Orocobre Limited Completes $22 Million "Bought Deal" Financing in Canada and $15 Million Private Placement in Australia

BRISBANE, AUSTRALIA--(Marketwire - Feb. 24, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

OROCOBRE LIMITED (TSX:ORL)(ASX:ORE) is pleased to announce that it has completed its previously announced offering of 6,959,000 ordinary shares (which includes the exercise of the over-allotment option in respect of 709,000 ordinary shares), on a bought deal basis, at a purchase price of C$3.20 per share, for aggregate gross proceeds of approximately C$22 million. Cormark Securities Inc. and Dundee Securities Limited were the co-lead underwriters in a syndicate that included Canaccord Genuity Corp., CIBC World Markets Inc. and Byron Capital Markets Ltd.

Orocobre has also completed its previously announced placement to Australian institutional and sophisticated investors that subscribed for 4,673,000 ordinary shares at a purchase price of A$3.21 per share, for aggregate gross proceeds of approximately A$15 million. The Australian placement was lead managed by Patersons Securities Limited. The ordinary shares issued pursuant to the Australian placement were allotted on February 11, 2011.

The aggregate net proceeds of the Canadian offering and Australian placement will be used for detailed engineering design work, operation of the pilot plant and other project activities, production bore drilling and procurement of long lead items in relation to the construction of the Salar de Olaroz Project during the JV negotiation period with Toyota Tsusho, for the completion of property purchase contracts at the Olaroz Project, and for working capital and general corporate purposes.

The Canadian shares were offered by way of a short form prospectus filed in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The shares will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.

About Orocobre:

Orocobre Limited is listed on the Australian Securities Exchange (ASX:ORE) and Toronto Stock Exchange (TSX:ORL) and is the leading lithium-potash developer in the lithium and potassium rich Puna region of Argentina.

Caution regarding forward-looking information:

This release contains "forward-looking statements" which reflect the current expectations of Orocobre, including expectations relating to closing of the offering and use of proceeds. When used in this release the words "will", "anticipate", "intend", "believe" and similar expressions are intended to identify forward-looking statements. These statements reflect Orocobre's management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant known and unknown risks, uncertainties, factors and assumptions. Accordingly, readers should not place undue reliance on forward-looking statements. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release.

The forward-looking statements contained in this release are expressly qualified in their entirety by this cautionary statement. Although the forward-looking statements contained in this release are based upon what Orocobre believes to be reasonable assumptions, Orocobre cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and Orocobre does not assume any obligation to update or revise them to reflect new events or circumstances.

ABN 31 112 589 910