Mr. Richard Seville reports

OROCOBRE/ADVANTAGE LITHIUM TO COMMENCE DRILLING AT CAUCHARI

Orocobre Ltd. has provided an update from its joint venture partner Advantage Lithium Corp. that phase 1 drilling will commence early next week at its flagship lithium property, located in the Cauchari salar of Jujuy province in northwest Argentina. Phase 1 will be a five-hole program, and phase 2 drilling is planned for later in 2017, comprising a further 12 holes and leading to a scoping study by early 2018.

Advantage Lithium is increasing its interest in the project from the current 50 per cent to 75 per cent through the expenditure of $5-million (U.S.) or by completing a feasibility study. Orocobre holds the remaining interest.

The Cauchari project lies approximately 20 kilometres south of Orocobre's producing Olaroz lithium facility.

Highlights:

• Phase 1 drilling: a five-hole rotary drill program scheduled to begin during the week commencing May 1, 2017;
• Phase 2 drilling: a follow-up, 12-hole diamond drill program to commence later in 2017;
• Drilling will focus on potential extensions of the existing inferred resource at Cauchari and exploration where no previous drilling has been conducted. A large exploration target (1) has been defined with a range of 125 million to 1,855 million cubic metres of brine at between 260 and 600 milligrams per litre lithium and 2,500 to 5,350 milligrams per litre potassium for the lower and upper ranges (1), respectively. This represents an in situ range of contained product of between 250,000 to 5.6 million tonnes of lithium carbonate equivalent (LCE) and 900,000 to 19 million tonnes of potash (KCl).

Commenting on the update, managing director Richard Seville stated, "We are extremely pleased with this progress update from our JV partner Advantage Lithium and their commitment to fast-tracking exploration and development works at Cauchari."

Note:

(1) An exploration target is not a mineral resource. The potential quantity and grade of the exploration target are conceptual in nature, and there has been insufficient exploration to define a mineral resource in the volume where the exploration target is outlined. It is uncertain if further exploration drilling will result in the determination of a mineral resource in this volume.

About Orocobre Ltd.

Orocobre is listed on the Australian Securities Exchange and Toronto Stock Exchange and is building a substantial Argentine-based industrial chemical and mineral 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 has built, in partnership with Toyota Tsusho Corp. and JEMSE, the first large-scale, greenfield brine-based lithium project in approximately 20 years at the Salar de Olaroz with planned production of 17,500 tonnes per annum of low-cost lithium carbonate.

Competent person's and qualified person's statement

The technical information in this announcement has been prepared by Murray Brooker of Hydrominex Geoscience. Mr. Brooker is a geologist and hydrogeologist and is a member of the Australian Institute of Geoscientists. He has sufficient relevant experience to qualify as a competent person as defined in the 2012 edition of the Australasian code for reporting of exploration results, mineral resources and ore reserves. He is also a qualified person as defined by Canadian Securities Administrators' National Instrument 43-101. Mr. Brooker consents to the inclusion in this announcement of this information in the form and context in which it appears.

Additional information relating to the company's Cauchari project is available in the existing technical report entitled "Technical report -- Cauchari project, Argentina," dated April 30, 2010, which was prepared by John Houston.

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