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Temporary Argentina tax changes

BRISBANE, Australia, Sept. 5, 2018 /PRNewswire-AsiaNet/ --

Orocobre Limited (ASX: ORE, TSX: ORL) ("Orocobre" or "the Company") provides 
the following update on recent changes to export taxes in Argentina.

Logo - https://mma.prnewswire.com/media/482156/Orocobre_Limited_Logo.jpg 

The Ministry of Economy in Argentina has formally announced the establishment 
of temporary foreign trade measures aimed at reducing the Argentine fiscal 
deficit.

A temporary special export duty will be immediately applied to all exports of 
Orocobre's 66.5% subsidiary Sales de Jujuy SA (SDJ) and Borax Argentina SA 
(Borax) up to 31 December 2020 at a rate of AR$ 3 for each US$ 1. 

Based on the current ARS: USD exchange rate an export duty of AR$ 3 for each 
US$ 1 equates to a duty of approximately 8% on export sales revenue from SDJ 
and Borax. The ongoing rate of this special export duty may vary depending on 
the currency exchange rate between AR$ and US$.

Since April 2018 the Argentine Peso has devalued by approximately 90% against 
the US$, with devaluation now running ahead of Argentine inflation. Currently 
45% of SDJ's costs of production and 60% of Borax's costs of production are 
ARS$ denominated. Consequently, the Company anticipates that the increase in 
export duties will be counterbalanced to some extent by the recent rapid 
devaluation of the Argentine Peso and the positive affect that this will have 
on production costs for both SDJ and Borax. 

Orocobre remains committed to its previously announced plans for the Olaroz 
Stage 2 expansion and the Naraha Lithium Project.  

For more information please contact:

Andrew Barber 
Investor Relations Manager
Orocobre Limited
T: +61 7 3871 3985 
M: +61 418 783 701                   
E: abarber@orocobre.com
W: http://www.orocobre.com.au

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 33.5% 
interest in Advantage Lithium.

For further information, please visit http://www.orocobre.com

SOURCE: Orocobre Limited