REC Silicon

Legal Proceedings Report • Jul 15, 2019

REC Silicon – US -and China’s Long-Standing Trade Dispute Force Further Lay-Offs

REC Silicon – US -and China’s Long-Standing Trade Dispute Force Further Lay-Offs

Moses Lake, WA, July 15th 2019: REC Silicon ASA (REC Silicon) previously

announced that its FBR facility in Moses Lake, Washington would be placed in a

long-term shutdown by July 15, 2019 if its access to polysilicon markets in

China was not restored by that date. Although recent talks between the

Government of the United States (USG) and the Government of China at the G20

summit in Osaka in late June 2019 have resulted in a resumption of trade

negotiations between the governments, the governments have not agreed on or

imposed a deadline for a resolution and there is no certainty yet as to the date

by which REC Silicon's access to the China market will be restored. Accordingly,

REC Silicon has executed a reduction in its workforce in Moses Lake, Washington

by approximately 100 employees.

The remaining workforce in Moses Lake will allow REC Silicon to restart its FBR

facility if further trade negotiations result in a re-opening of polysilicon

markets in China. REC Silicon's facility in Butte, Montana is not affected by

the workforce reduction executed this week. Restructuring costs associated with

the workforce reduction this week remain near estimates previously provided by

REC Silicon.

REC Silicon is grateful to the USG, specifically U.S. Trade Representative

Ambassador Lighthizer and his team, for prioritizing the interests of the U.S.

polysilicon industry in its on-going trade discussions with China. REC Silicon,

however, urges the USG to include polysilicon on the list of products to be

purchased by the Government of China in the short-run while the negotiations

continue and to continue to push for restoration of open, fair, and unrestricted

access for sales of U.S. polysilicon in the Chinese market. If REC Silicon is

able to regain access to the Chinese polysilicon market in the near term, it

will re-hire its highly skilled employees and re-start manufacturing

immediately, ensuring that the United States retains its capabilities to produce

this critical input to technologies of strategic importance to U.S. defense and

commercial interests.

For further information, please contact:

Francine Sullivan, Vice President Business Development

Phone: +1 509 750 1133

Email: Francine.sullivan@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 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 the Norwegian Securities Trading Act