Decarbonizing Our Future

The RenewableGas Company™

TSX-V: XBC

Investor PresentationNovember 2019

Forward-looking Statements

Certain statements in this presentation may constitute "forward-looking" statements within the meaning of applicable securitieslaws. This forward-looking information includes, but is not limited to, the expectations and/or claims of management of Xebecwith respect to information regarding the business, operations and financial condition of Xebec. Forward looking informationinvolves known and unknown risks, uncertainties and other factors which may cause the actual results, performance orachievements of Xebec or industry results, to be materially different from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such statements use words like "anticipate", "believe", "plan","estimate", "expect", "intend", "may", "will" and other similar terminology. This list is not exhaustive of the factors that may affectforward-looking information contained in this presentation. These statements reflect current expectations regarding future eventsand operating performance and speak only as of the date of this presentation. Forward-looking statements involving significantrisks and uncertainties should not be read as guarantees of future performance or results, and will not necessarily be accurateindications of whether or not such results will be achieved. A number of factors could cause actual results to differ materiallyfrom the results discussed in the forwardlooking statements.

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Introducing Xebec. The Renewable Gas Company™Decarbonizing our future with renewable gases

TSX-V: XBC

Xebec designs, engineers and manufactures equipment to produce renewable gases such asRNG from waste, providing a revenue source for end users like gas utilities & the public sector.

With proven proprietary technology, Xebec is a facilitator in the rapidly developing Global Energy Transition space.

Mandated targets and global recognition of the economical viability in renewable gases –states and provinces setting targets – increase of ~500x over next decade in Canada alone

Experiencing rapid growth with $9.6M revenue in 2016, $48 - $49M+ revenue in 2019, 2020revenue guidance of $80M - $90M+, backlog of $71M, and $26M of awarded contracts*

Why invest now?

3

Who are we?

*as of November 11, 2019

Three main sources: organic waste, wood waste and renewable electricity are allcarbon neutral - no carbon is added to the atmosphere

What is Renewable Natural Gas (RNG)?Fossil equivalent of natural gas made from renewable sources

Advantages of RNGCost-effective energy storagemediumPractical applications in heatingand transportationInterchangeable, compatiblewith natural gas assetsCircular economy, wastemanagement tool

Electrolysis MethanationElectricityWind & Solar(Energy Storage)

RenewableNatural Gas

(RNG)Thermo

GasificationGas

UpgradingWoodWaste

Forest/Wood Waste(Cellulose Materials)

AnaerobicDigestion

GasUpgrading

OrganicWaste

Landfills

Agri-Food(Farms)

Waste WaterTreatment

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Why is RNG Relevant?Climate change is driving the need for clean energy

In Canada, 66% of all electricity is from renewables, 10% offrom wind and solar, 0.02% of natural gas is from RNG

Gas utilities are supporting demand due to the threat ofelectrification of their customer base

At the cusp of explosive growth for RNG - similar to theearly days of wind and solar

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Wind and solar have become prevalent in past 20 years,consumers demand climate action

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Targets Create Massive OpportunityGas utilities have been successful in lobbying for mandates

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Recent targets and mandates

California, U.S.A – SoCalGas has a renewable gas target of 20% by 2030

Oregon, U.S.A - renewable natural gas target of 15% by 2030 led by NW Natural

Québec, Canada - renewable natural gas target of 5% by 2025 led by Énergir

British Columbia, Canada – FortisBC has leading RNG program, target of 15% renewable gas by 2030

Targets represent need for ~477 million GJ of renewable gas, resulting in 1,400+ projects that create an estimated $6.3B+ market for Xebec’s equipment in North America alone

Canada – aiming for target of 10% by 2030 federally with Clean Fuel Standard, to be finalized mid-2020

Sources: Southern California Gas Company, NW Natural, Énergir, Fortis Inc., Government of Canada

How Will Gas Utilities Transition?RNG supply can be met with these three technology processes

COMMERCIALIZATIONTIMELINE

Ana

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Pyro

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ifica

tion

Elec

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sis

Met

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100%

30%Power-to-Gas

70%

45%Gasification

25%

25%AnaerobicDigestion

0%RESOURCE

TYPE

Biom

ass

Elec

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TECHNOLOGYSECTOR

INVESTMENTSTO BE ASSESSED

POWER-TO-GAS

PYRO-GASIFICATION

ANAEROBICDIGESTION

Production of methane byelectrolysing water using

renewable electricity followedby methanation of hydrogenin the presence of renewable

carbon dioxide

Production of methane fromorganic matter, mainly

forestry waste (wood), via athermo-chemical process

Production of methane usingmicro-organisms that breakdown organic matter in the

absence of air

INVESTMENTSTO BE ASSESSED

INVESTMENTS$7 - $10 BILLIONN

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http://images.transcontinentalmedia.com/LAF/lacom/rapportgnrreduce06022019.pdf

http://www.grtgaz.com/fileadmin/medias/communiques/2018/EN/Etude-mix-gaz-100-pourcent-renouvelable-EN.pdf

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Ultimate Energy Vision: Integrated NetworksUsing RNG makes large scale energy storage economically viable

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RNG has 1,000,000x the storage capacity of lithium ion batteries, storage capabilities of up to 1 year versus half a day, and costs 20-30x less to transport and store

Electricity Network

Power-to-Gas

ElectricityGeneration

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Leading TechnologyOver $60M in invested in proprietary technology with continuous investment

Commercially ProvenOver 200 gas installations globally

Perfect TimingThe tipping point is now – climate changeacceptance; government policy change;consumer conviction; industry readiness

Why is Xebec Gaining Traction?Leading technology, commercially proven, perfect timing

Value proposition

Lowest lifecycle cost

Reliability

Flexible and scalable

Service and support network

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$51M minimum order commitment with Sapio Group of Italy formultiple biogas upgrading plants

$5.9M contract for multiple units in France for 2019 delivery

Entered the Brazil biogas upgrading market with a first order

Multi-million dollar order from Enbridge for a turnkey biogasupgrading system - City of Toronto’s first RNG facility

Order from one of the largest waste-to-energy landfill operators in the U.S

We Have Significant Market RecognitionStrong value proposition has led to recent major contract wins

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$11.7M in renewable gas orders which included a multi-million dollarfood waste project in Ontario

Industrial Service & SupportIndustrial products, parts, service and operational support

Renewable Gas InfrastructureSetup, own and manage renewable gas projects

3

Cleantech SystemsDesign and build equipment that deliver renewable gases

1

Business ModelThree business segments driving significant recurring revenue

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2

This is the segment driving our recent revenue and backlog growth

We provide the systems for upgrading to renewable natural gas and purify Hydrogen

Cleantech SystemsFor producing renewable gases

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Continue to receive more market recognition for our technology, which is creating traction

Local service and support,key competitive advantage

Accretive acquisitions forcontinuing recurring revenue

$8 - $10M recurring revenueprojected for 2019

Industrial Service & SupportLocal Service, Support, Spare Parts and Remote Monitoring

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Source of current recurringrevenue – O&M contractsand parts

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Finance and own mid-market renewable gas projects

Sell RNG to utilities through 20-year offtake agreements

Pre-revenue and working to announce first project by year-end

Significant source of future recurring revenue and earnings

Renewable Gas InfrastructureBuild, Own, Operate Mid-Market Energy Infrastructure Assets

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Strong and growing core markets in France, Italy, United States and Canada

Market for Cleantech system sales currently exceeds $10.9B in Xebec target markets - based on announced projects Xebec estimates a potential of ~2,300 systems

Driven by new environmental targets, governmental policy/regulations incentivizing utilitiesand businesses to use renewable gases

As a result, prices for RNG are anywhere from $9 to $105 MMBtu, or ~4 to 46x the price of fossil natural gas

Core Market SizeA large and global market

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Market ValidationIndustry and governments are making major investments

ENGIE - €800M to develop greengases in the next 5 years in France

California Agencies SelectDairy Biomethane Projects –$319M Pilot

€850M in investments inTomorrow’s Energy Company(TEC), with minimum €200M innew green business lines

Commission approves €4.7B publicsupport scheme for advancedbiomethane and biofuels in Italy

More growth & jobs €500M in EUfunding for clean energy infrastructure

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UPS Makes Largest Purchase OfRenewable Natural Gas EverIn The U.S. - Seven-Year 170 MillionGallon Equivalents Purchase

Competitive Landscape

HIGH

HIGH

LOW

LOW

Rel

iab i

lity

Operating Expense

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Net Profit

$1.0Mvs Q3 2018: $(0.4M)

Gross Margin stable at

30%vs Q3 2018: 30%

Revenue up 136% to

$13.2Mvs Q3 2018: $5.6M

Return on Revenue

7.5%vs Q3 2018: (0.0)%

Backlog increased by $5.5M

$71.0M*vs Nov 8, 2018: $65.5M

Positive EBITDA at

$1.5Mvs Q3 2018: $0.1M

*Includes firm order commitment of $43M over next 2 years

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Operating Cash Flow

$(721,070)vs Q3 2018: $25,608

Working Capital (Ratio – 2.3:1)

$19.0Mvs Dec 31, 2018: $5.2M (1.6:1)

Financial HighlightsFrom Q3 2019

**annualized

Revenue per Employee

$314K**vs Q3 2018: $169K

Positioned for GrowthSetting the foundation for 2020

Closed $11.6M equity raise in Q3/19 at$1.40 and $7.0M equity raise in Q4/18 at $0.75

$23M in credit facilities established mid-2018with EDC to satisfy working capital needs

Earnings per share (EPS) for 2019 are expectedin the range of $0.06 to $0.07

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Rev

enue

2016

$9.6M

$14.7M

$20.2M

$48 – 49M*

2017 2018 2019

Year*Company guidance

19

FY2020 revenue guidance of $80 to $90 million,7-9% net earnings, 11-13% EBITDA margin

Capital Market Profile

Exchange and Ticker Info: TSX-V: XBCCorporate Headquarters: Montreal, CanadaShares Outstanding: 72,141,612Shares Fully Diluted: 88,677,284Stock Price (November 8, 2019): $2.0352 Week High / Low: $0.64 - $2.17Market Capitalization on Date: C$146.4MIn Business Since: 1967Number of Employees: 133TTM Revenues: C$20.2MInside Ownership: 14.2%Institutional Ownership: 42%

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Management, Board, Awards

Kurt SorschakChairman of the Board, President & CEOCo-founder of Xebec, developed it from a local compressed air andgas dryer manufacturer into the international company it is today

Dr. Prabhu RaoBoard Director & COOFormer CEO of McPhy Energy North America, seasoned executivewith over 15 years of experience in the alternative energy industry

Louis DufourCFO20+ years of corporate finance and operational experience,most recently as a Partner of CFO Optimum

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Management and Board

Joseph H. PetrowskiBoard Director

Guy Saint-JacquesBoard Director

Dr. Francesco MassariGeneral Manager, Xebec Europe

Dr. Amir GhasdiDirector, Business Development

William BeckettLead Board Director

Dr. Peter ChengGeneral Manager, Xebec China

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Kurt Sorschak

450-979-8701ksorschak@xebecinc.com

President & CEO

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