TECHNICAL REPORT ON THE SALINAS GRANDES-GUAYATAYOC PROJECT JUJUY-SALTA PROVINCES, ARGENTINA REPORT FOR NI 43-101 PREPARED ON BEHALF OF OROCOBRE LTD. Level 1, 349 Coronation Drive, Milton, Queensland 4064, Australia. BY JOHN HOUSTON CONSULTING HYDROGEOLOGIST BSc., MSc., C.Geol., FGS, FCIWEM April 30, 2010 1 CONTENTS OF THE TECHNICAL REPORT 3. SUMMARY............................................................................................................................ 9 4. INTRODUCTION ................................................................................................................ 10 4.1. Authorship and Terms of Reference .............................................................................. 10 4.2. The uniqueness of brine prospects ................................................................................. 10 5. RELIANCE ON OTHER EXPERTS ................................................................................... 11 6. PROPERTY LOCATION AND DESCRIPTION................................................................ 12 6.1. Location.......................................................................................................................... 12 6.2. Exploration and exploitation licences ............................................................................ 13 6.2.1. Types of licences and co-ordinate system .............................................................. 13 6.2.2. Standing of licences................................................................................................ 14 6.2.3. The Salinas Grandes-Guayatayoc tenement package ............................................. 14 6.3. Environmental Liabilities............................................................................................... 18 6.4. Permits............................................................................................................................ 18 7. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY........................................................................................................................ 19 7.1. Accessibility, Local Resources and Infrastructure......................................................... 19 7.2. Physiography.................................................................................................................. 19 7.3. Climate ........................................................................................................................... 22 7.3.1. Rainfall.................................................................................................................... 23 7.3.2. Temperature............................................................................................................ 23 7.3.3. Wind........................................................................................................................ 24 7.3.4. Evaporation............................................................................................................. 25 7.4. Vegetation ......................................................................................................................25 7.4.1. Low lying areas in the vicinity of water ................................................................. 25 7.4.2. Mixed Steppes......................................................................................................... 25 7.4.3. Bushy Steppes......................................................................................................... 25 8. HISTORY ............................................................................................................................. 26 8.1. Pre-Orocobre.................................................................................................................. 26 8.2. Orocobre exploration ..................................................................................................... 26 9. GEOLOGICAL SETTING................................................................................................... 27 9.1. Regional ......................................................................................................................... 27 9.1.1. Jurassic-Cretaceous................................................................................................. 27 2 9.1.2. Paleogene................................................................................................................ 27 9.1.3. Neogene .................................................................................................................. 29 9.1.4. Late Neogene-Quaternary....................................................................................... 30 9.2. The Salinas Grandes-Guayatayoc Basins....................................................................... 31 9.2.1. The Salinas Grandes Basin ..................................................................................... 31 9.2.2. The Guayatayoc Basin............................................................................................ 31 10. DEPOSIT TYPE................................................................................................................ 34 11. MINERALIZATION......................................................................................................... 36 12. EXPLORATION ............................................................................................................... 41 12.1. Geochemistry ................................................................................................................. 41 12.2. Geophysical Surveys...................................................................................................... 41 12.3. Gravity............................................................................................................................ 42 12.3.1. Data acquisition................................................................................................... 42 12.3.2. Data processing ................................................................................................... 43 12.3.3. Gravity data modelling and interpretation .......................................................... 44 12.4. Audio magnetotelluric.................................................................................................... 46 12.4.1. Data acquisition................................................................................................... 46 12.4.2. Data Processing and Modelling .......................................................................... 47 12.4.3. Model output and interpretation.......................................................................... 47 13. DRILLING AND RELATED ACTIVITIES..................................................................... 49 14. SAMPLING METHOD AND APPROACH..................................................................... 50 14.1. Brine Sample Program Design....................................................................................... 50 14.2. Salinas Grandes-Guayatayoc pit sampling..................................................................... 50 14.3. Sampling Supervision .................................................................................................... 51 14.4. Sample Security ............................................................................................................. 51 15. SAMPLE PREPARATION, ANALYSES AND SECURITY.......................................... 52 15.1. Sample Preparation ........................................................................................................ 52 15.2. Sample Analyses ............................................................................................................ 52 15.3. Quality Control............................................................................................................... 53 15.3.1. Relative percentage difference evaluation .......................................................... 53 15.3.2. Standard Analyses............................................................................................... 53 15.3.3. Sample Duplicate/Replicate Analyses ................................................................ 55 15.4. Anion-Cation Balance.................................................................................................... 59 15.5. Quality Control Conclusions.......................................................................................... 59 3 16. DATA VERIFICATION ................................................................................................... 60 16.1. General ........................................................................................................................... 60 16.2. Assay data ......................................................................................................................60 16.3. Geological data............................................................................................................... 60 16.4. Survey data.....................................................................................................................60 17. ADJACENT PROPERTIES .............................................................................................. 61 17.1. General comments.......................................................................................................... 61 17.2. Adjacent properties .......................................................................................................