Orocobre Limited Cauchari Drilling Update – Phase III Drilling Complete

Orocobre Limited (ASX: ORE, TSX: ORL) (“Orocobre” or “the Company”) provides the following update on the completion of drilling and pumping test activities at the Cauchari JV property located in Jujuy Province, Argentina.

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 33.5% of Advantage Lithium’s issued capital and 25% directly in the joint venture.

Highlights:

– Phase III infill drilling and resource conversion program was completed

at the end of 2018 with 26 holes drilled in Phase II and III. An updated

resource estimate in Q1 CY19 is expected to bring current inferred

resources into the Measured and Indicated categories

– Drilling in the deep sand unit at CAU26 and deeper drilling on the CAU12

and CAU13 platforms confirms a significant expansion in the unit

thickness. CAU12 has intersected more than 249 m of sand dominated

material. Drilling has also expanded the aerial extent of the unit. The

deep sand unit remains open at depth, where holes were terminated in sand

and interbedded sand units

– Brine analysis from CAU19 in the SE Sector averaged 611 mg/l lithium and

4,483 mg/l potassium in the deep sand beneath the upper sequence of

evaporites and finer grained sediments which averaged 427 mg/l lithium.

Brine sample results are pending for CAU26, CAU12 and CAU13

– The CAU11 30 day constant rate pumping test was completed on November 24

(see ASX announcement dated 28 November ). The test was

carried out at an average pumping rate of 18.4 l/s with the lower part of

the well screened in the deep sand unit. Brine samples collected during

the pumping test indicate that lithium and potassium concentrations

remained constant throughout the test and averaged 512 mg/l lithium and

4,735 mg/l potassium

– The CAU07 30 day constant rate pumping test continues in the NW Sector at

a rate of 22 l/s. Brine sample results from the first seven days averaged

647 mg/l lithium and 4,980 mg/l potassium with a Mg/Li ratio of 2.2:1,

with final results expected end of January 2019.

Orocobre Managing Director and CEO Mr Richard Seville

/Public Release.