investor fact sheet - fall 2014

STOCK OVERVIEW

Listing TSX-V: TMG

Recent price $0.11

52-week range $0.04 - $0.14

Shares outstanding 161,044,616

Market capitalization $17,714,908

Cash on balance sheet $2,046,417

Total debt Nil.

* Trading information as at October 6, 2014; Cash on balance sheet and total debt as at May 31, 2014.

AT A GLANCE

Thermal Energy International is a global provider of proprietary and proven energy efficiency solutions to the industrial and institutional sectors worldwide. We save our customers money and improve their bottom line by reducing their fuel use and cutting their carbon emissions. Our FLU-ACE® heat recovery and GEM® steam trap systems deliver 10%-30% energy savings, providing a high return on investment combined with a short, compelling payback period.

PRODUCTS

FLU-ACE ®

Heat RecoveryGEM ®

Steam Trap

INDUSTRY APPLICATIONS (WITH CURRENT PENETRATION)

HOSPITALS

PHARMACEUTICAL

PULP AND PAPER

PETROCHEMICALAND CHEMICAL AND MANY MORE

INVESTMENT HIGHLIGHTS

X Large, fast growing global market with strong fundamentals X Proprietary & proven energy efficiency solutions provide high ROI X Strong track record of growth (six-year revenue CAGR of 17.8%) X Growing global footprint

REGIONAL OFFICEBristol, United Kingdom

HEAD OFFICEOttawa, Canada

LOCATIONS

>120 d i f fe rent hosp i ta ls11 customers wi th >40 o f 500+ s i tes

penet ra ted

FOOD AND BEVERAGE

16 customers wi th 50 o f 1 ,600+ s i tes penet ra ted

11 customers wi th 18 o f 500+ s i tes penet ra ted

8 customers wi th 42 o f 350+ s i tes penet ra ted

other indust ry app l i ca t ions inc lude

t i res , p las t i cs , tex t i les and many more

TSX-V: TMGFALL 2014

INVESTOR FACT SHEET

@ WWW.THERMALENERGY.COM

@GOTHERMALENERGY

WILLIAM CROSSLAND President and CEO - Thermal Energy International Inc. Tel: 613-723-6776 Email: [email protected]

TREVOR HEISLER Investor Relations - Heisler CommunicationsTel: 416-500-8061 Email: [email protected]

Countries where Thermal Energy International has sold product

AFTER

RECENT PROJECTS

X $1,000,000 heat recovery and GEM® project from a major hospital, resulting in annual fuel and cost savings of 36% and $390,000 respectively.

X $232,000 GEM® order from one of the world’s leading manufacturers of specialty chemicals.

X $160,000 GEM® project from one of the world’s largest beer company, resulting in annual cost savings of $100,000 and payback period of 19 months.

X $2.6 million heat recovery and GEM® steam trap project involving nine sites from a leading Fortune 500 food and beverage company.

X $281,000 GEM® project from a world-leading, diversified healthcare and pharmaceutical company, producing annual cost savings of $275,000.

X $200,000 heat recovery order from a global mining and materials company, resulting in annual cost savings $350,000.

X $3.6 million heat recovery project from a major pulp and paper company.

FINANCIAL RESULTS

In thousands except % data

3 months ended May. 31, 2014

3 months ended May. 31, 2013

Revenue $4,717 $1,879

Gross profit $2,738 $746

Gross margin 58.0% 39.7%

Operating expenses $2,071 $1,302

EBITDAS $710 $(424)

Net income (loss) $697 $(2,687)

Operating cash flow $1,008 $(364)

In thousands except % data

Fiscal year ended May 31, 2014

Fiscal year ended May 31, 2013

Revenue $13,151 $8,210

Gross profit $6,974 $4,977

Gross margin 53.0% 60.6%

Operating expenses $6.399 $5,822

EBITDAS $879 $(435)

Net income (loss) $634 $(2,849)

Operating cash flow $1,349 $(1384)

STRONG FUNDAMENTALS

GROWTH OPPORTUNITIES

X Continue to develop and execute a corporate account sales and marketing strategy

X Capitalize on significant cross selling opportunities with existing customers

X Continue to grow sales and distribution in key markets of North America, Europe and the Middle East, which still remain largely untapped markets

X Development and acquisition of complimentary energy efficiency products and businesses

1990 2000 2010 2020 2030 2040

Expected g rowth in g loba l foss i l fue l consumpt ion o f 46% f rom 2010 to 2041 1

1 U.S. EIA, International Energy Outlook 2013

60% 80%

Amount o f a l l energy used that i s los t due to inef f i c iency

Amount o f los t energy we can recover in typ ica l bo i le r p lant

and s team operat ions

TSX-V: TMGFALL 2014

INVESTOR FACT SHEET

@ WWW.THERMALENERGY.COM

@GOTHERMALENERGY

WILLIAM CROSSLAND President and CEO - Thermal Energy International Inc. Tel: 613-723-6776 Email: [email protected]

TREVOR HEISLER Investor Relations - Heisler CommunicationsTel: 416-500-8061 Email: [email protected]