LARK DISTILLING CO. LTD — Capital/Financing Update 2009

Sep 9, 2009

==> picture [210 x 58] intentionally omitted <==

Montec International Limited ABN: 62 104 600 544

Level 6, 55 York Street Sydney NSW 2000 Australia

montec@montecinternational.com www.montec-international.com Telephone:+61 2 9299 0011 Facsimile:+61 2 9299 1499

10 September 2009

Dear Shareholder

Renounceable Entitlement Issue

On Friday, 4 September 2009, Montec International Limited (ASX: MTI) ( Company ) announced that it will be offering eligible shareholders the opportunity to acquire additional fully paid ordinary shares in the capital of the Company ( Shares ) via a renounceable rights issue ( Offer ) on the basis of one (1) Share for every one (1) Share held at the relevant record date.

Shares under the Offer will be offered at 0.4 cents per Share. The maximum number of Shares which may be issued under the Offer is 154,864,539 to raise $619,458.

An offer document relating to the Offer ( Offer Document ) was lodged with ASX on Tuesday, 8 September 2009 and is available on the ASX website at www.asx.com.au.

The Offer Document will be sent to Shareholders after the record date.

The proposed timetable for the Offer is as follows:

The proposed timetable for the Offer is as follows:
Event	Date
Announcement of Offer and Appendix 3B	Friday, 4 September 2009
Cleansing Notice and Offer Document lodged with ASX	Tuesday, 8 September 2009
Notice sent to Security Holders	Thursday, 10 September 2009
Ex Date (date from which securities commence trading without the entitlement to participate in the Rights Issue)	Friday, 11 September 2009
Rights Trading Commences	Friday, 11 September 2009

1

Record Date (date for determining entitlements of eligible shareholders to participate in the Rights Issue)	Thursday, 17 September 2009
Offer Document Dispatched to Shareholders (Company to announce to ASX that the despatch of the offer documents and the entitlement and acceptance forms has been completed)	Wednesday, 23 September 2009
Rights Trading Ends (Close of Trading EST)	Wednesday, 30 September 2009
Allotment date/ securities quoted on a deferred settlement basis	Thursday, 1 October 2009
Closing Date 5pm (EST)	Thursday, 8 October 2009
Company to notify ASX of undersubscriptions (if any)	Monday, 12 October 2009
Despatch holding statements/deferred settlement trading ends	Wednesday, 14 October 2009

*Subject to the Listing Rules, the Directors reserve the right to extend the Closing Date for the Offer at their discretion. Should this occur, the extension will have a consequential effect on the anticipated date of issue for the Shares.

** These dates are indicative only.

Use of Funds

The Company intends to apply the funds raised from the Offer towards meeting working capital requirements necessary to facilitate the planned expansion to a broader product range sourced in and exported from Australia to China and other Asian countries. The proposed use of funds is a “best estimate” only. It is important to recognise that the use of funds may be subject to change in line with results, circumstances and other opportunities.

The Company hereby confirms that (as per the requirements of paragraph 708AA(2)(f) of the Corporations Act):

• (a) the Company will offer the Shares for issue without disclosure to investors under Part 6D.2 of the Act;

• (b) the Company has provided notice under paragraph 2(f) of section 708AA of the Act;

• (c) as at the date of this notice, the Company has complied with the provisions of Chapter 2M of the Act as they apply to the Company;

• (d) as at the date of this notice, the Company has complied with section 674 of the Act;

• (e) as at the date of this notice, there is no information:

• (i) that has been excluded from a continuous disclosure notice in accordance with the ASX Listing Rules;

2

• (ii) that investors and their professional advisers would reasonably require for the purpose of making an informed assessment of:

  • (A) the assets and liabilities, financial position and performance, profits and losses and prospects of the Company; or

  • (B) the rights and liabilities attaching to the Shares; and

• (f) if all members take up their entitlement under the Offer, the Offer will have no effect on the control of the Company.

Yours sincerely

==> picture [194 x 37] intentionally omitted <==

Peter Herd Managing Director MONTEC INTERNATIONAL LIMITED

3