An anonymous director reports

OROCOBRE LIMITED QUARTERLY ACTIVITIES AND CASH FLOW REPORT -- SEPTEMBER, 2014

Orocobre Ltd. has presented its quarterly activities and cash flow report for the period ended September, 2014.

Olaroz lithium-potash-boron project:

• Project construction is in the final stages and is expected to be completed on budget.
• Commissioning of the lithium carbonate plant began in August. Individual circuits are being progressively commissioned as they are released from construction. The plant is expected to be operational during November. All auxiliary circuits have been commissioned.
• Brine inventories are being built up with the brine pumping rate currently 10 per cent more than the steady-state requirement, with potential to improve at least another 10 per cent.
• The drilling of two additional bores intersected a thick sand unit more than 100 metres beneath the existing resource, which, through geological interpretations, suggests it could be continuous beneath the salar.
• The exploration target corresponding to this sand unit is between 1.6 million and 7.5 million tonnes of lithium carbonate equivalent between a 197-metre and a 323-metre depth. At depths below 323 m, there is potential for further brine with geophysical surveys suggesting the bottom of the basin extends up to 600 m deep. This exploration target upside suggests that the Olaroz lithium resource could significantly increase without the need to consider additional resource potential north or south of the salar or at greater depths. Furthermore, through the drilling of a larger-diameter bore and fitting of higher-capacity pumps, the deeper sand aquifer is expected to sustain a brine pumping rate of up to 50 litres per second from a single bore.
• The deeper sand unit intersected through the drilling of bores P301 and P302 has the characteristics to support high-volume brine production, with lithium concentrations and chemistry comparable with other operating wells. This will significantly reduce the capital cost of the first expansion at Olaroz by requiring comparatively fewer bores to achieve the required brine flow rate.

Borax Argentina:

• The relocation of the borax decahydrate chemical plant from Campo Quijano to the Tincalayu mine site was completed within budget, and the plant restarted in early July.
• The remodelling and review of the exploration potential of the Tincalyu resource are in the advanced stages and are close to completion.

Corporate:

• Cash position was $22.9-million (Australian) at the end of the quarter, excluding funds in Olaroz lithium project companies.
• Orocobre group was presented with the 2014 Mining Argentina Award for Outstanding CSR Mining Company in September.
• Annual report was released in September and is available on the company website.