Mr. David Hall reports

OROCOBRE LIMITED: $50-MILLION CAPITAL RAISING COMPLETED

Orocobre Ltd. has raised approximately $50-million (Australian) through a $40-million placement to domestic and international institutional and sophisticated investors and a $10-million underwritten share purchase plan.

The proceeds of this capital raising will be used primarily to finance working capital requirements for the Olaroz lithium plant during its production ramp-up.

Orocobre was pleased to announce on Feb. 2, 2015, that commissioning of the final circuits at the Olaroz lithium plant had been completed and that the plant had moved into commercial ramp-up stage to supply customers with lithium carbonate for final product qualification. The plant is expected to reach nameplate production of 1,450 tonnes per month (17,500 tonnes per annum) in the fourth quarter of 2015.

Placement

The placement of approximately 15.7 million shares will be issued pursuant to Orocobre's 15-per-cent capacity under Australian Securities Exchange listing Rule 7.1 at a price of $2.55 (Australian) per share, representing a 13-per-cent discount to the ASX closing price prior to the company entering into a trading halt on Jan. 30. Subject to shareholder approval at a general meeting proposed to be held on or about March 9, entities associated with chairman James Calaway and managing director Richard Seville will be participating in the placement for 267,563 and 100,000 shares, respectively.

The lead manager and bookrunner for the placement was Canaccord Genuity (Australia) Ltd.

Share purchase plan

The company is also pleased to announce the opportunity for existing shareholders of the company to participate in an underwritten share purchase plan. The SPP will be capped at $15-million, and is underwritten to $10-million.

Under the SPP, eligible Orocobre shareholders are invited to invest up to $15,000 per shareholder at $2.55 per share, the same price per share as institutional investors were offered shares under the placement. No brokerage or transaction costs are payable by shareholders when subscribing for shares under the SPP.

The offer price of the shares under the SPP represents an 11.3-per-cent discount to the volume-weighted average price for the five days prior to the record date for the offer. The SPP is underwritten by Canaccord Genuity (Australia).

The directors reserve the right to accept additional applications subject to shareholder demand. The SPP will only be offered to eligible ORE shareholders resident in Australia or New Zealand, and the SPP offer document will be provided to eligible shareholders shortly.

Managing director, Mr. Seville, said: "We are very pleased with the result of the raising in what are difficult conditions for resource companies. We are now well funded to take Olaroz and the company through to the next stage of development, becoming a profitable operating company. Although we welcome some new shareholders onto the register, we are honoured by the ongoing support we have received from our existing shareholders in this raising. We will continue to work hard to build on the shareholder value that we have delivered to date."