1

Unlocking the Power of

Energy Savings

TSX-V: TMG | Corporate Presentation | February 2017

2

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

33

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

4

Highlights

1

2

3

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

5

Governments and industries

around the world taking

unprecedented action on

climate change

Increasing energy efficiency is the cheapest

& easiest way to reduce GHG emissions

5

6

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

77

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

7

88

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

99

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

9

GEM steam trap

Mechanical trap

10

Customers include F500 &

other leading companies

across many sectors

11

$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

12

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

13

Historical Revenue – First 6 Months

0

1

2

3

4

5

6

H1 13 H1 14 H1 15 H1 16 H1 17

($ millions)

H1 = First six months ended November 30. Revenue from mega projects (>$2 million)

14

Historical Gross Profit – First 6 Months

0

0.5

1

1.5

2

2.5

3

3.5

4

H1 13 H1 14 H1 15 H1 16 H1 17

($ millions)

H1 = First six months ended November 30.

Our Highest H1 Gross Profit Ever

15

EBITDAS

Profitability – First 6 Months

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)

H1 2016 H1 2017

(0.3)

0.3

Net income improved $522K to $95K

EBITDAS improved $606K to $289K

16

Strong Order Backlog

($000’s)

Order backlog: The value of projects in respect of which purchase orders have been received but have not yet been reflected as revenue in the Company’s published quarterly financial statements.

A year ago 19-Jan-17

6.9 7.1

17

Strong Order Backlog

Heat recovery orders included in backlog:

$2.8M remaining in orders from 3 hospital customers

$1.7M from a leading ethanol producer

$644K remaining from a global brewing company

$150K remaining from a global mining company

GEM orders included in backlog:

$194K remaining in orders from a leading performance materials company

$147K from a hospital.

$95K GEM order from a Fortune 500 food and beverage leader (not previously announced)

18

Support agents & distributors in in secondary markets

Increase penetration in existing and new key strategic markets

Corporate / Sales Office Agent / Distributor

Growing Global Presence

* Company has engineering offices in Ottawa and Bristol (U.K.)

19

Future Growth

19

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

20

Summary

20

Enormous, fast-growing market with strong fundamentals

Proprietary products sold to leading companies in many sectors

Poised to continue strong track record of growth

1

2

3

21

Like @GoThermalEnergy on Facebook

Follow @GoThermalEnergy on Twitter

Visit our website at www.thermalenergy.com