LARK DISTILLING CO. LTD — Capital/Financing Update 2009

Jan 28, 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

29 January 2009

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

MONTEC’S BUSINESS UPDATE

As previously advised to the market, while Montec International Limited (ASX: MTI) licenced ice cream products, the UHT milk and yoghurt drink products provided by contract suppliers were not implicated in the milk contagion issue in China, the resulting decline in consumer confidence continues to have a negative impact on sales across the dairy sector. More recently, the general downturn in economic activity has further impacted this trend.

These events have underlined the need to undertake a reorienting of the marketing model and further extend cost reduction measures which were already being implemented. During the quarter under review the China business has made significant progress in moving to a lower cost model, with savings reflected in both marketing and staffing costs. This lower cost model, with less reliance on direct selling to retail channels, will yield further cost reductions in calendar year 2009.

The realigned business model retains the capability to pursue opportunities previously identified, including the direct supply of monounsaturated milk powders from Australia to major marketers of milk powder products and the supply of our monounsaturated UHT milk from Australia. These opportunities have been advanced during the quarter under review, with final specifications now agreed with partners and trial production being scheduled with selected suppliers during the forthcoming quarter. Following their initial market entry in Beijing and Shanghai in mid 2008, Beijing Allied Faxi Foods (Faxi), the licensee of “dairy pure” monounsaturated ice cream in China reported sales exceeded 1 million packs during the quarter under review. The inclusion by Faxi of all three flavours of “dairypure” in a sampling gift pack of the Baxi ice cream range promoted throughout major retail outlets added to consumer marketing support ahead of Chinese New Year.

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During the quarter management and the board have continued to seek opportunities for business expansion in both China and Australia, utilising the business structure and established trading relationships to expand the overall business base and improve prospective returns to shareholders. Of those opportunities identified to date, negotiations have reached an advanced stage with a Chinese based company with interests in both food catering supply and food retailing. In addition, management and the board have reached initial stages in identifying and entering into discussions with a number of Australian based food processing organisations, the nature of which will be briefed to shareholders at the appropriate time.

Terry Cuthbertson Chairman Montec International Limited Tel: +61 2 9299 0011

Peter Herd Managing Director Montec International Limited 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

ABOUT MONTEC INTERNATIONAL LIMITED (MTI)

Listed dairy products company, Montec International Limited holds certain rights to the manufacture and marketing of monounsaturated, cholesterol-free dairy products. The Company’s current focus is on China, where it is building its range of white and flavoured milks under the registered trademarks “dairypure” and “Meng Tai”. Extensions into monounsaturated ice cream, yoghurts and other products will provide a base for the company’s future growth. A range of yoghurt drinks for children under the brand “Bei Bei” was launched in late 2007 and, in 2008; a monounsaturated ice cream was introduced under a licencing arrangement with a leading Beijing-based ice cream company.

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