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Unlocking the Power of

Energy Savings

TSX-V: TMG | Corporate Presentation | October 2016

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This presentation includes “forward-looking information”. For example, statementsabout the opportunities for repeat business, additional orders, entry into new marketsand growth of recurring revenue streams; order backlog; introduction of new productsand services and growth opportunities and strategies are all forward lookinginformation. Such forward looking information reflects Thermal Energy International’s(“TEI”) current expectations with respect to future events and are based oninformation currently available to management. Forward-looking information involvessignificant known and unknown risks, uncertainties and assumptions. Should one ormore of these risks or uncertainties materialize, or should assumptions underlying theforward-looking information prove incorrect, actual results, performance orachievements could vary materially from those expressed or implied 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 and TEI doesnot assume any obligation to update or revise it to reflect new events orcircumstances, except as required by law.

Forward-Looking Statements

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Thermal Energy is a…

Global provider of energy efficiency solutions to the ICI sectors

We save our customers money & improve their bottom lines by…

Reducing their fuel use and cutting emissions

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Highlights

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2

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Enormous, fast-growing global market

with strong fundamentals

Proprietary products sold to leading

companies in many sectors

Poised to continue strong track record of

growth

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Governments and industries

around the world taking

unprecedented action on

climate change

Increasing energy efficiency is the cheapest

& easiest way to reduce GHG emissions

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Market Opportunity

1 2015 International Energy Agency. 32% of the $68 trillion world energy sector investment.2 P&S Market Research Report on Global Waste Heat Recovery Market

$21.8 trillion

Expected investment in end-use energy

efficiency from 2015 to 20401

20% to 50%

Amount of industrial energy

consumption lost as waste heat2

6.8% CAGR

Projected for the global waste heat

recovery market from 2016 to 20222

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Proprietary, Proven Solutions

FLU-ACE®

Direct contact condensing heat recovery

GEM™Condensate return systems (steam trap)

~80%We can recover of energy lost in typical boiler plant and steam system operations

High ROI with short, compelling payback

17 year track record

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FLU-ACE® Heat Recovery

Recovers waste heat from process exhaust

Returns hot water for use in production or heating

1 system per location –sells for $100k to millions each

90% 10-30% 2-5YRSRecovery

RateReduction in Energy Costs

Payback Period

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GEM™ Condensate Return System

Improved efficiency vs. traditional mechanical traps

No moving parts – never needs replacing

100’s to 1,000’s of traps per location and sell for $500 to $2,000 per trap

10-30% 1-2YRS

Reduction in Energy Costs

Payback Period

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GEM steam trap

Mechanical trap

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Customers include F500 &

other leading companies

across many sectors

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$0.82

$4.93$3.96

$5.81

$9.70

$13.15

$8.21

$13.15

$6.80

$12.40

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Revenue excl. mega projects

Revenue from mega projects (>$2 million)

($ millions)

10-Year Revenue

(1)

(1)

(1)

(2)

**Boxes above bars indicate number of "Mega" projects acquired in that year

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FY 2016 Highlights

FY 2015 FY 2016

Revenue

FY 2015 FY 2016

Gross Profit EBITDAS

EBITDAS is defined as earnings before interest, taxation, depreciation, amortization, impairment of goodwill and other intangible assets, share-based compensation expense and net write down of lease.

($ millions)

6.8 3.6

(2.0)

12.4 6.8 0.6

FY 2015 FY 2016

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Historical Q1 Revenue

0

0.5

1

1.5

2

2.5

3

Q1 13 Q1 14 Q1 15 Q1 16 Q1 17

($ millions)

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EBITDAS

Q1 2017 Highlights

EBITDAS is defined as earnings before interest, taxation, depreciation, amortization, impairment of goodwill and other intangible assets, share-based compensation expense and net write down of lease.

($ millions)

Q1 2016 Q1 2017Q1 2016 Q1 2017

Revenue

Q1 2016 Q1 2017

Gross Profit

2.6

1.1 (0.4)2.1

1.5

0.0

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Growing Order Backlog

Recent orders included in order backlog:

$1,700,000 heat recovery order from ethanol producer

$500,000 GEM order from a new hospital customer

$750,000 heat recovery order from a global brewing company

$1,148,000 heat recovery + GEM order from a hospital trust

$840,000 heat recovery extension from a multi-site hospital group

$1,015,000 heat recovery order from leading food products business

~$7.8 millionOct. 18, 2016

$3.7 million a year ago

Order backlog

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Listing TSX-V: TMG

Recent price $0.16

52-week range $0.03 to $0.23

# of shares 157.8 million

Market cap $25.3 million

Cash position $0.8 million

Debt Nil

Trading data as at October 19, 2016. Balance sheet data as at August 31, 2016. 16

Stock Overview

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Footholds established but significant growth potential remains in key markets (North America & Europe) and secondary markets

Growing Global Presence

17Corporate / sales office Agent / distributor

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Future Growth

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Increase penetration in key and secondary 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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Summary

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Enormous, fast-growing market with strong fundamentals

Proprietary products sold to leading companies in many sectors

Poised to continue strong track record of growth

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2

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