Mr. William Crossland reports

THERMAL ENERGY ANNOUNCES $2 MILLION TURNKEY HEAT RECOVERY PROJECT WITH GLOBAL NUTRITION COMPANY

Thermal Energy International Inc. has received an order for a turnkey heat recovery project from a global nutrition company. The project, valued at $2-million, will be the 12th turnkey project with this customer. All figures are shown in Canadian dollars.

"Repeat business of this frequency and magnitude highlights the strength of our relationship and the repeatable opportunities that arise when customers witness successful execution and measurable results," said William Crossland, chief executive officer of Thermal Energy. "Having previously upgraded the plant's steam system with our GEM steam traps, this latest project will recover valuable energy from the exhaust of an indirect gas-fired burner used in a milk spray dryer, further improving the plant's energy efficiency, operating performance and environmental footprint. The customer is a leading global brand, and we are pleased to be their energy efficiency and carbon reduction partner."

This turnkey heat recovery project is expected to recover valuable energy from the exhaust of an indirect gas-fired burner used in a milk spray dryer on site. By recovering and redirecting this waste energy back into the customer's process, this project is projected to result in approximately $750,000 in annual savings for the customer when including CO2 (carbon dioxide) offset.

Recently, on Aug. 24, 2026, Thermal Energy announced three heat recovery orders from the same customer. Those orders, totalling $2.1-million, included two turnkey projects and a major equipment package. For more details, read the company's press release from Aug. 24, 2026.

The revenues expected from this latest order are expected to be earned within the next 12 months. The company expects the gross margin for the turnkey 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 International provides energy efficiency and emissions reduction solutions to Fortune 500 and other large multinational companies. Thermal Energy 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, Pittsburgh, United States, as well as Bristol, United Kingdom, with sales offices in Canada, the United Kingdom, the 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, on the OTCQB under the symbol TMGEF and on the Frankfurt Open Market under the symbol EUW.

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