1

Unlocking the Power of

Energy Savings

TSX-V: TMG | Corporate Presentation | Spring 2016

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

3

Highlights

1

2

3

Large, fast-growing global market with

strong fundamentals

Proprietary & proven energy efficiency &

GHG reduction solutions with compelling ROI

Low capital intensity business model

4 Poised for growth

4

Governments around the

world taking unprecedented

action on emissions and

climate change

Increasing energy productivity is the most cost-effective way to reduce GHG emissions

5

Energy Efficiency vs New Power Plants

0

2

4

6

8

10

12

14

16

Energy Eff. Wind Nat. Gas Solar PV Coal Biomass Nuclear

Ran

ge o

f le

veliz

edco

sts

(cen

ts p

er K

Wh

)

6

Market Opportunity

1 2015 International Energy Agency. 32% of the $68 trillion world energy sector investment2 MarketsandMarkets’ Report on Waste Heat Recovery System Market3 Future Market Insights. Waste heat Recovery Systems Market: APAC Industry Analyst and Opportunity Assessment

.

$21.8 trillionExpected investment

related to end-use energy efficiency

from 2015 to 20401

20% to 50%

of industrial energyconsumption is lost

as waste heat2

12.3% CAGRGlobal waste heat recoverysystems market expected

to double between 2014 and 20203

77

Thermal Energy is a…

Global provider of

energy efficiency

solutions to the

industrial and

institutional

sectors

We save our customers money & improve their bottom lines by…

Reducing their fuel use, and

Cutting carbon emissions

88

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

8

99

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

FLU-ACE® Heat Recovery

1010

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

10

GEM steam trap

Mechanical trap

11

Proven Across Many Sectors

Food and Beverage Hospitals Pulp and Paper

Chemical & Petrochemical Pharmaceutical + Many More

12

Revenue by Quarter

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

FY 2015 FY 2016

Q1 Q2 Q3 Q4

Millions

120% 51% 124%

Quarter over quarter growth

13

YTD Revenue (9 months)

$-

$1

$2

$3

$4

$5

$6

$7

$8

$9

YTD 2013 YTD 2014 YTD 2015 YTD 2016

Millions

Mega Projects = single projects representing more than $1.5 million in revenue. There was one mega project in each of YTD 2013 and YTD 2014

Non Mega Project Revenue Mega Project Revenue

14

YTD vs Annual Results

($000’s) FY 2013 FY 2014 FY 2015 YTD 2016

Revenue 8,210 13,151 6,800 8,279

Gross Profit 4,977 6,974 3,628 4,746

EBITDAS (435) 879 (2,049) 187

Net Income (2,849) 634 (2,155) (9)

Annual Results 9 Months

Order backlog of $4.7 million as at April 14, 2016

15

Immediate Growth Opportunities

Continue to develop corporate accounts & win other repeat business

Cross-selling complementary products

Sell to additional locations

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

18 customers

with >1,600

sites globally

Pulp & Paper PharmaceuticalChemicalFood & Bev.

Plus tires, plastics, textiles and many more

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

18 customers

with >1,600

sites globally

16

Growing Global Presence

16

Build presence in markets where we have

agents/distributors

Expand to untouched markets with high

potential

Continue to increase penetration in key

markets

Corporate / Sales Office Agent / Distributor

17

Summary

17

1. Large, fast-growing global market

2. Proprietary & proven solutions provide high ROI

3. Low capital intensity business model

4. Poised for growth

18

Like on FacebookGoThermalEnergy

Follow on Twitter@GoThermal Energy

Visit our website atwww.thermalenergy.com

Unlocking the Power of

Energy Savings