, with the intention of achieving an early initial reserves certification.

Comet Ridge Limited T: +61 7 3221 3661 E: comet@cometridge.com.au 283 Elizabeth St, Brisbane, Qld, 4000 ABN 47 106 092 577 F: +61 7 3221 3668 W: www.cometridge.com.au GPO Box 798, Brisbane, Qld, 4001

Comet Ridge Limited

The Mira field is approximately 250 km west of Gladstone in central Queensland. Mira 2 is the centre well in the Mira pilot scheme and is located approximately 290 metres from each of the three recently drilled Mira pilot wells. The well reached a total depth of 320 metres, intersecting approximately 9.1 metres of net coal and was cored through the reservoir section to gain additional data on coal parameters.

Mira 2 is also the fourth well in an eight-well programme for the Mahalo Joint Venture that commenced in mid-December 2012. Four step-out core holes will now be drilled, to further extend the area available for booking reserves in the Mahalo block. The first of these is the Scrubber Gully 2 well which is expected to spud later in the week.

Comet Ridge Managing Director, Tor McCaul said that the coals across the north of the Mahalo block have now been shown to be very productive via the eight pilot wells that have been drilled in the Mahalo and Mira fields. The four Mahalo field wells were completed for production during December, while completion operations on the Mira field pilot wells are currently underway, with that work expected to be concluded by the end of this month. Construction of production facilities has commenced at the Mahalo field and will then move to the Mira field so the Mira pilot will be operational soon after the Mahalo pilot. He said that after much subsurface technical work over a number of years, the Joint Venture had entered an exciting new phase which is focussed on producing commercial quantities of gas to enable reserves to be certified.

Comet Ridge currently has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset to Stanwell Corporation Limited in an agreement announced in September 2011. Under the terms of that agreement, Stanwell Corporation Limited will fund Comet Ridge's expenditure for the Mahalo field and Mira field pilot schemes. The agreement also gives Stanwell Corporation an option to purchase half or all of Comet Ridge's equity in the Mahalo block, based on 2P reserves booked.

Equity participants in ATP 337P Mahalo are Comet Ridge Mahalo Pty Ltd 35%, Stanwell Corporation Limited 5% (with an option to increase), Australia Pacific LNG Pty Ltd 30% and Santos QNT Pty Ltd 30%.

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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

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 consent to transfer.

Work Programme

Comet Ridge has an active exploration and appraisal work program for CSG projects in Queensland and northern New South Wales. 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 early 2013.

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Comet Ridge Limited T: +61 7 3221 3661 E: comet@cometridge.com.au 283 Elizabeth St, Brisbane, Qld, 4000 ABN 47 106 092 577 F: +61 7 3221 3668 W: www.cometridge.com.au GPO Box 798, Brisbane, Qld, 4001

Comet Ridge Limited

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