LARK DISTILLING CO. LTD — Capital/Financing Update 2011

Jul 31, 2011

Montec International Limited ABN: 62 104 600 544

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Level 4 Unit 3 436-484 Victoria Road, Gladesville NSW 2111 PO Box 991 Rozelle NSW 2039 Australia

Telephone:+61 2 8752 7866 Facsimile: +61 2 8752 7860

CONVERTIBLE NOTE AGREEMENT WITH MALACHITE RESOURCES LIMITED

1[St] August 2011

Montec International Limited (ASX: MTI) is pleased to announce that it has entered into Convertible Note Agreement with Malachite Resources Limited (ASX: MAR) pursuant to which MTI has agreed to provide $500,000 in funding to MAR secured by convertible notes.

The Board has recently been investigating a number of potential investment opportunities for MTI and considers that this investment will provide the Company and shareholders with a commercial return and will also provide the opportunity for MTI to investigate potential opportunities that may exist to acquire one or more projects currently owned by MAR.

The terms of the convertible notes are as follows:

• The agreement is subject to MTI first obtaining all requisite regulatory and shareholder approvals including approvals required under the ASX Listing Rules and the Corporations Act (if any) that are required for it to comply with its obligations under the agreement;

• MTI is to be issued with 5 notes each having a face value of $100,000. 2 notes are to subscribed for upon satisfaction of the conditions precedent and the remaining 3 notes are to be subscribed for within 3 months of the execution of the agreement;

• Each time MTI subscribes for a convertible note, MAR will issue MTI with 250,000 fully paid ordinary shares. An additional 250,000 fully paid ordinary shares will be issued upon MTI converting the notes into ordinary shares of MAR;

• The convertible notes will have a conversion price which is the lesser of $0.05 or a 20% discount to the 30 day volume weighted average price of the MAR’s shares at the time of conversion;

• Interest is payable on the notes at a rate of 12% per annum (payable quarterly in arrears on the last day of each quarter); and

• The maturity date of the notes is 12 months from the date of the agreement. MTI is restricted from converting or redeeming the notes within the first 6 months of the agreement (unless there is an event of default or a takeover event).

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The terms of the Convertible Note Agreement entitle MTI to appoint a director to MAR’s board and also requires the parties to enter into good faith discussions regarding terms and conditions for the holders to potentially invest in or acquire one or more projects currently owned by Malachite, with the exception of the Lorena Gold Project. The funding provided by MTI is to assist MAR explore for gold at the Lorena Gold project in Cloncurry.

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

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