REC Silicon

Share Issue/Capital Change • Jul 15, 2015

REC Silicon ASA to Strengthen its Financial Position

REC Silicon ASA to Strengthen its Financial Position

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR

INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANY OTHER

JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE

UNLAWFUL.

Fornebu, Norway - July 15, 2015: To pro-actively strengthen its financial

position, REC Silicon ASA (the "Company" or "REC") has today mandated Arctic

Securities AS and Swedbank (the "Managers") in connection with a contemplated

private placement of up to 230,000,000 new ordinary shares in the Company (the

"Private Placement").

The Private Placement subscription price will be determined through an

accelerated bookbuilding exercise, process in the range NOK 1.50 per share to

share price at close 15 July 2015, directed towards Norwegian and international

institutional investors. The net proceeds from the Private Placement will be

used to strengthen the Company's balance sheet and liquidity position as well as

for general corporate purposes.

The Managers have received a pre-committed application from the Company's

largest shareholder Umoe AS for 60,000,000 shares. Furthermore, the Managers

have received a pre-committed applications so that the book is covered at the

low end of the range.

Completion of the Private Placement is subject to (i) necessary corporate

resolutions being made; and (ii) the shares having been fully paid and legally

issued.

The application period for the Private Placement will commence on 15 July 2015

at 16:30 hours CET and close on 16 July 2015 at 08:00 hours CET. The Company

reserves the right to at any time and in its sole discretion resolve to close or

to extend the application period. The minimum application in the Private

Placement will be the NOK equivalent of EUR 100,000.

The allocation of new shares in the Private Placement will be determined at the

discretion of the Company's Board of Directors in consultation with the

Managers, on or about 16 July 2015, subject to any shortening or extension of

the application period.

The new shares will be tradable and delivered as soon as the new shares have

been fully paid and the share capital increase has been registered in the

Norwegian Register of Business Enterprises, which is expected to be on or about

22 July 2015.

In conjunction with the contemplated Private Placement, the Company announces

its complete financial results for Q2 2015. For further information on Q2 2015

financial results please see the Companys Q2 2015 presentation.

For further information, please contact:

Chris Bowes

Investor Relations

Phone: +1 509 793 8127

Email: chris.bowes@recsilicon.com

Nils O. Kjerstad

IR Contact Europe

Phone: +47 9135 6659

Email: nils.kjerstad@crux.no

About REC Silicon

REC Silicon ASA is a leading innovator of advanced silicon materials, supplying

to solar and electronics industries worldwide. We utilize 30 years' experience

and best-in-class proprietary technology to deliver on customer expectations.

Combined, our two U.S. based plants have a 20,000 MT high-purity polysilicon

capacity, and nearly 30,000 MT capacity of silicon gas.  REC Silicon is

headquartered in Moses Lake, Washington and employs approximately 720 people.

Listed on the Oslo Stock Exchange under the ticker: REC.

For more information, please visit: www.recsilicon.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

* * *

Important information:

The release is not for publication or distribution, in whole or in part directly

or indirectly, in or into Australia, Canada, Japan or the United States

(including its territories and possessions, any state of the United States and

the District of Columbia).

This release is an announcement issued pursuant to legal information

obligations, and is subject of the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act. It is issued for information

purposes only, and does not constitute or form part of any offer or solicitation

to purchase or subscribe for securities, in the United States or in any other

jurisdiction. The securities mentioned herein have not been, and will not be,

registered under the United States Securities Act of 1933, as amended (the

"Securities Act"). The securities may not be offered or sold in the United

States except pursuant to an exemption from the registration requirements of the

Securities Act. The Company does not intend to register any portion of the

offering of the securities in the United States or to conduct a public offering

of the securities in the United States. Copies of this announcement are not

being made and may not be distributed or sent into Australia, Canada, Japan or

the United States. The issue, exercise, purchase or sale of subscription rights

and the subscription or purchase of shares in the Company are subject to

specific legal or regulatory restrictions in certain jurisdictions. Neither the

Company nor the Managers assume any responsibility in the event there is a

violation by any person of such restrictions.

The distribution of this release may in certain jurisdictions be restricted by

law. Persons into whose possession this release comes should inform themselves

about and observe any such restrictions. Any failure to comply with these

restrictions may constitute a violation of the securities laws of any such

jurisdiction. Arctic Securities and Swedbank are acting for the Company and no

one else in connection with the Private Placement and any subsequent offering

and will not be responsible to anyone other than the Company for providing the

protections afforded to their respective clients or for providing advice in

relation to the Private Placement and any subsequent offering and/or any other

matter referred to in this release.

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