During the 2016 Annual General Meeting of Shareholders for Thermal Energy International Inc., William Crossland, CEO, provided a corporate update. The update included a review of recent achievements and financial results, as well as the Company’s outlook and growth strategies.

1. Annual General Meeting
of Shareholders
TSX-V: TMG | November 28, 2016

2. Forward-looking statements
This presentation includes “forward-looking information”. For example,
statements about the opportunities for repeat business, additional orders,
entry into new markets and growth of recurring revenue streams; order
backlog; introduction of new products and services and growth opportunities
and strategies are all forward looking information. Such forward looking
information reflects Thermal Energy International’s (“TEI”) current
expectations with respect to future events and are based on information
currently available to management. Forward-looking information involves
significant known and unknown risks, uncertainties and assumptions. Should
one or more of these risks or uncertainties materialize, or should assumptions
underlying the forward-looking information prove incorrect, actual results,
performance or achievements 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. The
forward-looking information is made as of the date of this presentation and
TEI does not assume any obligation to update or revise it to reflect new
events or circumstances, except as required by law.

3. Financial
review

4. Revenue – FY 2009 to FY 2016
0
2
4
6
8
10
12
14
2009 2010 2011 2012 2013 2014 2015 2016
($ millions)
Revenue from mega projects ($2 million or above)
18% CAGR

5. 0
2
4
6
8
10
12
14
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Revenue – FY 1993 to FY 2016
($ millions)
Revenue from mega projects ($2 million or above)

6. Gross profit
0
1
2
3
4
5
6
7
8
2009 2010 2011 2012 2013 2014 2015 2016
($ 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.
54.8%

7. Cash expenses
0
1
2
3
4
5
6
7
2009 2010 2011 2012 2013 2014 2015 2016
($ millions)

8. FY 2016 summary
 Strong year for both our heat recovery and GEM
businesses
 Net income improved to $259K
 Adjusted cash flow of $710K
 Cash balance of $1.1 million ($428K increase)
 No debt

9. 0
0.5
1
1.5
2
2.5
3
Q1 13 Q1 14 Q1 15 Q1 16 Q1 17
($ millions)
Q1 revenue
Q1 17 GEM sales up 55%; HR
Impacted by timing of orders

10. 0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
Q1 13 Q1 14 Q1 15 Q1 16 Q1 17
($ millions)
Q1 gross profit
Q1 17 gross profit up 32% - Our
highest Q1 gross profit ever!
60.9% 43.0%60.0%63.7%
Percentages figures are gross profit as a percentage of total revenue.
68.2%

11. Q1 2017 summary
 GEM revenue up 55%
 Heat recovery supported by strong order backlog
 Gross profit up 32% - Our highestQ1 gross profit ever!
 Positive EBITDAS of $3K vs. loss of $401K last year
 Cash balance of $836K
 No debt

12. Order
backlog

13. 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.
7.8
9.5
Growing order backlog
($ millions)
Last Year Today

14. Recently announced orders included in order backlog:
 4 orders totaling ~$3,700,000 from hospitals
 $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
business
Other orders from textiles, mining, performance materials,
pharmaceutical, biotech, tire manufacturing, and
food ingredients businesses
Orders from many industries

15. Marketing
update

16. Improved marketing capabilities
 Began using MailChimp for email marketing and
investor news alerts
 Branded appearance
 Provides analytics
 Created a global repository for marketing assets
 Ensures uniformity and access to latest versions
 Used by our sales team + agents and distributors
 Brochures, data sheets, over 50 case studies, and other
materials
 10 different languages

17. Improved online presence
 Continued to make improvements to our website
 Added additional content; keeping it current
 Increased our social media following:
 Continued to build our presence on LinkedIn and YouTube
5,920 followers
(4,885 a year ago)
1,613 page likes
(1,551 a year ago)
33,492 views
(last 12 months)

18. Enhanced marketing materials
 New case studies, data sheets and white papers
 New CoGeneration marketing materials
 New brochures, including foreign language brochures

19. Continued to build awareness
 We now have a better story to tell
 Recent media coverage includes
 Ottawa Business Journal
 Canadian Manufacturing
 Investment Pitch Media
 Meetings with investor audiences
 We will continue to get the story out
 CleanTechies
 Canadian Greentech
 Decentralized Energy

20. Strategy and
outlook

21. Increasing penetration in key markets
2014: Hired 7 sales & marketingstaff (net increase of 3)
 Quebec
 Mid-West US
 North East UK
2016: Hired 3 sales staff
 Ontario
 Puerto Rico
 Germany

22. Support agents & distributors in
in secondary markets
Increase penetration in existing
and new key strategic markets
Corporate / Sales Office Agent / Distributor
Increasing penetration in key markets

23. Support agents & distributors in
in secondary markets
Increase penetration in existing
and new key strategic markets
Corporate / Sales Office Agent / Distributor
Increasing penetration in key markets

24. Corporate accounts update
 Director of Corporate Accounts appointed (January 2016)
Fortune 500 Food &
Beverage Leader
Major Hospital
Group
Leading Performance
Materials Company
 Global Pricing
Agreement (June
2015)
 FY 16: $1,579K in
revenue at 7 sites
 FY17:$135Korderstodate
 Additional projects
under development
 Master Contractor
Agreement (July 2015)
 1st order received
Nov. 2015
 2nd order received
Nov. 2016
 Additional projects
under development
 Master Purchase
Agreement (July 2015)
 FY 16: $404K in
revenue from 4 sites
 FY 17: $560K orders to
date
 In development: leading tire manufacturer, premium beer co., food ingredients
co., multinational pharmaceutical co., and leading food products business

25. Corporate development initiatives
 Reinvent the Toilet
 ISTP / indirect contact / dirty streams HX
 Direct fired gas heater
 Dry-Rex®
 Cogeneration
All while maintaining primary focus on
continued growth of core business

26. Reinvent the Toilet
 2012 Demonstration at Reinvent the Toilet Fair in India
 2014 grant to deploy in Alaska, but alternative
approach taken (TEI / Climate Change Foundation not
included)
 Now looking to creating biochar with crop residues
 Likely no Dry-Rex required, FLU-ACE® possible
 Progress is in infancy stage, ultimate incorporation of
our technologies not a certainty
 Cooperation continuing

27. What is Cogeneration ?

28. ISTP / indirect heat exchanger
 Currently buy and implement indirect contact condensing heat
exchangers in heat recovery projects around the world
 Look to brand / develop / acquire product
 Look to develop unit for application to dirty streams (biomass)
 Agreement in place with Canmet MATERIALS, Natural
Resources Canada for exclusive use of patented metal-
impregnated fluoropolymer coating
 ISTP tests in China cut short due to limited production at test
site
 Looking to demonstrate locally

29. ISTP / indirect heat exchanger

30. Direct fired gas heater
 FLU-ACE® with a burner
 Allows more sales into “new build” rather than into
retrofit space, also allows entry into smaller applications
 Sells into a growing trend of hot water heating systems in
the institutional / commercial market
 Design complete, next steps - proto-type testing and
permitting (TSSA) , or gain through acquisition

31. Direct fired gas heater

32. Dry-Rex
 Market study completed (FY2016) revealing ideal market
space (food & beverage, alternative pulp & paper applications)
 Seeking partner for demonstration
 Moved test lab to Ottawa in 2016
 Completing paid study for relocation of decommissioned Dry-
Rex in British Columbia to customer site in Ontario (still years
away)
 Promising product given move to renewables and match with
FLU-ACE®

33. Dry-Rex

34. Cogeneration
 Also known as CHP (Combined Heat & Power)
CHP is an integrated energy system that:
 Generates electrical power
 Recovers waste heat for space
heating, water heating, process
heating
 Can utilize a variety of technologies
and fuels

35. Cogeneration

36. Why cogeneration?
1) Price difference between natural gas and electricity
expected to remain favorable
2) Provides clean power and protection from grid failure
3) Conservation programs – designed to reduce demand
on the grid
4) Financial incentives (i.e. in Ontario, up to 40% of the
project capital can be funded)
5) Distributed generation – more efficient to produce
power locally.

37. Why cogeneration for TEI?
 Proven track record
 Completed heat recovery from numerous Cogen
systems to drive overall efficiencies to the mid-90s
 Our specialty
 Heat recovery / waste heat use is the primary driver in
determining CHP efficiency
 Established relationships
 We now have a great reputation with large established
corporate clients executing CHP projects, allowing for
ready market access

38. Why cogeneration for TEI?
 Experienced team
 We’ve grown and added experience related to Cogen on
the sales and engineering sides
 Leverage funding programs
 Some locations (Ontario) have funding available for
Cogen but not heat recovery. By bundling heat recovery
with Cogen, the heat recovery also receives incentive
funding

39. Governments and industries
around the world taking
unprecedented action on
climate change
Increasing energy efficiency is the cheapest
& easiest way to reduce GHG emissions
Strong market fundamentals

40. 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
$21.8trillion
Expected investment
in end-use energy
efficiency from 2015
to 20401
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
Strong market fundamentals

41. Strong market fundamentals
 Compared to North America and most of Europe,
energy prices in Germany are high and rising
 Desire for energy security: Germany currently imports
more than 70% of its primary energy consumption
 Generous incentives: federal funding reached €320
million in 2015 and is expected to grow
German energy efficiency market is expected to
grow to $250 billion by 2025
Source: Germany Trade & Invest (GTAI) - economic development agency of the Federal Republic of Germany.

42. Strong market fundamentals
 Nov. 17 – U.K. became 111th country to ratify Paris
Agreement
 China poised to take a leadership role
 Most clean energy initiatives in the U.S. are state and
city level, not federal
 Bloomberg-chaired Global Covenant of Mayors,
which includes 128 U.S. mayors, plans to join Paris
Agreement if U.S. federal government withdraws

43. Strategy and outlook summary
 Increase penetration in
existing key & secondary
markets
 Corporate accounts
 Introduce new products
& services
 Strong market
fundamentals
Grow organically
and/or through
accretive
acquisitions

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