REC Silicon

Earnings Release • Oct 30, 2019

REC Silicon - Third quarter 2019 results

REC Silicon - Third quarter 2019 results

Fornebu, Norway - October 30, 2019: REC Silicon ASA (REC Silicon) reported third

quarter 2019 revenues of USD 36.4 million. EBITDA for the third quarter was a

loss of USD 5.6 million compared to EBITDA of USD 0.5 million in the second

quarter of 2019. The decrease in EBITDA was primarily due a production

interruption in connection with planned maintenance at the Butte facility,

severance payments in connection with the Moses Lake shut down, and higher

electricity costs for the semiconductor materials manufacturing facility in

Butte, Montana.

REC Silicon reported a cash balance of USD 46.2 million on September 30, 2019.

This represents an increase of USD 7.8 million compared to the cash balance on

June 31, 2019. Cash inflows from operations were USD 9.0 million for the quarter

which included a reduction in working capital of USD 17.4 million offset by the

EBITDA loss, interest payments of USD 1.5 million, and a currency loss of USD

1.1 million due to a stronger US dollar. Cash inflows from investing activities

were USD 0.4 million which included a USD 0.5 million reduction in restricted

cash deposits offset by capital expenditures of USD 0.1 million. Cash outflows

from financing activities were USD 1.6 million and were a result of payments of

lease liabilities.

Polysilicon sales volume for the quarter was 1,155 MT compared to 2,090 MT in

the prior quarter, while inventory decreased by 815 MT.

Silicon gas sales volumes for the second quarter were 860 MT compared to

guidance of 900 MT. Silane gas prices decreased by 0.5 percent compared to the

second quarter 2019. Second quarter semiconductor polysilicon production was

191 MT compared to guidance of 220 MT.

For more information, please see the attached third quarter 2019 report and

presentation.

A presentation of the results will be held at 8:00 a.m. CET at Høyres Hus

Konferansesenter, Stortingsgata 20, Oslo, Norway.

A live webcast from the presentation can be accessed at www.recsilicon.com or

with the following

link:https://webtv.hegnar.no/presentation.php?webcastId=98161653

It will also be possible to listen to the presentation through a conference

call. To join this event, use one of the following access numbers. Please make

sure to dial in 5-10 minutes prior to the scheduled start time.

Norway Dial-in (Tollfree/Freephone): 800 51 084

Norway, Oslo (Dial-in Local): +47 2100 2610

United Kingdom (Dial-in Tollfree/Freephone): 0800 358 6377

United Kingdom (Dial-in Local): +44 (0) 330 336 9125

United States (Dial-in Local): +1 929 477 0324

United States/Canada (Dial-in Tollfree/Freephone): 800 458 4121

Other international: +44 (0) 330 336 9125

Participant Passcode: 1125891

For further information, please contact:

James A. May II, Chief Financial Officer

Phone: +1 509 989 1023

Email: james.may@recsilicon.com

Nils O. Kjerstad

IR Contact

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 over 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.