carimmohelp: Orocobre progress reports on its flagship project Olaroz Salt

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BRISBANE, AUSTRALIA, August 30, 2011 (MARKET WIRE – Orocobre Limited (ASX: L'Osservatore Romano –

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          - The process of due diligence by Toyota Tsusho and JOGMEC has been completed             without significant problems arising         - Terms of the agreement with Toyota Tsusho expected to be completed in 4Q             2011         - Approval received from EIS UGAMP additions, updates previously             EIA adopted the results of DFS         - A strong local support for the project is evident, with active Orocobre             committed to obtaining final approval from the provincial government         - The detailed engineering work continues SKM

Orocobre Limited (ASX: L'Osservatore Romano ("Orocobre," "the Company" is pleased to provide an update on the Salt Company Olaroz lithium potash project in the province of Jujuy in northwest Argentina, where a feasibility study for a 16,400 tonnes per year of the lithium battery of high purity carbonate operation was completed earlier this year.

Toyota Tsusho Corporation Agreement

Since the completion of definitive feasibility study ("DFS" the company has actively engaged in finalizing agreements with its strategic partner, Toyota Tsusho Corporation ("Toyota Tsusho", Japanese government Japan Oil, Gas and Metals National Corporation ("JOGMEC" and a major Japanese bank.

Toyota Tsusho is the organization of debt financing for a minimum of 60% of capital funding needs for the project Olaroz through a line of low-cost credit to be guaranteed through JOGMEC. Complete documentation was provided to the DFS Toyota Tsusho on June 9, 2011.

Since then, due diligence in the DFS and the project has been carried out by technicians of Toyota Tsusho, legal and accounting advisors, as well as JOGMEC. The selection of the lender is well underway and is expected to be binding the person appointed shortly. No material issues have arisen due diligence.

Toyota Tsusho and Orocobre also been progress toward completion of the commercial terms of their agreements including the entrance exam for the equity of 25% of Toyota Tsusho, the joint venture agreement and off-take agreements. Orocobre has approved the application of Toyota Tsusho for an extension period of 90 days specified in the term sheet announced on January 18, 2010 to allow these provisions will be completed, and the terms of this extension are currently being finalized .

The company expects to finalize the terms of their agreements with Toyota Tsusho early in the fourth quarter of 2011, the Japanese bank and finance JOGMEC to be completed by early first quarter 2012 subject to completion of the approval process in the province of Jujuy .

Approval Process

The company remains very active in the process of approvals Jujuy provincial government was introduced in March 2011 for projects in the stages of exploration or exploitation. Orocobre has provided extensive information to the Committee of Experts was formed to consider the draft and made a series of formal presentations to the Committee.

In addition, the company has made significant progress in Jujuy by building a series of pre-established relationships with local communities, governments and other regulatory bodies.

Orocobre continues to receive strong local support for the project Olaroz. As previously reported, representatives of relevant local communities have supported the project Olaroz written to the Minister of Provincial Production expressing the fervent hope that the project receives all necessary approvals to allow commercial production to begin. Orocobre believes that the approval process continues to progress favorably and expects final approval granted within viable.

Moreover, as noted above, the unit of Mines Environmental Management (UGAMP approved the addendum to the Environmental Impact Statement (EIS for the proposed Olaroz. The addenda updated previously approved Environmental Impact Statement, with the results of The company recently completed DFS. The additions also addressed the development of a pipeline to support the needs of the operation of energy. UGAMP committee is composed of twelve members from various government departments, stakeholders and local communities that revisions to EIA for mining projects before approval by the Provincial Director of Mines and Energy. It is believed that a favorable recommendation from UGAMP bodes well for the recommended waiting period before the Committee of Experts.

Detail Engineering

Following the appointment of Sinclair Knight Merz ("SKM" as engineers to carry out detailed engineering studies, the project engineering team has been assembled and work has begun. The initial focus has conducted a review of the plan execution contained in the DFS to accelerate the development of projects once funding and approvals have been completed.

Orocobre Director General, Richard Sevilla was very happy to provide an update on the funding agreement with Toyota Tsusho and advancements in the approval process.

"We are pleased with our progress, both with our strategic partner, Toyota Tsusho, and the final approval process. We are increasingly confident that we will achieve a positive outcome of these two areas of work within our desired time frame and that will be developing this project in early 2012 as planned, "Mr. Sevilla said.

"The project will Olaroz broad benefits for local communities – the benefits and strong local relationships Orocobre give us confidence that a strong local community support for our project will continue to exist."

"Olaroz is a sustainable long-term project with excellent economic and environmental profile, and the lowest operating costs in advance, should generate substantial long-term benefits for shareholders and stakeholders. "

About Orocobre Limited

Orocobre Limited is listed on the Stock Exchange of Australia (ASX: L'Osservatore Romano and the Toronto Stock Exchange and is the leading developer of lithium-potassium, lithium and potassium in the Puna region rich in Argentina for more information visit www.orocobre.com ..

Statements.

This new release contains forward-looking statements within the meaning of Canadian securities legislation. Specifically, this press release contains forward-looking statements related to the Project Olaroz. Forward-looking statements are based on certain key expectations and assumptions made by Orocobre, including assumptions about the timing of development, construction, and production of the Salar de Olaroz project, expectations and assumptions management believes it is reasonable Orocobre in this time. Although Orocobre believes that the expectations and assumptions on which such forward-looking statements are reasonable based on the date of this press release, undue reliance should not be placed on forward-looking statements and information as may Orocobre no guarantee that that will demonstrate be correct. Since forward-looking statements address future events and conditions, by their nature involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including the risks described in the annual information Company Form for the year ended June 30, 2010 filed on www.sedar.com. Statements subject to risks and uncertainties contained in this release are made as of the date hereof and Orocobre assumes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

ABN 31112589910

          Contacts:         Australia and Asia         Limited Orocobre         Richard Seville         Director General         M 61419916338          FTI Consulting         Gemma Young         +61 8 9386 1233 or M: +61 412 349 345          North America         Limited Orocobre         Bruce Rose         VP-Corporate Development         M + 1 (604 377 1423  www.orocobre.  Jessica Wagner FD com +1 (312 861 4707 or M: +1 (646 258 7439 Jessica.wagner @ fd.com

SOURCE: Orocobre Limited

  http://www.orocobre.com mailto: Jessica.wagner @ fd.com

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