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A more sustainable future... Today!

TSX-V: TMG | Corporate Presentation | December 2015

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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

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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 useand cutting carbon emissions

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Highlights

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Large, fast growing global market with

strong fundamentals

Proprietary & proven energy efficiency

solutions provide high ROI

Low capital intensity business model

4 Poised for growth

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North American market

>$90B1

>$450B1

Global investment in energy efficiency outpaced renewable energy in 2013

Global industrial market

Source: Bloomberg New Energy Finance, October 20141 Calculations based on data from U.S. Dept. of Energy, 2012 Energy Outlook

Large, fast-growing market

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56%growth in global energy consumption expected 2010 - 20401

60%of all energy used is lost due to inefficiency2

1 U.S. EIA, International Energy Outlook 2013; 2 Lawrence Livermore National Laboratory

Energy efficiency represents significant cost reduction opportunities

Investment more than offset by energy savings

Strong market fundamentals

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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

16 year track record

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FLU-ACE® heat recovery

Recovery of waste heat from process exhaust

Return hot water for use in production or heating

1 system per location – sells for $100k to millions each

> 30 systems installed worldwide

90% 10-30% 2-5 YEARSRecovery rate Reduction in

energy costsPayback period

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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 $1,000 per trap

> 80,000 traps installed at 100’s of sites worldwide

10-30% 1-2 yearReduction in energy costs

Payback period

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Mechanical trap

GEM steam trap

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Proven across a number of sectors

PHARMACEUTICAL HOSPITALSFOOD AND

BEVERAGE

PULP AND PAPER CHEMICAL AND

PETROCHEMICAL

AND MANY MORE

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($ millions)

Revenue excl. hospitals and mega projects

Revenue from mega projects

Revenue from hospitals

Revenue

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($ millions)

(59.7%) (61.2%) (53.4%)(53.0%)(60.6%)(42.9%)(48.2%)

Percentages figures are gross profit as a percentage of total revenue.

Gross profit

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($ millions)

Cash expenses minus sales commissions

Sales commissions and incentives

Total cash expenses

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Sales down due to absence of large projects and drop on hospital sales

Gross profit remains stable subject to product mix

Costs control remains good, expenses relatively stable over 6 years

The focus is on delivering more sales!Without increasing costs!

FY 2015 summary

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($ millions)

Highest Q1 revenue & gross profit in 5 years

Q1 2016 financial results

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Recent projects

~$4.3 million in projects announced since late October

$910,000 heat recovery project with a major hospital

$641,000 heat recovery project with a leading animal feed supplier

$965,000 heat recovery order from a major hospital

$1,530,000 heat recovery + GEM project with a multi-site hospital

$229,000 heat recovery expansion for a leading gypsum company

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Immediate growth opportunities

Continue to develop corporate accounts & repeat orders

Cross-selling

Additional locations

11 customers

with >500

sites globally

8 customers

with >250

sites globally

11 customers

with >500

sites globally

16 customers

with >1,600

sites globally

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

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Continue growing sales & distribution capabilities in key markets of North America, Europe & the Middle East

Foothold established but key markets still largely untouched

Immediate growth opportunities

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Strengthening sales & marketing

Hired 7 sales & marketing staff between January and September 2014 for a net increase of 3

New sales people have qualified 158 opportunities

Launched new & improved website – March 2015

Continued to build our following on social media

Enhanced and created new marketing materials

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Future growth

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Increase penetration in existing key markets

Enter new markets

Cross-selling

Corporate accounts

Sector-based initiatives

Introduce new products & services

Grow organically

and/or through

accretive

acquisitions

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Summary

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Large, fast-growing global market

Proprietary & proven solutions provide high ROI

Low capital intensity business model

Poised for growth

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thermalenergy.com

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Follow on Twitter

@GoThermalEnergy