REC Silicon - Q4 2015 trading update

Fornebu, Norway - February 8, 2016: REC Silicon ASA (REC Silicon) reports fourth
quarter revenues of USD 74.9 million, compared to USD 87.5 million in the
previous quarter. The corresponding EBITDA during the fourth quarter was a loss
of USD 29.6 million compared to a loss of USD 14.1 million for the previous
quarter. The decrease in revenue and EBITDA can be attributed to lower sales
volumes, the recognition of USD 7 million in bad debt expense and approximately
USD 6.1 million of write down of finished inventories to estimated net
realizable values during the fourth quarter.

Fourth quarter total polysilicon production volumes were 3,022 MT, or 2% over
guidance of 2,980 MT. FBR production was 2,321 MT, exceeding guidance of 2,220
MT, and semiconductor production was 288 MT, compared to guidance of 300 MT. FBR
cash cost was $16.50/kg for the quarter, compared to guidance of $17.10/kg.

Silicon gas sales volumes were 709 MT, slightly above guidance of 700 MT.
However, silicon gas sales prices were 2% lower than the previous quarter.

REC Silicon will also recognize an impairment of USD 151.5 million, due to
anticipated lower future prices caused by the uncertainty from the solar trade
war between the US and China and the impact of Moses Lake production
curtailments and the oversupply in the polysilicon industry.

Due to ongoing negative effects from the trade war between the US and China, the
company has been prevented from accessing the Chinese market during the fourth
quarter, which has resulted in lower sales than previously anticipated. As a
result, fourth quarter polysilicon sales volumes were 2,740 MT, compared to
guidance of 4,855 MT, and finished goods inventory decreased by 131 MT, compared
to guidance of 1,700 MT of inventory depletion. Additionally, average sales
prices for solar grade polysilicon declined by 4% compared to the previous
quarter.

In order to reduce existing inventory levels and maintain a healthy cash
position, given the current market conditions in the ongoing solar trade war,
the company will shut down the Silane IV unit and remaining FBR production in
Moses Lake. Production is currently expected to be shut-down from February until
June of this year, dependent on the ongoing negotiations towards a resolution in
the solar trade war and the general market development outside China. The
company intends to perform equipment inspections and preventative maintenance on
Silane IV while the unit is shut-down and will utilize current employees to
perform this inspection and maintenance work. Additionally, also on account of
existing inventory levels, Silane III, which has been out of production since
July 2015 and was previously expected to resume production in January 2016, is
also expected to remain out of production until there is a resolution to the
solar trade war. The company will continue to limit capital expenditures to
critical maintenance.

Butte operations will be unaffected, as its product lines are not affected by
the solar trade war.

There continue to be ongoing negotiations between the US and China towards a
resolution of the trade war. But, as this is a political process, timing and
outcome of such a resolution remain uncertain.

In light of these developments, Q1 2016 FBR production is expected to be 820 MT,
semiconductor production is expected to be 450 MT, and total polysilicon
production is expected to be 1,540 MT. Q1 2016 silicon gas sales are expected to
be 600 MT. The company also expects Q1 2016 polysilicon sales volumes to be
approximately in line with Q4 2015 levels.

REC Silicon's cash balance on December 31, 2015 was USD 95.4 million. Given the
initiatives currently being undertaken by management to conserve cash, the
company will be capable of paying its existing debt obligations in 2016 from
existing cash and cash flow from operations under current projections, without
seeking additional funding.

Further comments will be given during REC Silicon's scheduled fourth quarter
results presentation on February 12, 2016.

For further information, please contact:
James A. May II, CFO
REC Silicon ASA
Phone: +1 509 989 1023
Email: james.may@recsilicon.com

Chris Bowes, Investor Relations
REC Silicon ASA
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 is a leading producer of advanced silicon materials, delivering
high-purity polysilicon and silicon gas to the solar and electronics industries
worldwide. We combine 25 years of experience and proprietary technology with the
needs of our customers, and 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: REC), the company is headquartered in Moses Lake, Washington
and employs approximately 675 people.

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

This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.


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