International Wastewater Systems Inc. Corporate Presentation: February 2017 IWS IWI INTWF

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Forward Looking StatementsThis presentation contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of IWS to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include discussions with respect to the future prospects of IWS’s business and the intention to grow the business and operations of IWS. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation and IWS’s preliminary short form prospectus. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, the ability of IWS to obtain necessary financing, general economic conditions, consumer interest in the services and products of IWS, competition, and anticipated and unanticipated costs. Such statements could also be materially affected by the impact of general imprecision of taxation policies, competition, the lack of available and qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal or external sources. Actual results, performance or achievement could differ materially from those expressed herein. While IWS anticipates that subsequent events and developments may cause its views to change, IWS, except as required by law, specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing IWS’s views as of any date subsequent to the date of this presentation. Although IWS has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect IWS.

IWS IWI INTWF 2

Introduction

IWS’s commercialized and patented technology provides carbon friendly, low cost, efficient heating, air conditioning and hot water for almost any building

IWS’s technology utilizes heat from wastewater to provide temperature management and hot water

Listed in Canada (CSE:IWS), Germany (Frankfurt: IWI) and the U.S. (OTC:INTWF)

Investment Highlights:

12 active SHARC installations across Canada, United States, UK and Australia

US$60 Million Funding Commitment for 1,000 PIRANHA units in California ( Build, Own, Operate)

Strategic Alliance with Scottish Water to develop projects across Scotland

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IWS Technology

• 7 years of development• 12 successful installs

• Miniaturisation & simplification of SHARC• Developed in response to market demand• Multiple installations completed

Capabilities Heating, air conditioning and water heating Water heating

Engineering Adaptable to all applications Self contained unit

Capacity 440 kW, 660kW, 880kW, 1010kW(Modular for increased capacity)

50kW(Modular for increased capacity)

Typical Installation Commercial and 400+ unit residential applications

Commercial and 50-400 unit residential applications

2 key technologies

How it Works - SHARC

1. Wastewater which is typically ~21˚C (70˚F),(heated from showers, dishwashers, washingmachines etc.) is captured before leaving afacility in an on site tank. Or directly pulledfrom a city sewer main.

2. Solids are separated from the waste streamwith IWS patented technology and the warmwater is passed through a heat exchanger,which transfers thermal energy from thecontaminated water to a process loop.

3. Used in combination with water sourced heatpumps IWS systems can heat incoming water,and provide space heating and cooling athigh efficiencies (400-500%).

4. Solids and contaminated water are released to the sewer system.

(Click the image for video tour)

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A

A B

B

C

C

D

D

How it Works - PIRANHA

Wastewater In

Domestic Cold Water In

Domestic Hot Water Out

Wastewater Overflow

Wastewater Out

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PIRANHA released in 2016, selected as Green Building Product of the Year at 2016 AHR Innovation Awards

Judged by ASHRAE members (American Society of Heating, Refrigerating and Air-Conditioning Engineers)

Evaluation based on innovative design, creativity, application value and market impact

Award Winning Technology

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Business Segments & Revenue Streams

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ORIGINAL EQUIPMENT

MANUFACTURER (OEM)

ENERGY SALES FROM OWNED

PROJECTS

SYSTEM SALES AND PROJECT

DEVELOPMENT LICENSING

SALES, CONSULTING &

SERVICE REVENUE

LONG TERM RECURRING

REVENUE

MANUFACTURING MARGINS

ROYALTIES LONG TERM RECURRING

REVENUE

EQUIPMENT PURCHASE HEAT PURCHASE AGREEMENT (HPA)

(LONG-TERM, FIXED-RATE)

Old heating bill without IWS IWS

Gross Margins

FINANCING AN IWS PROJECT

Energy Savings – Rapid Payback

Customer Savings

IWS Costs

Year 1 Year 30

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RHI (Renewable Heat Incentive) • 20 Year commitment from UK government • Paid quarterly based on kWh recovered

~12 ¢ CAD / kWh

Installations

Distributors

SHARC Energy Australia officially established• Partnership with ETS• Office locations in Canberra and Melbourne• First SHARC and PIRANHA sale secured

Cost competitive alternative for LEED points• SHARC and Piranha = perfect

solution for green building code standards

IWS Offices

IWS Global Presence

China Licensing Agreement with Beijing RuibaoliThermal Technology Co.

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Europe

Strategic Partners/Customers

North America

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Global Opportunity Pipeline: Highlights Estimated CAN$11 million of installations in the pipeline over the next 2 years

US$60 million Joint Venture in California:

1,000 PIRANHA systems over 5 years

Signed in November 2016; launch in March 2017

Strategic Alliance with Scottish Water to develop projects across Scotland: Estimated £20 million (CAN$32.4 million) pipeline

Signed in December 2016; work commenced

Australia & New Zealand – JV with Environmental Technology Solutions (ETS) :

ETS is a company uniquely positioned to manufacture and assemble custom equipment and hasgenerated significant interest from customers in the region

Signed September 2016; first installation completed

Canada - Collaboration agreement announced with Metro Vancouver and British ColumbiaHousing:

Signed December 2016; first installation completed (largest facility in the world)

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12 active SHARC/PIRANHA installations across Canada, US , UK, Australia:

Metro Vancouver Residential Buildings Richmond City Lift Station Sechelt Sewage Treatment Plant New Jersey Sewage Treatment Plant Scotland College Australia Wool Production Facility Vancouver Micro Brewery Vancouver District Energy System

First UK installation completed December 2015 backed by 20-year Heat Purchase Agreement

Broader international interest developing: Australia

New Zealand

Korea

Sweden

China

Growing international recognition of the value of wastewater heat

exchange

Installation Summary To Date

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Capitalization

Basic Shares Outstanding

92,765,044

Warrants + Options 10,217,958

Fully Diluted Shares 102,983,002

Shares held byfounders/insiders

47,000,000(~51%)

Management and Directors

Lynn Mueller, CEO & Director Russell Burton, COO

Yaron Conforti, CFO & Director Mark McCooey, Director Daryle Anderson, Director

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For more information please visit:

www.iws-sharc.com & www.sharcenergy.com

IWS IWI INTWF

Lynn Mueller, CEO & Chairman Of The Board lynn.mueller@iws-sharc.com

Russell Burton, COO russell.burton@iws-sharc.com

Yaron Conforti, CFO & Director yaron.conforti@iws-sharc.com

Head Office1443 Spitfire Place, Port Coquitlam, BC V3C 6L4

Contact

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Appendix ― Opportunity Pipeline

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Opportunity Pipeline US$60 Million Financing for California Systems

Joint Venture with RENEW Energy LLC will fund capital expenditures of US$60 Million for 1,000 PIRANHA systems

The Joint Venture will finance, build, install and operatethe projects, initially in the state of California and laterextending to the rest of the U.S.

IWS exclusive for the design, build and commissioning ofPIRANHA systems and for the operation andmaintenance services throughout the life of the systems.

US$60 million over a period of five years ~ 30 PIRANHA Systems in year 2017 ~ 140 PIRANHA Systems in year 2018 ~ 500+ PIRANHA Systems in years 2019-2021

RENEW and IWS will participate equally in the cashdistributions from energy sales

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Opportunity PipelineScottish Water - £20 M Initial Pipeline

Strategic Alliance with Scottish Water to develop SHARC Systems across Scotland

Scottish Water Horizons has estimated that up to 750 SHARC systems would need to beinstalled by 2020 to enable Scotland to achieve its carbon savings targets.

The result of 2 years of informal collaboration between SHARC Energy Systems and ScottishWater Horizons, which has created a £20 million (CAN$32.4 million) pipeline of potentialinstallations across Scotland when deployed would generate 170 GWHs per year of heatingand cooling to displace the fossil fuel currently used.

RHI

Completed: Borders College Project backed by 20 year Heat Purchase Agreement

RHI (Renewable Heat Incentive) provides additional revenue from heat sales

IWS owns the project via JV and will share in revenue from energy sales

Borders SHARC Project will provide the college with 1,800,000kWh of annual heat:

Annual Heat Sales: £45,000

Annual RHI income: £95,000

Annual EBITDA: £90,000 19

Oct 2016, established a JV (SHARC Energy SystemsAustralasia Pty Ltd.) with Environmental TechnologySolutions (ETS) of Australia

First Australian Project completed Q4 2016

ETS is uniquely positioned in the region with the abilityto manufacture and assemble custom equipment inAustralasia using IWS's intellectual property

Through its regional networks ETS has generatedsignificant interest from potential customers forvarious commercial and industrial applications for IWSproducts.

Opportunity Pipeline

(Australia & NZ)

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Opportunity Pipeline (Canada)Partnership with Metro VancouverBackground:

Metro Vancouver (MV) - partnership of 21 municipalities, one Electoral Area and one Treaty FirstNation that collaboratively plans for and delivers regional-scale services across the lower mainlandof BC. MV core services are drinking water, wastewater treatment and solid waste management.

Completed an inaugural project at The South East False Creek Neighborhood Energy Utility, a largewastewater heat recovery project supplying a District Heating Network. The NEU provides spaceheating and hot water for 4,300,000 square feet (395,000 m2) of residential, commercial, andinstitutional space Marks the first installation of the newest and largest SHARC wastewater heat recovery system, the model

880.

The SHARC 880 handles a flow rate capacity increase of three-times when compared to existing SHARCmodels

Expansion plans in place to serve new developments in the neighborhood including the GreatNorthern Way campus lands, a university campus jointly owned by the University of BritishColumbia, Simon Fraser University, British Columbia Institute of Technology and Emily CarrUniversity.

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Background:

Upcoming projects with The British Columbia Housing Management Commission (BC Housing) a crowncorporation in the province of British Columbia.

BC Housing works in partnership with approximately 800 housing providers - mostly non-profit andhousing co-operatives - over 98,000 households in 200 communities across the province. Following acomprehensive review of BC Housing's property management portfolio, IWS and BC Housing jointlyselected the initial buildings to be retrofitted with IWS's PIRANHA technology.

Opportunity Pipeline (Canada)Partnership with BC Housing

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