COMET RIDGE LIMITED — Interim / Quarterly Report 2007

Apr 26, 2007

Appendix 5B

$Rule 5.3$

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

Comet Ridge Ltd

ABN

47 106 092 577

Quarter ended ("current quarter")

31 March 2007

Consolidated statement of cash flows

			Year to date
Cash flows related to operating activities		Current quarter	9 months
		\$USD'000	\$USD'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a)exploration and evaluation	(3,183)	(4, 186)
	(b) development
	(c) production	(4)	(25)
	(d) administration	(674)	(1, 355)
1.3	Dividends received
1.4	Interest and other items of a similar nature
	received	64	129
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Net cash inflows (outflows) attributable to joint
	venture partners on operated projects	(928)	(565)
	Net Operating Cash Flows	(4, 725)	(6,002)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects	(467)	(950)
	(b)equity investments
	(c) other fixed assets		(63)
1.9	Proceeds from sale of: (a)prospects
	(b)equity investments
	(c) other fixed assets
1.10	Loans to other entities
1.11	Loans repaid by other entities
1.12	Other (provide details if material)
	Net investing cash flows	(467)	(1,013)
1.13	Total operating and investing cash flows
	(carried forward)	(5,192)	(7,015)

⁺ See chapter 19 for defined terms.

1.13	Total operating and investing cash flows
	(brought forward)	(5,192)	(7,015)
	Cash flows related to financing activities
1.14	Proceeds from issues of shares, options, etc.	1,275	6,572
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)
	Net financing cash flows	1,275	6,572
	Net increase (decrease) in cash held	(3,917)	(443)
1.20	Cash at beginning of quarter/year to date	6,651	3,078
1.21	Exchange rate adjustments to item 1.20	18	117
1.22	Cash at end of quarter	2,752	2,752

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities Г Corrent quarter

		Carrent guarter \$USD'000
1.2	Aggregate amount of payments to the parties included in item 1.2	187
$1.2\,$	Aggregate amount of loans to the parties included in item 1.10

$1.2$ Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

• Details of financing and investing transactions which have had a material effect on consolidated $2.1$ assets and liabilities but did not involve cash flows
• $2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

⁺ See chapter 19 for defined terms.

Financing facilities available
Add notes as necessary for an understanding of the position.

		Amount available \$USD'000	Amount used SUSD'000
3.1	Loan facilities
3.2	Credit standby arrangements

Estimated cash outflows for next quarter

	Total	2,000
4.2	Development
4.1	Exploration and evaluation	SUSD'000 2,000

Reconciliation of cash

$\overline{a}$

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.		Curent quarter \$USD'000	Previous quarter \$USD'000
5.1	Cash on hand and at bank	2,752	6,651
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
	Total: cash at end of quarter (item 1.22)	2,752	6.651

Changes in interests in mining tenements

		Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interests in mining tenements acquired or	Tow Creek, Colorado, USA.	Increase of 87 acres	37.50%	37.50%
	increased	Bear River, Colorado, USA.	Increase of 200 acres	33.75%	33.75%
		Florence, Colorado, USA	Increase of 2,080 acres	26.00%	26.00%

$\overline{\text{+ See chapter 19}}$ for defined terms.

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

		Total number	Number quoted	Issue price per security (see note $3)$ (cents)	Amount paid up per security (see note 3) (cents)
7.1	Preference i securities
7.2	(description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3	+ Ordinary securities	103,850,936	103,850,136
7.4	Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	15,528,658	15,528,658
7.5	+ Convertible debt securities (description)
7.6	Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7	Options (description and conversion factor)	1,000,000 500,000 1,500,000 450,000 75,000 1,000,000 955,000 3,500,000		Exercise price AUD 20 cents AUD 20 cents AUD 20 cents AUD 40 cents AUD 45 cents AUD 45 cents AUD 45 cents AUD 45 cents	Expiry date 2 March 2008 18 August 2008 31 December 2008 11 May 2009 26 June 2009 31 July 2009 10 November 2009 31 December 2009
7.8	Issued during quarter	100,000		AUD 50 cents	19 January 2010
7.9	Exercised during quarter	4,050,000		AUD 20 cents	29 March 2007
7.10	Expired during quarter	200,000		AUD 20 cents	29 March 2007

$\div$ See chapter 19 for defined terms.

7.11	Debentures (totals only)
7.12	Unsecured notes (totals only)

Compliance statement

$\mathbf{1}$

This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

$\overline{2}$

This statement does give a true and fair view of the matters disclosed.

Date: 26 April 2007 (Managing Director)

Sign here:

Print name: Andrew Lydyard

$\overline{\text{+ See chapter 19}}$ for defined terms.

Notes

• The quarterly report provides a basis for informing the market how the entity's $\mathbf{1}$ activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• $\overline{3}$ Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
• $\overline{4}$ The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• Accounting Standards ASX will accept, for example, the use of International 5 Accounting Standards for foreign entities. If the standards used do not address a topic. the Australian standard on that topic (if any) must be complied with.

$\overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}} = \overline{\text{max}}$

⁺ See chapter 19 for defined terms.