REC Silicon

Earnings Release • Jul 4, 2016

REC Silicon ASA Updates Third Quarter Production Estimate due to Incident

REC Silicon ASA Updates Third Quarter Production Estimate due to Incident

Moses Lake, Washington USA - July 3, 2016.

REC Silicon ASA reported on May 3, 2016 that it would restart production at its

Moses Lake, WA Silane III facility and half of its FBR capacity in May 2016.

Silane IV was expected to restart with the remaining FBR capacity in June 2016.

On July 1, during the startup of Silane IV an oil fire occurred in one of three

gas fired oil heaters. REC Silicon emergency response personnel were activated

at 7:30 AM, extinguished the fire, and an all clear was given at 10:03 AM.

There were no injuries or releases of process chemicals caused by this incident.

Silane III started up in May and is operating at near full capacity. The FBR

facility was not impacted, however, FBR capacity will be impacted by Silane gas

limitations caused by this incident.

The fire in Silane IV resulted in damage to the gas fired oil heater involved in

the incident.  The Company currently anticipates the restart of Silane IV will

occur in mid July and that production rates may be limited to approximately two

thirds capacity of Silane IV through the third quarter of 2016.

Third quarter granular polysilicon production is currently estimated at 3,800

MT, which is about 800 MT below the third quarter volume previously guided.

At this time there is no anticipated change to the previously guided fourth

quarter granular polysilicon production volume.

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 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.

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