COMET RIDGE LIMITED — Share Issue/Capital Change 2010

Aug 2, 2010

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Comet Ridge Limited ABN 47 106 092 577 GPO Box 798 Brisbane Qld 4001 Phone : +61 7 3221 3661 Fax:- +61 7 3221 3668 Info@cometridge.com.au

Our Ref: Stephen Rodgers

3 August 2010

The Company Announcements Officer Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street SYDNEY NSW 2000

By Electronic Lodgment

Dear Sir / Madam

RE: ISSUE OF UNLISTED EMPLOYEE OPTIONS ENGINEERING & OPERATIONS MANAGER

Comet Ridge Limited (ASX Code: COI) announced on 29 April 2010 the appointment of Dale Aaskow as the Company’s Engineering and Operations Manager.

Under the terms of Mr Aaskow’s employment contract, the Company has agreed to grant to him two Tranches of 500,000 options each, both of which are linked to the continuity and length of his employment.

The 1st Tranche of 500,000 options will vest on 10 May 2011 and are exercisable at $0.50 per share. The 2nd Tranche of 500,000 options will vest on 10 May 2011 but are as well subject to the Company’s certification of 250 petajoules of 2P gas reserves or the certification of 750 petajoules of 3P gas reserves. The 2nd Tranche of options are exercisable at $0.65.

The issue of the options is consistent with the Board’s policy to align key management personnel with shareholder and business objectives by rewarding employees and providing an incentive for them to join and remain with the Company.

CORRECTION OF ASX RECORDS - EMPLOYEE OPTIONS

The Appendix 3B lodged with the ASX on 3 March 2009 recorded as having been issued 30,000 employee options exercisable at $ 0.45 and expiring on 4 September 2011.

Subsequently the Appendix 3B lodged on 29 April 2009 which recorded the issue of the securities consequent upon the merger between Comet Ridge and Chartwell Energy Limited, inadvertently failed to include the existence of this particular tranche of options.

These options were accidently omitted from the Appendix 3B at that time and should now be rerecorded. The attached Appendix 3B now accompanying this letter, includes these options as well as the details of the options that have been issued to Mr Aaskow.

Yours Faithfully Comet Ridge Limited

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STEPHEN RODGERS Company Secretary

Appendix 3B New issue announcement

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, 24/10/2005.

Name of entity

Comet Ridge Limited

ABN

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).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 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 +convertible securities, the conversion price and dates for conversion)	Unlisted Options
	1,000,000
	500,000 Employee Incentive Options with an exercise price of $0.50 and with an expiry date of 30 November 2011. These Options will vest on 10 May 2011. 500,000 Employee Incentive Options with an exercise price of $0.65 and with an expiry date of 31 January 2014. These Options will vest on 10 May 2011 or upon certification of 250 Pj of 2P Gas or 750 Pj of 3P Gas whichever is the later.

• See chapter 19 for defined terms.

24/10/2005

Appendix 3B Page 2

Appendix 3B New issue announcement

4 Do the[+] securities rank equally in all respects from the date of allotment If exercised the shares issued will rank equally with an existing[+] class of quoted +securities? with those already on issue. If the additional securities do not rank equally, please state: the date from which they do 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 5 Issue price or consideration Nil 6 Purpose of the issue (If issued as consideration for the Employee Incentive Options acquisition of assets, clearly identify those assets) 7 Dates of entering[+] securities into uncertificated holdings or despatch 3 August 2010 of certificates Number +Class 8 Number and +class of all +securities quoted on ASX 307,351,144 Ordinary fully paid ( including the securities in clause Shares 2 if applicable)

• See chapter 19 for defined terms.

Appendix 3B Page 3

1/1/2003

Appendix 3B New issue announcement

9 10	Number and +class of all +securities not quoted on ASX (_including_the securities in clause 2 if applicable)	Number	+Class
		Unlisted Options 3,800,000 30,000 130,000 300,000 15,192,500 7,150,000 500,000 500,000	Options exercisable at 41.9 cents expiry 01/08/2011 Options exercisable at 41.9 cents expiry 04/09/2011 Options exercisable at 41.9 cents expiry 03/12/2011 Options exercisable at 41.9 cents expiry 06/12/2011 Options exercisable at 16.9 cents expiry 30/06/2012 Options exercisable at 26.9 cents expiry 30/06/2012 Options exercisable at 50 cents expiry 30/11/2013 Options exercisable at 65 cents expiry 31/01/2014
	Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)
		N/A

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval 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	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? N/A 17 Policy for deciding entitlements in relation to fractions N/A 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. N/A 19 Closing date for receipt of acceptances or renunciations N/A 20 Names of any underwriters N/A 21 Amount of any underwriting fee or commission N/A 22 Names of any brokers to the issue N/A 23 Fee or commission payable to the broker to the issue N/A 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders N/A 25 If the issue is contingent on +security holders’ approval, the date of the meeting N/A 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled N/A 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 N/A	15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? N/A 17 Policy for deciding entitlements in relation to fractions N/A 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. N/A 19 Closing date for receipt of acceptances or renunciations N/A 20 Names of any underwriters N/A 21 Amount of any underwriting fee or commission N/A 22 Names of any brokers to the issue N/A 23 Fee or commission payable to the broker to the issue N/A 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders N/A 25 If the issue is contingent on +security holders’ approval, the date of the meeting N/A 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled N/A 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 N/A	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

28

Date rights trading will begin (if applicable) N/A 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 dispose of their entitlements (except by sale through a broker)? 33 +Despatch date	N/A
		N/A
		N/A
		N/A
		N/A
		N/A

Part 3 - Quotation of securities

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

34 Type of securities ( tick one ) (a)[Securities described in Part 1 ] (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

• See chapter 19 for defined terms.

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Appendix 3B New issue announcement

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)

38 Number of securities for which +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 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)

Number +Class 42 Number and[+] class of all[+] securities quoted on ASX ( including the securities in clause 38)

• See chapter 19 for defined terms.

Appendix 3B Page 7

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Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

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• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

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• 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

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• 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.

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• 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.

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

• 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[+] 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: Date: 3 August 2010

(Company secretary)

Print name: Stephen Rodgers

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• See chapter 19 for defined terms.

Appendix 3B Page 8

1/1/2003