REC Silicon

Investor Presentation • Jan 19, 2017

January 19, 2017

Jens Ulltveit-Moe REC Silicon Chairman of the Board

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 SiliconASA (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'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 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 is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC Silicon 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 2017 Pareto Securities' Power & Renewable Energy Conference and presented on January 19, 2017 in Oslo, Norway. Information contained within will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

The REC SiliconASAshares have not been registered under the U.S. SecuritiesAct 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 theAct.

Climate Change: a present strong reality

Source: NCDC, NOAA.gov

Renewable electricity capacity growth (GW) in MTRMR's main case

China remains key growth market for renewable capacity, while the United States surpasses the EU for the first time

Source: OECD/IEA 2016

Electricity and renewable generation growth by country/region

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

Continued sharp cost decrease for solar

Utility-scale solar PV generation cost and contract prices

Utility-scale solar PV generation costs to fall by another quarter over 2015-21; competitive tenders may result in even faster cost reductions

Source: Renewable energy medium-term market report 2016 IEA

PV utility beats fossil by 2040

8 © REC Silicon ASA. All rights reserved. Confidential January 19, 2017

Impacts of new US presidential administration uncertain

PV MARKET OUTLOOK

Steady growth in PV, notably in new markets

PV Installations by region

Source: I.H.S. PV Demand Market Tracker - Q4 2016

Decreasing capacity expansion

Does not include semiconductor

REC utilizes FBR to produce high-quality, low-cost granular polysilicon

• › World leading operator of FBR technology
• › Moses Lake FBR-A capacity:
• 16,000 MT annually
• › FBR production:
• lowers cost of making solar products
• reduces energy consumption by 90%
• › REC Silicon also produces:
• semiconductor polysilicon
• silicon gases

US / China solar trade dispute continues

Record imports of polysilicon into China

• High duties on US polysilicon have prevented US companies from taking advantage
• Korea and Germany have increased imports as a result
• › ~\$3/kg higher prices inside China
• › China investigates Korean polysilicon
• › US panel prices down due import of lowcost, non-Chinese panels
• › SolarWorld remains key to trade dispute

Increasing prices and imports indicate tightening supply

Polysilicon prices inside China vs outside China

China polysilicon imports

REC volume constant after loss of China

2016 Wafer capacity (GW) Product sales

Cash cost low despite volume reduction

TianREC: Youser Group and REC Silicon's JV

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

Yulin JV Signing Ceremony February 2014

› Construction of TianREC plant currently well underway

Yulin JV – On track for H2 2017 start-up

Yulin plant production capacity:

• › 19,000 MT granular polysilicon
• FBR-B: next generation technology
• › 300 MT Siemens polysilicon
• Semiconductor Grade
• › 500 MT silane gas loading
• › Capital contributions
• 2016 \$15 million contribution already deferred
• Negotiations underway to defer remaining contributions until after 2018
• Agreements permit REC to forego remaining contribution if unable to pay

The investment case

Strong long-term growth in PV demand Polysilicon market balance expected by YE 2017

Proprietary FBR technology Leading cost position in polysilicon and silicon gases

Available capacity to meet increased demand Limited industry expansion in short to midterm

Presence in China through joint venture = Increasing position in core markets outside China

Thank you.

Learn more: recsilicon.com