COMET RIDGE LIMITED — Interim / Quarterly Report 2007

Jan 28, 2007

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

$\Gamma$

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 December 2006

Consolidated statement of cash flows

			Year to date
	Cash flows related to operating activities	Current quarter	6months
		\$USD'000	\$USD'000
1.1	Receipts from product sales and related debtors
1.2	Payments for (a)exploration and evaluation	(461)	(1,006)
	(b) development
	(c) production (d) administration
1.3	Dividends received	(252)	(686)
1.4	Interest and other items of a similar nature
	received	36	66
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	356	364
	Net Operating Cash Flows	(321)	(1,262)
	Cash flows related to investing activities
1.8	Payment for purchases of: (a)prospects	(270)	(492)
	(b) equity investments
	(c) other fixed assets	(19)	(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	(289)	(555)
1.13	Total operating and investing cash flows
	(carried forward)	(610)	(1, 817)

1.13	Total operating and investing cash flows (brought forward)	(610)	(1, 817)
1.14	Cash flows related to financing activities
	Proceeds from issues of shares, options, etc.	3,680	3,680
	Proceeds held in trust pending issuance of
	shares on 4 Jan 07	1,617	1,617
1.15	Proceeds from sale of forfeited shares
1.16	Proceeds from borrowings	$\bullet$
1.17	Repayment of borrowings
1.18	Dividends paid
1.19	Other (provide details if material)
	Net financing cash flows	5,297	5,297
	Net increase (decrease) in cash held	4,687	3,480
1.20	Cash at beginning of quarter/year to date	1,935	3,078
1.21	Exchange rate adjustments to item 1.20	34	98
1.22	Cash at end of quarter	6,656	6,656

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current quarter \$USD'000
1.2	Aggregate amount of payments to the parties included in item 1.2	84
-1.2	Aggregate amount of loans to the parties included in item 1.10

$1.2$ Explanation necessary for an understanding of the transactions

The group's financial commitments were funded through existing resources and the proceeds from a successful rights issue in December 2006.

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

Total proceeds from the issuance of shares and options was \$USD 5,854,000 compared to cash proceeds of \$USD 5,297,000. The difference of \$USD 557,000 is due to \$USD 825,000 of cash proceeds received in January 2007, offset partially by \$USD 268,000 of estimated share issue costs, most of which will be paid in the third quarter ending 31 March 2007.

$2.2$ Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

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

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

Estimated cash outflows for next quarter

4.1	Exploration and evaluation	SUSD'000 2,785
4.2	Development
	Total	つ ツヌミ

Reconciliation of cash

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 SUSD'000
5.1	Cash on hand and at bank	6,656	1,935
5.2	Deposits at call
5.3	Bank overdraft
5.4	Other (provide details)
Total: cash at end of quarter (item 1.22)	6,656	1.935

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 1,768 acres	37.50%	37.50%
	increased	Bear River, Colorado,	Increase of 640	33.75%	33.75%
		USA	acres
		Florence, Colorado,	Increase of 4,678	26.00%	26.00%
		USA	acres
		Grays Harbor,	Increase of 18,159	100.00%	100.00%
		Washington, USA	acres
		Cedar Creek/Vader,	Increase of $25,600$	40.00%	40.00%
		Washington USA	acres

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	Amount paid up per
				security (see note	security (see note 3)
				$3)$ (cents)	(cents)
7.1	Preference
	*securities
	(description)
7.2	Changes during
	quarter
	(a) Increases through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs,
	redemptions
7.3	*Ordinary
	securities	88,322,278	88,322,278
7.4	Changes during quarter
	(a) Increases	17,594,038	17,594,038
	through issues
	(b) Decreases
	through returns
	of capital, buy-
	backs
7.5	*Convertible
	debt securities
	(description)
7.6	Changes during
	quarter
	(a) Increases
	through issues (b) Decreases
	through
	securities
	matured,
	converted

7.7	Options		Exercise price	Expiry date
	(description and	1,000,000	AUD 20 cents	2 March 2008
	conversion	4,250,000	AUD 20 cents	29 March 2007
	factor)	500,000	AUD 20 cents	18 August 2008
		1,500,000	AUD 20 cents	31 December 2008
		450,000	$AUD$ 40 cents	11 May 2009
		75,000	AUD 45 cents	26 June 2009
		1,000,000	AUD 45 cents	31 July 2009
7.8	Issued during
	quarter	955,000	AUD 45 cents	10 November 2009
		3,500,000	AUD 45 cents	31 December 2009
7.9	Exercised during
	quarter	700,000	AUD 20 cents	29 March 2007
7.10	Expired during quarter
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.

$\int \frac{\partial \mathcal{L}}{\partial \theta}$ $\longrightarrow$ $\int$ Date: 25 January 2007 (Managing Director)

Sign here:

Print name:

Andrew Lydyard

Notes

• $\mathbf{I}$ The quarterly report provides a basis for informing the market how the entity's 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.
• 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.
• 5 Accounting Standards ASX will accept, for example, the use of International 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.

---