Dow Corning will acquire a 49% equity interest in a new joint venture entity (the "Joint Venture") that will own the existing silicon metal operations of Timminco's wholly- owned subsidiary, Becancour Silicon Inc. ("BSI"). In exchange, BSI will receive net cash proceeds of US$39.7 million on closing, and up to potentially an additional US$10.0 million after closing subject to achieving certain performance objectives relating to production cost and capacity improvements. BSI will retain a 51% equity stake in the Joint Venture.

All of the production output of the Joint Venture, which will be based on an initial annual production capacity of 47,000 mt of silicon metal, will be split between BSI and Dow Corning proportional to their ownership interests. All of BSI's solar grade silicon purification operations and facilities at the Becancour site will remain with BSI. "This joint venture with Dow Corning builds on a long and successful relationship between the two companies and strengthens Timminco's position for future growth opportunities," said Dr. Heinz C. Schimmelbusch, Timminco's Chairman of the Board and Chief Executive Officer.

"This acquisition is well aligned with Dow Corning's global strategy of securing an efficient supply of this critical raw material used to manufacture all of our silicon-based products," said Robert Hansen, Dow Corning's executive vice president and general manager of Core Products. The Joint Venture, which will be known as "Quebec Silicon", will acquire from BSI all of the silicon metal production assets, including property, plant, equipment, and certain net working capital items, and BSI's quartz mining lease in Lac Malbaie, Quebec. BSI will retain its silicon metal customer relationships, and honour all existing contracts with such customers, through BSI's proportional off-take of the Joint Venture's production.