REC Silicon

Earnings Release • Oct 3, 2019

REC Silicon - Third quarter 2019 trading update

REC Silicon - Third quarter 2019 trading update

Fornebu, Norway - October 3, 2019: The effects of the on-going trade war and its

impact on semiconductor markets have created the expectation of a sharp decline

in REC Silicon's third quarter shipments. However, REC Silicon ASA (REC Silicon)

will report shipments of approximately 860MT of silicon gases for the third

quarter of 2019. This represents a decrease of 40MT compared to the guidance of

900MT provided on July 25, 2019. The decrease is primarily a result of lower

sales directly into China but also includes some impact from lower than

anticipated demand for semiconductor and flat panel display applications outside

of China. As a result of REC Silicon's efforts to maintain sales volumes, prices

realized by REC Silicon for Silane have declined by approximately 1.3 percent in

the third quarter of 2019 compared to the second quarter of 2019.

REC Silicon currently expects silicon gas sales to remain near current levels

for the fourth quarter of 2019. However, the Company will continue to evaluate

the impacts of the trade war and market conditions on future sales and will

provide additional guidance with the earnings release on October 30, 2019.

REC Silicon is the largest global producer of silicon gas with production

facilities in Butte, Montana and Moses Lake, Washington. These facilities use

silicon gas to make polysilicon, however, REC Silicon also delivers

approximately 70% of the global supply of silicon gases to semiconductor

customers located primarily outside of China in Asia. In addition, REC Silicon

is a 15% owner of a state-of-the-art granular polysilicon plant located in

Yulin, China. The Yulin plant produces high quality polysilicon for the PV

industry through its FBR-B reactors but also has 500MT of silane gas loading

capacity which will serve customers in China. There are no plans to expand the

silane gas loading capacity at the Yulin JV. REC Silicon's CEO is the Vice

Chairman of the Yulin JV Board of Directors.

REC Silicon expects to report sales volumes of semiconductor grade polysilicon

of 142MT during the third quarter of 2019 compared to 201MT reported for the

second quarter of 2019.

REC Silicon will report cash balances of approximately USD 46.2M at September

30, 2019.

The REC Silicon Board of Directors has decided to consider the divestment of the

Butte facility. Production from this facility primarily serves semiconductor

markets with silicon gases and semiconductor polysilicon. If an acceptable bid

is received, the proceeds will be used to retire the company's debts, to provide

a buffer for contingent liabilities (tax examination and indemnity loan), and to

prepare to restart FBR production in Moses Lake, Washington when the trade

dispute with China is resolved and REC Silicon regains access to polysilicon

markets in China. Roth Capital has been retained as advisors for this possible

divestment.

For further information, please contact:

James A. May II, Chief Financial Officer

Phone: +1 509 989 1023

Email: james.may@recsilicon.com

Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@crux.no

About REC Silicon

REC Silicon is a leading producer of advanced silicon materials, delivering

high-purity polysilicon and silicon gas to the solar and electronics industries

worldwide. We combine over 30 years of experience and proprietary technology

with the needs of our customers, with annual production capacity of more than

20,000 MT of polysilicon from our two US-based manufacturing plants. Listed on

the Oslo Stock Exchange (ticker: REC), the Company is headquartered in Fornebu,

Norway.

For more information, go to: www.recsilicon.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.