COMET RIDGE LIMITED — Capital/Financing Update 2013

Jan 1, 2013

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2 January 2013

Mahalo Project Update: First Mira Pilot Well Confirms Presence of Very

Productive Coals

• Mira 3 well successfully drilled, cased and suspended as future pilot well

• Four coal intervals tested - all four coal intervals are productive

• Well to be completed for production during January

• Rig now moving to Mira 4 location to drill next pilot well

Coal seam gas explorer Comet Ridge Limited (ASX:COI) is pleased to announce that drilling results from the Mira 3 well, at its ATP 337P Mahalo asset in Queensland’s Bowen Basin, have been very positive.

The well intersected 8.9 metres of coal over four separate, closely spaced intervals in the Castor Pollux reservoir. Wireline testing was conducted on all four of these coal intervals. The results indicate good to excellent coal productivity at this pilot location.

Mira 3 is the first well in an eight-well programme for the Mahalo Joint Venture and the first of four pilot wells in the Mira field.

Mira 3 is located approximately 13 km southeast of the Mahalo pilot area and is approximately 250 km west of Gladstone in central Queensland. The well reached a total depth of 320 metres.

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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

Production casing has been run and cemented in the Mira 3 well and the well suspended as a future pilot production well. The well will be completed for production during January, with tubing and a pump installed downhole.

The drilling rig is currently moving 500 metres to the southwest to the Mira 4 well location and is expected to spud that well shortly. Mira 4 is the second pilot well to be drilled in the Mira field.

Comet Ridge has a 35% interest in ATP 337P Mahalo, having divested a 5% interest in the asset in late 2011. Under the terms of that divestment, Stanwell Corporation Limited will fund Comet Ridge’s future expenditure at ATP 337P Mahalo up to $8 million. Stanwell Corporation has an option to purchase Comet Ridge’s equity in the Mahalo block, based on 2P reserves booked, under an agreement initially announced in September 2011.

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

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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 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: 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