LARK DISTILLING CO. LTD — Capital/Financing Update 2011

Aug 25, 2011

Montec International Limited ABN: 62 104 600 544

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Level 3, 70 Pitt Street, Sydney NSW 2000 PO Box 991 Rozelle NSW 2039 Australia Telephone:+61 2 8752 7866 Facsimile: +61 2 8752 7860

CONVERTIBLE NOTE AGREEMENT

26[th] August 2011

Montec International Limited (ASX: MTI) is pleased to advise that it has entered into a Convertible Note Agreement to raise $200,000 to be applied to the working capital needs of the Company. The Convertible Note is issued for 18 months, with interest at 12% per annum payable quarterly in arrears and convertible to ordinary shares at $0.0025 per share.

Further the Company advises that pursuant to its announcement of 1 August 2011, MTI and Malachite Resources Limited (ASX: MAR) have agreed to terminate the Convertible Note Agreement entered into on 29 July 2011 on the basis that MTI has been unable to obtain the required regulatory approvals to proceed with the subscription for convertible notes in MAR and satisfy one of the Agreement’s conditions precedent.

As previously announced, the Board will continue to investigate potential investment opportunities for MTI that will provide the Company and shareholders with a commercial return.

Terry Cuthbertson Chairman Montec International Limited Te: +61 2 8752 7866

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