Appendix 4D Half yearly report

Rules 4.1, 4.3

Appendix 4D

Half yearly report

Introduced 30/6/2002.

Name of entity

Montec International Limited

ABN or equivalent company Half yearly Preliminary Half year/financial year ended (‘current period’) reference (tick) final (tick) 62 104 600 544 √ 31 December 2011

Results for announcement to the market

Extracts from this report for announcement to the market (see note 1).

Reporting period	Current Previous 31 December 2011 31 December 2010	Current Previous 31 December 2011 31 December 2010
Revenues from ordinary activities Loss from ordinary activities after tax attributable to members Net loss for the period attributable to members	Down 18.0% to $61,268 Down 88.1% to ($29,565) Down 80.1% to ($45,404)
Dividends (distributions)	Amount per security	Franked amount per security
Final dividend Interim dividend	-¢	-¢
Previous corresponding period	-¢	-¢

NTA backing	Current period	Previous corresponding period
Net tangible asset backing per+ordinary security	($0.00012)	($0.00027)

This is a half yearly report, to be read in conjunction with the most recent annual financial report.

See chapter 19 for defined terms.

Appendix 4D Page 1

30/6/2002

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

INTERIM REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2011

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

Directors' Report	2
Financial Report
Statement of Comprehensive Income	4
Statement of Financial Position	5
Statement of Changes in Equity	6
Statement of Cash Flows	7
Notes to the Financial Statements	8
Directors' Declaration	12
Auditor’s Independence Declaration	13
Independent Auditor’s Review Report	14

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

Directors

The names of directors who held office during or since the end of the half-year:

Terry Cuthbertson Non Executive Director, Chairman James Manny Non Executive Director Peter Herd Non Executive Director David Yu Non Executive Director

Review of Operations

The consolidated entity’s total comprehensive loss for the six months ended 31 December 2011 was $29,565 compared to a loss of $247,402 for the six months ended 31 December 2010.

The consolidated entity continued to engage in its principal activity being the marketing and licensing of dairy technology, the results of which are disclosed in the attached financial statements. Business activities in the half-year ended 31 December 2011 have centred to investigate investment opportunities and continued cost reduction.

On 29 July 2011 the Company entered into a Convertible Note Agreement with Malachite Resources Limited (ASX: MAR) which would have provided the Company and shareholders a commercial return and the opportunity for the Company to investigate potential opportunities that may exist to acquire one or more projects currently owned by MAR. Subsequently, the Convertible Note Agreement was terminated on the basis that the Company was unable to obtain the required regulatory approvals to proceed with the subscription of convertible notes in MAR.

On 26 August 2011 the Company entered into a Convertible Note Agreement to raise $200,000 to be applied to the working capital needs of the Company. The Convertible Notes 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.

Significant Changes in State of Affairs

There were no significant changes in the state of affairs of the consolidated group for the half year ended 31 December 2011.

Events Subsequent to Reporting Date

There were no material events subsequent to reporting date.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration in relation to the review of the interim financial report for the half-year ended 31 December 2011 is shown on page 13 and forms part of this report.

This report is signed in accordance with a resolution of the Board of Directors.

Director

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Terry Cuthbertson

Dated this 28[th] day of February 2012

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Revenues Raw materials sold/used Employee benefits expenses Advertising and marketing expenses Compliance and professional fees Administrative expenses Travel expenses Insurance expenses Borrowing costs Depreciation and amortisation expenses Reversal of prior year impairment Reversal of accruals and payables Write down of investments Loss before income tax Income tax expense Loss for the period Other comprehensive income Exchange differences on translating foreign operations, net of tax Total comprehensive income for the period Loss for the period attributable to members of the parent entity Total comprehensive income for the period attributable to members of the parent entity Basic and diluted loss per share (cents per share)	Consolidated Group 31.12.11 $ 31.12.10 $ 61,268 74,729 - (23,794) - (255,364) - (818) (67,144) (54,955) (12,595) (40,330) (611) (23,029) (11,895) (12,744) (23,033) - (50,833) (26,097) - 115,000 81,278 - (6,000) -
	(29,565) (247,402) - -
	(29,565) (247,402)
	(15,839) 18,907
	(45,404) (228,495)
	(29,565) (247,402)
	(45,404) (228,495)
	(0.013) (0.080)

The financial statements should be read in conjunction with the accompanying notes.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets Financial assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets Intangible assets TOTAL NON-CURRENT ASSSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Short-term provisions Financial liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Financial liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Accumulated losses TOTAL EQUITY	Consolidated Group 31.12.11 $ 30.06.11 $ 226,794 130,529 37,083 31,137 20,901 4,639 350,000 -
	634,778 166,305
	- 350,000 49,310 100,144
	49,310 450,144
	684,088 616,449
	104,944 163,163 21,328 50,066 350,000 -
	476,272 213,229
	200,000 350,000
	200,000 350,000
	676,272 563,229
	7,816 53,220
	20,200,910 20,200,910 139,783 155,622 (20,332,877) (20,303,312)
	7,816 53,220

The financial statements should be read in conjunction with the accompanying notes.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

Balance at 1 July 2010 Total comprehensive income for the period Balance at 31 December 2010 Balance at 1 July 2011 Total comprehensive income for the period Balance at 31 December 2011	Issued Capital Retained Profits Reserves Total Share Options Foreign Exchange $ $ $ $ $ 20,131,221 (20,515,002) 541,166 138,480 295,865 - (247,402) - 18,907 (228,495)
	20,131,221 (20,762,404) 541,166 157,387 67,370
	20,200,910 (20,303,312) - 155,622 53,220 - (29,565) - (15,839) (45,404)
	20,200,910 (20,332,877) - 139,783 7,816

The financial statements should be read in conjunction with the accompanying notes.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF CASH FLOW FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest paid Interest received Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of notes Net cash provided by financing activities Net increase/(decrease) in cash held Cash at start of period Cash at end of period	Consolidated Group 31.12.11 $ 31.12.10 $ 39,351 70,653 (139,936) (347,941) (23,033) - 19,883 4,974
	(103,735) (272,314)

	- -
	200,000 -
	200,000 -
	96,265 (272,314) 130,529 404,938
	226,794 132,624

The financial statements should be read in conjunction with the accompanying notes.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 1: BASIS OF PREPARATION

The condensed interim consolidated financial statements of the Group are for the six months ended 31 December 2011 and are presented in Australian dollar ($), which is the functional currency of the parent company. These general purpose interim financial statements have been prepared in accordance with the requirements of the Corporation Act 2001 and AASB 134 Interim Financial Reporting. They do not include all of the information required in annual financial statements in accordance with AIFRS, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 30 June 2011 and any public announcements made by the Group during the half-year in accordance with continuous disclosure requirements arising under the Australian Stock Exchange Listing Rules and the Corporation Act 2011.

The interim financial statements have been approved and authorised for issue by the board of directors on 28 February 2012.

The accounting policies have been consistently applied by the consolidated entity and are consistent with those applied in the 30 June 2011 annual report, unless otherwise stated.

a. Going Concern

The financial report has been prepared on the basis of a going concern notwithstanding, the consolidated group incurred a loss of $29,565 during the half-year ended 31 December 2011, and had net cash used in operating activities of $103,735. The cash flow projections of the consolidated entity evidence that the consolidated entity will require positive cash flows from additional capital or financing to continue operations. The Directors anticipate the funding provided will be sufficient to cover its liabilities when they fall due.

The consolidated group’s ability to continue as a going concern is contingent upon successfully raising additional capital. Whilst the directors are confident of raising funds either through a capital raising or financing, should the need arise, if additional funds are not generated or raised, the going concern basis may not be appropriate. As a result the consolidated group may have to realise its assets and discharge its liabilities, other than in the ordinary course of business and in amounts different from those stated in the financial report. No allowance for such circumstances has been made in the financial report

Whilst there is significant uncertainty, the directors consider it appropriate to prepare the accounts on a going concern basis as they are satisfied that, based on the cash flow forecasts prepared including receipts from future fund raising, the consolidated group will be able to meet its debts as and when they become due and payable for a period of at least 12 months from the date of this report.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTE 2: LOSS FROM ORDINARY ACTIVITIES The following revenue and expense items are relevant in explaining the financial performance for the interim period: Depreciation of non-current assets: -plant and equipment Amortisation of non-current assets: -patents and acquired rights Foreign currency translation gains/(losses) Impairment write down of investments Impairment of Property, Plant and Equipment Other expenses: Reversal of prior year intangible asset impairment Reversal of accruals and payables NOTE 3: DIVIDENDS No dividends were declared or paid in the period.	Consolidated Group 31.12.2011 $ 31.12.2010 $ - (2,595) (50,833) (12,500) (1,300) (1,300) (6,000) (5,007) - (11,002) - 115,000 81,278 - - -
	- -

NOTE 2: LOSS FROM ORDINARY ACTIVITIES
The following revenue and expense items are relevant in explaining the financial
performance for the interim period:
Depreciation of non-current assets:
-plant and equipment
Amortisation of non-current assets:
-patents and acquired rights
Foreign currency translation gains/(losses)
Impairment write down of investments
Impairment of Property, Plant and Equipment
Other expenses:
Reversal of prior year intangible asset impairment
Reversal of accruals and payables
NOTE 3: DIVIDENDS
No dividends were declared or paid in the period.

Consolidated Group
31.12.2011
$ 31.12.2010
$ -
(2,595)
(50,833)
(12,500)
(1,300)
(1,300)
(6,000)
(5,007)
-
(11,002)
-
115,000
81,278
-
-
-

-
-

NOTE 4: SEGMENT INFORMATION

Identification of reportable segments

Montec International Limited has identified its operating segments based on the internal reports that are reviewed and used by the board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The Group has only one line of business, that being the sale and marketing of monounsaturated dairy technology and products in Australia and China. Operating segments are therefore determined on the same basis.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision maker with respect to operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.

Inter segment transactions

Segment revenues, expenses and results include transfers between segments. The prices charged on inter-segment transactions are the same as those charged for similar goods to parties outside of the consolidated group at an arm’s length. These transfers are eliminated on consolidation.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTE 4: SEGMENT INFORMATION (CONTINUED)

Segment assets

Assets include all assets used by a segment and consist principally of cash, receivables, inventories, intangibles and property, plant and equipment, net of allowances and accumulated depreciation and amortisation. While most such assets can be directly attributed to individual segments, the carrying amount of certain assets used jointly by two or more segments is allocated to the segments on a reasonable basis.

Segment liabilities

Liabilities consist principally of accounts payable, employee entitlements, accrued expenses, provisions and borrowings.

Six months ended 31 Dec 2011 REVENUE External sales Total sales revenue Total revenue SEGMENT RESULT Expenses Loss before income tax expense Income tax expense Loss after income tax expense ASSETS Segment assets Total assets LIABILITIES Segment liabilities Total liabilities OTHER Depreciation and amortisation of segment assets OTHER NON-CASH SEGMENT EXPENSES Impairment of Investments	Australia $ China $ Eliminations $ Consolidated Group $ 61,268 - - 61,268	Australia $ China $ Eliminations $ Consolidated Group $ 61,268 - - 61,268
	61,268 -	- 61,268
	(169,151) 78,318	61,268 - (90,833)
	681,085 3,003	(29,565) -
		(29,565)
		- 684,088
	681,085 3,003	- 684,088
	633,612 314,268 (271,608) 676,272
	633,612 314,268 (271,608) 676,272
	50,833 - - 50,833 6,000 - - 6,000

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTE 4: SEGMENT INFORMATION (CONTINUED)

Six months ended 31 Dec 2010 REVENUE External sales Total sales revenue Total revenue SEGMENT RESULT Expenses Loss before income tax expense Income tax expense Loss after income tax expense ASSETS Segment assets Total assets LIABILITIES Segment liabilities Total liabilities OTHER Depreciation and amortisation of segment assets OTHER NON-CASH SEGMENT EXPENSES Impairment of property, plant and equipment	Australia $ China $ Eliminations $ Consolidated Group $ 68,700 6,029 - 74,729	Australia $ China $ Eliminations $ Consolidated Group $ 68,700 6,029 - 74,729
	68,700 6,029 -	74,729
	(242,991) (79,140) -	74,729 (322,131)
	(247,402) - (247,402) 231,435 371,877 (249,323) 353,989	(247,402) -
		(247,402)
	231,435 371,877 (249,323) 353,989
	161,298 374,644 (249,323) 286,619
	161,298 374,644 (249,323) 286,619
	14,315 780 - 15,095 7,070 3,932 - 11,002

Major customer

The Group supplies one single customer in the Australia segment which accounts for 91% of external revenue (2010: 92%).

NOTE 5: CONTINGENT LIABILITIES

There are no contingent assets or contingent liabilities as at 31 December 2011.

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

DIRECTORS’ DECLARATION

The directors of the company declare that:

The financial statements and notes, as set out on pages 4 to 11 are in accordance with the Corporation Act 2001, including:
a. complying with Accounting Standard AASB 134: Interim Financial Reporting; and
b. giving a true and fair view of the consolidated entity’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date.
In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director

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Terry Cuthbertson

Dated this 28[th] day of February 2012

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LARK DISTILLING CO. LTD — Interim / Quarterly Report 2012

65265_rns_2012-02-27_c97edfb4-e156-4861-9516-a8e0a12b9d4c.pdf

Appendix 4D

Half yearly report

Montec International Limited

Results for announcement to the market

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

TABLE OF CONTENTS

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

DIRECTORS’ REPORT

Directors

Review of Operations

Significant Changes in State of Affairs

Events Subsequent to Reporting Date

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

Auditor’s Independence Declaration

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2011

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2011

NOTE 1: BASIS OF PREPARATION

a. Going Concern

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTE 4: SEGMENT INFORMATION

Identification of reportable segments

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Inter segment transactions

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTE 4: SEGMENT INFORMATION (CONTINUED)

Segment assets

Segment liabilities

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

NOTE 4: SEGMENT INFORMATION (CONTINUED)

Major customer

NOTE 5: CONTINGENT LIABILITIES

MONTEC INTERNATIONAL LIMITED ACN 104 600 544 AND CONTROLLED ENTITIES

DIRECTORS’ DECLARATION

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