Orocobre Limited Construction Update on the Olaroz Lithium Project

      Orocobre Limited Construction Update on the Olaroz Lithium Project

Brisbane, Australia (FSCwire) - Orocobre Limited (ASX:ORE) (TSX:ORL)
(OTCMKTS:OROCF) ("Orocobre" or "the Company") is pleased to advise progress on
construction of its flagship Olaroz Lithium Project. In terms of physical
progress the construction program is now approximately 93% complete. A total
of approximately US$214m has been spent or committed via executed contracts in
the construction project to date. The project is expected to be completed on
budget.

The Company is pleased to report that at the beginning of June it received all
outstanding import approvals ("DJAI's") from the government of Argentina for
the remaining major equipment for the lithium carbonate plant (e.g. Alfa Laval
Heat Exchangers, Outotec Filters and BEPEX micronizing, compaction and drying
units). With these approvals a significant area of risk outside of the
Company's control was removed. During the past 2 months high winds, with gusts
above 100 km/hr, have been common particularly during the day. While conducive
to evaporation, the high wind conditions have created a challenging
environment in construction arising from safety constraints relating to people
working at heights and the loss of effective working time. To ameliorate these
impacts the Construction Management Team has both increased personnel numbers
and commenced construction at night when wind speeds are reduced.

The lithium carbonate plant commissioning/start up is projected to be at the
end of August 2014 with commissioning/startup of the micronizing and drying
circuit to follow in mid-September. Full automated control operations are
scheduled to be introduced during October.

Construction progress

The progress of construction including the month of June is a cumulative 93%.

- Solar Evaporation Pond Liners:

The liners are currently being installed in the final ponds.

- Lithium Carbonate Plant:

The lithium carbonate plant is currently 42% complete. The lithium carbonate
building frame has been completed allowing for the installation of equipment.
The roof and walls of the lithium carbonate plant building will be fitted
following completion of the internal plant construction. The installation of
FRP tanks is in progress, the boiler has arrived at site and structural works
to facilitate the boiler installation are in progress. As further equipment
arrives at site it will be installed as per the construction schedule.

- Plant Buildings and Warehouses:

In total, the plant buildings and warehouses are 70% complete. The dense soda
ash warehouse for instance is 100% structurally complete and the internal fit
out is being completed.

- General Utilities:

The gas branch line connection from Gas Atacama was completed and commissioned
in April as planned. This key milestone allows the generation of power from
gas turbines on site. The installation of gas generation equipment for the
production of electricity began in May with the commencement of the
installation of the internal network. The commissioning and start-up of the
gas generation plant is scheduled for July. Installation of electricity supply
infrastructure to the evaporation pond area is in progress and the substation
at pond 4B has been commissioned.

- Liming Plant:

The liming plant was switched to full automatic operation in May and has been
operating since without issue.

The Company continues to follow the "Jujuy First" strategy to successfully
work with suppliers and the employment bureau to focus on the hiring of local
people from the communities of Olaroz, Huancar, Puesto Sey, Pastos Chicos,
Catua, Susques, Jama, El Toro, Coranzuli, San Juan and Abrapampa. The project
implementation is through EPCM (Engineering, Procurement and Construction
Management) with a high proportion of local involvement through construction
and supply contracts and local employment. Theunique community and shared
value policy continues to be a key success factor, training local people under
the supervision of high quality experienced professionals.

The Olaroz lithium project is being developed by Orocobre (66.5%) with
partners Toyota Tsusho Corporation ("TTC") (25%) and the Jujuy Province mining
and energy company, JEMSE (8.5%) with a construction budget of US$229m
including contingency.

The lithium carbonate plant commissioning/start up is projected to be at the
end of August 2014 with commissioning/startup of the micronizing and drying
circuit to follow in mid-September. Full automated control operations are
scheduled to be introduced during October.

To view all figures and the release, please visit:
http://media.abnnewswire.net/media/en/docs/ASX-ORE-804807.pdf

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 the first large-scale,
"greenfield" brine based lithium project in 20 years at its flagship Salar de
Olaroz resource, with projected production of 17,500 tonnes per annum of
low-cost battery grade lithium carbonate scheduled to commence at the end of
Q2, 2014. The Company also wholly-owns Borax Argentina, an important regional
borate producer. Orocobre is 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 la Mineria Argentina ("Fundamin" or
Foundation for Development of Argentina Mining).



Contact



David Hall
Business Development Manager
Orocobre Limited
Tel: +61-7-3871-3985
Mobile: +61-407-845-052
E-mail: dhall@orocobre.com

James Calaway
Chairman
Orocobre Limited
Mobile: +1-713-818-1457
E-mail: jcalaway@orocobre.com

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/orocobre07012014.pdf

Source: Orocobre Limited (TSX:ORL) http://www.orocobre.com

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