REC Silicon — Investor Presentation 2016

May 3, 2016

FIRST 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 first quarter 2016 results on May 3, 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 Q1 Financial Results	T. Torvund, CEO
U.S. / China Trade Dispute Update	T. Torvund
Yulin JV Update	T. Torvund
Financial Overview	J.A. May II, CFO
Market Outlook	T. Torvund
Guidance	T. Torvund
Q & A

REC Silicon ASA First Quarter 2016 Highlights

Revenues: \$68.8 M

EBITDA: (\$13.4 M) Loss

March 31, 2016 Cash Balance of \$101.5 M

• Improved Liquidity Due to Working Capital Reductions
• Capable of Meeting 2016 Debt Maturities
• Indemnification Loan Not Called in Q1

Restart of FBR Production in Moses Lake

• Restart Silane III in May 2016 and Silane IV in June 2016
• Capable of Running for Two Years Without Extended Maintenance Outage

Polysilicon Production Lower Due to FBR Capacity Curtailments

• High FBR Cash Cost Due to Reduced Volume

Yulin JV on Track for Start-up in H2 2017

REC Silicon ASA Q1 2016 Key Metrics

Polysilicon Sales Volume
Total**	3,857 MT
Inventory Reduction	1,925 MT

FBR Production
Actual	1,175 MT
Guidance*	820 MT
Deviation	43.2%

FBR Cash Cost
Actual	\$24.8/kg
Guidance*	N/A

Total Polysilicon Production
Actual	1,937 MT
Guidance*	1,540 MT
Deviation	25.8%

* Guidance presented February 12, 2016
----------------------------------------	--	--	--	--

5 © REC Silicon ASA. All rights reserved. Confidential May 3, 2016

Semiconductor Production
Actual	351 MT
Guidance*	450 MT
Deviation	-22.1%

** Excludes Powders and Fines

Silicon Gases Sales Volume
Actual	531 MT
Guidance*	600 MT
Deviation	-11.5%

FBR Cost

Solar Grade Polysilicon Spot Market Pricing

• › REC Silicon Average Solar Grade Sales Price Increased 6% vs. Q4 2015
• › Average Solar Spot Market Price Increased 4% vs. Q4 2015
• › Spot Price Increase Due to Industry Inventory Depletion and High Wafer Production

U.S./ China Trade Dispute Update

U.S. / China Trade Dispute Update

• › Continued Negotiations Between MOFCOM and USTR
• Momentum on Both Sides to Resolve Solar Trade Disputes in Short Term
• Resolution Must Deal with Legal and Political Constraints in the US and China
• › Changing Dynamics
• US Panel Market More Important Than Ever with ITC Extension
• Chinese Polysilicon Makers at Full Capacity
• › Increasing Pressure on SolarWorld:
• Hemlock Litigation/Motion for Summary Judgment Will Play Out in Next 3-4 Months
• Lower Panel Prices in US

Yulin JV Update

Yulin Plant Production Capacity:

• › 19,000 MT Granular Polysilicon
• FBR-B: Next Generation Technology
• › 300 MT Siemens Polysilicon
• Chunk, Teardrop and Float Zone
• › 500 MT Silane Gas Loading
• › Project Schedule and Spending Within Budget
• › JV Financing Guaranteed by JV Partner

• › REC's 2016 \$15 M Capital Contribution Deferred and 2017 \$154 M Capital Contribution Deferral Under Discussion

• › Zero Project Safety Incidents

• › Detailed Design Engineering: 74% Complete
• › Procurement: 82% Complete
• Critical and Long Lead Equipment Fabrication Underway
• › Structural Steel Installation Underway
• › Equipment Installation Contracts Awarded
• Mobilization in Q2 2016
• › Training underway in Moses Lake and Butte
• 50 JV Employees from China Trained by REC Experienced Personnel

Financial Review

Revenues - \$68.8 M

• › Increased Polysilicon Sales Volumes (Excluding Fines & Powders)
• 41% Sales Volume Increase from Q4 2015
• 6% Solar Grade Price Increase from Q4 2015
• › Silicon Gas Sales Volumes 531 MT
• 25% Sales Volume Decrease from Q4 2015
• Silane Price Decrease of (1%) From Q4 2015

EBITDA – Loss of (\$13.4 M)

› Inefficiency due to Capacity Curtailment in Moses Lake

Q1 2016 Cash Flows

Cash Flows From Operating Activities \$2.4 M

• › EBITDA Loss of (\$13.4 M)
• › Working Capital Decrease \$19.0 M
• Decreased Inventories \$16.0 M
• Decreased Accounts Receivable \$13.5 M
• Decreased Accounts Payable (\$10.5 M)
• › Interest Payments (\$2.2 M)

Cash Outflows From Investing Activities – CapEx (\$1.6 M)

Currency Gain of \$5.2M

Nominal Net Debt - \$109 M

• › Unchanged from December 31, 2015
• Increase in Cash of \$6.1 M
• Increase in Nominal Debt of \$6.2 M

Nominal Debt - \$211 M

› Increased by \$6.2 M in Q1 2016 due to Weaker US Dollar

Indemnification Loan Remains Outstanding

USD million

• Indemnification Loan (NOK)
• 2016 NOK Bond (May 2016)
• 2018 NOK Bond (May 2018)
• 2018 USD Convertible Bond (Aug 2018)

Market Outlook

Strong Market Expected to Continue into H2 2016

I.H.S PV Demand Market Tracker Q1 2016 GTM Research: Global Solar Demand Monitor Q2 2016 Photon Consulting February 10, 2016

19 © REC Silicon ASA. All rights reserved. Confidential May 3, 2016 I.H.S PV Demand Market Tracker Q1 2016

PV Market Balanced in 2016

• › Solar Polysilicon Production will Increase from 330kMt in 2015 to 365kMt in 2016
• Equivalent to ~66 GW* Supply
• › Balanced Market
• ~66-68 GW Installed Panels

*Based on 5.5g/W Supply Chain Effects and Thin Film Installations Included

I.H.S PV Demand Market Tracker Q1 2016 GTM Research: PV Pulse April 2016 Photon Consulting February 10, 2016

20 © REC Silicon ASA. All rights reserved. Confidential May 3, 2016

Continued Decreasing Reliance on Chinese Markets

• › Increased Penetration of Markets Outside China
• Discounts to Maximize Sales Volume
• Increased Wafer Capacity Utilization

* Includes Powders and Fines

REC Takes Advantage of Increasing Demand Outside of China

Source I.H.S Integrated Market Tracker Q1 2016, GTM Research PV Pulse April 2016, REC Internal

REC to Resume Full Production in Q3 with Cash Cost ~\$10/kg

4,503 4,410 2,863 2,321 1,175 1,365 4,590 4,637 324 300 282 288 ³⁵¹¹⁶³ 234 244 382 361 435 413 412 495 ⁴⁸⁵⁵⁸¹ 0 1,000 2,000 3,000 4,000 5,000 6,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015 2016 Silicon Production (MT) FBR Electronic Grade Siemens Solar

Polysilicon Production

FBR Cost

Low Cash Cost Makes REC Competitive at Discounted Prices

Values based upon maximum capacity in 2nd half of 2016

Increased Sales Volume and Stable Inventory in H2 2016

25 © REC Silicon ASA. All rights reserved. Confidential May 3, 2016 Gases

REC Silicon Q1 Summary

• › March 31, 2016 Cash Balance of \$101.5 M
• › Will Meet 2016 Debt Maturities
• › Return to Full FBR Capacity in Q3 With Industry Leading Cash Costs
• › Improving Market Conditions Allow Greater Penetration to Customers Outside China
• › Low Cash Costs Make REC Silicon Competitive at Discounted Prices
• › Continued Momentum to Reach Resolution on Trade Dispute
• › Yulin JV on Track for Start-up H2 2017

FBR Production		FBR Cash Cost			Total Polysilicon Production
Q2	1,370 MT	Q2	\$24.0/kg	Q2	2,020 MT
2016	11,770 MT	2016	\$13.2/kg	2016	14,730 MT

	Semiconductor Production	Silicon Gas Sales		CapEx
Q2	190 MT	Q2	800 MT	Maintenance	\$ 8 M
2016	1,650 MT	2016	3,360 MT	Expansion	\$ 3 M
				2016 Total	\$11 M

Q2 2016 Reporting July 21, 2016