COMET RIDGE LIMITED — Share Issue/Capital Change 2007

Feb 4, 2007

5 February 2007

The Company Announcements Officer Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 By Electronic Lodgement

Dear Sir.

EXERCISE OF UNLISTED OPTIONS

We attach an Appendix 3B in respect of the conversion of 50,000 unlisted options, expiring 29 March 2007 at 20 cents.

Yours faithfully,

Andy Lydyard Managing Director

USA Andy Lydyard Managing Director Comet Ridge Limited
999 18^th Street, Suite 3000 Denver, Colorado, USA

Phone: +1 (303) 357 4646 $+1$ (303) 357 4648 Fax: Mobile: $+1$ (303) 547 4478 andy.lydyard@cometridge.com.au Email:

AUSTRALIA Comet Ridge Limited ABN 47 106 092 577

Level 9, Wesfarmers House 40 The Esplanade Western Australia 6000

Phone: 61864640499 Facsimile: 61 8 6464 0498 Email: comet@cometridge.com.au

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

APPENDIX 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX's property and may be made public. Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003.

Name of entity

Comet Ridge Limited

ABN

$\overline{2}$

47 106 092 577

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

$\mathbbm{1}$ ⁺Class of ⁺securities issued or to be Fully Paid Shares issued

Number of ⁺securities issued or to be issued (if known) or maximum number which may be issued

50,000

$\overline{3}$ Principal terms of the *securities (eg, if options, exercise price and expiry date; if partly paid *securities, the amount outstanding and due dates for payment; if securities, *convertible the conversion price and dates for conversion)

$\overline{4}$ Do the ⁺securities rank equally in all Yes respects from the date of allotment with an existing ⁺class of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do $\bullet$
• the extent to which they $\overline{\phantom{a}}$ participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

Issue price or consideration 5

Purpose of the issue 6 (If issued as consideration for the acquisition of assets, clearly identify those assets)

$0.20$

Exercise of unlisted options, exercisable at 20 cents each and expiring 29 March 2007

• $\overline{\tau}$ Dates of entering *securities into uncertificated holdings or despatch of certificates
• 8 *class of all Number and *securities quoted on ASX (including the securities in clause 2 if applicable)

Number	+ Class
99,850,936 14,184,238	Fully Paid Shares Listed Options expiring
	29 June 2007

	Number	+ Class
Number. and t class to of. all *securities not quoted on ASX (including the securities in clause	4,200,000	Options exercisable at 20 cents, expiry 29/3/07
2 if applicable)	1,000,000	Options exercisable at 20 cents, expiry date 2/3/08
	500,000	Options exercisable at 20 cents, expiry date 18/8/08
	1,500,000	Options exercisable at 20 cents, expiry date 31/12/08
	450,000	Options exercisable at 40 cents expiry date 11/5/09
	75,000	Options exercisable at 45 cents expiry date 26/6/09
	1,000,000	Options exercisable at 45 cents expiry date 31/7/09
	955,000	Options exercisable at 45 cents expiry date 10/11/09
	100,000	Options exercisable at 50 cents expiry date 17/1/10

Dividend policy (in the case of a
trust, distribution policy) on the
increased capital (interests) $10\,$

$\overline{9}$

Dividends not yet paid

Part 2 - Bonus issue or pro rata issue

11	holder approval security Ιs required?
12	Is the issue renounceable or non- renounceable?
13	Ratio in which the "securities will be offered
14	+ Class of + securities to which the offer relates
15	determine *Record date to entitlements
16	Will holdings on different registers (or subregisters) be aggregated for calculating entitlements?

• 17 Policy for deciding entitlements in relation to fractions
• 18 Names of countries in which the entity has "security holders who will not be sent new issue documents

Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7.

• 19 Closing date for receipt acceptances or renunciations
• 20 Names of any underwriters
• 21 Amount of any underwriting fee or commission
• 22 Names of any brokers to the issue
• 23 Fee or commission payable to the broker to the issue
• 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of *security holders
• 25 If the issue is contingent on *security holders' approval, the date of the meeting
• 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled
• 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders
• Date rights trading will begin (if 28 applicable)
• 29 Date rights trading will end (if applicable)

• 30 How do *security holders sell their entitlements in full through a broker?
• 31 How do *security holders sell part of their entitlements through a broker and accept for the balance?
• 32 How do *security holders dispos of their entitlements (except by sa through a broker)?

33 *Despatch date
----------------------	--

se ile

Part 3 - Ouotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities (tick one)
• Securities described in Part 1 $(a)$
• $(b)$ All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35	If the "securities are "equity securities, the names of the 20 largest holders of the
	additional securities, and the number and percentage of additional securities held by
	those holders

36	If the securities are equity securities, a distribution schedule of the additional *securities setting out the number of holders in the categories $1 - 1,000$ $1.001 - 5,000$ $5,001 - 10,000$ $10,001 - 100,000$ $100.001$ and over
-37	A copy of any trust deed for the additional "securities"

Entities that have ticked box 34(b)

• Number of securities for which 38 ^*quotation is sought
• 39 Class of *securities for which quotation is sought
• 40 Do the *securities rank equally in all respects from the date of allotment with an existing *class of quoted *securities?

If the additional securities do not rank equally, please state:

• the date from which they do $\bullet$
• the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment
• the extent to which they do not rank equally, other than in
  relation to the next dividend, distribution or interest payment
• 41 Reason for request for quotation now

Example: In the case of restricted securities, end of restriction period

(if issued upon conversion of another security, clearly identify that other security)

42 Number and *class of all *securities quoted on ASX (including the securities in clause 38)

Number	+Class

Quotation agreement

• $\mathbf{1}$ *Quotation of our additional *securities is in ASX's absolute discretion. ASX may quote the *securities on any conditions it decides.
• $\overline{2}$ We warrant the following to ASX.
• The issue of the *securities to be quoted complies with the law and is not for an illegal purpose.
• There is no reason why those *securities should not be granted *quotation.
• An offer of the ⁺securities for sale within 12 months after their issue will not require disclosure under section $707(3)$ or section $1012C(6)$ of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any *securities to be quoted and that no-one has any right to return any *securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the *securities be quoted.
• We warrant that if confirmation is required under section 1017F of the Corporations Act in relation to the *securities to be quoted, it has been provided at the time that we request that the 'securities be quoted.

• If we are a trust, we warrant that no person has the right to return the *securities to be quoted under section 1019B of the Corporations Act at the time that we request that the "securities be quoted.

• We will indemnify ASX to the fullest extent permitted by law in respect of any $\overline{3}$ claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• $\overline{4}$ We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before a quotation of the 'securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here:................................... (Company secretary)

.............Gillian Swaby.................................... Print name: