investor fact sheet - spring 2016

STOCK OVERVIEW

Listing TSX-V: TMG

Recent price $0.05

52-week range $0.03 - $0.065

Shares outstanding 161,044,616

Market capitalization $8,052,231

Cash on balance sheet $1,295,645

Total debt Nil.

* Trading information as at April 18, 2016; Cash on balance sheet and total debt as at February 29, 2016.

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 emis-sions. 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 Low capital intensity business model

X Poised for growth

REGIONAL OFFICEBristol, United Kingdom

HEAD OFFICEOttawa, Canada

LOCATIONS

> 1 2 0 d i f f e r e n t h o s p i t a l s1 1 c u s t o m e r s w i t h > 4 0 o f 5 0 0 +

s i t e s p e n e t r a t e d

FOOD AND BEVERAGE

1 6 c u s t o m e r s w i t h 5 0 o f 1 , 6 0 0 + s i t e s p e n e t r a t e d

1 1 c u s t o m e r s w i t h 1 8 o f 5 0 0 + s i t e s p e n e t r a t e d

8 c u s t o m e r s w i t h 4 2 o f 3 5 0 + s i t e s p e n e t r a t e d

o t h e r i n d u s t r y a p p l i c a t i o n s i n c l u d e t i r e s , p l a s t i c s , t e x t i l e s

a n d m a n y m o r e

TSX-V: TMGSPRING 2016

INVESTOR FACT SHEET

@ WWW.THERMALENERGY.COM

@GOTHERMALENERGY

WILLIAM CROSSLAND President and CEO - Thermal Energy International Inc. Tel: 613-723-6776 Email: bill.crossland@thermalenergy.com

TREVOR HEISLER Investor Relations - Heisler CommunicationsTel: 416-500-8061 Email: trevor@heislercommunications.com

AFTER

RECENT PROJECTS

X $910,000 heat recovery order from a major hospital group with expected payback of 4.4 years.

X $641,000 heat recovery project with a leading animal feed supplier with expected payback of 2.5 years and generating

annual savings of approximately $256,000.

X $965,000 heat recovery order from a hospital with expected payback of 2.6 years and annual energy savings of

approximately 28%.

X $1,530,000 heat recovery project and GEM steam trap conversion for a multi-site hospital group with expected payback of

3.2 years and annual energy savings of approximately 23%.

X $520,000 GEM order from a leading diversified healthcare company representing repeat business and expected to provide

additional cost savings of approximately $494,000 per year.

FINANCIAL RESULTS

In thousands except % data 9 months ended February 29, 2016 9 months ended February 28, 2015

Revenue $8,279 $4,275

Gross profit $4,746 $2,434

Gross margin 57.3% 56.9%

Operating expenses $4,735 $4,490

EBITDAS $187 $(1,792)

Net income (loss) $(9) $(1,817)

Operating cash flow $245 $(1,278)

In thousands except % data Fiscal year ended May 31, 2014 Fiscal year ended May 31, 2013

Revenue $6,800 $13,151

Gross profit $3,628 $6,974

Gross margin 53.4% 53.0%

Operating expenses $6,006 $6,399

EBITDAS $(2,049) $879

Net income (loss) $(2,155) $634

Operating cash flow $(1,404) $1,349

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

2015 2016 2017 2018 2019 2020

C o m p o u n d e d a n n u a l g r o w t h r a t e e x p e c t e d f o r t h e g l o b a l w a s t e h e a t r e c o v e r y s y s t e m s m a r k e t b e t w e e n 2 0 1 4 a n d 2 0 2 0 . 1

1 Future Market Insights. Waste Heat Recovery Systems Market: APAC Industry Analyst and Opportunity Assessent.

20-50% 80%

A m o u n t o f i n d u s t r i a l e n e r g y c o n s u m p t i o n t h a t i s l o s t a s w a s t e h e a t . 2

A m o u n t o f l o s t e n e r g y w e c a n r e c o v e r i n t y p i c a l b o i l e r p l a n t a n d s t e a m o p e r a t i o n s

TSX-V: TMGSPRING 2016

INVESTOR FACT SHEET

@ WWW.THERMALENERGY.COM

@GOTHERMALENERGY

WILLIAM CROSSLAND President and CEO - Thermal Energy International Inc. Tel: 613-723-6776 Email: bill.crossland@thermalenergy.com

TREVOR HEISLER Investor Relations - Heisler CommunicationsTel: 416-500-8061 Email: trevor@heislercommunications.com

12.3%

2 MarketsandMarkets’ Report on Waste Heat Recovery Systems Market.