LARK DISTILLING CO. LTD — Capital/Financing Update 2006

Dec 3, 2006

Montec International Limited ABN: 62 104 600 544

Level 6, 55 York Street
Sydney NSW 2000 Australia

montec@montec-international.com www.montec-international.com

Telephone: +61 2 9299 0011 Facsimile: +61 2 9299 1499

4 December 2006

ASX RELEASE

CHINA BUSINESS UPDATE

The board of Montec International Limited ("Montec" or the "Company") is pleased to advise that, further to earlier advice, the acceleration of the Company's China rollout targeting availability in 2,600 stores by 31 December 2006 in Beijing, Shanghai, Qingdao and Dalian is on track and intended to provide the platform for further expansion. This expansion targets a total 6,000 stores by 30 June 2007 stocking Montec's branded UHT milk.

It is expected that continuation of the rollout past 30 June 2007, together with planned advertising and promotional support, will deliver a monthly operating cash flow break even position by 31 December 2007. As previously advised, this remains the subject of further fundina.

The combination of a mix of reliable distribution channels and the Company's improved financial position will lead to a range of additional opportunities, including drinking yoghurt and ice cream.

Ends

For further enquiries: Terry Cuthbertson Chairman 02 9299 0011

Peter Herd Managing Director 02 9299 0011