COMET RIDGE LIMITED — Interim / Quarterly Report 2010

Apr 28, 2010

ASX ANNOUNCEMENT

Comet Ridge Limited Quarterly Report

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Quarter ended 31 March 2010

Highlights:

• Shoemaker 1 coal seam gas (CSG) exploration well drilled in ATP 744P, Galilee Basin, intersecting 20 metres of coal

• New Zealand Pilot Production Scheme drilling in PMP50100 (Greymouth Block) at end of period

• Acquisition of Phase 1 airborne geophysical data completed in NZ exploration blocks

• Comet Ridge Limited Management Team strengthened with the addition of an Engineering & Operations Manager

Comet Ridge Limited (ASX Code: COI) continues to execute its Galilee Basin exploration core well campaign, which was significantly interrupted during the quarter due to poor weather and record rainfall in central and southern Queensland.

However, with improved weather conditions and road access now possible, drilling operations recently recommenced.

At the end of the quarter, drilling also commenced on the two-well Pilot Production Scheme in the Company’s PMP 50100 Greymouth Block in New Zealand. This is an important milestone for Comet Ridge as the first step towards commercialising the Company’s gas potential.

The Company has also continued to strengthen its management team as it moves into the pilot production phase in New Zealand with the addition of an Engineering and Operations Manager.

Australian Permits:

ATP 743P and ATP 744P, Queensland - Galilee Basin (Comet Ridge 100%) :-

Shoemaker 1, the first well in ATP 744P and second well in the Galilee Basin exploration core well programme, was drilled during the last two weeks of January 2010. The well was designed to test the primary objective Betts Creek coal measure sequences in the central permit area of ATP 744P.

The well reached a total depth of 698 metres having intersected approximately 20 metres of coal in the Betts Creek formation where two drill stem tests were run over coal intervals. Laboratory analysis of the coals and carbonaceous shales intersected in this well is continuing.

ASX CODE: COI Page 1

Level 1 283 Elizabeth Street Brisbane Qld 4000 Australia Phone: +61 7 3221 3661 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

The rig was released with plans to move to Tuttle 1, located in the central eastern area of ATP 744P, approximately 18 km south of Shoemaker 1. Due to the influence of Cyclone Olga and significant regional rainfall, alternative well locations with better wet weather access were considered.

Montani 1 presented a suitable accessible location and is situated approximately 23 km northwest of Shoemaker 1. Due to further additional rain in early February, finalising a move to this location was not possible and a significant delay to the drilling programme resulted.

The Montani 1 well subsequently spudded on 26 April. The well is designed to further test the primary objective Betts Creek coal measure sequence in the central permit area of ATP 744P. The well is planned to take approximately 16 days to drill and is expected to reach a total depth of approximately 950 metres.

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ATP 337 (Mahalo), Queensland – Bowen Basin (Comet Ridge 40%) :-

Studies work by the Operator continues in the Mahalo block. Seismic data has recently been traded with a neighbouring resources company, and interpretation and integration of this new seismic data has commenced. This data is expected to be useful in assisting to locate a pilot scheme for the Mahalo block, which has yet to be approved by the joint venture, but is likely to be scheduled for the first part of 2011.

PEL 427 and PEL 428 – New South Wales (Comet Ridge 25% & 20%) :-

The joint venture met during the quarter to discuss the results of the 2009 farm-in wells Kurrabooma 1 (PEL 428) and Moree 4 (PEL 427) in detail. Published results of drilling being undertaken in a block just to the south of PEL 427 will be analysed carefully with a view to drilling a CSG exploration well in PEL 427 (likely to be named Bellata 3) later in 2010. The Bellata Trough area in the southern portion of PEL 427 is considered prospective for CSG in the Maules Creek Formation and Black Jack Formation and joint venture

Level 1283 Elizabeth StreetBrisbane Qld 4000AustraliaPhone: +61 7 3221 3661Facsimile: +61 7 3221 3668	ASX CODE: COI
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Comet Ridge Limited ABN 47 106 092 577 E-mail: comet@cometridge.com.au Website: www.cometridge.com.au

ASX ANNOUNCEMENT

technical work is likely to be directed towards improving the general level of understanding of these potential reservoirs over the next few months.

New Zealand Permits:

PMP 50100, Greymouth, West Coast (Comet Ridge Group 20% increasing to 50%)

Following the encouraging results obtained from the Macdonald 5C core hole in November 2009, planning for the drilling of two pilot wells commenced late in 2009 and continued through the quarter. Construction of the drilling pads and access roads for the Macdonald 4P and 6P wells began in early March and the rig was mobilised to location during the month with the first well (Macdonald 6P) spudded on 30 March 2010 with Horizon Drilling’s Rig 11.

Both Macdonald 4P and 6P are planned to drill to approximately 1200 metres and are designed to intersect and evaluate the Brunner and Paparoa Formation coal measure sequences. The wells will be cased with a 7” production string and completed for pilot production testing.

PEP 50279 & PEP 50280, West Coast & North Waikato Regions (Comet Ridge Group 100%) :-

Airborne Geophysics:

Acquisition and interpretation of the aeromagnetic and radiometric data is complete for PEP 50280 (North Waikato block), and almost complete for PEP 50279 (Buller block). Additional depth to magnetic basement modelling has been commissioned for the greater Reefton area. This will aid in the definition of the basin and in the planning of the gravity surveying (Phase 2 of the surveying) which is expected to be undertaken late in 2010.

The results to date in both blocks are positive. Major sub-basins have been identified and increased structural information gained.

Seismic Data, West Coast:

Roughly 40 km of seismic data across PEP 50279 (Buller block) has been received as part of a data trading exercise with a neighbouring resources company. The data is of good quality and over areas of interest for the Comet Ridge Group.

The data will be assessed to see if further reprocessing is required before interpretation and integration of the data begins. These lines will help greatly in the interpretation of this area and will be integrated with the recently acquired airborne geophysical data and will ultimately be useful in selecting drilling locations.

USA - Comet Ridge Resources LLC, (Comet Ridge 20%)

Comet Ridge Resources, LLC expects to commence a multi-well drilling programme in the Florence area in southern Colorado. The programme is expected to commence in early May and take six to eight weeks to complete.

Prospect mapping continues at Grays Harbor.

ASX CODE: COI

Level 1 283 Elizabeth Street Brisbane Qld 4000 Australia 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

ASX ANNOUNCEMENT

Corporate

Engineering and Operations Manager

Comet Ridge Limited has appointed Mr Dale Aaskow as Engineering and Operations Manager, commencing with the Company in early May. Mr Aaskow, originally from Canada, is an engineer with over 25 years’ experience in the international oil and gas industry, including 10 years in a variety of technical and management roles in Asia.

During the past four years Mr Aaskow has been based in Brisbane and held a regional unconventional gas development role for a major services company, becoming closely involved with a large number of coal seam gas developments in Queensland and the region. He brings a wealth of technical and operational experience that will be critical for Comet Ridge as the Company moves into the pilot production phase over the next several months.

Comet Ridge will continue to add to its management team with key appointments as the Company grows its business in the region.

Expiry of Unlisted Options

As at 31 December 2009, three million five hundred thousand (3,500,000) unlisted employee incentive options, exercisable at AUS$0.419, lapsed after no notices of exercise were received.

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:

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

Media: Richard Owen Associate Three Plus richard@threeplus.com.au 0412 869 937

ASX CODE: COI

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Level 1 283 Elizabeth Street Brisbane Qld 4000 Australia Phone: +61 7 3221 3661 Facsimile: +61 7 3221 3668

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