COMET RIDGE LIMITED — Capital/Financing Update 2021

May 9, 2021

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ASX Announcement

10 May 2021

Large Mahalo Far East block (ATP 2063) formally awarded

Comet Ridge Limited (ASX:COI) is pleased to announce that following the Company’s selection by the Queensland Government as preferred tenderer for two additional gas blocks in September 2020, the second and largest of these blocks has formally been granted Authority to Prospect (ATP) status.

Key points:

• The tender block PLR2020-1-2 has now been officially awarded to Comet Ridge as ATP 2063 and will be called Mahalo Far East.

• ATP 2063 has been awarded 100% to Comet Ridge as Operator, for an initial term of six years.

• ATP 2063 (Mahalo Far East) covers an area of 338 km[2] and is located northeast of the development-ready Mahalo Gas Project (see Figure 1 below).

• Mahalo Far East contains coals that are generally deeper and have notably higher natural gas content than the main Mahalo high production fairway, adding a very significant additional gas in place volume to Comet Ridge’s portfolio in the Mahalo Hub area.

The 338 km[2] natural gas block, Mahalo Far East (ATP 2063), has formally been awarded to Comet Ridge by the Queensland Government’s Department of Resources (formerly Department of Natural Resources, Mines and Energy). This block was one of two blocks where Comet Ridge was selected as preferred tenderer during September 2020.

Since that time, the Company has undergone steps to have an Environmental Authority awarded by the Queensland Government and also to reach a Native Title agreement with the Traditional Owners. With both of these items achieved, the Authority to Prospect (ATP) has now been formally awarded.

The award of Mahalo Far East (ATP 2063) follows the award of Mahalo North (ATP 2048) in April 2020 and Mahalo East (ATP 2061) in September 2020. All of these are held 100% by Comet Ridge with a combined total area of 885 km[2] .

The Mahalo Hub area has already achieved a number of key milestones that make it much more development-ready than a number of other potential natural gas developments on the east coast.

A compelling east coast gas play

Comet Ridge Limited | ABN 47 106 092 577 | ASX: COI

Level 3, 410 Queen Street Brisbane Queensland 4000 GPO Box 798 Brisbane Qld 4001 Phone +61 7 3221 3661 Email: comet@cometridge.com.au cometridge.com.au

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Importantly the Mahalo Gas Project has the following characteristics:

• Significant independently certified 2P and 3P gas reserves;

• Achieved commercial gas flow rates from two separate pilot areas - both the Mahalo 7 and Mira 6 (short) lateral pilot wells;

• Located close to existing pipeline connections to market; and

• Received both federal and state environmental approvals for development, and the formal PL (Petroleum Lease) approvals that are required from the Queensland Government.

Commenting specifically on the newly awarded ATP 2063, Comet Ridge Managing Director, Tor McCaul, said the Mahalo Far East block contains a very large gas in place volume and is an important upside addition to the Mahalo Hub area, where Comet Ridge now holds three 100% blocks across the north of the main Mahalo Gas Project. Combining these blocks and sharing one large development for the whole Mahalo Hub area will provide greater efficiency and scale economy, as well as a material injection of natural gas into the east coast market, at a critical time. Importantly, a proportion of this Mahalo Hub natural gas is earmarked for the domestic market.

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Figure 1 – ATP 2063 Mahalo Far East (Comet Ridge 100%) is the most north-easterly block in the expanded Comet Ridge portfolio in the Mahalo Hub Area.

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This block also contains conventional (sandstone) gas potential underneath the coals, which Comet Ridge will also hold at 100% equity. During appraisal of coal seam gas resources, activities will be designed to assess the potential in these deeper gas targets.

Figure 2 (below) shows the position of the Mahalo Hub blocks in relation to nearby pipeline infrastructure and the large domestic and LNG gas demand centre at Gladstone.

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Figure 2 – Regional position of the Mahalo Hub where Comet Ridge is the major equity holder across a number of large natural gas blocks

By Authority of Board per: Tor McCaul, Managing Director

For more informaton:

Tor McCaul Managing Director Phone +61 7 3221 3661 tor.mccaul@cometridge.com.au

Phil Hicks Chief Financial Officer Phone +61 7 3221 3661 phil.hicks@cometridge.com.au

About Comet Ridge

Comet Ridge Limited (ASX: COI) is a publicly-listed Australian energy company focused on the development of natural gas resources for the east coast Australian market. The company has tenement interests and a suite of prospective projects in Queensland and New South Wales. Our flagship Mahalo Hub projects are low cost, sales spec gas blocks, close to Gladstone. Our exploration assets in the Galilee and Gunnedah basins offer further upside amid increasing domestic and international demand for gas as a source of cleaner energy.

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