COMET RIDGE LIMITED — Investor Presentation 2011

Nov 22, 2011

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23 November 2011 - Brisbane

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Contents

Area of Operations Technical Basin Overview Comet Ridge Position Key Achievements Resources Booked Further Resource Potential Commercial Gas Pricing and Volumes Domestic Power Export LNG Commercial Options Community Responsible CSG Galilee Basin Community Typical Core Well Design Local Agricultural Community Further Information Summary Wrap Up

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Comet Ridge - Area of Operations

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Presentation today focusing on the Galilee Basin

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Technical
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Basin Overview

• Galilee Basin covers a large part of central Queensland

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• Located favourably in terms of Gladstone LNG & central Queensland power requirements

• Conventional Oil and Gas exploration has occurred since 1960s

• Relatively few wells drilled

• No commercial oil and gas success to date

• Permian aged coals cover the basin

• Potential coal seam gas volume is enormous

• Exploration/Appraisal for coal seam gas underway for past 19 years however more drilling focus in past 2 years

• Most of the basin is likely to be explored for CSG but only parts of the basin may be suitable for commercial gas development

Galilee Basin is extremely large & has potential to deliver large volumes of natural gas

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Comet Ridge Position

 Comet Ridge blocks ATP 743P & 744P

• 12,991 km[2] (3.2 million acres)

• 286 km from NW to SE corner

• Comet Ridge equity 100% - full upside exposure

 Eastern basin selected

• Coals range from shallow to deep (east to west)

• Eastern edge closer to largest potential gas markets

 Existing conventional exploration wells from 1960s to 1980s confirm significant coals

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Coals over significant area of Queensland to be explored

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Key Achievements

• Blocks awarded Sep/Oct 2009

• including Qld Govt environmental approvals

• Late 2009 to early 2010 - five core holes drilled

• Total drilled section 5010m

• Coal thickness ranged from 16m to 24m with up to 22m of shale

• Over 1000m core cut & 10 drillstem tests run

• Significant laboratory coal analysis

• GPA Av gas content 4.3 m[3] /t (high 7.3 m[3] /t)

• 2D seismic survey completed 4Q 2011

• 252 km line data

• very good quality data

• Data will enable imaging of Gunn Project Area (GPA) structural features

• A key input for well positioning

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Wells plus seismic data gives an excellent platform to move forward towards pilot scheme

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Resources Booked

 Galilee Basin Significant Independent Resource Booking Nov 2010

Comet Ridge Limited - Net Recoverable Resources

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Galilee Basin booked Contingent Resource volumes are already significant

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Further Resource Potential

• Significant additional resource potential exists in Comet Ridge blocks

• Well and seismic focus mostly in Gunn Project Area in southwest

• Additional exploration required over remaining wide area

• Intent to move resources to reserves category in Gunn Project Area (GPA)

• Simultaneously look to define further resources outside of GPA

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Significant further resource upside exists
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Gas Pricing & Volumes

• Historically, Eastern Australia has had some of the cheapest gas in the world

• Due to relatively small market size in comparison to reserves

• Cheap gas and cheap coal resulted in cheap electricity

• Gladstone export LNG schemes have significantly shifted the market dynamic for gas in Eastern Australia

• LNG schemes provide linkage to world oil and energy prices and provide substantial gas market

• Eastern Australian gas prices have already moved up and the market expects will continue to move up

• Just a matter of how much and how quickly

• Short term ramp gas price concerns seem to be diminishing

Eastern Australian gas prices are forecast to increase to $6 to $8 per GJ

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Domestic Power

• Gas is a clean base load option for power

• Natural Gas is currently supplying nearly 20% of Queensland’s power needs

• This proportion is likely to increase significantly

• New gas fired power plants recently announced for Ipswich and Gladstone

• Up to 3000 MW

• Central Queensland will need substantial incremental power over the next several years

Natural Gas will play a big part in power generation expansion into the future

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Export LNG

• Three large LNG schemes are now under construction on Curtis Island near Gladstone, with a fourth project likely

• At least five processing trains will produce over 20 Million tonnes per annum of LNG, commencing in 2014, with incremental project economics driving further expansion aspirations

• Ultimately, this LNG will primarily go to Asia where Natural Gas will provide a cleaner source of energy

• Established long term buyers Japan, South Korea and Taiwan

• Emerging buyers China, India, Singapore, Malaysia, Chile and others

Galilee Basin well positioned to supply expansion gas to Gladstone LNG projects

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Comet Ridge Commercial Options

• Coal mining precinct down our block edge

• Two stage approach to commercialisation of Comet Ridge Galilee Gas Resources

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Coal Mining
―
Stage 1: Power supply to nearby coal mines Projects
or electricity network
― Adani
Stage 2: Gas supply to Gladstone
Stage 1: Power demand per coal mining
Vale
project estimated at 200MW each
―
5 projects x 200MW = 1,000 MW demand
― Powerlink are planning to extend 275kV Waratah Coal
transmission line west from the Lilyvale
Hancock/GKV Coal:
substation to Alpha and Kevins Corner - Alpha
- Kevins Corner
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• Stage 1: Power demand per coal mining project estimated at 200MW each

• This transmission line may be extended north from Kevins Corner to the Adani project, along ATP 744P permit boundary

• Stage 2: Gas supply to LNG projects at Gladstone is expected in longer term

• Produced water may be re-injected or for beneficial use or for coal washing

• subject to environmental (DERM) approval

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Responsible CSG Exploration & Development

• CSG industry has been operating in Queensland for >10 years

• CSG industry in Eastern Australia is one of the most heavily regulated industries in Australia

• APPEA suggests more regulated than the nuclear industry

• Queensland has established significant new reporting, regulation and legislation

• CSG explorers and producers need to work in an increasingly complex regulatory system

• Queensland Legislation currently in effect (or being finalised) that places requirements on CSG companies:

• Petroleum & Gas Act 2004

• Environmental Protection Act 1994

• Aboriginal Cultural Heritage Act 2003

• Water Act (Qld) 2000 & Commonwealth (2007)

• Strategic Cropping Land Bill

• Wild Rivers Act 2005

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• Nature Conservation Act 1992

• Land Protection (Pest & Stock Route Management)

• Act (2002)

Comments from some commentators, that CSG is an unregulated industry, are false and misleading

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Galilee Basin – Community

• Cultural Heritage Management Plans successfully in place with three groups

• Galilee Basin Operators Forum undertaking detailed basin-wide aquifer study ― www.gbof.com.au

• Engagement and information sharing with local councils is ongoing

• Central West Remote Area Planning & Development Board (RAPAD)

• Mt Isa to Townsville Economic Development Zone (MITEZ)

• Direct Council interaction

• Interaction with community positive

• Seismic & drilling impact negligible

• Seismic acquired along existing roads and firebreaks where possible

• Drilling sites rehabilitated back to natural state after wells plugged with cement and abandoned

• Site pictured (right) is Hergenrother 1 well ten months after drilling showing planned revegitation underway

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East Galilee Basin – Typical Core Well Design

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Betts Creek Coals sit well below Great Artesian Basin units

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Local Agricultural Community

• Entire Comet Ridge exploration area covers only 54 landowners / families

• Prior to finalising drilling or seismic plans, Comet Ridge seeks landowner input & advice

• Access planned around local roads, tracks and firebreaks

• We allocate sufficient time to:

• Explain our forward plans and our business

• Answer questions & discuss any concerns

• Seek to understand the landowner’s business and requirements

• finalise compensation agreements & documentation

• We understand that we are judged more on what we do than what we say

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We have shown respect and without exception, have received respect in return

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Further Information

• Many unsubstantiated claims and myths exist in the media about CSG exploration and production

• Comet Ridge believes each stakeholder should form their own views based on facts and should ask for claims to be substantiated

• Comet Ridge recommends the following sites for further information:

• www.cometridge.com.au

• www.derm.qld.gov.au/environmental_management/coal-seam-gas/vodcast.html

• www.csiro.au/news/coal-seam-gas.html

• www.appea.com.au

• wewantcsg.com.au

• Websites from the major LNG proponents:

  • www.santos.com.au

  • www.santoswaterportal.com.au

  • www.glng.com.au

  • www.aplng.com.au

  • www.qgc.com.au

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Wrap Up

• 100% interest in both ATP 743P & ATP 744P in eastern Galilee Basin

• Substantial acreage position covering 12,991 km[2 ]

• 1870 PJ of 3C Contingent Resource certified in Gunn Project Area in Nov 2010

• Considerable upside yet to be tested

• 2D Seismic acquisition programme completed October 2011

• Commercial development options are emerging in power as well as LNG

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• 2012 focus:

• Interpret seismic, drill up to four wells in Q2/Q3 in Gunn Project Area to help determine optimal Pilot location

• Commence detailed planning for initial Pilot Project in 2013

• Progress commercial options, initially in power generation (or gas supply for)

Gunn Project Area 3C Gas Resources are material in size (1870 PJ) and 100% COI

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General Disclaimer

• This document has been prepared by Comet Ridge Limited to provide existing and prospective investors in Comet Ridge Limited with an update on the Company and its operations.

• This presentation, including the information contained in this disclaimer, does not constitute an offer, invitation or recommendation to subscribe for or purchase any security and neither the presentation, disclaimer nor anything contained in the forms the basis of any contract or commitment. This presentation does not take into account your individual investment objective, financial situation or particular needs. You must not act on the basis of any matter contained in this presentation, but must make your own assessment of the Company.

• No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation tot future matters contained in the presentation (“forward-looking statements”). Such forward-looking statement are by their nature subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of Comet Ridge Limited and its directors) which may cause the actual results or performance of Comet Ridge Limited to be materially different from any future results or performance expressed or implied by such forward-looking statements.

• To the maximum extent permitted by law, none of Comet Ridge Limited, or related corporations, directors, employees, or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of this presentation or tis contents or otherwise arising in connection with it.

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Comet Ridge Limited

Address

Level 1 283 Elizabeth Street Brisbane Queensland 4000 Telephone: +61 7 3221 3661 Facsimile: +61 7 3221 3668 Email: info@cometridge.com.au

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