REC Silicon - Third quarter 2016 results

Fornebu, Norway - November 2, 2016: REC Silicon ASA (REC Silicon) reported third
quarter revenues of USD 50.9 million, compared to USD 71.1 million in the
previous quarter. The lower revenues are primarily a result of the disruption of
the solar grade polysilicon market due to the expiration of the 2015 feed in
tariffs in China, which affected the entire value chain. The ongoing solar trade
war between the US and China also continues to restrict REC Silicon's access to
polysilicon markets in China. The corresponding EBITDA during the third quarter
was a loss of USD 7.9 million compared to a loss of USD 14.3 million in the
previous quarter.

The company also reported a September 30, 2016 cash balance of USD 86.8 million.


Q3 polysilicon sales of 1,775 MT were in line with guidance given in the
September 23, 2016 Trading Update.  Finished goods inventory increased by 2,132
MT during the third quarter.

Silicon gas sales volumes increased to 772 MT compared to 610 MT in the prior
quarter.

In order to maintain liquidity and manage inventory, the company is announcing
additional cost cutting initiatives and has reduced production capacity
utilization to approximately 50% at the Moses Lake facility.  As part of the
cost cutting initiatives, the company is announcing a reduction in headcount of
approximately 70 employees.  "We have been successful in maintaining sufficient
liquidity during this period of market disruption. Because of our efforts to
control costs, I expect REC Silicon to remain a low cost leader in the
polysilicon industry, even at reduced production rates." said Tore Torvund, CEO.

The Yulin joint venture plant remains on target for start-up in the second half
of 2017.  With regard to the company's joint venture payment obligations, the
relevant agreements permit deferral of the $15 million second capital
contribution until at least July 2017, and negotiations are underway with the
joint venture partner to defer the company's second and third capital
contributions, totaling $169 million, beyond 2018.  Without a resolution to the
trade war and if REC is unable to make its contributions, the agreements also
permit the company to forego making its remaining contributions, in which case,
its equity position in the joint venture would be diluted accordingly.

For more information, please see the attached third quarter 2016 report.

Morning Program:
The company will give a presentation at 8:00 am CET today at Høyres Hus
Konferansesenter, Stortingsgaten 20, Oslo, Norway. The presentation will be in
English.

A live webcast from the presentation can be accessed at www.recsilicon.com or
the following link: http://webtv.hegnar.no/presentation.php?webcastId=40091939

It will also be possible to listen to the presentation through a conference
call. Please make sure to dial in 5-10 minutes prior to scheduled start time on
one of the following numbers:

Norway (Toll Free): 800 51084
Norway (Local): +47 2350 0296
UK (Toll Free): 0800 358 6377
UK (Local): +44 (0)20 7026 5967
USA (Toll Free): 800 263 0877
USA (Local): + 1 719 457 1036
Other international: +44 (0)20 7026 5967
Please provide confirmation code 2617808 and state your name, company and
country of residence.

Afternoon Program:
REC Silicon will host an analyst conference call later the same day at 3:00 p.m.
CET. Please make sure to dial in at least 5-10 minutes ahead of time to complete
your registration.

Norway (Toll Free): 800 51084
Norway (Local): +47 2350 0296
UK (Toll Free): 0800 358 6377
UK (Local): +44 (0)20 7026 5967
USA (Toll Free): 800 274 0251
USA (Local): +1 719 325 4759
Other international: +44 (0)20 7026 5967
Please provide confirmation code 7930972 and state your name, company and
country of residence.

For further information, please contact:
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 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: REC), the Company is headquartered in Fornebu, Norway.

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