REC Silicon

M&A Activity • Dec 7, 2023

REC Silicon Close of the Sale of the Yulin JV Shares

REC Silicon Close of the Sale of the Yulin JV Shares

Moses Lake, Washington USA -- December 7, 2023: REC Silicon Pte. Ltd, a fully

owned subsidiary of REC Silicon ASA ("REC Silicon"), closed the sale of its

15% equity interest in the Shaanxi Non-Ferrous Tian Hong REC Silicon Materials

Co., Ltd joint venture ("Yulin JV").

All regulations and government approvals in China for the transaction have

been completed. As previously disclosed, REC Silicon expects to receive gross

proceeds of approximately $130M, which amount takes into account the payment

of taxes and duties within China; however, such proceeds will be reduced by

customary transaction costs such as legal and other consultancy fees. This

sale will generate a non-recurring gain for the company in 2023. The purchase

price was based upon a third-party appraisal of the valuation of the Yulin JV

of approximately RMB 6.8 billion, implying gross proceeds before transaction

costs of approximately RMB 1 billion for REC Silicon's 15% share. The company

is in the process of evaluating options for the best use of the proceeds from

the sale.

"REC Silicon is pleased to close the sale of its interest in the Yulin

JV. This sale will not only strengthen the company's financial position but

will also allow us to continue to focus our efforts on our US assets,

particularly our recently started High Purity Granular polysilicon from the

Moses Lake facility, a key piece of the development of a solar value chain in

the US, along with investments in our gases business at the Butte facility to

support the growth of the Semiconductor industry so that we will be in a

strong position to take advantage of opportunities presented by significant

macro trends, government policies and our location", says Kurt Levens, CEO of

REC Silicon.

The Yulin JV was created by REC Silicon and Shaanxi Non-Ferrous Tian Hong New

Energy Co in 2014 to develop a greenfield production facility for silane gas,

solar polysilicon utilizing REC Silicon's fluidized bed reactor (FBR)

technology and electronic grade polysilicon.

Contacts

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Jack Yun

CFO, REC Silicon

jack.yun@recsilicon.com

Nils O. Kjerstad

IR Contact

Phone: +47 9135 6659

Email: nils.kjerstad@recsilicon.com

About Us

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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, with 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: RECSI), the Company is

headquartered in Lysaker, Norway.

For more information, go to: www.recsilicon.com

This information has been submitted pursuant to the Securities Trading Act §

5-12 and MAR Article 19 no. 3. The information was submitted for publication

at 2023-12-07 19:52 CET.