Comet Resources : Diamond Drilling Recommences at the Springdale Project

3 October 2017

Diamond Drilling Recommences at the Springdale Project

A program of PQ (large diameter) diamond drilling has commenced at Comet's 100% owned Springdale Project.

The program will test the depth extension to hole DH016 which intersected 15.5 metres @ 7.5% Total Graphitic Carbon (TGC) and 14 metres @ 6.6% TGC representing approximately 30 metres of graphite mineralisation in one hole. DH016 is a northern diamond drill hole within the Springdale Project drilled in the previous program completed in July 2017. Graphite mineralisation has been shown to continue along strike to the north with shallow reconnaissance drilling intersecting graphite mineralisation including 13 metres @ 10.9% TGC & 10.8 metres @ 7.6% TGC.

As well as testing for extensions to mineralisation around DH 016, the program will also drill known mineralised zones to obtain PQ drill core for metallurgical testwork and will complement samples generated from the most recent diamond drilling program. Understanding the amenability of the graphite at Springdale to produce graphene, as well as a suitably refined graphite product for use in battery and other technologies, is an integral part of realising the commercial value of the Springdale Project.

Moving Forward

Comet plans to progress the assessment of the graphite and graphene at Springdale Project through the following work programs:

Detailed Aeromagnetic survey - A detailed aeromagnetic survey has been completed and is currently being interpreted. Interpretation of this survey will help define target graphite horizons in preparation for future drilling campaigns.

Metallurgical Testwork - Metallurgical testwork on samples generated in the most recent diamond drill program has already commenced. The PQ core will allow for more detailed work on selected graphite horizons. Understanding the amenability of the graphite at Springdale to convert to graphene or be used in battery and other technologies is an integral part of understanding and realising its commercial value.

Aircore/RC Drilling - An aircore / reverse circulation drill program is planned to commence in the last quarter of the calendar year. Comet has received funding approval from the Western Australian government for up to $100,000 to assist with this work.

Background

Comet's Springdale project is located approximately 30 km east of Hopetoun, Western Australia. The tenements lie within the deformed southern margin of the Yilgarn Craton and constitute part of the Albany-Fraser Orogen, which hosts the historic Halberts Graphite mine near Munglinup (50km away). The Munglinup area has produced the bulk of Western Australia's recorded graphite production. The tenement is over freehold land with sealed road access within 20km and is located approximately 150km from the port of Esperance.

Comet owns 100% of the three tenement's E74/562, E74/583 and E74/612 that make up Springdale project. The total land holding at Springdale is approximately 220 square kilometres.

Comet completed a successful first pass aircore drilling program in February 2016. This program confirmed that graphite was present in a prospective zone/horizon. Comet has now drilled 113 aircore holes for 2,901 metres and 17 diamond holes for 972 metres.

Comet has discovered that Graphene can be produced from Springdale ore by electrical exfoliation. Further Metallurgical Testwork is continuing.

Plan Showing Location, Tenements and Area Drilled to date

For further information please contact:

Mr Tony Cooper

Comet Resources Limited Tel [phone]

[e-mail] Web Pagewww.cometres.com.au

Comet listed on the Australian Stock Exchange in 1994. The Company discovered and studied the Ravensthorpe Nickel Project. In 2001 Comet successfully sold its final equity to BHP Billiton and returned to Comet shareholders $32 million. Comet has a number of exciting projects that it is currently exploring and advancing. Comet has cash assets of approximately $1.6 million and has approximately 170.5 million shares on issue.

The information in the report to which this statement is attached relates to Exploration Results, Mineral Resources or Ore Reserves compiled by Mr. A Cooper, who is a Consultant and director to Comet is also a Member of The Australian Institute of Mining and Metallurgy, with over 30 years' experience in the mining industry. Mr. Cooper has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Cooper consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.