REC Silicon

Investor Presentation • Mar 17, 2016

REC Silicon – Nordic Energy Summit 2016

Oslo, 17 March 2016

Jens Ulltveit-Moe, Chairman of the Board

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 SiliconASA (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 2016 Nordic Energy Summit and presented on March 17, 2016 in Oslo, Norway. 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 SiliconASAshares have not been registered under the U.S. SecuritiesAct 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 theAct.

15 of the 16 Warmest Years on Record Occurring Since 2001

• › Carbon Dioxide and Global Temperature Levels continue to increase
• › By burning fossil fuels for energy, human activities have increased the concentration of carbon dioxide in the atmosphere by more than 40%
• › Most warming occurred in the past 35 years

Source: www.climate.gov

China and U.S. Largest CO2 Emitters; Solar Becomes Part of Solution

Source: Carbon Dioxide Information Analysis Center, Oak Ridge National Laboratory, and British Petroleum (8/20/13).

China and the U.S. Have a Commitment to Reduce CO2 Emissions

• China has firm commitment to not increase their CO2 emissions beyond 2030
• The United States has pledged to cut its emissions to 26-28% below 2005 levels by 2025

Source: http://www.theguardian.com/environment/2014/nov/12/china-and-us-make-carbon-pledge

›Main driving forces:

• -United Nations Conference on Climate Change (COP21: Paris)
• -Largest market for PV: China
• -Extension of ITC Credit in the US
• -Higher Growth Expectations for Emerging Markets

Source: : GTM Research Solar Executive Briefing Q4 2015 Provisional

Regional Solar Installation Forecasts Continue to Increase

2.4 4.8 6.8 10.4 14.3 19.5 - 5 10 15 20 25 30 ^{2015 2016 2017 2018 2019 2020} PV Installed (GW DC) Middle East and Africa

Source: GTM Research Solar Executive Briefing Q4 2015 Provisional

India & Surrounding Area

7 © REC Silicon ASA. All rights reserved. Confidential March 17, 2016

Source: Competitor releases, industry analysts, REC Market Intelligence

Polysilicon Will Become Limiting Factor for PV Market Growth

Source: Demand Data Installations: GTM Research, PV Pulse, January 2016 Supply Data: Competitor releases, industry analysts, REC Market Intelligence

9 © REC Silicon ASA. All rights reserved. Confidential March 17, 2016

Recent Price Increases

REC Silicon

Moses Lake: Serving PV Market with High Quality Low Cost FBR

• › FBR Solar grade
• › Silicon III, IV
• › Silane Gas: 22,000 MT
• › Granular Silicon: 16,300 MT
• › World's largest manufacturer of Granular polysilicon
• › Technology and cost leader through proprietary FBR technology

REC Silicon's Proprietary FBR: Low Energy Consumption & Continuous Production Process

Note 1 REC silicon data based on 2014 measured energy consumption and actual production. This includes consumption for operations, maintenance, and analytical functions.

Note 2 REC data includes the buildings (lights/HVAC) along with processing, packaging, treatment, and support equipment.

Note 3 Competitive technology data appears to be based on simulations of power consumption for only the process equipment to manufacture Polysilicon when it is operating at 100% utilization)

Source: Competitor releases, industry analysts, REC Market Intelligence

U.S. / China Trade War

• › Already In 2016, U.S. and China Have Restarted Discussions and Reiterated Commitment for a Resolution at the Highest Levels
• MOFCOM Sent a Delegation to the U.S. For a Week in January to Discuss Resolution Structures
• U.S. Trade Ambassador Froman and China's Minister Gao Met in Beijing on February 2, 2016
• China Requires a "Balanced and Reciprocal" Deal
• U.S. Needs Reasonable Market Access For its Polysilicon Producers

Why a Resolution Makes Sense for Both U.S. & China

› China

• Improved access to U.S. panel market
• Eliminate risk of retrospective U.S. duty hikes
• Polysilicon shortage looming in China
• Incentivizing movement of solar manufacturing outside of China threatens solar dominance

› U.S.

• U.S. AD/CVD orders depreciating commercial value
• Re-opening China market for the high tech U.S. Polysilicon industry creates more value on balance for U.S. interests

Additional Pressure For a Resolution

• › Hemlock Breach of Contract Litigation Against SolarWorld Subsidiary
• \$676 Million Case, Pending in US District Court in Michigan
• SolarWorld Lost Key Motion in October 2015, Resulting in Significant Drop in Share Price
• Trial Date in May 2016
• › Hemlock: US Polysilicon Producer
• Owned by Dow Corning and Shin Etsu
• Polysilicon Capacity (Michigan Plant): Estimated at 32,000 MT

Path Forward

Market Outside China

• › Continue qualification and optimization plan
• › Continue to discount aggressively if required to maximize volumes

Target Sales to Reduce Inventory and Generate Cash

› Sales supported by on hand inventories until restart

Full Capacity Utilization Cash Cost at ~USD 10/Kg Going Forward

Nominal Net Debt - \$109 M

• › Decreased by \$4.2 M during Q4 2015
• › Increase in cash of \$0.7 M
• › Decrease in nominal debt of \$3.4 M

Nominal Debt - \$205 M

› Decreased by \$3.4 M in Q4 2015 due to stronger US Dollar

No further debt obligations until May 2018

USD million

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

2016 Debt Obligations Met With Current Cash Forecast

• › Moderate Solar Grade Price Increases in 2016
• › Silane III and IV Startup Expected in June 2016
• Restart Dependent on:
  • Trade War Status
  • Market Conditions

› Maintain Liquidity

• Silane III and IV Capacity Curtailment
• Reduce Polysilicon Inventory Levels
• Limit Capital Expenditures

Yulin JV Update

Position in China Through Yulin JV – Development on Track

• › Total Investment: \$1.25 B
• › Investment Parameters:
• CAPEX: \$60/kg
• Cash Cost: ~\$9/kg
• Production Development
  • 2017 ~7,300 MT
  • 2018 ~ 16,300 MT
  • 2019 ~ 19,300 MT
• › Start-up expected mid-2017

Yulin JV – On Track

• › Equipment tendering in progress, 70% issued or awarded
• › Critical path equipment under fabrication (Hydrogenation and FBR reactors and compressors)
• › Critical excavation and foundation work for 2015 completed
• › 2016 and 2017 Capital Contributions Might Be Deferred If Financial Situation Requires

Completed FBR Building Foundation

The Investment Case

Strong growth in PV-demand (19% CAGR) Polysilicon market balance YE 2016

Available capacity to meet increased demand Long lead times limit industry expansion

Strong positions in core markets Presence in China through joint venture

Industry leading low cost position Proprietary Silane based FBR technology

Financial strength to bridge market downturn Cash on-hand to meet debt maturities

• › Strong momentum to resolve trade dispute
• › Temporary shut-down of Moses Lake will reduce inventory levels
• › Acquire customers for offtake of full capacity by offering competitive pricing
• › Focus on reduced spending
• › Prepare for successful Yulin JV Plant
• › Return to full capacity June 2016 with industry leading cash costs

Thank You

Tusen Takk