REC Silicon - Third quarter 2019 results

Fornebu, Norway - October 30, 2019: REC Silicon ASA (REC Silicon) reported third
quarter 2019 revenues of USD 36.4 million. EBITDA for the third quarter was a
loss of USD 5.6 million compared to EBITDA of USD 0.5 million in the second
quarter of 2019. The decrease in EBITDA was primarily due a production
interruption in connection with planned maintenance at the Butte facility,
severance payments in connection with the Moses Lake shut down, and higher
electricity costs for the semiconductor materials manufacturing facility in
Butte, Montana.

REC Silicon reported a cash balance of USD 46.2 million on September 30, 2019.
This represents an increase of USD 7.8 million compared to the cash balance on
June 31, 2019. Cash inflows from operations were USD 9.0 million for the quarter
which included a reduction in working capital of USD 17.4 million offset by the
EBITDA loss, interest payments of USD 1.5 million, and a currency loss of USD
1.1 million due to a stronger US dollar. Cash inflows from investing activities
were USD 0.4 million which included a USD 0.5 million reduction in restricted
cash deposits offset by capital expenditures of USD 0.1 million. Cash outflows
from financing activities were USD 1.6 million and were a result of payments of
lease liabilities.

Polysilicon sales volume for the quarter was 1,155 MT compared to 2,090 MT in
the prior quarter, while inventory decreased by 815 MT.

Silicon gas sales volumes for the second quarter were 860 MT compared to
guidance of 900 MT. Silane gas prices decreased by 0.5 percent compared to the
second quarter 2019. Second quarter semiconductor polysilicon production was
191 MT compared to guidance of 220 MT.

For more information, please see the attached third quarter 2019 report and
presentation.

A presentation of the results will be held at 8:00 a.m. CET at Høyres Hus
Konferansesenter, Stortingsgata 20, Oslo, Norway.

A live webcast from the presentation can be accessed at www.recsilicon.com or
with the following
link:https://webtv.hegnar.no/presentation.php?webcastId=98161653

It will also be possible to listen to the presentation through a conference
call. To join this event, use one of the following access numbers. Please make
sure to dial in 5-10 minutes prior to the scheduled start time.

Norway Dial-in (Tollfree/Freephone): 800 51 084
Norway, Oslo (Dial-in Local): +47 2100 2610
United Kingdom (Dial-in Tollfree/Freephone): 0800 358 6377
United Kingdom (Dial-in Local): +44 (0) 330 336 9125
United States (Dial-in Local): +1 929 477 0324
United States/Canada (Dial-in Tollfree/Freephone): 800 458 4121
Other international: +44 (0) 330 336 9125

Participant Passcode: 1125891

For further information, please contact:
James A. May II, Chief Financial Officer
Phone: +1 509 989 1023
Email: james.may@recsilicon.com

Nils O. Kjerstad
IR Contact
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 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: REC), the Company is headquartered in Fornebu,
Norway.

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.

https://newsweb.oslobors.no/message/488073