Mr. Louis Desmarais reports

THERMOCERAMIX CORPORATION ANNOUNCES THIRD QUARTER 2014 FINANCIAL RESULTS & BUSINESS UPDATE

ThermoCeramix Corp. has released its unaudited interim condensed consolidated financial statements and accompanying management's discussion and analysis of its financial position and results of operations (MD&A) for the three and nine months ended Sept. 30, 2014.

                      RESULTS OF OPERATIONS

                     Three months  Three months   Nine months   Nine months
                      ended Sept.   ended Sept.   ended Sept.   ended Sept.
                         30, 2014      30, 2013      30, 2014      30, 2013

Net research and
development                                                               
expenses                 $531,972     $(66,033)      $803,961      $184,057

Administrative            
expenses                  333,525       193,526     1,714,882       810,668

Listing costs                   -             -       961,269             -

Other income              (18,725)      (44,251)      (18,725)     (135,749)

Net interest                
expense                     9,581        54,294        73,322       108,527

Net loss for the          
period                    677,566       104,762     3,379,122       982,574

Net loss per share           
(basic and                                                                
diluted)                     0.02          0.31          0.14          1.56

"We were pleased to begin commercial production of our first product powered by ThermoCeramix's patented TCX heating technology," commented Louis Desmarais, chief executive officer. "Our new Hibachi Electric Grill, now being marketed through our wholly owned subsidiary Downtown Grill Inc., is generating significant interest among leading retailers, and we expect to see the product on store shelves and available on-line within the next few months."

Net research and development (R&D) expenses increased for the three and nine months ended Sept. 30, 2014, compared with the prior year periods due primarily to the acceleration of business activities in 2014, a decrease in R&D tax credits, and lower government grants in the current year compared with the prior year.

General and administrative expense increased in the third quarter and first nine months of 2014 compared with the prior year periods due primarily to share-based compensation expenses incurred in the current year in connection with the company's qualifying transaction, and higher general and administrative expense due to the acceleration of business activities in 2014 in comparison with the same periods in 2013.

Other income, comprising R&D service contracts and instrument sales, declined in the third quarter and first nine months of 2014 due to reduced sales in the current year of a specialized heater tube for testing water purity for use in advanced testing systems for water treatment plants, partially offset by limited sales of electric grates in the third quarter of 2014.

Net interest expense declined for the three and nine months ended Sept. 30, 2014, compared with the same periods last year due primarily to lower interest expense and higher interest income due to higher average cash balances in the current year.

The company's net loss for the three and nine months ended Sept. 30, 2014, is primarily due to higher general and administrative expenses, an acceleration of business activities, and reduced other income in 2014 combined with lower R&D tax credits and government grants in 2014.

As at Sept. 30, 2014, the company held cash of $5,926,590, an increase of $4,367,994 from Dec. 31, 2013. On Feb. 13, 2014, ThermoCeramix Inc., a wholly owned subsidiary of the company, completed the second round of a private placement for gross proceeds of $325,000 and subsequently on May 5, 2014, the company completed a bought deal private placement offering for gross proceeds of $7.5-million. The company believes these financings will facilitate growth and provide sufficient liquidity to support the continuing business for the foreseeable future.

Business update

During and subsequent to the third quarter of 2014, the company continued to make progress in commercializing its patented TCX heating technology and enhance its manufacturing capabilities:

• Lloyd LeBlanc was hired as senior vice-president of strategy and business development. Mr. LeBlanc has over 20 years of commercialization and business experience.
• The company continued to distribute its Downtown Electric Grill through Williams Sonoma.
• The company's wholly owned subsidiary Downtown Grill Inc. started to market and find vendors for its line of electric barbecues.
• The company began commercial production of its new Hibachi Electric Grill. The Hibachi grill reaches cooking temperatures of up to 700 F in less than 10 minutes without a lid, superior performance to most gas barbecues with their lids open. The Hibachi grill plugs into a 120-volt 15-amp GFI outlet, and therefore generates no flame and uses no fuel or gas, making it safe to use indoors or out. The grill is lightweight, portable, practical, easy to store, and responds to significant demand from residents of condominium and apartment buildings with open flame barbecue restrictions.
• The company is in discussions with a number of leading retailers to market and sell the Hibachi Electric Grill and other future Downtown Grill products.
• The company is in discussions with a number of international consumer appliance companies to develop and license various high-efficiency appliances. Similar to its grill and barbecue applications, the company's patented heating technologies can be adapted to various household appliances.
• The company is in discussions with aerospace and automotive parts producers to develop and license applications of its patented heating technologies for the production of injection moulded parts. The company believes that by using TCX technology, such parts can be produced in larger sizes with thinner walls and more efficiently and quickly than under existing methods; and the company has a product development contract with a leading injection moulding company.
• The company is in the process of applying for a number of additional new patents related to its proprietary technologies and applications to further extend its market reach.

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