REC Silicon

Earnings Release • May 9, 2019

REC Silicon - First quarter 2019 results

REC Silicon - First quarter 2019 results

Fornebu, Norway - May 9, 2019: REC Silicon ASA (REC Silicon) reported first

quarter 2019 revenues of USD 45.0 million, compared to USD 48.9 million in the

fourth quarter of 2018. EBITDA for the first quarter of 2019 was USD 4.7 million

and included the impact of implementing IFRS 16 regarding leases which resulted

in a USD 3.4 million smaller EBITDA loss for the quarter.

REC Silicon reported a cash balance of USD 25.4 million on March 31, 2019. This

represents a decrease of USD 6.4 million compared to the cash balance on

December 31, 2018. Cash outflows from operations was USD 3.5 million for the

quarter which included interest of USD 0.7 million associated with leases. Cash

outflows from financing activities consisted of USD 2.8 million payments of

lease liabilities.

Polysilicon sales volume for the quarter was 2,004 MT compared to 1,664 MT in

the prior quarter, while inventory decreased by 496 MT.

Silicon gas sales volumes for the fourth quarter were 829 MT compared to

guidance of 850 MT. Silane gas prices decreased by 3.3 percent compared to the

fourth quarter 2018. Fourth quarter semiconductor polysilicon production was

285 MT compared to guidance of 290 MT.

The FBR facility in Moses Lake operated at approximately 25 percent throughout

the first quarter. FBR production was 1,091 MT compared to guidance of 1,180 MT.

FBR production costs were USD 13.5/kg compared to guidance of USD 12.8/kg.

President and CEO, Tore Torvund said, "First quarter results are far below our

potential due to restricted access to Chinese markets. We are hopeful that REC

Silicon's access to polysilicon markets in China will be restored and we can

return to 100% capacity utilization in our FBR facility."

The Board of Directors has initiated a plan to curtail the operation of the FBR

facility beginning on May 15, 2019 to reduce spending and to maintain liquidity.

Unless access to polysilicon markets in China is restored, the facility will be

placed in a long-term shutdown by June 30, 2019. The timing and length of the

shutdown are dependent on whether REC Silicon is able to regain access to

Chinese markets for polysilicon as a result of trade negotiations between China

and the United States or other significant positive developments in solar grade

polysilicon markets.

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=97815703

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: 5632920

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, and 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.