COMET RIDGE LIMITED — Interim / Quarterly Report 2009

Jul 28, 2009

ASX ANNOUNCEMENT

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Comet Ridge Limited Quarterly Report Quarter ended 30 June 2009

Highlights:

• Successfully raised $21.3 million through a placement and fully underwritten 1-for-5 Entitlement Offer to fund core projects for the next 12-18 months.

• Finalised recruitment of management team with the appointment of experienced Chief Financial Officer Chris Palin who started on 20 July 2009.

• Received environmental approvals for Galilee Basin permits ATP 743 and ATP 744.

• Achieved execution of final Native Title documentation by all parties for Galilee Basin permit ATP 744, paving the way for imminent award of both Galilee permits.

• Received drilling tender submissions for 8-well Galilee Basin campaign for evaluation.

• Increased subsidiary Chartwell NZ Pty Limited’s equity in NZ Petroleum Exploration Permits 50279 and 50280 to 100%.

• Completed Scrubber Gully 1 well during July in ATP 337 (Mahalo Block) with encouraging results.

OUTLOOK – COMET RIDGE REJUVENATED AND RECAPITALISED TO ADVANCE KEY CSG PROJECTS

During the quarter Comet Ridge Limited (ASX Code: COI) successfully completed a $21.3 million capital raising program, which has provided sufficient cash resources to fund accelerated development of the Company’s key Galilee Basin, Mahalo Block and Greymouth Coal Seam Gas (CSG) projects over the next 12-18 months.

Managing Director Mr Tor McCaul said a great deal had been achieved during the quarter under review in addition to the capital raising, to position Comet Ridge for growth. This included relocation of the head office to Brisbane and recruitment of the executive team to drive and manage the Company’s operational progress.

“The momentum was maintained on a number of fronts as we moved into the September quarter with the receipt of encouraging initial gas content and permeability data following completion of the Scrubber Gully 1 well in ATP 337 in what is known as the Mahalo block,” Mr McCaul said.

“As reported recently we will be working over coming weeks with our Joint Venture partners to plan the forward appraisal programme for the Mahalo block, incorporating results from this well.”

AUSTRALIA ASX CODE: COI 210 Alice Street Brisbane Qld 4000 Phone: +61 7 3221 3661 Page 1 Facsimile: +61 7 3221 3668

Comet Ridge Limited ABN 47 106 092 577 E-mail: comet@cometridge.com.au Website: www.cometridge.com.au

ASX ANNOUNCEMENT

Mr McCaul said Comet Ridge’s tenement position had also been strengthened in New Zealand where subsidiary Chartwell NZ Pty Limited’s equity in Petroleum Exploration Permits 50279 and 50280 had increased from 60% to 100% following a strategic withdrawal by Joint Venture partner Macdonald Investments Limited.

“In the Galilee Basin we are anticipating the imminent awards of permits for ATP 743 and ATP 744 after receiving all necessary environmental approvals,” Mr McCaul said.

“Drilling tender submissions are now being evaluated for an 8-well Galilee Basin campaign and we are preparing to start work there as soon as possible.”

Fully underwritten $21.3 million capital raising:

On 18 May 2009 Comet Ridge Limited (Comet Ridge) announced a $21.3 million dollar capital raising which consisted of a $7.5 million placement of shares at 34 cents per share and a 1-for-5 nonrenounceable Entitlement Offer at 27 cents per share, raising $13.8 million. The capital raising was managed by Wilson HTM Corporate Finance Limited.

The capital raising was undertaken in order to give Comet Ridge a cash balance of approximately $26 million (at 30 June 2009) so that drilling could be undertaken to progress key projects in the Galilee Basin and Mahalo Blocks in Queensland and the Greymouth Farm-in block in New Zealand, as well as exploration work in other NZ and NSW exploration blocks.

The entire process was completed by 26 June when the new shares were quoted. Shares on issue increased to approximately 307 million. Comet Ridge was extremely pleased with the level of shareholder participation in the entitlement issue (approximately 70%) and saw this as a strong vote of confidence in the post-merger rejuvenated company.

Experienced CFO appointed:

Chris Palin was appointed Chief Financial Officer, effective 20 July 2009. Mr Palin is a qualified accountant of 23 years experience. He holds a Graduate Certificate in Professional Accounting and is currently completing a Master of Commerce degree. He has had extensive experience in senior financial roles, most notably as Financial Controller of Jupiters Ltd from 2001 to 2003 and as CFO and CEO of Bridgeworks Personnel Ltd from 2005 to 2006. Immediately prior to joining Comet Ridge, Mr Palin was responsible as Operational Accounting Manager, for the financial integration of Sunshine Gas Limited’s business and assets following its friendly takeover by QGC Limited in late 2008.

Australian Permits:

ATP 743 and ATP 744, Queensland - Galilee Basin (Comet Ridge 100%):- The Section 31 Deed and Ancillary Native Title Agreement for ATP 744 were fully executed during July and have been submitted to the Queensland Department of Environment and Resource Management. Documentation in respect of ATP 743 has been provided previously.

The Environmental Approval for ATP 743 and 744 was received during June and the Financial Assurances have been paid by Comet Ridge.

AUSTRALIA ASX CODE: COI 210 Alice Street Brisbane Qld 4000 Phone: +61 7 3221 3661 Page 2 Facsimile: +61 7 3221 3668

Comet Ridge Limited ABN 47 106 092 577 E-mail: comet@cometridge.com.au Website: www.cometridge.com.au

ASX ANNOUNCEMENT

Also during June, the Queensland Department of Mining and Energy issued draft Permit Conditions for the award of ATP 743. Comet Ridge has communicated its acceptance of these and has supplied the requested security deposit along with the first year’s rental for the Permit.

Therefore all environmental and native title requirements for both ATP 743 and ATP 744 have now been met by Comet Ridge with necessary agreements and approvals now having been provided to Department of Environment and Resource Management. Both permits are expected to be awarded over the current quarter, with ATP 743 likely to issue before ATP 744, given the earlier execution and submission of native title agreements.

Plans for the upcoming 8-well drilling programme have been further developed with a preliminary top coal structure map generated, well locations selected and drilling rig services tendered. These tenders are currently being evaluated and award is likely to be made during the first half of August. Drilling activities in these permits are on track to commence in late Q3 to early Q4/2009, subject of course to formal award of the permits by the Queensland Department of Minerals and Energy and to weather and availability of services.

The Company believes the permits to be highly prospective for CSG with potential for up to approximately 35 TCF of gas in place within them.

ATP 337 Mahalo Block, Queensland – Bowen Basin (Comet Ridge 40%):- Santos Limited, the exploration operator for the permit, has recently drilled the Scrubber Gully 1 exploration core hole in the eastern part of the Mahalo block, approximately 245km west of Gladstone. The well was drilled to a total depth of 486m and intersected approximately four and a half metres of coal within the Bandana Formation.

Comet Ridge is quite encouraged by the gas and permeability results from the Bandanna coals from this well and will be working over coming weeks with the Joint Venture to plan the forward appraisal programme for the Mahalo block, incorporating results from this well.

The Company considers the permit to have good CSG prospectivity in an area with gas transmission infrastructure in place and is keen to support an accelerated work programme.

PEL 427 and PEL 428, NSW - Gunnedah Basin (Comet Ridge 25 & 20%):- Technical laboratory analysis from the recent drilling of the Moree 4 and Kurrabooma 1 wells is continuing.

New Zealand Permits

PMP 50100, Westcoast Region (Comet Ridge Group 20% increasing to 50%):- Planning is continuing for the drilling of two CSG appraisal core holes in the Dobson area near Greymouth during Q3/2009. Services have been sourced and JV approvals are now in their final stages before construction of well pads can commence. A pilot scheme is expected to be drilled late in Q4 2009 to early Q1 2010.

PEP 50279 & PEP 50280, West Coast & North Waikato Regions (Comet Ridge Group 100%):- These permits cover approx 12,300 sq km in total. On 30 June 2009, Crown Minerals approved the transfer of Macdonald Investments Limited’s 40% interests in these blocks to Comet Ridge. Year Two of the exploration phase on both blocks has commenced with the Comet Ridge technical team evaluating the benefits of aero-magnetic and aero-gravitational surveys and discussing the application of these surveys with Crown Minerals.

AUSTRALIA ASX CODE: COI 210 Alice Street Brisbane Qld 4000 Phone: +61 7 3221 3661 Page 3 Facsimile: +61 7 3221 3668

Comet Ridge Limited ABN 47 106 092 577 E-mail: comet@cometridge.com.au Website: www.cometridge.com.au

ASX ANNOUNCEMENT

Comet Ridge Resources LLC, USA (Comet Ridge 23%)

Comet Ridge owns a 20% interest in Comet Ridge Resources, LLC which has interests in conventional oil and gas properties in Colorado and Washington State in the United States.

Florence Oil Field, Colorado, Comet Ridge Resources 97.25% Interest : Production continued from three wells at a rate of approximately 130 bbl per day. Additional drilling and a second 3D seismic program are expected to commence late in Q3/2009, subject to completion of permitting processes.

Sweet Pea Exploration Project, Comet Ridge Resources 100% Interest : In May 2009 Comet Ridge Resources successfully acquired leases covering a total of approximately 42,000 acres in Colorado. The leases are principally 5-year leases and the acreage is considered to be prospective for oil. A 3D seismic survey of approximately 30 square miles is planned for year end.

Grays Harbor, Washington State, Comet Ridge Resources 100%: In June Comet Ridge Resources exercised a lease option over 43,000 acres in the Grays Harbor Basin. Interpretation of 3D and 2D seismic data collected in late 2008 is nearing completion. The drilling of two wells later this year or early next is contemplated.

COMET RIDGE LIMITED - OVERVIEW

Comet Ridge Limited is a Brisbane based, ASX-listed (ASX Code: COI) coal seam gas (CSG) exploration and development company with a focus on Queensland, NSW and New Zealand. The Company also has exposure to prospective conventional oil and gas fields in the United States via a joint venture.

The Company has several projects in various stages of maturity. Comet Ridge Limited plans to grow shareholder value through the establishment and development of gas reserves from the significant resource potential of its projects.

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Tor McCaul Managing Director

For further information please contact:

Investor Relations: Media: Tor McCaul David Waterhouse Richard Owen Managing Director Principal Associate Comet Ridge Limited Waterhouse Investor Relations Three Plus tor.mccaul@cometridge.com.au dwaterhouse@waterhouseir.com.au richard@threeplus.com.au +61 7 3221 3661 +61 3 9670 5008 0412 869 937

ASX CODE: COI

AUSTRALIA 210 Alice Street Brisbane Qld 4000 Phone: +61 7 3221 3661 Facsimile: +61 7 3221 3668

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Comet Ridge Limited ABN 47 106 092 577 E-mail: comet@cometridge.com.au Website: www.cometridge.com.au