1

Q1 2017 Review

TSX-V: TMG | October 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

Revenue – Historical Q1

0

500

1000

1500

2000

2500

3000

Q1 13 Q1 14 Q1 15 Q1 16 Q1 17

($000’s)

4

Gross Profit – Historical Q1

0

200

400

600

800

1000

1200

1400

1600

Q1 13 Q1 14 Q1 15 Q1 16 Q1 17

($000’s)

5

EBITDAS – Historical Q1

($000’s)

-1000

-900

-800

-700

-600

-500

-400

-300

-200

-100

0

100

Q1 13 Q1 15 Q1 16Q1 14 Q1 17

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.

6

Growing Order Backlog

A year ago 18-Oct-16

($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.

3.7

7.8

7

~$2.5 Million Hospital Order Backlog

$500,000 GEM order from a new hospital customer

$1,148,000 heat recovery + GEM order from a hospital trust

$840,000 heat recovery extension from a multi-site hospital group

8

Diverse Order Backlog

Recently announced orders included in order backlog:

$1,700,000 heat recovery order from an ethanol producer

$750,000 heat recovery order from a global brewing company

$1,015,000 heat recovery order from leading food products

company

9

Diverse Order Backlog

Other recent orders included in order backlog:

4 GEM orders totaling ~$200,000 from an international textiles

manufacturer

$190,000 heat recovery order from a global mining and materials

company

$452,000 in GEM orders from a leading performance materials

company

$158,000 GEM order from a Fortune 500 pharmaceutical company

Also orders from biotech, tire manufacturing, and food ingredients

businesses

10

Customers include many

large multinational companies

across many sectors

11

Strong Market Fundamentals

Governments and industries

around the world taking

unprecedented action on

climate change

Increasing energy efficiency is the cheapest

& easiest way to reduce GHG emissions

12

Strong Market Fundamentals

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

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

$21.8 trillion

Expected investment in end-use energy

efficiency from 2015 to 20401

1313

Fast-growing global market with strong fundamentals

Growing order backlog across a variety of industries

Increase penetration in key and secondary markets

Enter new markets

New complimentary products & services

Grow organically and/or through

accretive acquisitions

Key Growth Opportunities

14

Like @GoThermalEnergy on Facebook

Follow @GoThermalEnergy on Twitter

Visit our website at www.thermalenergy.com