REC Silicon

Investor Presentation • Mar 16, 2017

Mr. Tore Torvund, President & CEO

Disclaimer

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC Silicon ASA's (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC Silicon ASA's businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although REC Silicon ASA believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. REC Silicon ASA makes no representations or warranties, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither REC Silicon ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared for the Swedbank Energy Summit 2017 presented on March 16, 2017. Information contained herein will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

REC Silicon ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

Solar PV Market

Very Strong Growth in PV Demand

• market, but reduced installations in coming years
• › India and other emerging markets continue to grow
• › Long term market outlook is increasingly geographically diversified

Results based on IHS Markit, Technology Group, PV Demand Market Tracker, Q4 2016. This data is not an endorsement of REC Silicon. Any reliance on the results are at the third party's own risk. Visit www.technology.ihs.com for more details.

GW

PV Installations by Region

2015-2021 Renewables Represent 60% of Global Increase in Electricity

The increase in generation from renewables in 2015-2021 represents 60% of the global increase in electricity output, but prospects vary across regionally

Source: OECD/IEA 2016, Total electricity generation from World Energy Outlook 2016, forthcoming

Solar PV & wind account for almost 2/3 of rise in renewables generation; total renewable electricity overpasses 7600 TWh by 2021, equivalent to EU+US today

Source: OECD/IEA 2016

REC Silicon ASA

REC Silicon in the PV Value Chain

› REC's manufacturing process utilizes readily available metallurgical grade silicon, which is transformed into silane and polycrystalline silicon (polysilicon)

REC Silicon: 30 Years in Polysilicon and Silicon Gas Industry

Two polysilicon production facilities in the U.S.

• › FBR Technology
• The only company which has commercial volumes of FBR production
• › Largest silicon gas producer globally

FBR Serves the PV Market, Siemens and Silicon Gas Serve the Semiconductor Market

FBR 90% Reduction in Electricity Consumption Compared to Siemens

Note 1 REC silicon data based on 2014 measured energy consumption and actual production. This includes consumption for operations, maintenance, and analytical functions.

Note 2 REC data includes the buildings (lights/HVAC) along with processing, packaging, treatment, and support equipment.

Note 3 Competitive technology data appears to be based on simulations of power consumption for only the process equipment to manufacture Polysilicon when it is operating at 100% utilization)

FBR Technology Makes REC Silicon Cash Cost Competitive

© REC Silicon ASA. All rights reserved. Confidential March 16, 2017

U.S./ CHINA TRADE DISPUTE

China Dominates PV Manufacturing

Chinese Solar Manufactures' Capacity as a Share Global Total (H1'16)

China Dependent on Polysilicon Imports

15 © REC Silicon ASA. All rights reserved. Confidential March 16, 2017

US / China Solar Trade Dispute Continues and Limits Access to Chinese Market

• › Record imports of polysilicon into China
• Korea and Germany have increased imports as a result
• › Current transition process for new USG necessarily slows resolution progress
• › New USG rhetoric suggests that it values US polysilicon manufacturing capacity & jobs

Q YULIN JV UPDATE

TianREC: Youser Group and REC Silicon's Yulin JV

• › Partnership:
• Established Chinese SOE Youser Group
• US proven technology leader REC Silicon
• › 51% 49% Partnership
• › REC transferred technology to TianREC – \$198M
• › TianREC benefiting from Youser Group experience in China

Yulin JV Signing Ceremony February 2014

› Construction of TianREC plant currently well underway

• FBR-B: Next Generation Technology

Yulin JV – On Track for H2 2017 Start-up

• › 300 MT Siemens Polysilicon
• Semiconductor Grade
• › 500 MT Silane Gas Loading
• › Investment
• \$1.25B

Financial Update and the Investment Case

Financial Options: 2018 Bonds and the Yulin JV Contribution

Nominal Net Debt - \$120M

• › Several sources will be evaluated in H2/2017 for the 2018 Bonds and Indemnification Loan
• I. Cash from operation
• II. Divestment of non-core assets
• III. Refinancing
• IV. New equity

JV Equity Contribution

› Agreement permit company to forego making remaining contribution if unable to pay

REC Silicon – The Investment Case

• › Strong long-term growth in PV demand polysilicon market
• › Proprietary FBR technology is the most energy efficient way to make polysilicon
• › REC Silicon is the only company with commercial FBR operation
• › Limited industry expansion in short to mid-term
• › Presence in China through Yulin Joint Venture

Thank you.

Learn more: recsilicon.com