Annual General MeetingManagement Presentation

November 12, 2015

Forward-looking statements

This presentation includes “forward-looking information”. For example,statements about the opportunities for repeat business, additional orders,entry into new markets and growth of recurring revenue streams; orderbacklog; introduction of new products and services and growth opportunitiesand strategies are all forward looking information. Such forward lookinginformation reflects Thermal Energy International’s (“TEI”) currentexpectations with respect to future events and are based on informationcurrently available to management. Forward-looking information involvessignificant known and unknown risks, uncertainties and assumptions. Shouldone or more of these risks or uncertainties materialize, or should assumptionsunderlying the forward-looking information prove incorrect, actual results,performance or achievements could vary materially from those expressed orimplied by the forward-looking information contained in this presentation.

Readers should not place undue reliance on forward-looking information. Theforward-looking information is made as of the date of this presentation andTEI does not assume any obligation to update or revise it to reflect newevents or circumstances, except as required by law.

Financial review

Revenue

0

2

4

6

8

10

12

14

2009 2010 2011 2012 2013 2014 2015

($ millions)

Revenue excl. hospitals and mega projects

Revenue from mega projects

Revenue from hospitals

Gross profit

0

1

2

3

4

5

6

7

8

2009 2010 2011 2012 2013 2014 2015

($ millions)

(59.7%) (61.2%) (53.4%)(53.0%)(60.6%)(42.9%)(48.2%)

Percentages figures are gross profit as a percentage of total revenue.

Total cash expenses

0

1

2

3

4

5

6

7

2009 2010 2011 2012 2013 2014 2015

($ millions)

Cash expenses minus sales commissions

Sales commissions and incentives

FY 2015 summary

Sales down due to absence of large projects and drop on hospital sales

Gross profit remains stable subject to product mix

Costs control remains good, expenses relatively stable over 6 years

The focus is on delivering more sales!Without increasing costs!

Q1 2016 financial results

($ millions)

Highest Q1 revenue & gross profit in 5 years

0

0.5

1

1.5

2

2.5

3

Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016

Revenue Gross Profit

Recent orders

Secured 4 projects in the past 3 weeks for a combined total of ~$3.4 million

$641,000 heat recovery project with a leading animal feed supplier

$965,000 heat recovery order from a major hospital

$1,530,000 heat recovery + GEM project with a multi-site hospital

$229,000 heat recovery expansion for a leading gypsum company

Trending favourably in FY 2016

0

0.5

1

1.5

2

2.5

3

3.5

Hospital orders ($ millions)

FY15 hospital revenues

YTD FY16 revenue + orders received

Order backlog ($ millions)

0

2

4

6

8

A year ago Today1

1 Includes backlog announced at the end of Q1+ orders announced subsequently

3.1 6.9

Strategy and outlook

Strengthening sales & marketing

Hired 7 sales & marketing staff between January and September 2014 for a net increase of 3

New sales people have qualified 158 opportunities

Launched new & improved website – March 2015

Continued to build our following on social media

Enhanced and created new marketing materials

New & improved website

Our following on social media

Continue to build our presence and following on YouTube, SlideShare and LinkedIn

4,885 followers(1,407 a year ago)

1,551 page likes(1,103 a year ago)

Enhanced marketing materials

New case studies and white papers

New brochures, including foreign language brochures

New sector-specific marketing materials

Corporate accounts strategy

Definition:

Existing customer

Manufacturing sites in more than 1 sales territory

> $1.5 million GEM and/or $5 million in heat recovery sales potential

40 potential corporate accounts identified

Director of Corporate Accounts to be appointed.

Fortune 500food &

beverage leader

Leading diversified healthcare company

1st order: Dec. 2012

10 sites partially converted to GEM

5 sites have FLU-ACE heat recovery systems

$4.4 million in orders to date

Customer has > 100 sites

1st order: Feb. 2014 ($161K)

2nd order: Aug. 2015 ($520K)

1 site penetrated so far

Negotiating 2nd site

Customer has operations in 50 countries

Recent progress

Fortune 500 food and beverage co.

Major hospital group with >130 sites

Multinational synthetic materials co.

Global Pricing Agreement negotiated (June 2015)

Master Purchase Agreement signed (July 2015)

Corporate intent to replace all traps with GEM over next 5 years

Master Contractor Agreement signed (July 2015)

1st project submitted for approval

12 sites visited; 4 projects in development

Recent corporate and cross-selling success

Oct. 2015: $1,530,000 Hospital Group, HR & GEM – repeat customer with multiple sites

Oct. 2015: $229,000 Gypsum company HR system expansion – repeat customer with multiple sites

Aug. 2015: $520,000 Healthcare company, GEM – repeat customer with multiple sites

April 2015: $750,000 Food and Beverage leader – repeat customer with multiple sites

Sector-based strategy

Focus on sectors where we have significant success:

Develop sector-specific marketing materials

Coordinated email and calling campaigns to target customers

Hospitals Food & Beverage Chemical/Petro Pulp & Paper

Sector-based strategy: hospitals

200 90 24

Targeted hospitals contacted in key

markets

Projects open at 45 hospitals

Projects sold so far to 15 hospitals

since 2011

0

20

40

FY14 FY15 YTD16

Projects developed

New products and intellectual property

DryRex biomass dryer

Target markets identified

Working with partner to determine feasibility of relocating decommissioned unit

Indirect heat recovery system (China Petrochemical Project)

Unit installed and coated and uncoated surface testing underway

TEI and partner preparing joint research proposal for enhanced second generation heat exchanger design

New products and intellectual property

Direct condensing water heater (gas-fired FLU-ACE)

Design complete

Awaiting funding for testing and certification

Opal trap (3-stage GEM filtration system)

Patents granted: UK and US (September 2015)

Patents pending: other key markets

Outlook

Secured 4 projects in the past 3 weeks for a combined total of ~$3.4 million

Hospital orders are up significantly from fiscal 2015

Order backlog of $6.9 million1

Short term strategy – Drive sales efficiency

1 Includes backlog announced at the end of Q1+ orders announced subsequently

Growth strategies

Increase penetration in existing key markets

Enter new markets

Cross-selling

Corporate accounts

Sector-based initiatives

Introduce new products & services

Grow organically

and/or through

accretive

acquisitions

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