24 Jan 2025 21:54 CET

Issuer

REC Silicon ASA

Moses Lake, Washington USA - January 24, 2025: REC Silicon Inc, a wholly owned
subsidiary of REC Silicon ASA ("REC Silicon"), announced today that it has
entered into a USD 40 million term loan with Hanwha International LLC,
supporting REC Silicon's capital needs during the shutdown process at Moses
Lake and the Company's transition into a pure play silicon gas provider.

Further, the bridge loans of USD 25 and USD 25 million with Hanwha
International LLC will be rolled up into this loan at their maturity dates on
February 2 and February 4, 2025, respectively.

The terms of the loan are generally in line with the financial terms of the
Company's existing bank loan agreements, secured by the assets of the Company.
The maturity date is January 24, 2026.

REC Silicon also announced today that its US affiliate and QCells, its
customer for granular polysilicon produced at Moses Lake, entered into a
mutually agreeable termination agreement. Per the agreement, the reimbursement
of the prepayment of USD 30 million by REC Silicon to QCells has been delayed
for one year without interest and without any further obligation by either
party, including the payment of any liquidated damages.

Together, both the loan and the termination of the Polysilicon Supply
Agreement are important steps that will enable the Company to concentrate on
its silicon gas business. Proceeds from the loan will strengthen REC Silicon's
liquidity position and provide it with the capital necessary to cease
production at Moses Lake safely and in compliance with applicable regulations.

Moving forward, REC Silicon is focused on driving costs out of its silicon gas
assets and optimizing production at the Butte facility. REC Silicon's legacy
business is a leading producer of silicon gas and has a strong market position
for silane and specialty gases in the semiconductor and solar PV industries.
Further, maintaining silane capacity at Moses Lake in a recoverable mode,
gives the Company the flexibility to leverage future customer demand for
Silicon Anode or other gases. The Company is working to capitalize on these
industry presences and ultimately return to profitability.

The Company's day-to-day operations, including ongoing initiatives to cease
production at Moses Lake, may require additional financing beyond the loan
closed today. As previously disclosed, REC Silicon is undergoing a strategic
review to address financial and operational challenges and is therefore
considering additional cost reduction activities, financing options, and other
mitigative actions.

Hanwha International LLC is an affiliate of the Company's two largest
shareholders, Hanwha Solutions and Hanwha Corporation.

Contacts
------------------------------------------------------------------------------
Nils O. Kjerstad
IR Contact
Phone: +47 9135 6659
Email: nils.kjerstad@recsilicon.com

About REC Silicon
------------------------------------------------------------------------------
REC Silicon is a leading producer of advanced silicon materials, delivering
high-purity silicon gases to the solar and electronics industries worldwide.
We combine over 40 years of experience and proprietary technology with the
needs of our customers. 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 disclosure under the Norwegian Securities
Trading Act, §5-12. The information was submitted for publication at
2025-01-24 21:54 CET.


637141_REC Silicon - Announces the Close of a USD 40M Term Loan and Termination of Granular Polysilicon Supply Agreement.pdf

Source

REC Silicon ASA

Provider

Oslo Børs Newspoint

Company Name

REC SILICON

ISIN

NO0010112675

Symbol

RECSI

Market

Oslo Børs