REC Silicon

Earnings Release • Nov 4, 2015

REC Silicon - Third quarter 2015 results

REC Silicon - Third quarter 2015 results

Fornebu, Norway - November 3, 2015: REC Silicon ASA (REC Silicon) reported third

quarter revenues of USD 87.5 million, compared to USD 93 million in the previous

quarter. The corresponding EBITDA during the third quarter was negative USD

14.1 million compared to USD 5.8 million in the previous quarter. The decrease

in EBITDA can be attributed to lower sales prices and higher costs in the third

quarter.

Third quarter production was in line with guidance given during the last quarter

at 3,580 MT. The company realized a better than expected FBR cash cost of

$13.8/kg, compared to guidance of $15.2/kg. The better than expected cash cost

can be attributed to a one time property tax benefit.

Finished goods inventory decreased by 1,026 MT, compared to a 1,248 MT inventory

build in the previous quarter. Further inventory reduction is expected in Q4.

Pricing for silicon gas sales volumes in the third quarter increased an average

of 17% over the previous quarter. Silicon gas sales declined in the third

quarter by approximately 35%, reflective of above average sales in the previous

quarter.

REC Silicon also announced today that it has implemented numerous cost cutting

and deferral measures in order to strengthen its cash position. The company has

taken the necessary actions to reduce headcount from the previous 720 down to

675. REC will also defer maintenance outages and limit capital expenditures to

critical maintenance. Tore Torvund, REC Silicon CEO said, "While we remain

hopeful that the trade war between the US and China will be resolved,

uncertainty remains and we must plan our business around the current conditions.

These cost cutting measures, while difficult, are necessary to help REC Silicon

remain competitive while we continue to grow sales outside of China."

The company continues with its plans to resume operations of the Silane III unit

at the beginning of 2016 if market conditions allow.

For more information, please see the attached second quarter 2015 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=25724194

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 2316 2729

UK: +44 (0)20 3427 0503

USA:  +1 212 444 0481

Other international: +44 20 3427 0503

Please provide confirmation code 4985758 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 2316 2729

UK: +44 (0)20 3427 0503

USA:  +1 646 254 3364

Other international: +44 20 3427 0503

Please provide confirmation code 8204704 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 gases to the solar and electronics

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

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

plants have a capacity of more than 20,000 MT of high-purity polysilicon. Listed

on the Oslo Stock Exchange (ticker: REC), the company is headquartered in Moses

Lake, Washington.

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.

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