LARK DISTILLING CO. LTD — Capital/Financing Update 2012

Oct 9, 2012

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 montec@montec-international.com www.montec-international.com Telephone:+61 1300 134 875 Facsimile:+61 2 9233 4497

11 October 2012

Dear Shareholder

Renounceable Rights Issue – Information for Shareholders

On 10 October 2012, Montec International Limited (the Company) announced to ASX that it was to undertake a renounceable Rights Issue of New Ordinary Shares to Eligible Shareholders.

Renounceable Rights Issue

It is proposed that the Company issue approximately 819,233,408 New Ordinary Shares at a price of $0.001 per New Ordinary Share to acquire two New Ordinary Shares for every one Share held at the Record Date of 18 October 2012.

This Offer is partially underwritten by Patersons Securities Limited to the value of $671,000. Priority SubUnderwriting arrangements have also been entered into with Nebral Pty Ltd (Nebral) and Trandara Pty Ltd (Trandara) who have previously advanced loans in the amount of $350,000 to MTI. Accordingly, any shortfall under the Rights Issue will, in priority to any other sub-underwriting commitment, be applied towards the repayment of this loan to Nebral and Trandara in equal proportions, up to a total value of $350,000.

Funds raised that are not applied toward repayment of the debt to Nebral and Trandara will be applied towards working capital and to identifying and assessing potential acquisition opportunities.

Applications

In the event this Rights Issue is not fully subscribed, the Directors have determined to offer Eligible Shareholders the right to apply for New Shares arising out of any shortfall.

The Directors reserve the right to issue New Shares under the Shortfall Facility at their absolute discretion in consultation with the Underwriter and in accordance with the terms of the Underwriting Agreement. Should additional New Shares not be allocated, those Eligible Shareholders who have applied for additional New Shares will be refunded their application money (without interest) on those New Shares not allotted. The offer of any New Shares under the Shortfall Facility will remain open for up to three (3) months following the Closing Date.

In the event the Rights Issue is not fully subscribed, the Directors, in consultation with the Underwriter, reserve the right pursuant to Listing Rule 7.2 (Exception 3) to place the shortfall at an issue price per New Share of not less than $0.001 within 3 months of the close of the Offer on normal commercial terms.

The Entitlement and Acceptance Form will be dispatched together with the Offer Document. Eligible Shareholders must complete the Entitlement and Acceptance Form in order to take up their Entitlements and to apply for Shortfall Securities. Entitlement and Acceptance Forms must be properly completed and

received by the Company’s Share Registry no later than 5.00pm (AEDST) on 8 November 2012 in order for Applicants to be issued New Ordinary Shares and Shortfall Securities.

Quotation

New Ordinary Shares issued under the Offer Document will rank equally with the Company’s existing Shares. The Company has applied to ASX for quotation of the New Ordinary Shares on the Official List of the ASX. If approval is not granted by ASX within 3 months after the date of the Offer Document, the Company will not issue any New Ordinary Shares and will repay all Application monies without interest.

Enquiries

If you have any questions regarding this renounceable Rights Issue, please telephone the Company’s Share Registry, Boardroom Pty Limited, on (02) 9290 9600 (within Australia) +61 2 9290 9600 (outside Australia).

The Directors recommend this renounceable Rights Issue to you.

Yours sincerely

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Terry Cuthbertson Chairman

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