REC Silicon

Earnings Release • Jul 21, 2016

REC Silicon ASA - Second quarter 2016 results

REC Silicon ASA - Second quarter 2016 results

Fornebu, Norway - July 21, 2016: REC Silicon ASA (REC Silicon) reported revenues

of USD 71.1 million, compared to USD 68.8 million in the previous quarter. The

company also reported a second quarter cash balance of USD 91.3 million.  The

corresponding EBITDA during the second quarter was a loss of USD 14.3 million

compared to a loss of USD 13.4 million in the previous quarter.

REC Silicon's average solar grade polysilicon sales price during the second

quarter increased by 9.7% from the previous quarter.  Q2 polysilicon sales of

3,634MT were in line with company expectations.  Finished goods inventory

decreased by 1,963MT during the second quarter, compared to a 1,925MT inventory

reduction in the previous quarter.

Silane III was successfully restarted in May and Silane IV is currently in

restart. Second quarter polysilicon production was 1,671MT.

Average silicon gas sales prices decreased by 2.8% during the second quarter

compared to the previous quarter. Silicon gas sales volume increased to 610MT

compared to 531MT for the prior quarter.

Tore Torvund, REC Silicon's CEO, said, "Because sales were in line with

expectations, inventory was reduced to desired levels and we were able to

restart production in Moses Lake. With greater utilization of the company's FBR

production assets, REC Silicon will be able to realize an industry leading cash

cost by Q4 of this year. Further, during the first half of this year we have

successfully improved the financial stability of the company as evidenced by the

current cash balance and the repayment of USD 21 million of the company's debt."

For more information, please see the attached second 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=36174352

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: +47 2100 2610

Norway (Toll Free): 800 51084

UK: +44 (0)203 043 2002

USA:  +1 800 263 0877

Other international: +44 (0)203 043 2002

Please provide confirmation code 1584790 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: +47 2100 2610

Norway (Toll Free): 800 51084

UK: +44 (0)203 043 2002

USA:  +1 888 339 3482

Other international: +44 (0)203 043 2002

Please provide confirmation code 3970418 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.

[HUG#2029784]