COMET RIDGE LIMITED — Investor Presentation 2021

Sep 9, 2021

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10 September 2021

Important notice and disclaimer

Disclaimer

This presentation (Presentation) has been prepared by Comet Ridge Limited (ABN 47 106 092 577) (Comet Ridge or the Company). The Presentation and information contained in it is being provided to shareholders and investors for information purposes only. Shareholders and investors should undertake their own evaluation of this information and otherwise contact their professional advisers in the event they wish to buy or sell shares. To the extent the information contains any projections, Comet Ridge has provided these projections based upon the information that has been provided to Comet Ridge. None of Comet Ridge or its directors, officers or employees make any representations (express or implied) as to the accuracy or otherwise of any information or opinions in the Presentation and (to the maximum extent permitted by law) no liability or responsibility is accepted by such persons.

Summary information

This Presentation contains summary information about Comet Ridge and its subsidiaries and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete. It should be read in conjunction with Comet Ridge’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au.

ASX Releases

Investors are advised that by their nature as visual aids, presentations provide information in a summary form. The key information on detailed Resource statements can be found in Comet Ridge’s ASX releases. Resource statements are provided to comply with ASX guidelines but investors are urged to read supporting information in full on the website.

Future performance

This Presentation contains certain “forward-looking statements”. Forward looking words such as, “expect”, “should”, “could ”, “may”, “plan”, “will”, “forecast”, “estimate”, “target” and other similar expressions are intended to identify forward-looking statements within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forwardlooking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements, opinions and estimates are not guarantees of future performance.

Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This presentation contains such statements that are subject to known and unknown risks and uncertainties and other factors, many of which are beyond the control of Comet Ridge, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. Such forward-looking statements are relevant at the date of this Presentation and Comet Ridge assumes no obligation to update such information.

Investment risk

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

An investment in Comet Ridge shares is subject to investment and other known and unknown risks, some of which are beyond the control of Comet Ridge. Comet Ridge does not guarantee any particular rate of return or the performance of Comet Ridge. Persons should have regard to the risks outlined in this Presentation.

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Agenda

1. Overview

2. Mahalo Hub Work Programme 3. Placement

3. Mahalo Acquisition

Appendices:

• A. Loan Facility - Pure Asset Management

• B. Gas Reserves and Contingent Resources

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Section 1

Overview

Overview

✓ Acquisition of APLNG’s Mahalo interest* provides platform to unlock the Mahalo Gas Hub

• Comet Ridge appraisal operator of Mahalo (under Santos agency)

• Comet Ridge’s 100% owned Mahalo North and Mahalo East blocks being appraised to provide additional reserves from high productivity fairway

• Progressing commercial arrangements with Santos to consolidate Mahalo Gas Hub and equity positions* into an integrated development project

✓ $5m placement to expand and accelerate work programme to drive project forward

• Dual lateral pilot well at Mahalo North targeting >2000m in coal and production test

• One core hole in Mahalo North / East to further increase 2P and 3P reserves

✓ Drilling rig secured with planned spud of pilot well next month

• Provides key well data from northern fairway in 1H 2022 for FID momentum

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• Refer ASX announcement 3 August 2021

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Section 2

Mahalo Hub Work Programme

Mahalo Gas Project – strong project fundamentals

✓ Significantly appraised project with proven flow rates

• Over 20 CSG appraisal wells

• Mira 6 lateral pilot well flowed 1.4 MMcfd from 924m in coal

• Development wells will be up to 1500+m in coal (targeting > 2 MMcfd)

✓ Certified 2P reserves with further growth expected

• Gross 2P reserves of 266 PJ within the Mahalo PL areas only

• Equivalent to 60 TJ/d production for 12 years

• Further upside from Mahalo North and Mahalo East blocks

✓ Fully licensed project close to infrastructure

• Development ready gas project

• Petroleum Leases (PL) and environmental approvals granted

• 65km to Jemena and GLNG pipelines

✓ Initial development can be expanded

• Adding development wells from high productivity fairway in Mahalo North and Mahalo East blocks

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Mahalo Gas Hub – next steps

• Next step for Mahalo Gas Hub is to undertake appraisal of the high productivity fairway in Comet Ridge’s two 100% owned blocks to the north of Mahalo Gas Project.

• Work programme to comprise:

• Mahalo North Pilot production test comprising a vertical core hole (to become a production well) and a dual lateral well planned to intersect more than 2,000m of coal

• One step-out core hole either in Mahalo North or Mahalo East

• Drilling rig has been secured , planned spud next month

• : Objectives

• Demonstrate production potential of development-length well in the shallow, high productivity coals of the northern fairway

• Certify a meaningful volume of additional 2P and 3P Gas Reserves – make Mahalo Gas Hub project at least 30% bigger

• Funding allows control of appraisal timeline for 100% owned blocks while commercial arrangements with Santos (per the previously announced option arrangements) are being negotiated to create an integrated Mahalo Gas Hub development

• Confirm a pilot production test at Mahalo East and any additional step out core holes prior to FID (for additional 2P Reserves )

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Section 3

Placement

Placement overview

Terms	Details	Details	Details
Offer Structure	Placement of 64.5 million new shares (New Shares) (8.1% of current shares on issue)
Issue Price	$0.0825 per share (discount of 12% to 20-dayVWAP and 15% to 5-dayVWAP)
Placement amount	$5.0 million (net of costs) ($5.3 milliongross)
Capacity	New Shares will be issued within Comet Ridge’s current 15% capacity
Ranking	New Shares will rank pari passu with existing shares on issue
Timetable	Announce placement: DvP settlement of New Shares: Allotment of New Shares:	Friday, 10 September 2021 Thursday, 16 September 2021 Friday, 17 September 2021
Capital structure post Placement	Existing shares on issue Placement Shares Total Shares Performance Rights Warrant Shares (Pure Asset Mgt) Fully diluted securities on issue	795,561,719 64,472,726 860,034,445 5,010,000 39,393,939 904,438,384	88.0% 7.1% 95.1% 0.5% 4.4% 100%

Funding plan - next 12 months

Fundingfor Mahalo acquisition and Mahalo Hub work programme	Fundingfor Mahalo acquisition and Mahalo Hub work programme	Fundingfor Mahalo acquisition and Mahalo Hub work programme	Fundingfor Mahalo acquisition and Mahalo Hub work programme
Source of funds	$m	Use of funds	$m
Cash at 30 June 2021	3.4	Corporate costs (FY22)	4.5
Pure Asset Mgt – Tranche 1 loan*	6.5	Loan arrangement fees and cash interest costs	1.4
Santos loan - for Mahalo acquisition	13.1	APLNG upfront consideration plus stamp duty	13.1
Pure Asset Mgt – Tranche 2 loan (drawdown subject to CP’s)	3.5	Mahalo Hub work programme – pilot production well,production test and stepout core hole	6.6
Placement (net of costs)	5.0	Other permit costs	1.0
		Closingcash	4.9
Total sources	31.5	Total uses	31.5

The above table excludes the following potential funding sources:

1. Cash proceeds if Pure Tranche 1 warrants ($6.5m from 39.4m warrants @ 16.5 cps) or Tranche 2 warrants (to be issued once Tranche 2 loan is drawn) are exercised. Refer Appendix A for further details.

2. Cash proceeds from selldown of additional 7.14% equity in Mahalo Gas Project to Santos on terms to be agreed (Santos have a right to increase their equity in Mahalo if they exercise their initial option over 12.86% of Mahalo).

3. Cash proceeds or contribution to work programme if Comet Ridge and Santos agree terms for Santos to farmin to Mahalo North and Mahalo East blocks.

4. Facility Agreement signed 9 September 2021 with drawdown of funds in week beginning 13 September 2021

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Section 4

Mahalo Acquisition Overview and Santos Arrangements

Funded acquisition of APLNG’s 30% interest in Mahalo Gas Project

Transformational acquisition built on compelling metrics and Mahalo JV alignment

Comet Ridge has executed a binding agreement to acquire APLNG’s 30% interest in the Mahalo Gas Project

On completion, Comet Ridge will hold a 70% interest in the Mahalo Gas Project

Upfront consideration of $12m funded via Santos loan and deferred consideration of $8m, payable in tranches

• Compelling reserve metrics: - $0.25/GJ (2P Reserves) - $0.15/GJ (3P Reserves)

Santos to become development operator with Comet Ridge to undertake appraisal work (as agent) to drive FID timing

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Back-to-back Santos arrangements

• Arrangements with Santos provide for equity alignment across the Mahalo Gas Hub permits

• Santos providing loan of up to $13.15m to fund upfront APLNG consideration and stamp duty costs

• Santos have option (6 months term) to acquire 12.86% of Mahalo from Comet Ridge (STO  to 42.86%) at proportional acquisition value

• On exercise of Option 1 - $5.1m of Santos loan is extinguished, remainder to be repaid by Comet Ridge

• Santos has rights to negotiate with Comet Ridge (on terms to be agreed) to  Mahalo interest to 50% and acquire 50% of Mahalo North and Mahalo East

• By equalising project equity at 50/50 with Santos across these three permits, Comet Ridge will strengthen its balance sheet via:

• o ceeds from selldown o f

• Repayment of lCash pr an following exercise r expiry of Option 1additional 7.14% equity in Mahalo Gas Project to Santos.

• Cash proceeds and/or contribution to work programme via farmin to Mahalo North and Mahalo East blocks.

1

2

3

4

5

6

Key highlights

Comet Ridge acquiring APLNG’s 30% interest in Mahalo Gas Project

JV partner Santos providing a loan package to fund the upfront consideration in exchange for an option for increased equity in the Mahalo Gas Project and northern Mahalo blocks

Transaction unlocks Mahalo Gas Project providing pathway to project development with Santos to be development operator and Comet Ridge as appraisal operator prior to FID

Significant increase in Comet Ridge 2P and 3P Gas Reserves on completion, on favourable metrics

Further appraisal commencing next month in northern blocks to continue momentum, targeting further reserves and a much bigger project footprint

Development pathway to take advantage of ongoing favorable east coast market dynamics

Appendices

Appendix A – Term Loan Facility with Pure Asset Management

Two tranche term loan, with detached Facility structure warrants following each loan drawdown

$10m; comprising $6.5m for Tranche 1 and Facility size $3.5m for Tranche 2

12% p.a. prior to Mahalo Gas Project FID and Interest rate 10% thereafter

Term 48 months from utilisation of Tranche 1 loan

Non-amortising bullet repayment with Repayment voluntary prepayment allowed

Use of proceeds General corporate purposes of the Company

• 39.4m warrants

• Exercise price 16.5cps

• •

• Tranche 1 Exercise price of all warrants may adjust lower Warrants if the Company issues >15% of its issued capital below the warrant price, in any 12 month period

• 14.58m warrants to be issued if Tranche 2 loan drawn

• •

• Tranche 2 Exercise price lower of (i) 24cps; or (ii) 1.6 x Warrants 20-day VWAP prior to utilisation of Tranche 2 loan; or (iii) 1.6 x lowest price of any issuance prior to utilisation of Tranche 2 loan

Security

• First ranking general security over assets of Comet Ridge (and subsidiaries), excluding Mahalo Gas Project

• If Tranche 2 loan drawn, security will include a second-ranking charge over Mahalo

Appendix B – Certified Gas Reserves and Contingent Resources

Comet Ridge Limited (PJ's)		Gas Reserves		Contingent	Gas	Resources
Mahalo Gas Project, Bowen Basin (QLD)1	1P	2P	3P	1C	2C	3C
COI current 40% interest	0	106	183	53	89	154
Post Acquisition (COI 70%)	0	186	321	134	221	360
Post Acquisition, after Santos option (COI 57%)	0	152	262	109	181	294
Galilee Basin (QLD)	1P	2P	3P	1C	2C	3C
CSG, Gunn Project Area (COI 100%)2	0	0	0	0	67	1,870
Conventional, Albany Structure (COI 70%)2	0	0	0	39	107	292
Gunnedah Basin (NSW)	1P	2P	3P	1C	2C	3C
PEL 6 (COI 29.55%), PEL 427 (COI 59.09%)	0	0	0	0	0	489
COI TOTAL - CURRENT INTERESTS ONLY	0	106	183	92	263	2,805

Notes:

1 PL 1082, PL 1083, PCA 302, PCA 303, PCA 304

2 ATP 744

Note that Gas Reserves / Contingent Resources are yet to be certified for Mahalo North, Mahalo East or Mahalo Far East (COI 100%)

Refer to the Competent Person Statement on the following page.

Appendix B – Competent Person Statement

Competent Person Statement and ASX Listing Rules Chapter 5 - Reporting on Oil and Gas Activities

The estimate of Reserves and Contingent Resources for the Mahalo Gas Project provided in this Presentation, is based on, and fairly represents, information and supporting documentation determined by Mr Timothy L. Hower of Sproule International (Sproule), in accordance with Petroleum Resource Management System guidelines. Mr Hower is a full-time employee of Sproule, and is a qualified person as defined under the ASX Listing Rule 5.42. Mr Hower is a Licensed Professional Engineer in the States of Colorado and Wyoming as well as being a member of The Society of Petroleum Engineers. Mr Hower has consented to the publication of the Reserve and Contingent Resource estimates for the Mahalo Gas Project in the form and context in which they appear in this Presentation.

The Reserve and Contingent Resource estimates for Comet Ridge’s current 40% interest in the Mahalo Gas Project, provided in this presentation, were released to the Market in the Company’s ASX announcement of 30 October 2019 and were estimated using the deterministic method with the estimate of Contingent Resources utilising the probabilistic method and not having been adjusted for commercial risk.

The Reserve and Contingent Resource estimates for the Mahalo Gas Project, pending completion of the APLNG acquisition, provided in this Presentation, have been prepared by Sproule International by taking into account Comet Ridge’s expected equity increase from 40% to 70% and including an expected 70% interest in the new PL 1083 West Shallows and Lowesby Cutout Shallows areas. The Reserves were estimated using the deterministic method with the estimate of Contingent Resources utilising the probabilistic method, and not having been adjusted for commercial risk.

The contingent resource estimates for the unconventional gas for the Gunn CSG Project located in ATP 744 provided in this Presentation are based on and fairly represent, information and supporting documentation determined by Mr John Hattner of Netherland, Sewell and Associates Inc, Dallas, Texas, USA, in accordance with Petroleum Resource Management System guidelines. Mr Hattner is a full-time employee of NSAI and is considered to be a qualified person as defined under the ASX Listing Rule 5.42 and has given his consent to the use of the resource figures in the form and context in which they appear in this presentation.

The contingent gas resource estimates for the Gunn CSG Project the located in ATP 744 provided in this statement were originally released to the Market in the Company’s announcement of 25 November 2010 and were estimated using the deterministic method with the estimate of contingent resources for ATP 744 not having been adjusted for commercial risk.

The contingent resource estimates for PEL 6, PEL 427 referred to in this presentation were determined by Mr Timothy L. Hower of MHA Petroleum Consultants LLC in accordance with Petroleum Resource Management System guidelines. Mr Hower is a full-time employee of MHA, and is a qualified person as defined under the ASX Listing Rule 5.42. Mr Hower consented to the publication of the resource figures which appeared in the announcement of 7 March 2011 made by Eastern Star Gas Limited (ASX:ESG) and any reference and reliance on the resource figures for PEL 6 and PEL 427 in this Presentation is only a restatement of the information contained in the ESG announcement.

The Contingent Resource for the Albany Structure located in ATP 744 are taken from an independent report by Dr Bruce McConachie of SRK Consulting (Australasia) Pty Ltd, an independent petroleum reserve and resource evaluation company. The Contingent Resources information has been issued with the prior written consent of Dr McConachie in the form and context in which they appear in this Presentation. His qualifications and experience meet the requirements to act as a qualified petroleum reserves and resource evaluator as defined under the ASX Listing Rule 5.42 to report petroleum reserves in accordance with the Society of Petroleum Engineers (“SPE”) 2007 Petroleum Resource Management System (“PRMS”) Guidelines as well as the 2011 Guidelines for Application.

The contingent resource estimates for PEL 6 and PEL 427 were estimated using the deterministic method with the estimate of contingent resources for PEL 6, PEL 427 not having been adjusted for commercial risk.

Comet Ridge confirms that it is not aware of any new information or data that materially affects the information included in any of the announcements relating to the Mahalo Gas Project, ATP 744, PEL 6 or PEL 427 and that all of the material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed.

FOR MORE INFORMATION Telephone: +61 7 3221 3661 Email: info@cometridge.com.au

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