REC Silicon

Earnings Release • Feb 16, 2017

REC Silicon ASA - Fourth quarter 2016 results

REC Silicon ASA - Fourth quarter 2016 results

Fornebu, Norway - February 16, 2017: REC Silicon ASA (REC Silicon) reported

fourth quarter revenues of USD 80.4 million, up from USD 50.9 million in the

previous quarter. The corresponding EBITDA during the fourth quarter increased

to USD 4.9 million compared to a loss of USD 7.9 million in the previous

quarter.  The company also reported a December 31, 2016 cash balance of USD

65.8 million.

Q4 polysilicon sales of 3,801 MT were above expectations and finished goods

inventory decreased by 585 MT during the fourth quarter.

Silicon gas sales volumes increased to 882 MT compared to 772 MT in the prior

quarter.

Efforts to maintain liquidity and reduce costs have proven successful, with the

company reporting Q4 FBR cash cost at $11.2/kg and similar cash cost expected in

the first quarter. Tore Torvund, company CEO commented, "our efforts to decrease

costs and better align FBR production with sales volumes have been successful in

the fourth quarter. We will continue to be cost conscious and diligent at

managing cash levels so that REC Silicon remains a low cost leader in the

polysilicon industry even when operating at reduced capacity."

The Yulin joint venture plant remains on target for start-up in the second half

of 2017.  JV employees from China have completed their training in Moses Lake

and Butte. The company has successfully negotiated a deferral of the $15 million

capital contribution in the JV until at least July 2017, with ongoing

negotiations with the company's JV partner to defer the company's remaining $154

million capital contribution until after 2018.

For more information, please see the attached fourth quarter 2016 report.

Morning Program:

The company will give a presentation at 8:00 am CET today at Høyres Hus

Konferansesenter, Stortingsgaten 20, Oslo, Norway. The presentation will be in

English.

A live webcast from the presentation can be accessed at www.recsilicon.com or

the following link: http://webtv.hegnar.no/presentation.php?webcastId=44471820

It will also be possible to listen to the presentation through a conference

call. Please make sure to dial in 5-10 minutes prior to scheduled start time on

one of the following numbers:

Norway (Toll Free): 800 51084

Norway (Local): +47 2100 2610

UK (Toll Free): 0800 358 6377

UK (Local): +44 (0)330 336 9411

USA (Toll Free): 888 349 9618

USA (Local): + 1 719 325 2202

Other international: +44 (0)330 336 9411

Please provide confirmation code 2502782 and state your name, company and

country of residence.

Afternoon Program:

REC Silicon will host an analyst conference call later the same day at 3:00 p.m.

CET. Please make sure to dial in at least 5-10 minutes ahead of time to complete

your registration.

Norway (Toll Free): 800 51084

Norway (Local): +47 2100 2610

UK (Toll Free): 0800 358 6377

UK (Local): +44 (0)330 336 9105

USA (Toll Free): 800 347 6311

USA (Local): +1 719 457 2086

Other international: +44 (0)330 336 9105

Please provide confirmation code 8985294 and state your name, company and

country of residence.

For further information, please contact:

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 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.