THIRD QUARTER 2016

PRESENTATION

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's (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 Silicon ASA'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 ASA 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 ASA makes no representations or warranties, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither REC Silicon ASA 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 third quarter 2016 results on November 2, 2016. Information contained herein will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation.

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.

REC Silicon Q3 Financial Results	T. Torvund, CEO
Financial Review	J.A. May II, CFO
Market Outlook	T. Torvund
U.S. / China Trade Dispute Update	T. Torvund
Near Term Strategy	T. Torvund
Yulin JV Update	T. Torvund
Guidance	T. Torvund
Q & A

REC Silicon ASA Third Quarter 2016 Highlights

Revenues:	\$50.9M
EBITDA:	(\$ 7.9M) Loss

Solar Grade Polysilicon Market Disruption

Due Primarily to Expiration of 2015 Feed in Tariffs (FiT) in China
Demand Expected to Stabilize in Q4 2016

Maximize Efficiency at Lower Utilization in Moses Lake

Additional Cost Cutting Initiatives
Will Return to Full Utilization When Trade Dispute Resolved or Market Conditions Dictate

FBR Cash Cost of \$9.9/kg

Includes \$0.9/kg Favorable Adjustments
Demonstrates Low Cost Advantage of FBR

September 30, 2016 Cash Balance of \$86.8M

Anticipate Decline in Cash During Q4 2016 to Meet Working Capital Requirements
Expect to Remain Near Cash Neutral for 2017

REC Silicon ASA Q3 2016 Key Metrics

Polysilicon Sales Volume **
Total	1,775MT
Inventory Increase	2,132MT

FBR Production
Actual	3,354MT
Guidance*	3,830MT
Deviation	-12.4%

Total Polysilicon Production		Semiconductor Production		Silicon Gases Sales Vol.
Actual	3,903MT	Actual	231MT	Actual	772MT
Guidance*	4,490MT	Guidance*	250MT	Guidance*	800MT
Deviation	-13.1%	Deviation	-7.4%	Deviation	-3.5%

*Guidance presented July 21, 2016 ** Excludes Fines and Powders

FINANCIAL REVIEW

Revenues - \$50.9M

› 28.4% Decrease from Q2 2016
› Decreased Polysilicon Sales Volumes (Excluding Fines & Powders)
(51.2%) Sales Volume Decrease from Q2 2016
1.4% Solar Grade Price Increase from Q2 2016
› Silicon Gas Sales Volumes 772MT
26.6% Sales Volume Increase from Q2 2016
Silane Price Decrease of (1.4%) From Q2 2016

EBITDA – Loss of (\$7.9M)

› Includes:
Cost Efficiency due to Higher Production Volumes
\$4.7M Favorable Adjustments Related to Changes in Accrual Estimates
(\$1.4M) Loss due to Hot Oil Heater Fire in Other Income (\$3.8M Insurance Proceeds Accrual)

Revenues EBITDA

Cash Outflows From Operating Activities (\$2.3M)

› EBITDA Loss of (\$7.9M)
› Working Capital Decrease \$5.1M
Increased Inventories (\$15.3M)
Decreased Accounts Receivable \$9.8M
Increased Accounts Payable \$10.6M
› Interest payments (\$1.8M)

Cash Outflows From Investing Activities – CapEx (\$5.3M)

› Hot Oil Heater Repairs

Currency Gain of \$3.0M

Nominal Debt - \$191M

› Increased by \$3.2M in Q3'16
Due to Changes in Exchange Rates

Nominal Net Debt - \$105M

› Increased by \$7.7M in Q3'16
Decrease in Cash of \$4.6M
Increase in Nominal Debt of \$3.2M

Indemnity Loan

› Callable Beginning in February 2016
› Has not Been Called
› Not Expected to be Called Before 2018

USD million

Indemnification Loan (NOK)
2018 NOK Bond (May 2018)
2018 USD Convertible Bond (Aug 2018)

Global Demand Stable While China Fluctuated

› Strong H1 2016 Installations in China
~17 GW
› 2015 FiT Expired July 1, 2016 Resulting in Record Q2 2016 Followed by Sharp Decline in Q3 2016
› Dramatic Installation Reduction in Q3 2016 in China, ROW Not Affected
› Swift Action Along Value Chain to Avoid Inventory Build

China Installations Compared to ROW

Results based on IHS Markit Technology PV Demand Market Tracker, October 2016. Results are not an endorsement of REC Silicon. Any reliance on these results is at the third party's own risk. Visit www.technology.ihs.com for more details.

Q3 Market Disruption Resulted in Limited Sales Opportunities

› Decline in PV Demand in China Impacted Entire Value Chain
› Wafer Producers Outside China Impacted Immediately
› Wafer Producers Curtailed Capacity Rapidly to Prevent Excessive Inventory Build

Product Sales

Demand Recovery in China Depends on FiT Decisions

As of 26th October, the FiT policy amendment for China is yet to be finalized and the details have the potential to change, including current discussions around an extension of the proposed grace period. Until the FiT policy is finalized, the demand forecast for China remains uncertain

Recent Recovery Trend in the Solar Industry Value Chain

7/6/2016 8/6/2016 9/6/2016 10/6/2016

Multi Wafer

Source: GTM Research PV Pulse October 2016 and GTM Research special inquiry 10-26-16

Long Term Growth Expected Despite Limited Growth in 2017

› China and US Will Continue to Lead Globally
› High Growth in India
› Japan Will Remain Strong
› New Markets Picking Up

Source: IHS PV Demand Market Tracker - Q3 v2 2016

U.S./ CHINA TRADE DISPUTE UPDATE

› Pressure on Both US and China Due to the Impending Change in the US Administration
› US and China Governments Continue to Work on Resolution Options and Proposals

NEAR TERM STRATEGY

Remain Cash Cost Competitive at Half Rates in Moses Lake

› Cash Cost Advantage Has Historically Been Tied to Operating At Full Rates
› Cost Reduction Plans will be Implemented to be Cost Competitive At Half Rates

*Removes Accrual Adjustments

Fixed Cost Reductions to Maintain Low Cash Cost

REC Silicon ASA Headcount Q1 2012-Present

Source: REC Internal Data based on 2014 costs

Yulin JV – On Track for H2 2017 Start-up

Yulin Plant Production Capacity:

› 19,000MT Granular Polysilicon
FBR-B: Next Generation Technology
› 300MT Siemens Polysilicon
Semiconductor Grade
› 500MT Silane Gas Loading

› Project Status:

Zero Project Safety Incidents Reported
Detailed Design Engineering: Complete
Procurement: 95% Complete
Structural Steel Installation: 60% Complete
20% Equipment Arrived to Site
Pipe Fabrication Underway
› Training Ongoing at Moses Lake and Butte
50 JV Employees from China Continue Training by REC Experienced Personnel
› Capital Contributions
2016 \$15 Million Contribution Already Deferred
Negotiations Underway to Defer Remaining Contributions Until After 2018
Agreements Permit Company to Forego Making Remaining Contribution if Unable to Pay

GUIDANCE

Q3 2016 Results in Inventory Growth, Q4 2016 Expected to Be in Balance

FBR Production		FBR Cash Cost			Total Polysilicon Production
Q4	2,260MT	Q4	\$12.4/kg	Q4	3,280MT
Q4*	4,710MT	Q4*	\$10.1/kg	Q4*	5,520MT

Semiconductor Production		Silicon Gas Sales		CapEx
Q4	680MT	Q4	800MT	Maintenance	\$11M
Q4*	260MT	Q4*	900MT	Expansion	\$ 2M

*Guidance given on July 21, 2016

2016 Total \$13M

REC Silicon Summary & Outlook

› September 30, 2016 Cash Balance of \$86.8M, Maintaining Sufficient Liquidity
› PV Demand Recovery Expected in Coming Quarters, Dependent Upon FiT Decisions in China
› Actions to Retain Cost Advantage:
Capacity Curtailment Until Trade War Resolved or Market Conditions Outside China Support Full Rates
Headcount Reduction of Approximately 70 Employees
Focus on Reduced Costs
› Target Cash Cost in The Range of \$11/kg at Reduced Utilization
› Negotiations Ongoing Towards Resolution of Trade Dispute, Uncertainty Remains
Continuously Seeking New Markets and Cooperation Outside China to Counter the Impact of the Trade War
› Yulin JV on Track for Start-up H2 2017

AI Terminal

REC Silicon

3726_rns_2016-11-02_a9b548c8-0a20-4950-8c60-fb1fc3b2cd1e.pdf