Orocobre Limited Borax Plant Relocation Update

Brisbane, Australia (ABN Newswire) - Orocobre Ltd. (ASX:ORE) (TSE:ORL) ("Orocobre" or "the Company") is pleased to advise progress on the relocation of the borax chemical plant.

- Dismantling of existing equipment at Campo Quijano is 92% complete

- Installation of new equipment at Tincalayu is 85% complete

- The project continues to progress on time and within budget with 70% of the budget spent or committed

The project is about to enter into the final quarter of the relocation and construction programme with the target completion date being the end of June 2014.

The following is a summary of what has been achieved to date:

- Complete Engineering Design

- Repair and maintenance of existing equipment at Tincalayu, 73% complete

- Civil work at Tincalayu, 89% complete

- Dismantling of existing equipment at Campo Quijano, 92% complete

- Repair and maintenance of equipment at Campo Quijano commenced in January and is 44% complete

- Construction and installation of new equipment is 85% complete which includes the installation of the:

- Dissolver (86%)

- Overflow tanks (92%)

- Hot air generator (57%)

- Decanters (82%)

- Generators (93%)

- Centrifuges (86%)

- Electrical works (86%)

- The flocculant plant is 54% complete

The project continues to progress on time and within budget with 70% of the budget spent or committed.

The relocation of the borax plant to the Tincalyu mine site will have significant benefits through both the reduction of operating unit costs and also increasing overall mineral recovery from the mine. Historically, run-of-mine ore at 17% B2O3 has been concentrated at Tincalayu using dry magnetic separation to produce a 21% grade which is then transported 350 kms from Tincalayu to Campo Quijano for production of borax chemicals. Recovery through the dry magnetic separation plant has previously been only approximately 60%. When the borax plant relocation to the Tincalayu mine site is complete the borax plant will treat run-of-mine ore without the use of the magnetic separation plant. This will result in:

- no loss of mineral content prior to the borax plant as there will be no concentration stage

- removal of the operating costs of the dry magnetic separation concentration stage

- improvement in the freight cost profile by cartage of finished products with grades between 37% and 49% B2O3 as opposed to a 21% grade concentrate.

The capital budget for the project is US$3.7m net of existing plant and equipment.

To view photographs, please visit:
http://media.abnnewswire.net/media/en/docs/76769-ASX-ORE-788773.pdf


About Orocobre Limited:

Orocobre Ltd. 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:

Australia and Asia
David Hall, Business Development Manager
Orocobre Ltd.
T: +61 7 3871 3985
M: +61 407 845 052
E: dhall@orocobre.com

North America
James Calaway, Chairman
Orocobre Ltd.
M: +1 (713) 818 1457
E: jcalaway@orocobre.com