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Orocobre Limited - Cauchari Drilling Update

Orocobre Limited (ASX: ORE, TSX: ORL) ("Orocobre" or "the Company") is pleased 
to provide an update on project developments, including recent results received 
from the brine sampling of diamond core hole CAU18 in the NW Sector of the 
Cauchari JV property located in Jujuy Province, Argentina. 

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The exploration program is being managed by JV partner Advantage Lithium Corp. 
("Advantage Lithium") (TSX Venture: AAL) (OTCQX: AVLIF) who hold 75% of 
Cauchari.  Orocobre owns the remaining 25% of Cauchari and 29% of Advantage 
Lithium's issued capital.

CAU18 Highlights:

    -- Diamond core hole CAU18 was drilled to a depth of 359 m 
       and intersected extensive sand dominated units, confirming 
       the positive porosity and permeability conditions of the 
       NW Sector extending north from CAU07, CAU16 and CAU15 
       -- For context, recent pump-tests at hole CAU07, which 
          intersected extensive sandy sediments, suggested flow rates 
          of up to 36 l/s may be possible
    -- Results of nine brine analyses of CAU18 have been received 
       for the interval from 165 m to 320 m depth which consists of sand 
       and halite dominated units 
    -- The nine CAU18 brine analyses averaged 476 mg/l Lithium and 
       3,727 mg/l Potassium from 165-320 m depth 
    -- Average Mg/Li ratio of 2.5:1, very similar to the nearby 
       hole CAU07 (2.3:1) and the producing Olaroz brine project 
       resource (2.4:1) - very positive for utilisation of conventional or
       other brine processes

Managing Director & CEO Mr. Richard Seville commented, "CAU18 in the NW Sector 
of Cauchari confirms the extension of brine to the northern property boundary 
with our Olaroz project, intersecting sandy sediments and gravel representing 
positive extraction characteristics in this area. The Mg/Li ratio is similar to 
Olaroz, which is very favourable for brine processing. With upcoming results 
from holes CAU17 and CAU14 the joint venture will update the project resource 
estimate, to be followed by a Preliminary Economic Assessment (PEA)."

NW SECTOR - CAU18 Drilling Results

CAU18 was drilled and cased through the upper gravel and sandy gravel units of 
the Archibarca alluvial fan to a depth of 130 m. CAU18 was continued as a 
diamond core hole from 130 m to a total depth of 359 m. Sand dominated and 
halite dominated units were encountered from 130 m to 260 m depth. The interval 
between 260 m and 359 m intersected mostly clay and silt dominated units.  
Brine assays were received from nine bailed samples over a depth range from 
165-320 m, returning an average of 476 mg/l Lithium and 3,775 mg/l Potassium 
over this 155 m interval. 

The brine mineralisation, shows an excellent Mg/Li ratio of 2.5:1, and confirms 
the extension of elevated lithium concentrations from the northern property 
boundary with Orocobre (Sales de Jujuy) through to CAU15, where brine 
mineralisation remains open to the south. CAU18 is located 3.6 km north of 
CAU07 and 15 km north of CAU15. Results from CAU15 (NW Sector) and CAU11 (in 
the SE Sector) suggest the brine body continues south of these holes, and this 
area will be evaluated further following the upcoming resource estimate, 
providing potential for future resource expansion.

The majority of drainable porosity test results on undisturbed core samples 
have now been received from the GeoSystems Analysis laboratory in the United 
States and will be used in the upcoming resource estimate. The results have 
confirmed the favourable drainable porosity characteristics of the sand 
dominated units and are further supported by the high flow rates reported 
recently in CAU07 and CAU11 pumping tests.

SE SECTOR – Brine sampling activities

Brine chemistry analyses have been received from packer sampling carried out by 
the company on pumping test wells CAU08, 09, 10 and 11. This discrete interval 
sampling using a packer and low-flow pump provides information for the resource 
estimate and confirms the composite brine grades obtained in holes CAU08, 09, 
and 10 to date from pumping tests, with results from CAU11 pending. 

To date results have been received from the sampling in the upper parts of 
these holes confirming good Li grades in the range 619 to 724 mg/l.  In CAU08 
results average 619 mg/l Li and 5,442 mg/l K from 60-146m; in CAU09 results 
average 643 mg/l and 6,141 mg/l K from 78-171 m and in CAU10 results average 
724 mg/l Li and 6,319 mg/l K from 60-126 m, with deeper sampling yet to be 
undertaken with packer equipment.

Completion of Phase 2 Drilling and Pumping Program
Currently diamond drilling is underway on CAU14 site in the SE Sector. Brine 
chemistry analyses from CAU14 and CAU17 are the last results from the Phase 2 
program to be included in the upcoming resource estimate. 

Upcoming Phase 3 drill program 

Additional deeper drilling has been planned to depths below 450 m to fully 
define the extent of the deeper sand unit and the base of the Cauchari salar 
basin. The phase 3 Program will include additional production well 
installations and pumping tests in the NW and SE Sectors and will follow on 
immediately from the Phase 2 program.

The Phase 3 deep drilling will be supported by a new drill rig (large diameter 
drilling capacity to beyond 600 m) that will be mobilized to the Project by 
mid-April. A series of holes will be completed to define the full extent of the 
lower (deep) sand unit for an additional update to the resource /reserve 
estimate to be included in the DFS planned for completion in early 2019.

Cauchari JV Development Timeline 

The updated resource estimate, due to be released in Q2, will be followed by a 
Preliminary Economic Assessment planned for completion in June-July. Proposals 
have been received from internationally recognised engineering companies with 
lithium experience and the selection process is well advanced to allow 
engineering studies for the PEA to commence in mid-April 2018.

The PEA will evaluate project development options and establish the preliminary 
project economics, summarised in a NI 43-101 Technical Report.

The Company has completed a detailed project development schedule and budget 
and is fully funded through the completion of the Phase 2 program, and the 
updated resource estimate, the Preliminary Economic Assessment, and the Phase 3 
drill program which will support the DFS targeted for early 2019. 

Initiation of Restricted Share Unit program 

The Company wishes to announce that in order to further align the interests of 
the Company's senior executives, key employees, consultants and directors with 
those of the shareholders of the Company, the Company has adopted a restricted 
share unit plan (the "Plan").  The Plan provides for the issuance of up to 
1,900,000 restricted share units (the "RSUs"). Under the Plan, RSUs may be 
granted to directors, officers, employees and consultants of the Company 
(excluding investor relations consultants) as partial compensation for the 
services they provide to the Company.  The Plan is a fixed number plan, and the 
number of shares issued under the Plan, when combined with the number of stock 
options available under the Company's stock option plan, will not exceed 10% of 
the Company's outstanding shares.  The Plan is subject to the approval of the 
TSX Venture Exchange and to disinterested shareholder approval which will be 
sought at the next shareholders meeting of the Company.  Any RSUs awarded prior 
to obtaining both TSX Venture Exchange approval and disinterested shareholder 
approval (collectively, the "Approvals") are subject to, and may not be paid 
out before, both approvals are obtained.  Any RSU Shares issued are subject to 
a four month hold from date of issue. The Company's Compensation Committee and 
Board of Directors have approved the award of 1,750,000 RSUs to certain 
directors, officers, employees and consultants, subject to receipt of 
disinterested shareholder and Exchange approval. The 1,750,000 RSUs vest over 
three years based upon the achievement of certain milestones. Shareholder 
approval is being sought at the Company's next AGM.

For more information please contact:

Andrew Barber
Investor Relations Manager
T: +61 7 3871 3985
M: +61 418 783 701
E: abarber@orocobre.com

Competent Persons Statement
The information in this report that relates to exploration reporting at the 
Cauchari JV project has been prepared by Mr Murray Brooker. Murray Brooker is a 
geologist and hydrogeologist and is a Member of the Australian Institute of 
Geoscientists. Mr Brooker is an employee of Hydrominex Geoscience Pty Ltd and 
is independent of Orocobre. Murray has sufficient relevant experience to 
qualify as a competent person as defined in the 2012 edition of the 
Australasian Code for Reporting of Exploration Results, Mineral Resources and 
Ore Reserves. He is also a "Qualified Person" as defined in NI 43-101. Murray 
Brooker consents to the inclusion in this announcement of this information in 
the form and context in which it appears.

About Orocobre Limited 
Orocobre Limited (Orocobre) is a dynamic global lithium carbonate supplier and 
an established producer of boron.
Orocobre is dual listed on the Australia and Toronto Stock Exchanges (ASX: 
ORE), (TSE: ORL). Orocobre's operations include its Olaroz Lithium Facility in 
Northern Argentina, Borax Argentina, an established Argentine boron minerals 
and refined chemicals producer and a 35% interest in Advantage Lithium.

For further information, please visit www.orocobre.com. 

SOURCE  Orocobre Limited