Mr. William Crossland reports

THERMAL ENERGY WINS $1 MILLION TURNKEY PROJECT --- NINTH WITH GLOBAL NUTRITION COMPANY

Thermal Energy International Inc. has received an order for a turnkey heat recovery project worth approximately $1-million from a global nutrition company. The turnkey project will include adding one two-stage HeatSponge economizer to each of three natural gas fired boilers on site to recover waste heat from their exhausts.

"We're excited to receive more repeat business from this multinational food and beverage leader," said William Crossland, Thermal Energy chief executive officer. "Not only is this our ninth turnkey project with this global client, but it is also our third-consecutive HeatSponge turnkey project with them. This order reflects the strength of our long-standing partnership whereby we've been working to economically reduce the client's natural gas use and greenhouse gas emissions. Including this order, since 2019, we've done over $14.6-million in business with this customer and have at least partially penetrated 28 of their manufacturing sites across nine countries worldwide. This latest order further validates the value of our offering and the broader impact we deliver, underscoring the significant opportunity that remains as we continue supporting their global decarbonization efforts.

"This order, along with the seventh and eighth turnkey projects we announced with this client on Nov. 5, 2025, stem from the strategy we communicated in September to develop and promote a streamlined HeatSponge turnkey solution, providing faster turnaround times and delivering strong returns on investment for our customers."

This turnkey project is expected to be completed with revenue earned within six months. The company expects the gross margin for this project to be in line with historical amounts for its turnkey projects. Thermal Energy's overall gross margins are available in its quarterly disclosure materials.

About Thermal Energy International Inc.

Thermal Energy provides energy efficiency and emission reduction solutions to Fortune 500 and other large multinational companies. It saves its customers money by reducing their fuel use and cutting their carbon emissions. Thermal Energy's proprietary and proven solutions can recover up to 80 per cent of energy lost in typical boiler plant and steam system operations while delivering a high return on investment with a short, compelling payback.

Thermal Energy is a fully accredited professional engineering firm with engineering offices in Ottawa, Canada, and Pittsburgh, United States, as well as Bristol, United Kingdom, with sales offices in Canada, U.K., United States, Germany, Poland and Italy. By providing a unique mix of proprietary products together with process, energy and environmental engineering expertise, Thermal Energy can deliver unique, site-specific turnkey and custom engineered solutions with significant financial and environmental benefits for its customers.

Thermal Energy's common shares are traded on the TSX Venture Exchange under the symbol TMG and on the OTCQB under the symbol TMGEF.

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