REC Silicon

Investor Presentation • Mar 20, 2014

Swedbank Nordic Energy Summit

Tore Torvund

20, March 2014

Disclaimer

This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC Silicon ASA (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC's businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although REC Silicon believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. REC Silicon is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither REC Silicon nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared for the Swedbank Nordic Energy Conference result presentation on March 20, 2014. Information contained within will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

The REC Silicon ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

Cities 700 Miles Apart: Same View (Beijing and Xian)

"Smog pushes emigration. 70% cite pollution as primary reason for leaving China."

Source: Bernstein Research, September 2013

Solar and the Next Energy Revolution: Beginning to See the Light.

4 © REC Silicon ASA. All rights reserved. Confidential March 20, 2014 USD \$/W

Solar Installed Cost Required to Reach Parity in China

Source: Bernstein Research, September 2013

Solar and the Next Energy Revolution: Beginning to See the Light.

Incremental Solar Installed Capacity

Source: Bernstein Research, September 2013

Solar and the Next Energy Revolution: Beginning to See the Light.

PV: Economic Benefit for 4.3 Billion… Today

Solar and the Next Energy Revolution: Beginning to See the Light.

California policy makers impose energy storage regulation on Top 3 utilities, totaling 1,325MW by 2024, to replace intermittent gas-fired use to balance supply and demand when using wind and solar.

"Nationally, renewables accounted for 37% of the new generating capacity added in 2013." (66% of which was Solar)

"GDF Suez writes off €14.9bn as value of power plants fall. 50,000MW of gas-fired capacity closed or mothballed amid weak demand and challenge from renewable energy."

World's largest producer of Granular (NextSi™) polysilicon World's largest producer of Silane gas

Recognized as a technology and cost leader

Moses Lake 460 Employees	Silicon III, IV FBR	Silane gas: 22,000 MT Granular silicon: 16,300 MT
Butte 280 Employees	Silicon II	Silane gas: 7,000 MT Siemens: 3,600 MT

REC: Driven by Silane for 30 years

• › Our Polysilicon plant consists of two separate units working seamlessly together
• › FBR is dependant on Silane availability
• › REC is the only company currently producing silane on a large-scale
• › All Tier 1 peers are TCS-based Siemens producers

FBR Low Energy Consumption and Continuous Process

Siemens Technology:

• 40 year old technology
• Batch process
• Requires post processing
• High cash cost

FBR Technology:

• Proprietary REC technology
• Most energy efficient
• Continuous production
• Lowest cash cost

Electricity Consumption: FBR 10% of TCS Siemens

*REC Silane includes Nat. Gas/Electricity used for hydrogenation, distillation, silane storage, utilities & office buildings. NOTE: Assumes all silane from Silane I to Poly I and all silane from Silane III & IV to FBR. YTD 2013 actual production numbers and energy usage used in calculations

Polysilicon Market Landscape

2014 Polysilicon Supply/Demand/Price Curve

14 © REC Silicon ASA. All rights reserved. Confidential March 20, 2014 Source: Bernstein Research, September 2013 Solar and the Next Energy Revolution: Beginning to See the Light.

Continued Improvement: Production & Cost Reduction

Expansion Options 1. Moses Lake 2. Yulin JV in China

Brownfield Expansion in Moses Lake

• › Rx 25 & 26 expansion 2,500 MT of polysilicon
• Develop next generation (FBR-B ) on commercial scale reactor
• › Restoration of Silane I
• 3,000MT of Silane
• › FEED package to be completed in August
• › Estimated Cost US\$100 million
• › Final decision to be made July – August 2014

China, Japan, Taiwan are Key Markets

2013 Revenue by Region

REC Silicon Imports to China

3,000 4,000 5,000 6,000 7,000 8,000 9,000 REC Polysilicon to China (MT)

JV Partner: Financially and Operationally Strong SOE

• › Shaanxi Non-ferrous Metals Holding Group Co., Ltd (SNF Tianhong New Energy parent company)
• Major business: metals mining, refining, and alloy (Moly, Ti, Al, coal, etc.)
• 2012 group revenue US \$14 billion, total assets US \$17 billion
• Polysilicon subsidiary (Tianhong Silicon Material) 4,250 MT TCS Siemens plant in Xian
• First to achieve microelectronic grade
• › Shaanxi Non-ferrous Tianhong New Energy (SNF)
• Established to carry out polysilicon investment in Yulin, Shaanxi Province
• Majority of SNF's Engineering team are from Tianhong Silicon Materials in Xian

Significant Step for REC in Reaching Critical Markets

• › Anticipated total investment \$1.429 BUSD (including cost of technology transfer)
• › 35% Fixed Registered Capital
• › REC \$244 MUSD
• › SNF \$254 MUSD
• › REC to receive \$198 MUSD for Technology Transfer
• › Next Generation (FBR-B) technology to be used
• › Technology to be used in China and Taiwan only
• › FEED has started, with Fluor in California

Early Technology Payment / Late Capital Contribution

Balanced Governance Structure with Our JV Partner*

* Note: Applies to the initial 3 years

Increased Market Presence for REC Product Line

REC Conclusion

• › Continuous demand growth for Polysilicon anticipated due to increased competitiveness of PV
• › Silane based FBR significantly more efficient than legacy TCS based Siemens production
• › As the only major operator of silane-based FBR, REC Silicon is well positioned to expand in Granular marketplace
• › Joint venture with SNF represents unique opportunity to expand in the most important market, with limited capital contribution from REC
• › FBR-B and Silane I restoration represent low-cost expansion opportunities in Moses Lake