Landsvirkjun - Company Announcement

Landsvirkjun and Icelandic Silicon Corporation sign a new power contract

Landsvirkjun has signed a new Power Purchase Agreement with Icelandic Silicon
Corporation, a company where Globe Speciality Metals (NASDAQ: GSM) is majority
shareholder.  According to the agreement Landsvirkjun will provide energy for
the company's new 40.000 ton silicon metal production facility in Helguvik,
Southwest Iceland.  The plant is expected to come online in mid-2013 and will
require 65 MW of power. The agreement is structured in two phases.  Initially,
Landsvirkjun will provide 35 MW of energy with the remaining 30 MW supplied by
HS Orka.  Beginning in January 2016, Landsvirkjun will supply all of the energy
to the smelter. 

Dr. Hordur Arnarson, Landsvirkjun's CEO, says the agreement is very positive
for Landsvirkjun.  “We have been aiming to increase the diversity of our client
base.  This agreement is an example of the materialisation of that strategy. 
Silicon metal represents a new industry in our portfolio, which we believe has
good long-term prospects in Iceland where power is generated from renewable
energy sources only,” said Mr. Arnarson. 

The new contract is a long term contract.  Prices are denominated in Euros,
along with fixed annual price increases. The parties have agreed to keep the
price confidential at present time. The agreement is subject to standard
conditions precedent, including approval of both companies' Boards of Directors
and for few other conditions that Icelandic Silicon Corporation will complete
no later than June 15th 2011. 


         Ragna Sara Jónsdóttir
         Head of Corporate Communications
         sara@lv.is
         849 2122