1TSX-V: TMG | September 2017

Fiscal 2017 year end

and Q4 financial

review and update

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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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Year end revenue

($ millions)

0

2

4

6

8

10

12

14

FY 15 FY 16 FY 17

$13.2

FY 2017 highlights:

Record revenue

Up 6.4% over FY 2016

GEM revenue up 28.6% over FY 2016

Heat recovery revenue down 9.4% versus FY 2016

4

Year end gross profit

($ millions)

0

1

2

3

4

5

6

7

8

FY 15 FY 16 FY 17

$7.4

FY 2017 highlights:

Record gross profit

Up 9.5% over FY 2016

Gross margin of 56.4% versus 54.8% in FY 2016

Higher proportion of GEM revenue

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Year end EBITDAS and net income

($ thousands)

-2400

-2000

-1600

-1200

-800

-400

0

400

800 $750

-2400

-2000

-1600

-1200

-800

-400

0

400

800

$393

FY 15 FY 16 FY 17 FY 15 FY 16 FY 17

EBITDAS Net income

6

Q4 revenue

($ millions)

0

1

2

3

4

5

Q4 15 Q4 16 Q4 17

$4.8

Q4 2017 highlights:

Revenue up 15.3% over Q4 2016

GEM revenue up 35.4%

Heat recovery revenue up 1.2%

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Q4 gross profit

($ millions)

0

0.5

1

1.5

2

2.5

Q4 15 Q4 16 Q4 17

$2.4

Q4 2017 highlights:

Gross profit up 16.2% over Q4 2016

Gross margin of 50.0% versus 49.7% in Q4 2016

Boosted by strong GEM sales during the quarter

8

Q4 EBITDAS and net income

($ thousands)

-400

-300

-200

-100

0

100

200

300

400

500 $463

-400

-300

-200

-100

0

100

200

300

400

500$354

Q4 15 Q4 16 Q4 17 Q4 15 Q4 16 Q4 17

EBITDAS Net income

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Order backlog up 23% from a year ago

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.

At the time of reporting year end in September of each year

($ millions)

0

2

4

6

8

10

FY 15 FY 16 FY 17

$9.0

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Recent & planned growth initiatives

Increase penetration in key markets

FY2017: Three new sales people/territories (Ontario, Latin America, Germany)

FY2018 and Beyond: Alberta, Texas, Germany, France, Eastern Europe

Introduce new products

FY2017: Super-Efficient Cogeneration™

FY2018 and Beyond: Dry-Rex low-temp.

biomass drying Indirect heat recovery Direct fired water

heater

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Support agents/distributors in secondary markets

Increase penetration in key strategic markets

Corporate / Sales Office Agent / Distributor

Growing global presence

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

Strategic growth in key markets (NA and EU)

Opportunistic growth in secondary markets

Corporate accounts

Strategically targeted sectors

Alternate distribution channels

New products and services

Grow organically

and/or through

accretive

acquisitions

Growth strategy

Strong market fundamentals, enormous growth potential

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Highlights

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Enormous, fast-growing market with strong fundamentals

Proprietary products sold to leading companies in many sectors

Poised to continue strong track record of growth

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3

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