Mr. Richard Seville reports

FURTHER VAT RECEIPT AND RELEASE OF STANDBY LETTERS OF CREDIT

Orocobre Ltd. is providing an update on the receipt of value-added tax (VAT) and release of additional cash security deposits which back Sales de Jujuy SA's (SDJ) working capital facility in Argentina.

VAT

As the company advised on April 3, 2017, the process of VAT recovery has accelerated.

Approximately $4.4-million (U.S.) of additional VAT refunds was received by SDJ last week.

Taking into account VAT received over the past year, including the amount received last week, approximately $17.1-million (U.S.) of VAT refunds has been received by SDJ to date. All VAT claims through to, and inclusive of, December, 2016, have now been received.

Further claims of approximately $4-million (U.S.) relating to January and February, 2017, have been submitted to the Argentine tax authorities.

Refund amounts in U.S. dollars are quoted as approximate given they are Argentine peso denominated.

Release of standby letters of credit

SDJ repaid $2-million (U.S.) of its working capital facility last week resulting in a release of standby letters of credit (SBLC) of $2-million (U.S.) on a 100-per-cent basis. Orocobre's portion of this release is $1.45-million (U.S.).

The release of the above-mentioned SBLCs as well as guarantees as advised in prior announcements has supplemented Orocobre Group's available cash by $7.7-million (U.S.).

About Orocobre Ltd.

Orocobre is building a substantial Argentina-based industrial chemicals and 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 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.