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Annual General Meeting of Shareholders

November 6, 2014

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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; order backlog; introduction of new products and services and growth opportunities and strategies are all forward looking information. Such forward looking information reflects Thermal Energy International’s (“TEI”) current expectations with respect to future events and are based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements 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. The forward-looking information is made as of the date of this presentation and TEI does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.

Forward-looking statements

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FY 2014 focus & recent successes

Winning repeat business

Cross-selling

Additional locations

Corporate accounts

Developing new markets and applications

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Hospitals – cross-selling

Example #1:

$800K in heat recovery &

GEM orders in FY 2014

Example #2:

$780K in heat recovery &

GEM orders in FY 2014

$246K heat recovery

expansion subsequent to

year end

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Pharmaceuticals – repeat business

World-leading diversified

healthcare company

FY 2014:

2 GEM orders totaling $281K

1 site penetrated out of 20

locations around the world

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Chemicals – repeat business

Fortune 500 performance materials and chemicals company FY 2014: 7 GEM orders totaling $282K

YTD FY 2015: 1 GEM order for $135K

To date: 13 GEM orders totaling $459K 3 sites penetrated out of

more than 40 sites 6

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Food & beverage – corporate account

Fortune 500 food & beverage leader FY 2014: 2 heat recovery & 7 GEM

orders totaling $2M

YTD FY 2015: 1 heat recovery & 2 GEM

orders totaling $1M

To date: 4 heat recovery & 9 GEM

orders totaling $3.3M 9 sites penetrated out of >100

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Pulp and paper – corporate account

Major North American pulp and paper company

FY 2014: $3.6M heat recovery order GEM survey completed

YTD FY 2015: $57K heat recovery order

To date: 3 heat recovery orders and 1

GEM survey totaling ~$7.7M 2 sites penetrated out of 9

locations

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Penetrated India’s tire

manufacturing industry

FY 2014:

GEM orders from multiple

manufacturers totaling

approx. $159K

Received initial order from

mining & resources sector

FY 2014:

$200K heat recovery order

from a global mining &

materials company

This was also our first order

from Greece

New markets & applications

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Our products deliver

Energy savings of

$48.6M annually

That’s equivalent to the amount of energy used by 46,785 North American homes

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Our products deliver

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Carbon emission reductions of

512,761 tonnes annually

That’s equivalent to removing 107,950 automobiles from the road

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Our impact to date

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>$384

million

in total fuel savings for our customers

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Returned to growth

Achieved record profitability

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Fiscal 2014 financial review

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Revenue

5-year CAGR = 27%

Fiscal 2014:

Heat recovery system sales +77%

GEM condensate return systems sales +37%

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Revenue excluding Mega Projects

5-year CAGR excluding Mega Projects = 20%

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Gross profit

5-year CAGR = 24%

Fiscal 2014:

Gross profit increased 40% over the prior year to a record of nearly $7M

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Net income & operating cash flow $

mill

ion

s

Net income Operating cash flow

Fiscal 2014:

Record net income of $634K

Adjusted operating cash flow of $1.35M

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($000’s) Q1 2015 Q1 2014 Change

Revenue

1,171 1,522 -351

Gross profit 703 970 -267

Net income (loss) (668) (359) -309

Operating cash flow (473) (106) -367

Q1 2015 financial review

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Q1 2015 financial review

Our Q1 results show our susceptibility to the timing of large orders

We had a record Q4 with close to record results in both our heat recovery and GEM businesses

Heat recovery Q4 2014 benefited from the substantial completion of 3 projects

GEM Q1 is typically slower (but Q1 2015 is above Q1 five-year average)

Q1 2015 had no GEM revenue from hospitals

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Large, fast-growing market with strong market fundamentals

Immediate growth opportunities and strategies for future growth

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Outlook

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North American market

>$90B1

>$450B1

Global investment in energy efficiency outpaced renewable energy in 2013

Global industrial market

Source: Bloomberg New Energy Finance, October 2014 1 Calculations based on data from U.S. Dept. of Energy, 2012 Energy Outlook

Large, fast-growing market

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56% growth in global energy consumption expected 2010 - 20401

60% of all energy used is lost due to inefficiency2

1 U.S. EIA, International Energy Outlook 2013; 2 Lawrence Livermore National Laboratory

Energy efficiency represents significant cost reduction opportunities

Investment more than offset by energy savings

Strong market fundamentals

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Immediate growth opportunities

Continue to develop corporate accounts & repeat orders

Cross-selling

Additional locations

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

16 customers

with >1,600

sites globally

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

16 customers

with >1,600

sites globally

Pulp & Paper Pharmaceutical Chemical Food & Bev.

Plus tires, plastics, textiles and many more

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Continue growing sales & distribution capabilities in key markets of North America, Europe & the Middle East

Foothold established but key markets still largely untouched

Immediate growth opportunities

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Fall 2013: Retained 2 professional sales recruitment agencies

Hired 7 sales & marketing staff over the last 12 months (net increase of 3)

Looking to hire 2 more sales people (Texas and Alberta)

June 2014: Engaged a global sales and sales management training organization to provide on-going training, coaching and support

Strengthening our sales team

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Strengthening our marketing capabilities

Hired a senior marketing professional

Enhancing current and developing new marketing materials

Launching a new corporate website in December 2014

Continuing to develop our social media presence

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New products & applications update

Reinvent the Toilet – Gates Foundation funded project involving FLU-ACE and DryRex technologies

Continuing work to simplify the process while improving cost effectiveness

DryRex biomass dryer

Patent renewed and market study completed

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New products & applications update

Petrochemical product development project

Final test site confirmed – equipment to be shipped & installed by early 2015

New GEM trap maintenance kit

Unique in-line servicing makes cleaning simple & quick

Patent pending on 3-stage GEM filtration system

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Grow in existing key markets

Enter new markets

Introduce new products & services

Grow recurring revenue streams

Future growth

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Organic growth

and/or

accretive acquisitions

Organic growth

and/or

accretive acquisitions

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