Corporate Presentation

May 2012

www.xebecinc.com

Forward looking statements

2

Certain information regarding Xebec Adsorption Inc. (“XBC" or the "Company") set forth in this Presentation contains forward-looking statements. The use of any

of the words "plan", "expect", "project", "intend", "believe", "should", "anticipate", "estimate" or other similar words, or statements that certain events or conditions

"may" or "will" occur are typically intended to identify forward-looking statements. Forward-looking statements are not based on historical facts, but rather on

XBC's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, product offerings, future capital and other

expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of sales activities, business prospects

and opportunities. These statements are only predictions, not guarantees, and actual events or results may differ materially. In particular, forward-looking

statements included in this document include, but are not limited to, statements with respect to: XBC's growth strategy, technology development and growth

plans.

The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause actual results to vary,

including but not limited to risks associated with: the impact of general economic conditions in Canada, Australia, the US and the UK as well as certain other

countries in which XBC operates; industry conditions including changes in laws and regulations, and changes in how they are interpreted and enforced, in

Canada, Australia, the US and the UK as well as certain other countries in which XBC operates; changes in both corporate and governmental budgets, as well as

changes in personnel of the Company's current and prospective customers, competition; lack of availability of qualified personnel; the results of sales and related

activities; negotiating with foreign governments as well as country risk associated with conducting international activities; fluctuations in foreign exchange or

interest rates; changes in income tax laws or changes in tax laws; ability to access sufficient capital from internal and external sources; and other factors, many

of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on

these and other factors that could affect XBC's operations and financial results are included in reports on file with Canadian securities regulatory

authorities and may be accessed through the SEDAR website (www.sedar.com).

With respect to forward-looking statements contained in this document, XBC has made assumptions regarding: availability of skilled labour; timing and amount of

capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by

governmental agencies; future operating costs; and other matters. Although the forward-looking statements contained in this document are based upon

assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking

statements.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide

readers with a more complete perspective on XBC's current and future operations and such information may not be appropriate for other purposes. XBC's actual

results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no

assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that

XBC will derive therefrom. The forward looking statements or information contained in this Presentation are made as of the date hereof and the Company

undertakes no obligation to update or revise any forward looking statements or information, whether as a result of new information, future events or otherwise

unless required by applicable securities laws. The forward looking statements or information contained in this Presentation are expressly qualified by this

cautionary statement.

The past performance of XBC presented herein, including the case studies referred to in the Presentation, do not guarantee future results for the Company. The

historical performance of XBC, including the case studies referred to in the Presentation, are shown for illustrative purposes only.

www.xebecinc.com 3

Mission Statement

Provide utilities, municipalities

and industry with innovative,

end-to-end gas upgrading and

conditioning solutions that

transform raw gases into

marketable sources of

clean energy.

www.xebecinc.com

Capital Markets Profile

4

Exchange and Ticker Info: XBC on TSX

Shares Outstanding: 39.3 M

Shares Fully Diluted: 53.4 M

Stock Price (June 18, 2012): $0.38

52 Week High / Low: $0.45 / $0.09

Approx Market Cap (June 18, 2012): $15 M

2011 Revenues: $14.2 M

2012 - 3 Month Revenues: $1.5 M

2012 - 3 Month Net Income:* $3.2 M

Inside Ownership %: 25%

Institutional Ownership %: 46%

*Resulted from Patent Sale to Air Products

www.xebecinc.com

Investment Considerations

5

Leading global technology Company offering end-to-end gas upgrading and

purification

Global distribution strategy in markets that are experiencing significant near

term and long term growth

Growing list of customers both new and recurring

Proprietary set of products with significant advantages over competition

Completed restructuring and recap in 2011 … platform built for growth and

profitability for 2012 and beyond

Strong balance sheet and working capital in place to grow business

Solid backlog of $15M and growing

Key Customer agreements in place including exclusive distribution agreement

for 15 biogas plants with Golden Green in China

Plants range from $1.7M to $5.5M.

Total estimated revenue over 4 years - $45M

www.xebecinc.com

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Natural and Renewable Gas Focus

Leading designer, manufacturer

and operator of natural and

renewable gas systems and

hydrogen purification

•Biogas for pipeline injection

•Natural Gas Vehicles(NGV) for

transportation

• Associated gas purification in the

Oil & Gas industry

•Hydrogen purification for

transportation and industrial use

Global presence, with headquarters in Montreal, Canada

Toronto Stock Exchange (TSX: XBC)

6

Who we are Markets

Focus Strategy

6

• Leverage key

technological advantages

into incremental sales

through direct and indirect

channels

www.xebecinc.com

Blainville (QC) Vancouver (BC)

Shanghai

Singapore

7

Headquarters in Blainville (QC) Manufacturing and Sales

R&D in Blainville (QC)

Sales and customer support Office in Vancouver (BC)

Manufacturing and Sales in Shanghai

Sales Office in Singapore

Ability to gain business and service customers worldwide

International Presence

www.xebecinc.com 8

Biogas upgrading plants Natural gas dryers for NGV refueling stations

Rapidly growing market

High recovery, high purity, low energy plants

Key Customers: SEMPRA, Montauk Energy, Halla Engineering, Terasen Gas

Growing market

Cost leadership through Chinese manufacturing

Key Customers: Clean Energy, Petrochina, Sinopec, Shell

Hydrogen purifiers for hydrogen recovery

Business Segments

Evolving market segment

Market-leading performance for small-capacity hydrogen purifiers

Syngas purification

Key Customers: HydroChem, Air Liquide, Linde, Iwatani

Associated Gas (Oil & Gas industry)

Evolving market segment

Market-leading performance for associated gas purification

Key Customer:

Venocco, Warren

Technology

www.xebecinc.com 10

Proprietary Products and IP Assets

Pure Innovation™

15 years of dedicated development in gas purification & separation

and over $60M invested prior to current management

Xebec owns the IP related to its products design

Complete proprietary product line with respect to rotary valves,

structured adsorbent and Rapid cycle PSA

Sale and license back from Air products of 130 patents or

applications in 39 patent families worldwide (March 2012)

Exclusivity for 2 years

Ability to simulate, develop and test gas separation technologies in

line with market and customer requirements

Ongoing development of next generation biogas upgrading

technology

Same PSA technology is applicable to all products

Xebec unit installed at

ExxonMobil refinery in 2007

Xebec Technology

www.xebecinc.com

Products

Biogas (BGX) Natural Gas (NGX) Hydrogen (H2X) Associated Gas

(AGX)

11

www.xebecinc.com

Key Customers & Partner

Biogas (BGX) Natural Gas (NGX) Hydrogen (H2X) Associated Gas

(AGX)

20 customers 500+ customers

60 customers

4 customers

1 Partner

5000+

installations in

40 countries

175 installations

in

15 countries

2 installations in

the USA

1 in Indonesia

1 in India

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Market Summary: Natural Gas as Transportation Fuel

www.xebecinc.com

Natural Gas Market – Global Focus

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0%

10%

20%

30%

40%

50%

60%

Asia Europe

N.A. L.A.

Africa

Average % NGV growth 2000 to present by region

Asia has been growing at 51%

The EU has seen growth in the NGV market space and is planning for accelerated growth in Germany, Italy, Sweden, Austria, Switzerland, Spain and others

The U.S. and Canada are in the process of introducing favorable legislation, which will lead to significant future growth in the NGV sector – Economics are driving growth currently

Latin America is continuing to grow its NGV fleets

Africa is seeing good growth

www.xebecinc.com 15

2012 2013 2014 2015

Total Number of

Natural Gas

Stations

253 449 704 1220

Total Number of

Liquid Natural Gas

Stations

102 196 322 479

Total Number of

Liquid Natural Gas

Plants

27 40 53 66

© NGVAmerica Projections to 2015

Projected US NGV Refueling Requirements

The trend towards the adoption of natural gas vehicles will require as

much as 6B$ investment in infrastructure, from which Xebec will benefit.

School Bus Refueling Station

Market Opportunity: BIOGAS

www.xebecinc.com

Fit in the Renewable and Natural Gas Value Chain

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www.xebecinc.com

Biogas Market: Focus on N.A. and Asia

18

The global market for biogas upgrading

equipment was $52.3 million in 2010

Growth to $338.5 million by 2016

5-year compound annual growth rate (CAGR)

of 22%

The Asia-Pacific market is estimated to reach

nearly $30.1 million in 2011 and is expected to

increase at a 22.8% compound annual growth

rate to reach nearly $83.9 million in 2016

www.xebecinc.com

Biogas Segment: Key Business Highlights

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Started and commissioned Xebec’s first two biogas

plants: Halla (Korea) and Sempra (U.S.)

Received a RMB 7.1 Million order for a biogas

upgrading plant for Heilongjiang Loonggas

Investment Co., Ltd. in China

Received order for RMB 11.5 Million for landfill gas

upgrading system from Golden Green

Key agreements in place including exclusive

distribution agreement for 15 biogas plants with

Golden Green in China

Plants range from $1.7M to $5.5M

Total estimated revenue over 4 years - $45M

Hal Snyder (Sempra), Mayor Sam Abed (Escondido) and

Kurt Sorschak at press event in February 2011

www.xebecinc.com

Project Location Biogas Source End-Use

2006 - 2009

Scenic View Dairy MI, US Digester Pipeline

Rumpke Landfill OH, US Landfill Pipeline

Widnau Switzerland Digester Pipeline

Lavigny Farm Switzerland Digester Pipeline

UNH NH, US Landfill Turbine

SKS Austria Digester CNG

Swiss Farmer Switzerland Digester Pipeline

STEP Switzerland Digester Pipeline

Hilarides Dairy CA, US Digester CNG

Daesung Seoul, Korea Landfill CNG/LNG

SKS Austria Digester CNG

2010 - YTD

Sempra Energy CA, US Waste Water Pipeline

Halla Engineering Seoul, Korea Digester CNG

SKS Austria MSW Pipeline

SKS Austria MSW Pipeline

SKS Austria Waste Water CNG

Verdemobil France MSW CNG

WELtec China Agricultural Digester CNG

Huimiing China Landfill CNG

Terasen Gas Canada Landfill Pipeline

PT Indo Raya Indonesia Chemical Plant Pipeline

Xebec Biogas Installations

Extensive experience in the biogas segment

gained through the successful completion of

multiple international projects

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70% of all upgrading projects are for

renewable gas to transportation fuel

www.xebecinc.com

Market Analysis – Landfill Sites North America

• Accepting waste or have been closed

for less then five years

• At least 1.8 mm tons of waste in place

• Minimum Flow of 800 SCFM

461 342 SCFM X 2,200$* (per scfm per year)

1.1B$ market per year for renewable gas

* 2,200$ (per scfm) based on Xebec’s technological advantage

Available Sites 300 to 350 landfills

Addressable market based on flow

21

www.xebecinc.com

Market Analysis – Waste Water Treatment Plants

• Operational AD

• Influent of min. 20 MGD

• Minimum Flow 350 SCFM

100 000* SCFM X 2,200$* (per scfm per year)

220M$ market per year for renewable gas

* 2,200$ (per scfm) based on Xebec’s technological advantage

Available Sites 70 to 100 WWTP

Addressable market based on flow

22

Market Summary: Hydrogen Purification

www.xebecinc.com 24

Hydrogen Purification Market

Global investment in plants and equipment

estimated to be worth $2.2 billion in 2010

expected to increase to $5.4 billion in 2015

Largest segment - Energy Conversion

expected to increase from $1.3 billion to

$3.7 billion by 2015

Second-largest segment – Hydrogen

Production

expected to increase from $650 million in

2010, to $1.1 billion in 2015

Xebec unit installed at ExxonMobil

refinery in 2007

www.xebecinc.com

Hydrogen Segment: Recent Highlights

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Delivered an H-3200 to Grasys (Russia)

Received an order $2.05 Million for a H-3200

hydrogen purification unit from Deok-Yang

Company Ltd., the leading hydrogen supplier

in South Korea

Iwatani - Continued relationship +10 years)

with solid orders in 2011

H-3100 in Japan for the HydroEdge project

www.xebecinc.com

Market Overview – H2 and Syngas

26

Past Present Future

Steam

power

Syngas

clean-up

Biofuels

Hydrogen

separation

Fuell

cells Refinery Vehicles

Xebec PSAs, together with H2 gas scrubbing, as a solution,

have a promising growth in the the Syngas markets

Gasification

Gasification

Plant

Market Summary: Associated Gas

www.xebecinc.com

Market Summary: Associated Gas

28

Burning and/or flaring, wastes a valuable clean energy resource and emits carbon dioxide, a greenhouse gas.

The World Bank estimates that over 150 billion cubic meters (or 5.3 trillion cubic feet) of natural gas are being flared and vented annually.

Flaring gas adds about 350 million tons of CO2 in annual emissions.

This is more than the potential yearly emission reductions from projects currently submitted under the Kyoto mechanisms.

Xebec’s PSA technology can help clean associated gas and make it available as a replacement for diesel.

Xebec has entered into a co-marketing agreement with Primoris.

www.xebecinc.com

Associated Gas : Recent Highlights

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Delivered an M-3200 system ($1.2M) to PT Indo Raya Kimia in Indonesia, a leading producer of carbon disulphide in Asia Pacific

Received an order for an M-3200 system to upgrade natural gas at a greenfield chemical plant to be constructed in Valayat, Gujarat State, India.

The total value of the contract was approximately CAD2.3 million. Xebec's PSA was purchased by Grasim Industries Limited, a leading producer of Viscose Stable Fiber ("VSF") in Asia.

PXP associated gas project for pipeline injection

Growth Strategy, Backlog, Competition, Sales

www.xebecinc.com

Return to Profit and Growth

Profit

Leverage Chinese Supply Chain - Improve Margins

Tightly Control SG&A

Focus on higher margin recurring revenue opportunities (aftermarket & gas

conversion/BOO)

Grow Revenues

Growth

Launch new Associated Gas product applications

Integrate current product offerings into end-to-end solutions

Focus on North American NGV market

Capitalize on upcoming Quebec Biogas opportunities

Expand the sales distribution network in Asia-Pacific, Africa and in South America

Integrate other profitable companies in order to increase its critical mass through

M&A activities

Carry on its R&D efforts in Blainville and through partnerships with universities

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www.xebecinc.com

Backlog and Revenue Model

The current backlog as of June 2012 is $15M

The Golden Green agreement stands for 15 biogas plants, for which one PO has been received. Plants range from $1.7M to $5.5M. Total estimated revenue over 4 years: $45M

In the Biogas market, the Company intends to move from being solely an equipment manufacturer to being an owner and operator of biogas plants

Partnership agreement with Primoris Service Corporation in order to expand offering in the associated gas market to the oil & gas industry

32

www.xebecinc.com

Competitors

Biogas (BGX) Natural Gas (NGX) Hydrogen

(H2X)

•Acrion Technologies Inc.,

•Cirmac International BV,

•Lackeby Water Group (PURAC),

•Guild Associates Inc,

•MT-Biomethan GMBH,

•Carbotech AC GmbH,

• Haase Energietechnik AG,

•Ros Roca Group,

• Flotech/Greenlane,

• Yit Vatten Och Misjoteknik,

•Air Liquide,

•MalmBerg Water AB

• A.R.C. Technologies Corp.

•SPX Corp., Parker-Hannifin

Corporation,

• Aircel Corp.,

• PSB Industries Inc.,

•Xi’An Unionfilter Purification

Equipment Co. Ltd.,

•Zander Aufbereitungstechnik GmbH

• Tecno Project Industriale s.r.l.

•Air Liquide,

HydroChem,

Linde and

Iwatani

33

www.xebecinc.com

Competitive advantage

Lower capex and opex than any competing process

Higher recovery

Proven reliability and simple to maintain

Higher purification rate in one single process

Removes N2 and O2 in one single process

Lower foot print

34

Financial Information FY 2011 and Q1 2012

www.xebecinc.com 36

Diversified Product Lines (% of revenues)

2011 – $14.2 M 2010 – $13.5 M

Gas

purification

2011 32% 11% 1% 35% 11% 11%

2010 41% 23% 3% 33% 1% 0%

Licensing

Natural

gas

dryers

Aftermarket &

Service

Air dryers

(industrial)

Engineering

services

www.xebecinc.com 37

Diversified Geographic Reach (% of revenues)

2011 2010

Middle North others

Europe Asia East America

2011 0% 72% 6% 1% 20%

2010 1% 53% 10% 11% 20%

www.xebecinc.com 38

2011 Selected Financial Information

Reflects the effect of the cost control measure and the restructuring of the company

Lack of working capital slowed the growth, this improves in 2012

Reflects a non-recurring licenses revenue of $1.5M

Reflects a better revenue recognition policy

(in C$ unless indicated otherwise)

For the twelve months ended Dec 31 2011 2010

Revenue 14,203,463 13,475,211

Gross margin (%) 29% 2%

EBITDA 100,000 (12,000,000)

Net loss (1,456,950) (13,592,711)

www.xebecinc.com

Management

Kurt Sorschak, President & CEO, Director, Founder

► Kurt Sorschak is the President and the Chief Executive Officer, of Xebec since 2007. From 2004 to 2007, he was the General Manager of the Canadian division of Domnick Hunter’s air dryer manufacturing facility, at that time the largest adsorption dryer plant in North America. In 2005, he became the General Manager for the Xebec division of Parker-Hannifin Corporation, after Parker-Hannifin Corporation bought Domnick Hunter Ltd. Mr. Sorschak also worked in different managerial capacities in Europe. He obtained an Associate Degree from the American University in Paris, France, in 1982, and a Masters of Law Degree from the University of Munich, Germany, in 1988.

Eric Favreau, Vice-president & CFO:

► Mr. Favreau is Vice-President and Chief Financial Officer of Xebec since June 2011. From September 2008 to May 2011, he was Chief Financial Officer of Noveko International Inc. From September 2006 to September 2008, he was Vice-President and Chief Financial Officer of Eloda Corporation, from November 2005 to September 2006, CFO of Positron Networks PNI Inc., and from March 2005 to November 2005, he was a partner of NanoVenture LLP, an investment fund.

Graham Robson, Vice-president Asia-Pacific

► Since joining Xebec in November 2004, Mr. Robson held the positions of VP Business Development and Director Supply Chain. Prior to joining Xebec, Mr. Robson held positions in manufacturing, operations improvement, program management and supply chain, with General Motors South Africa, Ford South Africa, Atlantis Diesel Engines, Toyota South Africa, Philips Electronics UK and Rolls Royce plc, in the UK and Canada. Mr. Robson held middle and senior management positions with Toyota, Philips Electronics and Rolls Royce. He is a Mechanical Engineering graduate from the Durban University of Technology.

39

www.xebecinc.com

Investment Considerations

40

Leading global technology Company offering end-to-end gas upgrading and

purification

Global distribution strategy in markets that are experiencing significant near

term and long term growth

Growing list of customers both new and recurring

Proprietary set of products with significant advantages over competition

Completed restructuring and recap in 2011 … platform built for growth and

profitability for 2012 and beyond

Strong balance sheet and working capital in place to grow business

Solid backlog of $15M and growing

Key Customer agreements in place including exclusive distribution agreement

for 15 biogas plants with Golden Green in China

Plants range from $1.7M to $5.5M.

Total estimated revenue over 4 years - $45M