LARK DISTILLING CO. LTD — Capital/Financing Update 2009

Nov 19, 2009

Montec International Limited ABN: 62 104 600 544

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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

ASX & MEDIA RELEASE

20[th] November 2009

Company Announcements Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000

BUSINESS STRATEGY UPDATE

The Directors of Montec International Limited (ASX: MTI) provide this summary of the forward strategic direction for the Company as further explanation to that provided in the 2009 Annual Report (ASX Announcement: 23 October 2009) and prior to the recently completed Renounceable Rights Issue.

The broad strategy is to establish strategic partnerships for specific products in China and to co-ordinate the supply of these products to agreed specifications through partnerships established for that purpose with Australian food manufacturers. The initial priority for management is to develop opportunities already identified to extend into new dairy products, specifically children’s formula and ice cream. Extension into other premium food products, both dairy products and additional to dairy, will be developed as opportunities are identified. The monounsaturated milk and other dairy products, previously the focus of the company’s operation in China, may form part of the product mix, as opportunities dictate.

In part, the distribution channels and partnership contacts established in recent years provide important sources of demand and trading opportunities. In addition, the Company’s wholly owned subsidiary in Beijing, already licensed to import and trade, is well positioned to facilitate access to these opportunities. From a broader demand perspective, in China and Asia generally, the continued growth of an already significant, affluent consumer group with disposable incomes at least similar to those of their western counterparts, and an awareness of and demand for some western-style food products, on the basis of taste, lifestyle match and perceived quality, provides an increasing source of demand for quality food products produced in Australia.

Some factors considered fundamental to this business strategy include: Premium quality products, Supportive, active supply partners, Sourcing in response to identified demand, A broad product offering, A relatively small, quality customer base, Recurrent, regular orders, and A low cost, lean organisation structure.

Directors recognise that the full and timely development of this model may be best achieved or supported through the acquisition of a compatible business in Australia, to both support the growth of the business and further strengthen the strategic direction. During the last year directors have actively sought to identify such an opportunity and considered a variety of proposals, none of which to date have been considered to be in the best interest of shareholders.

The immediate priority of management in implementing the business strategy has been on defining specifications and co-ordinating the supply of children’s formula and ice cream on behalf of several partners. Formal specifications have been agreed and an “in principal” supply agreement concluded with a mid-size dairy company in northern China for the supply of a children’s formula which they will market under the Company’s “dairypure” brand. Management are currently seeking to finalise supply arrangements against increasingly difficult conditions for local supply.

Under the previously announced agreement with Serendipity Ice Cream (ASX Announcement: 6 October 2009), MTI has rights to the “Serendipity” brand and product supply to China, including the development of specific formulations as requested to meet the needs of specific customers. MTI has progressed discussions with two partners in China to define the product, flavour and packaging needs of each and in co-ordinating the appropriate supply arrangements with Serendipity, with the objective of commencing full product supply during the 2010 summer season in China. In addition, several new product opportunities outside dairy products have been identified and are being assessed. Updates on these opportunities and the status of projects already underway in children’s formula and ice cream will be provided as appropriate.

Terry Cuthbertson Peter Herd Chairman Managing Director Montec International Limited Montec International Limited Tel: +61 2 9299 0011 Tel: +61 2 9299 0011

Investor Relations & Media Enquires:

Rod North Bourse Communications Pty Ltd Tel: +61 3 9510 8309 Mob: +61 (0) 408 670 706

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