Orocobre Limited provided the following update on the completion of drilling and pumping test activities at the Cauchari JV property located in Jujuy Province, Argentina. The exploration program is being managed by JV partner Advantage Lithium Corp. ('Advantage Lithium') who hold 75% of Cauchari. Orocobre owns 33.5% of Advantage Lithium's issued capital and 25% directly in the joint venture. The Phase III drilling program has been completed with some of the deepest holes drilled in the Cauchari-Olaroz basin to date, reaching a maximum depth of 617 m in CAU26, with the deep sand unit present at that depth. Drill hole CAU19 was completed in the southwest of the SE Sector to a depth of 519.5 m. This hole intersected the deep sand unit from 434 m to 519.5 m (a thickness of >85 m), with sandy units continuing at the end of the hole. The extent of the deep sand unit is further defined by intersections in drill holes CAU11, CAU12, CAU13 and CAU26. In CAU12 the deep sand unit extends over more than 249 m vertically, beginning at 360 m below the surface and continuing to the end of the hole at 609 m. Brine samples from CAU19 in the deep sand unit averaged 611 mg/l lithium and 4,483 mg/l potassium with a Mg/Li ratio of 2.1:1, while the lithium concentration in the overlying evaporite and clay sequence averaged 427 mg/l over a 300 m interval. Confirmation of the deep sand unit's substantial thickness and the elevated brine concentration found in CAU19 are excellent results. Brine sample analysis is pending for CAU12, CAU13 and CAU26. Drilling has confirmed the positive characteristics of the deep sand unit in terms of both porosity and permeability for future extraction. CAU25 was drilled in the north of the SE Sector, north of CAU22. CAU25 intersected a sequence of clay, halite and interbedded fine sand units to a depth of 427 m. Brine sampling returned an average concentration of 497 mg/l lithium and 4,045 mg/l potassium from 169 m to 345 m depth, with a low Mg/Li ratio of 2.6:1. CAU26 is located in the southern region of the SE Sector and successfully intersected the westward extension of the deep sand unit. Drill holes CAU12 and CAU13 were deepened to determine the thickness of the deep sand unit, as previous drilling at these sites had only intersected the upper part of the unit. This new drilling has confirmed a thickness >249 m in CAU12, and a thickness >100 m in CAU13 with both holes terminated in the sand. The deep sand unit appears to have favourable porosity and permeability characteristics. Core samples are currently being analysed for drainable porosity and other physical parameters in the GSA laboratory in the US. The deep sand unit appears to constitute an important source for future brine production in addition to the sands and gravels of the NW Sector of the project. The interpretation of the deep sand unit is depicted in Figure 4, which illustrates the vertical extent of the unit and continuity between drill holes. The 30 day constant rate pumping test has been completed on test production well CAU11 in the SE Sector. This test was performed at a pumping rate of 18.4 l/s with a constant drawdown of 25 m in the pumping well. Water levels were also measured in a network of surrounding observation wells completed to different depths relative to the deep sand unit. Brine concentrations were monitored throughout the test. The brine concentration averaged 512 mg/l lithium and 4,735 mg/l potassium throughout the test with a Mg/Li ratio of 2.6:1, confirming the results of the 48 hour pumping test conducted in February 2018. The 30 day constant rate pumping test in CAU07 is underway in the NW Sector and will be completed in mid-January. The pumping test is carried out at a rate of 22 l/s with a drawdown of 40 m. Assays received for the first seven days of the test averaged 647 mg/l lithium and 4,980 mg/l potassium, with a Mg/Li ratio of 2.2:1. The CAU07 pumping rate is limited by well construction constraints and higher pumping rates are expected in future production wells based on the observed aquifer conditions. Brine samples are collected at regular intervals during the test and complete analyses are expected by the end of January 2019. The tests provide additional information on aquifer characteristics as an input to the three-dimensional groundwater model that is being developed to estimate lithium reserves and to develop a production schedule for the project. The pumping tests also confirm the minimum pumping rate to be expected for production pumping wells, in line with the company's previous expectations.