REC Silicon

Earnings Release • Sep 23, 2016

REC Silicon ASA Trading Update

REC Silicon ASA Trading Update

Fornebu, Norway - September 23, 2016: REC Silicon ASA (REC Silicon) reports that

due to ongoing negative effects from the trade war between the US and China and

the recent decline in PV market conditions, lower sales than previously

anticipated have occurred in the third quarter.  As a result, third quarter

polysilicon sales volumes (excluding fines and powders) are now expected to be

approximately 1,800 MT.

There continue to be ongoing negotiations between the US and China towards a

resolution of the trade war.  But, as it is a political process, timing and

outcome of such a resolution remain uncertain.

Third quarter revenues are currently expected to be USD 45-50 million, compared

to USD 71.1 million in the previous quarter. The decrease in revenue can be

mainly attributed to lower FBR sales volumes.

REC Silicon's cash balance as of September 22, 2016 is USD 81 million.

Third quarter total polysilicon production volumes (excluding fines and powders)

are forecasted to be roughly 3,900 MT, compared to guidance of 4,490 MT.  FBR

production is forecasted at 3,300 MT, compared to guidance of 3,830 MT. FBR cash

cost is expected to be in line with guidance of USD 12.0/kg.

Semiconductor production and silicon gas sales volumes are expected to be in

line with guidance of 250 MT and 800 MT respectively.

The company is taking measures to maintain a healthy cash position and manage

inventory levels.  The company will adjust production capacity utilization

according to market demand and currently anticipates running at approximately

50% of full capacity at Moses Lake by October 1, 2016.  Production is expected

to run at reduced rates until market conditions improve.  The company will

continue to limit capital expenditures to critical maintenance.

Semiconductor polysilicon and silicon gas production in Butte will be

unaffected, as those product lines are not affected by the solar trade war or

the recent negative PV market developments.

Construction and spending on the Yulin joint venture plant remains on track for

start-up in the second half of next year.  With regard to the company's joint

venture payment obligations, the relevant agreements permit deferral of the $15

million second capital contribution until at least July 2017, and negotiations

are underway with the joint venture partner to defer the company's second and

third capital contributions, totaling $169 million, beyond 2018.  Without a

resolution to the trade war and if REC is unable to make its contributions, the

agreements also permit the company to forego making its remaining contributions,

in which case, its equity position in the joint venture would be diluted

accordingly.

Third quarter results as well as fourth quarter guidance will be given on

November 2, 2016.

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 ASA is a leading producer of advanced silicon materials, supplying

high-purity polysilicon and silicon gases to the solar and electronics

industries worldwide. We combine over 30 years of experience and best-in-class

proprietary technology to deliver on customer expectations. Our two U.S. based

plants have an annual production capacity of more than 20,000 MT of high-purity

polysilicon. REC Silicon is headquartered in Fornebu, Norway and listed on the

Oslo stock exchange under the ticker: REC.

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.