REC Silicon ASA – Update on the strategic equity investment by Hanwha Solutions and PDMR notification

(Oslo, Norway, 14 January 2022) Reference is made to the announcement on 18 November 2021 regarding the entering into an agreement between REC Silicon ASA (“REC Silicon” or the “Company”), Hanwha Solutions Corporation (“Hanwha Solutions”) and Aker Horizons ASA, through its subsidiary Aker Horizons Holding AS (“Aker Horizons”) pursuant to which REC Silicon shall issue, and Hanwha Solutions shall subscribe for, 48,213,001 new shares (the "New Shares") in REC Silicon at a subscription price of NOK 20 per share, totalling approximately NOK 964 million in proceeds in a directed share issue (the “Share Issue”) and Aker Horizons shall sell and Hanwha Solutions shall acquire 21,891,275 existing shares in the Company (the “Share Purchase”) at a price of NOK 20 per share simultaneously with the Share Issue. At completion of the Share Issue and Share Purchase (the “Transactions”), Aker Horizons and Hanwha Solutions will each own approximately 16.67 percent of the shares in REC Silicon.

The waiting period to object to the transaction or request additional information in connection with the requisite filings pursuant to the Hart-Scott-Rodino Antitrust lmprovements Act of 1976 to US Federal Trade Commission and US Department of Justice has now expired, and accordingly all conditions for completion of the Transactions have been satisfied. The Transactions are expected to be completed on or about 19 January 2022.

The Transactions bring together two of the leading producers in different parts of the solar PV value chain. Hanwha Solutions is one of the world’s largest solar PV manufacturers with a total cell manufacturing capacity of 10GW globally. The company provides high-quality solar PV panels to the residential market through their wholly owned brand Q CELLS, which holds a 25 percent market share in the US. The company operates one of the largest solar module factories in the US with an annual production capacity of 1.7GW, corresponding to 12,000 PV modules per day.

The Transactions are expected to strengthen REC Silicon’s financial position and ensure that the Company has the necessary resources to reopen its FBR facility in Moses Lake, Washington, and enable valuable investment opportunities in Butte, Montana. Hanwha Solutions’ strategic investment in REC Silicon represents a step towards establishing a highly efficient, low carbon solar value chain in the US and to ensure that REC Silicon plays an integral role in these efforts. Hanwha Solutions’ knowledge, expertise, and capabilities are expected to enhance REC Silicon’s ability to take advantage of opportunities and developing markets in the solar, semiconductor, and battery industries. A US value chain for solar PV manufacturing will result in the creation of demand for solar grade polysilicon, which the Company expects will result in the restart of the manufacture of high quality, low-cost solar grade granular polysilicon in Moses Lake, Washington.

As a result of the Share Purchase, primary insider notification pursuant to the Market Abuse Regulation article 19 for Aker Horizons as a person closely related to the Company’s Chairman Kristian Monsen Røkke is attached.

Arctic Securities is acting as settlement agent in connection with the Transactions.

For further information, please contact:
Douglas Moore, Chief Financial Officer
Phone: +1 509 766-9133
Email: douglas.moore@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: RECSI), the Company is headquartered in Lysaker, Norway.

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

This information is subject to the disclosure requirements in Regulation EU 596/2014 (MAR) article 19 and section 5-12 of the Norwegian Securities Trading Act.

Attachment

• REC Silicon_PDMR notification_Aker Horizons Holding AS Sale to Hanwha

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