LARK DISTILLING CO. LTD — Capital/Financing Update 2007

Mar 19, 2007

Monter 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

20 March 2007

[# insert overseas shareholder's details#]

Dear Shareholder

Montec International Limited Rights Issue

As announced to the ASX on 15 March 2007, Montec International Limited (Montec or Company) intends to raise capital via a pro-rata, renounceable 1 for 1 rights issue of ordinary shares at an issue price of \$0.05 per share. Attaching options to subscribe for ordinary shares with an exercise price of \$0.10 and expiry date of 30 June 2008 will also be issued for each share subscribed (Offer). The Company proposes to raise a total of approximately \$3.7 million from the issue of approximately 74.316.002 million new shares under the rights issue (assuming none of the current option holders exercise their options before the record date). A copy of the prospectus is available for your information on the Company's website www.montecinternational.com.au.

The prospectus was lodged with the Australian Securities and Investment Commission on 20 March 2007. Offers of shares and attaching options will be made in the prospectus. Shareholders eligible to participate in the Offer will need to fill out an Entitlement and Acceptance Form that will accompany the prospectus.

After carefully considering the following in accordance with listing rule 7.7.1(a) of the Australian Stock Exchange (Listing Rules):

• The number of holders in the countries where the Offer would be made; $\blacksquare$
• The number and value of securities the shareholders resident outside of Australia and New Zealand would be entitled to under the Offer; and
• The cost of complying with the legal requirements, and the requirements of regulatory authorities in countries other than Australia and New Zealand.

the directors decided that it would be unreasonable for Montec to make the offer to shareholders with registered addresses outside Australia and New Zealand. Accordingly, the Offer is not being made to shareholders with registered addresses outside of those countries.

Listing Rule 7.7.1(c) requires Montec to appoint a nominee to arrange for the sale of the entitlements of those shareholders who reside outside of the places where the Offer is being made and to account to them for the net proceeds of the sale.

In order to comply with Listing Rule 7.7.1(c) the directors have appointed Patersons Securities Limited (Patersons) as nominee to arrange for the sale of the entitlement that would have been offered to you had you had a registered address in Australia or New Zealand (Your Entitlement). Patersons will sell Your Entitlement for the best possible price. If Your Entitlement is sold, the Company will send the net proceeds of the sale to you at the address in Montec's register of shareholders. Patersons is unable to quarantee that it will be able to sell Your Entitlement

The contact details of Patersons are as follows:

Level 23, Exchange Plaza 2 The Esplanade Perth WA Australia

$\alpha$ ^r

GPO Box W2024 Perth, WA, Australia 6846

Switch (+61 8 9263 1111) Fax (+61 8 9325 5123)

Please contact Nicholas Geddes, Company Secretary, on (02) 9252 1933 if you require the proceeds to be sent to an address other than that in the Company's register or if you have any queries in relation to this letter.

Yours faithfully

Terry Cuthbertson Chairman Montec International Limited

Monter International Limited ABN: 62 104 600 544

Level 6, 55 York Street Sydney NSW 2000 Australia

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

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

20 March 2007

[#Insert address of option holder#]

Dear Sir,

Upcoming Rights Issue and your Options

As announced to the ASX on 15 March 2007, Montec International Limited (Montec or Company) intends to raise capital via a pro-rata, renounceable 1 for 1 rights issue of ordinary shares at an issue price of \$0.05 per share. Attaching options to subscribe for ordinary shares with an exercise price of \$0.10 and expiry date of 30 June 2008 will also be issued for each share subscribed. The Company proposes to raise a total of approximately \$3.7 million from the issue of approximately 74.316.002 million new shares under the rights issue (assuming none of the current option holders exercise their options before the record date).

The offer will be available to shareholders with registered addresses in Australia and New Zealand on the record date. The record date is 5.00pm (Sydney time) on 28 March 2007. A prospectus was lodged with the Australian Securities & Investments Commission on 20 March 2007. Offers of shares and attaching options will be made in the prospectus. Shareholders eligible to participate in the Offer will need to fill out an Entitlement and Acceptance Form that will accompany the prospectus.

Currently Montec has you on record as a holder of options to subscribe for shares in the Company. You will not be able to participate in the rights issue in respect of these options unless the options are exercised and you are registered as a holder of the underlying shares prior to the record date. You may exercise your options by following the instructions in accordance with the terms of issue of your options.

If you are currently an ordinary shareholder in Montec you will be able to participate in the rights issue by filling out your Entitlement and Acceptance Form that will accompany the Prospectus. A copy of the Prospectus will be mailed to shareholders as at the record date by 3 April 2007 or you may wish to download it from the Company website or the ASX website. You will also be eligible to apply for any shortfall by filling out the Entitlement and Acceptance Form.

The offer closes at 5.00pm (Sydney time) on 19 April 2007.

If you have any questions relating this rights issue please contact the Company Secretary
Nicholas Geddes on (02) 9252 1933 during business hours.

Yours faithfully

Terry Cuthbertson Chairman Montec International Limited