LARK DISTILLING CO. LTD — Capital/Financing Update 2017

Feb 16, 2017

==> picture [594 x 192] intentionally omitted <==

ASX Release 17[th] February 2017

Dear Sir/Madam

Australian Whisky Holdings Completion of Acquisition of Historic Nant Estate Property

Australian Whisky Holdings Limited ( AWY ) is pleased to announce the completion of a Land Sale Agreement with Nant Estate Pty Ltd and AWY is now the registered proprietor and occupier of the historic Nant Estate in Bothwell, Tasmania. The land totals 76.11 hectares and includes the historic homestead cellar door, atrium restaurant and bonded storage buildings (as depicted below).

==> picture [414 x 148] intentionally omitted <==

==> picture [414 x 149] intentionally omitted <==

==> picture [595 x 96] intentionally omitted <==

==> picture [594 x 192] intentionally omitted <==

In consideration for the acquisition of the historic Nant Estate, AWY has reached terms with the secured creditors of Nant Estate Pty Ltd, whereby AWY has agreed to pay the purchase price of $3,850,000 and has also acquired a loan and securities over various Nant Entities having a face value of $2,500,000.

The LSA provides that AWY has the right to use and trade under the name Nant and that the Vendor of the property, Nant Estate Pty Ltd, its associates and related bodies will cease to use the name ‘Nant’. Pursuant to the LSA, AWY will continue to provide management services to Nant Estate Pty Ltd and Nant Barrel Holdings Pty Ltd in respect of the whiskey barrel investment fund operated by Nant Barrel Holdings Pty Ltd.

AWY has also entered into an ongoing management agreement with Nant Estate Pty Ltd and Nant Barrel Holdings Pty Ltd pursuant to which AWY has the right to acquire mature barrels that have been distilled pursuant to the barrel investment scheme operated by Nant. AWY intends to shortly make offers to investors for the acquisition of mature barrels.

AWY remains committed to completing the acquisition of the remaining Nant business assets, which principally comprise of distillery equipment and trade marks.

==> picture [414 x 166] intentionally omitted <==

==> picture [595 x 96] intentionally omitted <==

==> picture [594 x 192] intentionally omitted <==

Yours sincerely,

==> picture [142 x 79] intentionally omitted <==

Company Secretary Kenneth Lee

==> picture [595 x 96] intentionally omitted <==