LARK DISTILLING CO. LTD — Major Shareholding Notification 2007

May 20, 2007

Montec International Limited ABN: 62 104 600 544

Level 6, 55 York Street Sydney NSW 2000 Australia

montec@montec-international.com www.mnnter-international.com

Telephone: +61 2 9299 0011 Facsimile: +61 2 9299 1499

ASX & MEDIA RELEASE

21 May 2007

The Manager Company Announcements Office Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000

China's Beijing Sanyuan Group Largest Shareholder in Montec International

Montec International Limited (ASX: MTI) is pleased to advise that Beijing Sanyuan Group Co Limited is now the company's major shareholder, through its wholly owned subsidiary BAIC Australia Pty Limited.

In the recent capital raising, BAIC Australia subscribed for 3,846,154 ordinary shares and an equivalent number of attaching options under the rights issue prospectus dated 20 March 2007. BAIC Australia now holds 7,692,308 fully paid ordinary shares, being approximately 5.1 percent of the company's issued capital.

In commenting on this important and developing relationship, Montec's Chairman, Terry Cuthbertson said,

"Montec is delighted to see the continued and strengthening position of BAIC Australia on the company's share register as it reinforces the valuable commercial relationship which Montec enjoys with Beijing Sanyuan Group in the China dairy market".

"Beijing Sanyuan Group has been of pivotal importance in Montec's commercial drive in China and this most recent participation by our commercial partner is a tremendous validation for what Montec is achieving in China and augers well for its plans for the future".

BAIC Australia's Managing Director, Jimmy Yan said,

"We see significant potential in the developing range of Montec food technologies, associated brands, and their application in the China marketplace. The positive health benefits of monounsaturated dairy for consumers combined with the opportunity to derive superior margins from Montec's premium products have been major factors in our ongoing support for Montec".

This strategic positioning on the register of Montec International follows the formal launch of a partnership with Beijing Sanyuan Foods (BSF) hosted at the Australian Embassy in Beijing on 9 February 2007. Under the partnership arrangement BSF packages "dairypure" and "Meng Tai" branded milk for Montec and provides logistics and distribution services in Beijing and Shanghai.

Ends

Terry Cuthbertson Chairman Montec International Limited Tel: +61 2 9299 0011

Peter Herd Managing Director Montec International Limited Tel: +61 2 9299 0011

Investor Relations & Media Enquires:

Rod North Bourse Communications Pty Ltd Tel: +61 3 9510 8309 Mob: +61 (0) 408 670 706

ABOUT MONTEC INTERNATIONAL LIMITED (MTI)

Montec International Limited holds certain rights to the manufacture and marketing of monounsaturated, cholesterol-free dairy products. The Company's current focus is on China, where it is building its range of white and flavoured milks under the registered trademarks "dairypure" and "Meng Tai", currently distributed through more than 2,700 outlets, predominantly in Beiling and Shanghai. Planned outlet growth, brand development and extensions into monounsaturated ice cream, yoghurts and other products will provide the base for company's future arowth.

ABOUT BEIJING SANYUAN FOODS CO LTD

Beijing Sanyuan Foods principally manufactures milk and dairy products, under the brand Sanyuan. Headquartered in Beijing, the company has established milk source bases in Hebei Province and Inner Mongolia Autonomous Region. The company is one of the largest dairy groups in the country with processing facilities throughout north east China. The company, through its subsidiary, Beijing Allied Faxi Food Co Ltd is also one of the few companies with a nationwide frozen food distribution capability.

Beijing Sanyuan Foods has established strong connections with major global food groups. The company has major equity interests in the Beijing operations of McDonalds and Starbucks. Beijing Sanyuan Foods Co., Ltd., which is listed on the Hong Kong Stock Exchange is controlled by the diversified Sanyuan Group. Sanyuan Group has operations covering animal breeding and stud farms with a focus on dairy and beef cattle, ducks and pigs; agriculture; dairy products; logistics and property.