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A more sustainable future... Today!A more sustainable future... Today!TSX-V: TMG | Corporate Presentation | September TSX-V: TMG | Corporate Presentation | September

20142014

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Forward looking statements

Certain written and oral statements included in this presentation constitute “forward-looking information”. For example, statements about the opportunities for repeat business, additional orders, entry into new markets and growth of recurring revenue streams; energy savings and payback period experienced by customers; growth of pipeline, 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 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. Many factors could cause actual results, performance or achievements to be materially different from those that may be expressed or implied by such forward-looking information. Fulfillment of orders, installation and activation of product could all be delayed for a number of reasons, some of which are outside of the company’s control, which would result in anticipated revenues from such projects being delayed or in the most serious cases eliminated. Orders in the company’s backlog may not turn into revenue due to many factors, some of which are outside of the company’s control, including but not limited to the company’s ability to deliver products on time and in accordance with specifications and the continuing financial viability of the customer. Introduction of new products and services, entry into new markets, repeat business and growth opportunities will all be subject to company resources and market acceptance and may not be achieved as anticipated by the company or at all. Information as to amount of heat recovered, energy savings and payback period associated with Thermal Energy International’s products are based on Thermal Energy International’s own testing and average customer results to date. Actual results of Thermal Energy International’s products will vary by installation. 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 Thermal Energy International does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.

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Thermal Energy is a…

Global provider of energy efficiency & emission reduction solutions to the ICI sectors

We save our customers money & improve their bottom lines by…Reducing their fuel use and 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

Strong track record of growth

44 Growing global footprint

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Large, fast-growing market

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North American marketNorth American market

>$90B>$90B1

>$450B>$450B1

Global investment in Global investment in energy efficiency energy efficiency grew 15% to $3.9B grew 15% to $3.9B in 2013in 2013

Global market

Source: Pew Charitable Trusts, April 20141 Calculations based on data from U.S. Dept. of Energy, 2012 Energy Outlook

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Strong market fundamentals

56%56% growth in global energy consumption expected 2010 - 20401

60%60% of all energy used is lost due to inefficiency

1 U.S. EIA, International Energy Outlook 2013

Energy efficiency represents significant cost reduction opportunities

Investment more than offset by energy savings

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FLU-ACE®

Direct contact condensing heat recovery

GEM®

Condensate return systems (steam trap)

~~80%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

Proprietary, proven solutions

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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

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

energy costsPayback period

FLU-ACE® heat recovery

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Improved efficiency vs. traditional mechanical steam 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

10-30% 1-2 yearReduction in energy costs

Payback period

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GEM® condensate return system

Mechanical trapMechanical trap

GEM steam trapGEM steam trap

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Proven across a number of industries

PHARMACEUTICALPHARMACEUTICAL HOSPITALSHOSPITALSFOOD AND FOOD AND BEVERAGEBEVERAGE

PULP AND PAPERPULP AND PAPER CHEMICAL AND CHEMICAL AND PETROCHEMICALPETROCHEMICAL

AND MANY MOREAND MANY MORE

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$1M heat recovery & GEM® project from a major hospital, resulting in annual savings of $390K.

$232K GEM® order from a world-leading manufacturer of specialty chemicals.

$3.4M heat recovery and GEM® orders involving 9 sites from a leading Fortune 500 food & beverage company.

$281K GEM® project from a diversified healthcare/pharma company, producing annual savings of $275K.

$3.6M heat recovery project from a major pulp & paper co.

Recent projects

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Return to growth in fiscal 2014

($000’s) 9 Mths 9 Mths FY 2014FY 2014

9 Mths FY 2013

Change

Revenue 8,4348,434 6,331 +2,103

Gross profit 4,2364,236 4,231 +5

Net income (loss) (63)(63) (162) +99

Operating cash flow 341341 (1,020) +1,361

FY2014 9-month revenue exceeds annual FY2013 revenueFY2014 9-month revenue exceeds annual FY2013 revenue

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Growing pipeline

Strong order backlog$8.3M$8.3M(August 27, 2014)

Outlook

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Multinational management team

International sales team (representation in 28

countries)

Extensive list of multinational customers

Growing global footprint

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Immediate growth opportunities

Grow sales & distribution capabilities in key markets North America, Europe & the Middle East

Established foothold in North America, U.K. and Italy, otherwise key markets are largely untouched

Develop additional corporate accounts

Cross selling

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Growth strategies

Introduce new products & services

Grow recurring revenue streams

Enter new markets

Acquire complementary products and businesses

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Summary

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TSX-V: TMGTMGRecent Price: $0.11$0.1152-Week Range: $0.03 to $0.14$0.03 to $0.14# of Shares: 161 million161 millionMarket Cap: $17.7 million$17.7 millionCash: $2.6 million$2.6 millionTotal Debt: NilNil

Share data as at September 5, 2014Balance sheet data as at February 28, 2014

Listing summary

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