LARK DISTILLING CO. LTD — Capital/Financing Update 2014

Apr 23, 2014

==> picture [176 x 58] intentionally omitted <==

ACN 104 600 544

ASX CODE: MTI

ASX ANNOUNCEMENT

24 APRIL 2014

Placement of Convertible Notes and Activities Update

Further to its announcement of 30 January 2014, Montec International Limited (ASX: MTI) is pleased to announce that is has now completed its convertible note capital raising through the placement of 27 convertible notes (having a face value of $270,000). The 27 convertible notes have the same terms as those announced on 30 January 2014 and the funds raised have been applied towards the Company’s investment in Lark Distillery Pty Ltd (Lark) and towards strengthening the distribution arrangement the Company has with Lark in China.

The Company has acquired additional shares in Lark which has resulted in the Company increasing its interest to 31.35%. The Company regards its interest in Lark to be a strategic investment that will support the distribution arrangement it has with Lark for whisky and other spirits in China.

The Company would also like to clarify its announcement of 30 January 2014 and confirm that of the $2,020,000 raised by the 30 January placement of convertible notes, the Company proposes to issue 90 of the convertible notes (not 75 as noted in the 30 January announcement) (having a face value of $900,000) to Non-Executive Chairman, Mr Terry Cuthbertson. As disclosed on 30 January 2014, the issue of the notes to Mr Cuthbertson is subject to shareholders approving the issue at a General Meeting.

The Company also proposes to issue 2 convertible notes (having a face value of $20,000) to Non-Executive Director, Mr Peter Herd. The issue of the notes to Mr Herd is also subject to shareholders approving the issue at a General Meeting.

An updated Appendix 3B is attached.

The total funds raised by the series of convertible note placements made during late 2013 and this year is $2,560,000.

As announced on 17 October 2013 and 30 January 2014, the convertible noteholders have agreed to enter into underwriting agreements on standard commercial terms in respect of a capital raising which the Company may conduct in the future. The Company is currently finalising the terms and structure of the capital raising and further information will be released to the market in the coming weeks.

Page 1 of 1

For further information contact: Nick Geddes, Company Secretary 1300 134 875

Montec International Limited Level 3, 70 Pitt Street, SYDNEY NSW 2000 PO Box 991, ROZELLE NSW 2039 T: +61 2 8752 7866 F: +61 2 8752 7860