SECOND QUARTER

2016 PRESENTATION

REC Silicon Q2 2016 presentation cover v1.indd 1

20.07.2016 18.23

Disclaimer This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for REC Silicon ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as ”expects”, ”believes”, ”estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for REC Silicon ASA’s businesses, energy prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the presentation. Although REC Silicon ASA believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation. REC Silicon ASA makes no representations or warranties, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither REC Silicon ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. This presentation was prepared for the second quarter 2016 results on July 21, 2016. Information contained herein will not be updated. The following slides should be read and considered in connection with the information given orally during the presentation. REC Silicon ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Agenda

REC Silicon Q2 Financial Results

T. Torvund, CEO

Financial Review

J.A. May II, CFO

Market Outlook

T. Torvund

U.S. / China Trade Dispute Update

T. Torvund

Yulin JV Update

T. Torvund

Guidance

T. Torvund

Q&A

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

REC Silicon ASA Second Quarter 2016 Highlights Revenues: EBITDA:

$71.1M ($14.3M) Loss

June 30, 2016 Cash Balance of $91.3M - $16.3M Cash Flows from Operating Activities - $21.2M Bond (REC02) Retired in May 2016 - Indemnification Loan Not Called in Second Quarter 2016 FBR Production Restarted in Moses Lake - Silane III Restarted in May 2016 – Currently Producing Near Capacity - Silane IV Currently in Restart Substantial Increase in Solar Grade Polysilicon Prices - 9.7% Solar Grade Polysilicon Price Increases

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

REC Silicon ASA Q2 2016 Key Metrics Polysilicon Volumes **

Total Sales Volume

3,634MT

Inventory Reduction 1,963MT

FBR Production

FBR Cash Cost

Actual

1,026MT

Actual

$33.7/kg

Guidance*

1,370MT

Guidance*

$24.0/kg

Deviation

-25.1%

40.4%

Total Polysilicon Production

Semiconductor Production

Silicon Gases Sales Vol.

Actual

1,671MT

Actual

155MT

Actual

610MT

Guidance*

2,020MT

Guidance*

190MT

Guidance*

800MT

Deviation

-18.2%

Deviation

-23.8%

Deviation

-17.3%

* Guidance presented May 3, 2016 5

Deviation

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

** Excludes Fines and Powders

FINANCIAL REVIEW

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© REC Silicon ASA. All rights reserved. Confidential

Q2 2016 Key Financial Results Revenues

EBITDA

100

93.0

Revenues - $71.1M › 3.2% Increase from Q1 2016

87.5

80

› Decreased Polysilicon Sales Volumes

74.9 68.8

71.1

(13.4)

(14.3)

Q1

Q2

60

- (5.8%) Sales Volume Decrease from Q1 2016 - 9.7% Solar Grade Price Increase from Q1 2016

› Silicon Gas Sales Volumes 610MT - 14.8% Sales Volume Increase from Q1 2016 - Silane Price Decrease of (2.8%) From Q1 2016

EBITDA – Loss of ($14.3M)

› Inefficiency due to Capacity Curtailment in › 7

USD million

(Excluding Fines & Powders) 40

20

0

(14.1)

-20

(29.6)

-40

Moses Lake Electricity Refund of $5.9M in Other Income

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

5.8

Q2

Q3

Q4

2016 Margin:

6%

-16%

-40%

-20%

-20%

Q2 2016 Cash Flows Cash Flows From Operating Activities $16.3M

$130

› EBITDA - Loss of ($14.3M) › Working Capital Decrease $36.9M

$120

- Includes $5.0M Customer Prepayment - Decreased Accounts Payable ($4.0M)

› Interest payments ($7.4M)

Cash Outflows From Investing Activities – CapEx ($3.3M)

(3)

$110

› Repayment of NOK 179.5M Bond (REC02)

Currency Loss of ($1.7M) 8

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

(2)

$100

$90

(21) (14)

$80

$70

Cash Outflows From Financing Activities – ($21.2M)

1 (7)

USD million

- Decreased Inventories $28.0M - Decreased Accounts Receivable $12.8M

37

$102

$113

$91

Debt Coverage at June 30, 2016 USD million Indemnification Loan (NOK) 2018 NOK Bond (May 2018)

Nominal Debt - $188M

2018 USD Convertible Bond (Aug 2018)

› Decreased by $22.7M in Q2 2016 - $21.2M Maturity of NOK Bond (REC02) - Decreased by $1.5M due to Weaker US Dollar

$164M

54

Nominal Net Debt - $97M › Decreased by $12.6M in Q2 2016

$91M

- Decrease in Cash of $10.2M - Decrease in Nominal Debt of $22.7M

110 $24M

24 Cash Jun'16

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

2016

2017

2018

MARKET OUTLOOK

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© REC Silicon ASA. All rights reserved. Confidential

Market Expectations for H2 2016 2016 Installation Forecast

2016 Quarterly Installations 25

80

67.9

70

67.5

65.1

19.7 20

18.5

60 14.8

15.9

50

GW Installed

GW Installed

24.9 39.81 10.2 40

8.1 18.4

30

13.9

15

10

18.7 20

18.5 5

14.5 10.2

10

2.71 7.2

6.9

5.6 0

0

I.H.S. Europe

U.S.

GTM China

Japan

I.H.S PV Demand Market Tracker Q2 2016 GTM Research: Global Solar Demand Monitor Q2 2016 Photon Consulting June 2016 11

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

RoW

Photon ME&A

Americas

Asia

Q1'16

Q2'16 Europe

ME&A

Q3'16 Americas

Asia

I.H.S PV Demand Market Tracker Q2 2016

Q4'16

Wafer Production Remains Stable Quarterly Wafer Production Forecast 25

› Polysilicon Demand Driven by Wafer Production

Driven by Increased PV Installations in Q4 2016 and 2017

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

19.1

Q2'16

Q3'16

15

10

5

0

Q1'16 Source: I.H.S Technology PV Integrated Tracker Q2 (June 2016)

18.7 17.3

GWp-DC

› Wafer Production

20

20.2

Q4'16

Polysilicon Spot Price Rebounds in H1 2016 FBR Prime vs. Solar Price Indices Index I

› REC Silicon Average Solar Grade

Index II

Index III

FBR PRIME

Sales Price Increased 9.7% vs. Q1 2016

› Average Solar Spot Market Price Increased 21.1% vs. Q1 2016

› Spot Price Increase Due to: - Continued Strong End Use

2015

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

2016

JUN

MAY

APR

MAR

FEB

JAN

DEC

NOV

OCT

SEP

AUG

JUL

JUN

MAY

APR

MAR

FEB

JAN

-

Demand High Wafer Capacity Utilization

Increased Crucible Share Drives Demand Outside China May 2015

› Leverage Low Cost to Increase Market Access

May 2016

Customer 1 Customer 2

› Successful Customer

Customer 3

Qualifications Customer 4 Customer 5 Customer 6 Customer 7 Customer 8 0% Source: Internal data 14

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

5%

10%

15%

20%

25%

Reduced Reliance on Markets in China 6,000 MT

China 1,100

› Discounts to Maximize Sales Volumes

› Increased Crucible Share › Increased Wafer Capacity

Tolling 65

China 2,480

5,000 MT

China 175

4,000 MT

Tolling 2

Tolling 414

3,000 MT China 970

ROW 3,875 ROW 2,400

ROW 2,444

ROW 1,125 1,000 MT

Semi 300 Semi 312 Silicon Gases 736

Silicon Gases 989

Semi 270

0 MT Q1

Silicon Gases 709

Semi 317 Silicon Gases 531

Silicon Gases 610

Q3

Q4

Q1

Q2

Q2

Note: Includes Fines & Powders

Semi 123

Semi 380

Silicon Gases 642

2015

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

ROW 3,873

ROW 3,564

2,000 MT

Utilization

15

China 111

2016

Increased Sales Volume and Stable Inventory in H2 2016 Product Sales

Polysilicon Inventory

8,000 MT

8,000 MT

7,000 MT

7,000 MT

6,000 MT

6,000 MT

5,000 MT

5,000 MT

4,000 MT

4,000 MT

3,000 MT

3,000 MT

2,000 MT

2,000 MT

1,000 MT

1,000 MT

0 MT

0 MT

Q1

Q2

Q3

Q4

Q1

2015

Silicon Gases 16

Semi

Q2

Q3

2016

ROW

Tolling

China

Note: Includes Fines & Powders

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Q4

Q1

Q2

Q3

2015

Q4

Q1

Q2

Q3

2016

Q4

FBR Production Resumes Resulting in Industry Leading Cost Polysilicon Production FBR

Electronic Grade

FBR Cost

Siemens Solar

FBR Cash Cost

6,000

Depreciation

SG&A

$60 55.0

4.0

552 5,000

382

361

257

43.1

300 408

4,000

245 435

3,000

282

413 288

2,000

4,706

4,503 4,410

2,863 2,321

1,000

351

30.5

$30 24.3

$20

3,832

412 490 155

18.8

19.1

1.8

1.9

6.3

6.2

10.7

11.0

Q1

Q2

1.9

17.3

15.3

4.1

19.3

9.9

8.6

2.1

16.0

5.2

1.7 4.2

12.0

10.1

Q3

Q4

33.7 24.8

$10

1,175 1,026

13.8

16.5

$0

0 Q1

Q2

Q3

Q4

2015

17

3.0

$40

Cost ($/kg)

Silicon Production (MT)

324

$50

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Q1

Q2

Q3

2016

Q4

Q3

2015

Q4

Q1

Q2

2016

Low FBR Cash Cost Makes REC Competitive in Global Market

› Return to Full Production

32

Will Reduce Cash Cost to Industry Leading Levels

28

› Anticipate Production Near Maximum Rates for Next Two Years

› Current Spot Prices Insufficient to Support Marginal Producers

Unit Cost ($/kg)

24

20

Average Spot Price $16.92 16

12

8

4

0 0

40,400

80,800

121,200

161,600

202,000

Capacity (MT/yr)

18 © REC Silicon ASA. All rights reserved. Confidential July 21, 2016

242,400

282,800

323,200

363,600

404,000

Increased Silicon Gas Sales in Q2 2016 Silicon Gases (MT) 1,200

› Silicon Gas Sales Volumes 610 MT 2016

› Increased Demand Expected in H2 2016 - Q3 2016 Sales Increase to 800MT - Q4 2016 Sales Increase to 900MT

Sales Volumes (MT)

- 14.8% Volume Increase vs. Q1 2016 - 2.8% Silane Gas Price Decrease vs. Q1

1,000

800

600 989

400 642

709

610 531

200

0 Q2

Q3

2015

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Q4

Q1

Q2

2016

U.S./ CHINA TRADE DISPUTE UPDATE 20

© REC Silicon ASA. All rights reserved. Confidential

U.S. / China Trade Dispute Update › SolarWorld Under Pressure - Hemlock Comprehensive Win -

Against Solarworld in Lawsuit on July 13, 2016 Trade Dispute Resolution has Value for Hemlock

› MOFCOM and USTR Continue to Focus on Trade Dispute Resolution - Administration Change Could -

21

Create Risk for all Stakeholders Renewed Momentum to Resolve Solar and Polysilicon Trade Disputes

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

YULIN JV UPDATE 22

© REC Silicon ASA. All rights reserved. Confidential

Yulin JV – On Track for H2 2017 Start-up Yulin Plant Production Capacity: › 19,000MT Granular Polysilicon

- FBR-B: Next Generation Technology

› 300MT Siemens Polysilicon - Semiconductor Grade

› 500MT Silane Gas Loading

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Yulin JV – Current Status › Zero Project Safety Incidents › Detailed Design Engineering: 85% Complete › Procurement: 85% Complete › Structural Steel Installation Underway › Equipment Installation Contracts Awarded - Mobilized in Q2 2016

› Training Underway at Moses Lake and Butte - 50 JV Employees from China Trained by REC Experienced Personnel

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

GUIDANCE

Updated 2016 Guidance

FBR Production

FBR Cash Cost

Total Polysilicon Production

Q3

3,830MT

Q3

$12.0/kg

Q3

4,490MT

Q4

4,710MT

Q4

$10.1/kg

Q4

5,520MT

2016

$14.6/kg

2016

2016

10,741MT

Semiconductor Production

13,618MT

CapEx *

Silicon Gas Sales

Q3

250MT

Q3

800MT

Maintenance

$ 9M

Q4

260MT

Q4

900MT

Expansion

$ 2M

2,840MT

2016 Total

$11M

2016

1,016MT

2016

* CapEx Excludes any potential impact due to the July 1, 2016 Incident at the Moses Lake facility.

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© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

REC Silicon Summary & Outlook ›

June 30, 2016 Cash Balance of $91.3M

-



Silane III Restarted, Q3 FBR Volume 3,830MT and Cash Cost Expected at $12.0/kg

-



Increased Sales Expected in Q3

Q3 Market for Polysilicon Expected to Remain Stable

-

27

Silane IV in Restart

Q2 Polysilicon Sales of 3,634MT in Line with Expectations

-



Retired NOK Bond (REC02) of $21.2M in May 2016 Improved Liquidity

Some Uncertainty in the Following Quarters Silicon Gas Market Expected to Improve during H2 2016



Positive Development in Trade Dispute, Uncertainty Remains



Yulin JV on Track for Start-up H2 2017

© REC Silicon ASA. All rights reserved. Confidential July 21, 2016

Q3 2016 Reporting November 2, 2016

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© REC Silicon ASA. All rights reserved. Confidential