REC Silicon

Financial Supplement Data • Jul 12, 2017

REC Silicon - Reassessment of Income Taxes

REC Silicon - Reassessment of Income Taxes

Fornebu, Norway - July 12, 2017: REC Silicon ASA (REC Silicon) has previously

disclosed notices of reassessment from the Norwegian Central Tax Office (CTO)

regarding tax returns for tax years 2009 through 2011. (See note 31 to the 2016

annual report http://hugin.info/136555/R/2092887/791015.pdf)

REC Silicon received a draft decision dated June 30, 2017 from the CTO which

disallows losses of NOK 7.7 billion in total (at 28 percent the tax would be

approximately NOK 2.2 billion). The Company expects these amounts to be adjusted

for group contributions and carry back of tax losses, which would result in the

recognition of approximately USD 26 million in tax expense plus interest of

approximately USD 4 million. This range of potential outcomes remains broadly

unchanged from disclosures previously made by the Company.

The Company will oppose the draft decision by filing supporting assessments and

presenting additional documentation. REC Silicon continues to believe that these

losses are tax deductible and that the eventual outcome will be in the Company's

favor. The CTO is expected to issue a final decision near the end of 2017. When

a final decision is issued, any resulting tax is generally due two weeks after

the decision.

The Company expects to challenge any adverse final ruling through the appeals

process and will attempt to defer any potential payment until a final resolution

has been reached.

The timing and amount of any potential outcome is subject to substantial

uncertainty.

The resulting short-term liabilities of approximately USD 30 million, income tax

expense of approximately USD 26 million, and interest expense of approximately

USD 4 million, will be reflected in the Company's second quarter 2017 financial

results, which are scheduled to be released on Thursday July 20, 2017.

For further information, please contact:

James A. May II, CFO

REC Silicon ASA

Phone: +1 509 989 1023

Email: james.may@recsilicon.com

Chris Bowes, Investor Relations

REC Silicon ASA

Phone: +1 509 793 8127

Email: chris.bowes@recsilicon.com

Nils O. Kjerstad

IR Contact Europe

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, and 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.

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.