REC Silicon

Earnings Release • Jul 25, 2019

REC Silicon - Second quarter 2019 results

REC Silicon - Second quarter 2019 results

Fornebu, Norway - July 25, 2019: REC Silicon ASA (REC Silicon) reported second

quarter 2019 revenues of USD 47.0 million. EBITDA for the second quarter of

2019 was USD 0.5 million compared to an EBITDA loss of USD 4.7 million in the

first quarter of 2019. The increase in EBITDA was primarily due to lower

electricity costs for the semiconductor materials manufacturing facility in

Butte, Montana.

REC Silicon reported a cash balance of USD 38.4 million on June 30, 2019. This

represents an increase of USD 13.0 million compared to the cash balance on March

31, 2019. Cash outflows from operations was USD 4.0 million for the quarter

which included interest of USD 7.6 million and payments of USD 3.1 million

associated with the agreement to resolve REC Silicon's obligation to make

additional equity contributions to the Yulin JV. In addition, the Company

received a USD 2.7 million refund of taxes in the United States and is reporting

a reduction of USD 3.2 million in net working capital invested. Cash inflows

from financing activities were USD 17.1 which consisted of USD 19.1 million from

the private placement of equity which was settled on May 14, 2019 offset by USD

1.9 million payments of lease liabilities.

Polysilicon sales volume for the quarter was 2,090 MT compared to 2,004 MT in

the prior quarter, while inventory decreased by 1,110 MT.

Production in the FBR facility in Moses Lake, Washington was shuttered on May

15, 2019 due to restricted access to Chinese polysilicon markets. As a result,

FBR production was 980MT during the quarter and FBR production costs were USD

18.5/kg. The Company expects production in the FBR facility in Moses Lake will

be zero during the third and the fourth quarters of 2019. Inventories of

finished granular polysilicon declined by 1,059MT during the quarter resulting

in remaining inventories of 1,435MT at June 30, 2019 which is expected to be

sold during the second half of 2019.

Silicon gas sales volumes for the second quarter were 834 MT compared to

guidance of 960 MT. Silane gas prices increased by 3.0 percent compared to the

first quarter 2019 due to lower sales volumes into PV applications resulting in

a lower overall average price. Second quarter semiconductor polysilicon

production was 216 MT compared to guidance of 220 MT.

President and CEO Tore Torvund said, "Unfortunately, we have been forced to

shut-down the FBR facility due to restricted access to Chinese markets. We

continue to be hopeful that negotiations between the United States and China

result in the restoration of REC Silicon's access to polysilicon markets in

China and we can restart production in the FBR facility."

On July 15, 2019 the Company announced a work force reduction at its Moses Lake,

Washington production facility to reduce spending and to maintain liquidity. The

facility will not be restarted until access to polysilicon markets in China is

restored or other significant positive developments in solar grade polysilicon

markets occurs.

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

presentation.

A presentation of the results will be held at 08:00 a.m. CEST at Hotel

Continental, Stortingsgata 24/26, Oslo, Norway. The presentation will be in

English.

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=98041401

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 17 945

Norway, Oslo (Dial-in Local): +47 2350 0296

United Kingdom (Dial-in Tollfree/Freephone): 0800 279 7204

United Kingdom (Dial-in Local): +44 (0) 330 336 9411

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 9411

Participant Passcode: 6387499

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.