SIDOTI INVESTOR PRESENTATION

Advanced Emissions Solutions, Inc. Advancing Cleaner Energy

© 2017 Advanced Emissions Solutions, Inc. All rights reserved.

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This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, which provides a "safe harbor" for such statements in certain circumstances. The forward-looking statements include statements or expectations regarding future growth, amount and timing of production and sale of Refined Coal (“RC”), Tinuum Group, LLC and Tinuum Services, LLC cash flow and ability to make distributions and Tinuum Group’s ability to lease or sell remaining RC facilities; future revenues, expenses, cash flow, liquidity, and other financial and accounting measures; our ability to commercialize EC products and intellectual property; expectations about the timing and amount of future dividend payments; returning value to stockholders; and related matters. These statements are based on current expectations, estimates, projections, beliefs and assumptions of our management. Such statements involve significant risks and uncertainties. Actual events or results could differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to, changes and timing in laws, regulations, IRS interpretations or guidance, accounting rules and any pending court decisions, legal challenges to or repeal of them; changes in prices, economic conditions and market demand; the ability of the RC facilities to produce and sell coal that qualifies for tax credits; the timing, terms and changes in contracts for RC facilities, or failure to lease or sell RC facilities; impact of competition; availability, cost of and demand for alternative tax credit vehicles and other technologies; technical, start-up and operational difficulties; availability of raw materials; loss of key personnel; the value of our products, technologies and intellectual property to customers and strategic investors; intellectual property infringement claims from third parties; the outcome of pending litigation; seasonality and other factors discussed in greater detail in our filings with the SEC. You are cautioned not to place undue reliance on such statements and to consult our SEC filings for additional risks and uncertainties that may apply to our business and the ownership of our securities. Our forward-looking statements are presented as of the date made, and we disclaim any duty to update such statements unless required by law to do so.

SIDOTI INVESTOR PRESENTATION

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INNOVATING A CLEANER TOMORROW

TICKER: NASDAQ: ADES

MARKET-CAP: ~$210M

FOCUS: Leader in coal-fired power emissions control for 25+ years

TRANSFORMATION: Completed significant

redirection in the business

REFINED COAL (RC) EMISSIONS CONTROL (EC)

Equity: Tinuum Group 42.5% owned

Equity: Tinuum Services, 50% owned

Royalty: M-45™ Licenses

Chemicals for Coal Emissions

Equipment for Coal Emissions

35 U.S. Patents, 16 Pending, 10 Int’l filed or pending

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(1) Market capitalization based on proximity to 3/27/17 closing price

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INVESTMENT SUMMARY

SOLID AND STABLE CASH FLOWS Current business projected to deliver at least $50M to $60M annually through 2021

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NICHE INDUSTRY LEADER

Highly leverageable position as trusted partner to America’s top energy producers focused on clean coal technology

INCREMENTAL CASH FLOWS Potential to more than double current cash flows over next few years through 2021

COMPLETED TRANSFORMATION No debt, strong balance sheet, streamlined organization, rebuilt governance and proven management team

STRONG EMISSION CONTROL INTELLECTUAL PROPERTY Chemicals technology commercialized into a growing recurring revenue business

RETURN TO SHAREHOLDERS Starting $0.25 per share dividend in Q2; potential to expand capital return program through further dividends and/or and share repurchases

HISTORICAL EVENTS & NEW BEGINNING

2011 Launch of

Refined Coal

2012 Equipment Systems and Manufacturing

Started

2013 - 2014 Speculative R&D

Investments

Poor Margin Equipment Bubble

2014 Identification of

Financial Statement Matters

Cash Burn

2017 Lean Model and

Focused on Recurring Cash

Flow

2015 - 2016 Transformation

Restructure Re-position

NEW MANAGEMENT ACCOMPLISHMENTS

TRANSFORMATION RESTRUCTURE RE-POSITION

Simplified business model and shed poor performing assets

Built diverse new team

Commercialized patents

Reduced costs by over 70%

Improved balance sheet; no debt

Re-listed on NASDAQ with improved investor relations

Solidified market reputation in Power Market

Supported new team & approach at Tinuum

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U.S. NET ELECTRICITY GENERATION (BILLION KILOWATTHOURS)

Source: U.S. Energy Information Administration, Annual Energy Outlook(AEO), 2017, www.eia.gov.

COAL USE: A REALITY MOVING FORWARD

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OBTAIN NEW TAX EQUITY INVESTORS FOR REFINED COAL: Nurture current & add additional sales channels Dedicate additional resources Leverage improving political and refined coal tax equity market GROW EMISSIONS CONTROL & CONTINUE TRANSFORMATION: Sell recently commercialized chemicals Further monetize valuable intellectual property Explore targeted M&A RETURN CAPITAL TO SHAREHOLDERS: Declare dividend of $0.25 in Q2 Evaluate and be prepared for potential additional dividends (one-time and/or incremental recurring) Evaluate and be prepared for potential stock buy-backs

2017 PRIORITIES

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REFINED COAL

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ADES 42.5%

TINUUM GROUP OWNERSHIP STRUCTURE

TINUUM GROUP: VALUABLE JOINT VENTURE

Denver area company founded in 2006

Leading developer and operator of Refined Coal production facilities

Federal tax policy incented the development of Refined Coal that reduces mercury and NOx emissions

Refined coal production enables investors to receive tax incentives and Tinuum receives income from those investors

Income expected through 2021

NEXGEN REFINED COAL, LLC 42.5%

GOLDMAN SACHS 15.0%

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FULL-TIME OPERATIONS ROADMAP

REFINED COAL FACILITIES TODAY AND TOMORROW

POTENTIAL

28 RC facilities (~100 MT/year)

7 RC facilities – installed and waiting for investor

2017 - 2021 RC Facility information as of March 23, 2017

14 RC facilities leased/sold

(40-50 MT/year)

Operating and Invested

Not Operating and Not Invested

7 RC facilities – yet to be installed

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Projected Future RC Rent Payments

$0

$10

$20

$30

$40

$50

$60

$70

2017 2018 2019 2020 2021

PROJECTED RC CASH FLOWS TO ADES AS OF TODAY (in millions)

Total: $275 – $300 million

Projected Future RC Cash Flows to ADES

• Based on 14 invested facilities as of March 23, 2017

• Results in projected cash flows of $275M to $300M

to ADES in total through 2021

• Each additional refined coal facility could add

between $5 -7 million annually

• Closed an additional RC facility in March 2017

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Proven Refined Coal Business Model

RC Tax Equity Examples: Goldman Sachs, Waste Management, DTE Energy, Arthur Gallagher, Fidelity Investments and many others

There are benefits IF hurdles can be overcome

Coal Reputation and Political Stigma

Uncertain Federal Tax Reform

IRS Complexity

Net Income and EPS Improvement

Uniquely strong cash returns

Provide Cleaner Energy

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REFINED COAL ENVIRONMENT

HURDLES BENEFITS

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EMISSIONS CONTROL

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EMISSIONS CONTROL: CURRENT OPPORTUNITY

$100M

$300M - $500M

CURRENT FOCUS MERCURY CONTROL

Mercury control regulation since 2015/2016; with large capital investments complete

Recurring consumables needed to control mercury

$100M annual target market and we are just getting started (1)

Consumable market is $400M - $600M annually

MARKET

Cost effective and simple alternative

Less equipment corrosion

Turn-key with world-renowned experts

COMPETITIVE DIFFERENTIATORS

Patented technology

Low operating cost mode

Recurring revenue model

COMPETITIVE ADVANTAGES

(1) Target Market estimated annual revenues based on the Company's internal estimates from current products for the mercury control consumables market 15

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EMISSIONS CONTROL: OTHER 2017 ACTIONS

Assess commercialization of remaining IP within mercury control and

emerging waste water treatment within coal-fired

power market

Complete commitments on equipment

installations and warranty

Standardize, simplify and rationalize to ensure

repeatability at lowest cost

Evaluate accretive M&A alternatives

within dynamic market

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FINANCIALS

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FINANCIAL REVIEW

ANNUAL REVENUES

$17M

$63M $51M

2014 2015 2016

EQUITY METHOD EARNINGS & ROYALTIES

$20M

$52M

2014 2015 2016

OTHER OPERATING EXPENSES $57M

$27M

2014 2015 2016

NET INCOME (LOSS)

-$30M

$98M

2014 2015 2016

$49M

$47M

$1M

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CURRENT CASH FLOWS VS. STOCK PRICE

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Incremental Cash Flows

$ ? Potential Value

Potential Value:

Ability to add up to 14 more Refined Coal facilities; each new refined coal facility would add between $5M-7M annually; 1 new facility added in 2017 would add approximately $30M of cash or $1 to $2 per share

Ability to generate cash from untapped IP within Emissions Control business

Undiscounted Under Value:

Current stock price may be undervalued based on current business cash flows of $275M to $300M through 2021

Base Cash Flows

$13.0 Undiscounted Under Value

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(2) Stock price calculated based on cash flow from current business of $275M to $300M

(1) Stock price based on proximity to 3/27/17 closing price

$5.0

$15.0

$25.0

Stock Price $9.5

Current

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THANK YOU