REC Silicon

Earnings Release • Nov 2, 2016

REC Silicon - Third quarter 2016 results

REC Silicon - Third quarter 2016 results

Fornebu, Norway - November 2, 2016: REC Silicon ASA (REC Silicon) reported third

quarter revenues of USD 50.9 million, compared to USD 71.1 million in the

previous quarter. The lower revenues are primarily a result of the disruption of

the solar grade polysilicon market due to the expiration of the 2015 feed in

tariffs in China, which affected the entire value chain. The ongoing solar trade

war between the US and China also continues to restrict REC Silicon's access to

polysilicon markets in China. The corresponding EBITDA during the third quarter

was a loss of USD 7.9 million compared to a loss of USD 14.3 million in the

previous quarter.

The company also reported a September 30, 2016 cash balance of USD 86.8 million.

Q3 polysilicon sales of 1,775 MT were in line with guidance given in the

September 23, 2016 Trading Update.  Finished goods inventory increased by 2,132

MT during the third quarter.

Silicon gas sales volumes increased to 772 MT compared to 610 MT in the prior

quarter.

In order to maintain liquidity and manage inventory, the company is announcing

additional cost cutting initiatives and has reduced production capacity

utilization to approximately 50% at the Moses Lake facility.  As part of the

cost cutting initiatives, the company is announcing a reduction in headcount of

approximately 70 employees.  "We have been successful in maintaining sufficient

liquidity during this period of market disruption. Because of our efforts to

control costs, I expect REC Silicon to remain a low cost leader in the

polysilicon industry, even at reduced production rates." said Tore Torvund, CEO.

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

of 2017.  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.

For more information, please see the attached third 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=40091939

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 2350 0296

UK (Toll Free): 0800 358 6377

UK (Local): +44 (0)20 7026 5967

USA (Toll Free): 800 263 0877

USA (Local): + 1 719 457 1036

Other international: +44 (0)20 7026 5967

Please provide confirmation code 2617808 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 2350 0296

UK (Toll Free): 0800 358 6377

UK (Local): +44 (0)20 7026 5967

USA (Toll Free): 800 274 0251

USA (Local): +1 719 325 4759

Other international: +44 (0)20 7026 5967

Please provide confirmation code 7930972 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