Orocobre Comments on Argentine Sovereign Debt Litigation

Orocobre Comments on Argentine Sovereign Debt Litigation 
BRISBANE, AUSTRALIA -- (Marketwire) -- 11/29/12 -- Orocobre Limited
(TSX:ORL)(ASX:ORE) ("the Company") wishes to provide the following
comments on the recent court rulings related to so-called "hold out"
creditors who rejected Argentina's 2005 and 2010 sovereign debt
restructurings offer. 
Orocobre does not consider the Argentine sovereign bond litigation
germane to the activities and developments of the Company. Orocobre
is neither a bond market participant nor is it dependent on the
Government of Argentina for financial support that could be affected
by a sovereign debt problem. 
Orocobre is pleased that the United States Appeals Court yesterday
elected to stay an earlier ruling by US District Court Judge Thomas
Griesa, thus averting an immediate problem. The Company recognizes
that the judicial review scheduled to begin February 27, 2013 may, if
adverse to Argentina, negatively affect the economy of Argentina.
Opinions regarding potential legal strategies, financial implications
for Argentina, and governmental actions are clearly beyond the scope
of the Company. 
Orocobre's flagship Olaroz lithium project is a hard asset, not a
bond, and is under construction with the full support of our strong
and capable partner, Toyota Tsusho Corporation and our valued Jujuy
Province governmental partner, JEMSE. The development and operation
of this export orientated lithium project, and the participation of
JEMSE is supported by both national and provincial governments. The
Company has no reason to believe that the outcome of the sovereign
debt litigation proceedings in the United States, whenever they are
resolved, would have any direct bearing on the support and
encouragement Orocobre now has from both provincial and national
governments. Any statement to the contrary, is, in the Company's
opinion, speculative. 
As well, Orocobre has no reason to believe that if a default
situation developed, the national government would then choose to
exacerbate its economic challenges and discourage foreign investment
by imposing restrictions. While the Company remains hopeful that
Argentina is able to resolve this matter without undue damage to its
economy, Orocobre will be in an investing-building phase for the next 
18 months, and will then be exporting all of its lithium carbonate
production to Japan and other world markets. The Company acknowledges
that a sovereign debt default crisis could cause considerable
hardship for the people and economy of Argentina, however, the
Company is not dependent upon the Argentine domestic economy for any
of its lithium carbonate sales. 
Orocobre has been operating in Argentina for more than five years.
During that time, the Company has faced many business challenges, and
has always been forthright with investors and the investment markets
about the challenges faced. In this case, Orocobre believes that the
sovereign debt litigation issue does not represent a material risk to
the Company and its business plans. 
About Orocobre Limited 
Orocobre Limited is listed on the Australian Securities Exchange and
Toronto Stock Exchange (ASX:ORE)(TSX:ORL), and is building a
substantial Argentinian-based industrial minerals company through the
construction and operation of its portfolio of lithium, potash and
boron projects and facilities in the Puna region of northern
Argentina. The Company is building in partnership with Toyota Tsusho
Corporation and JEMSE, the first large-scale, "greenfield" brine
based lithium plant in nearly 20 years at the Salar de Olaroz. This
high-margin project has a planned production rate after ramp up of
17,500 tonnes per annum of battery grade lithium carbonate scheduled
to commence in Q2 2014. The Company also wholly-owns Borax Argentina,
an important regional borate producer. Orocobre has recently been
included in the S&P/ASX 300 Index and was named 2012 Mining Company
of the Year by Argentine mining magazine Panorama Minero and the
Fundacion para el desarrollo de le Mineria Argentina ("Fundamin" or
Foundation for Development of Argentina Mining). For further
information, please visit www.orocobre.com. 
Caution Regarding Forward-Looking Information 
This news release contains "forward-looking information" within the
meaning of applicable securities legislation. Forward-looking
information contained in this release includes, but is not limited
to, the outcome of Argentina's sovereign debt litigation, any actions
by the Argentinean government relating thereto, any consequences for
Orocobre's projects, operations or sales resulting from such matters,
the construction at the Olaroz Project and the timing thereof, the
commencement of commercial production at the Olaroz Project and the
timing thereof, and the expected brine grade at the Olaroz Project,
y. 
Such forward-looking information is subject to known and unknown
risks, uncertainties and other factors that may cause actual results
to be materially different from those expressed or implied by such
forward-looking information, including but not limited to the risk of
further developments in Argentina's sovereign debt litigation that
are adverse to the Argentinean economy or government; changes in
government regulations, policies or legislation resulting therefrom
or otherwise; the possibility that required concessions may not be
obtained, or may be obtained only on terms and conditions that are
materially worse than anticipated; the risk that required guarantees
will not be provided or that the project financing will otherwise not
be completed with Mizuho Corporate Bank and JOGMEC; that further
funding may be required, but unavailable, for the ongoing development
of the Company's projects; fluctuations or decreases in commodity
prices; uncertainty in the estimation, economic viability,
recoverability and processing of mineral resources; risks associated
with weather patterns and impact on production rate; risks associated
with construction and development of the Olaroz Project; unexpected
capital or operating cost increases; uncertainty of meeting
anticipated program milestones at the Olaroz Project; general risks
associated with the feasibility and development of the Olaroz
Project; as well as those factors disclosed in the Company's Annual
Information Form for the year ended June 30, 2012 filed at
www.sedar.com. 
The Company believes that the assumptions and expectations reflected
in such forward looking information are reasonable. Assumptions have
been made regarding, among other things: the timely receipt of
required approvals and completion of agreements on reasonable terms
and conditions; the ability of the Company to obtain financing as and
when required and on reasonable terms and conditions; the prices of
lithium and potash; and the ability of the Company to operate in a
safe, efficient and effective manner. Readers are cautioned that the
foregoing list is not exhaustive of all factors and assumptions which
may have been used. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. The Company does not undertake to update
any forward-looking information, except in accordance with applicable
securities laws. 
ABN 31 112 589 910
Contacts:
Australia and Asia
Orocobre Limited
Richard Seville
Managing Director
+61 7 3871 3985 or +61 419 916 338 
North America
Orocobre Limited
Bruce Rose
VP, Corporate Development
1 604 377 1423
brose@orocobre.com
 
 
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