1. Cool Energy, Inc. 5541 Central Ave, Suite 172 - Boulder, Colorado 80301 (303) 442-2121 - www.coolenergyinc.com Powering a Clean Tomorrow™ Turning wasted heat into clean electricity with up to 100% IRR

2. 2 Cool Energy Overview ThermoHeart Engine makes clean electricity from wasted heat Customer payback as short as 1 year Current sales of product & licenses 7 patents issued, 3 pending Sophisticated engine models Daily, millions of $$ are wasted up exhaust stacks

3. 3 Market Entry Strategy 1500 trillion BTU wasted by US industry 15 GW US generation, 50GW world Other companies serve large applications CEI serves $50B small application segment of $150B total market 1 st Markets: pollution control equipment ($500M) & diesel gensets ($2B) Of 15GW of applications CEI could serve, focused on two

4. 4 Waste Heat Recovery Niche#1: Thermal Pollution Control Equipment End-of Pipe air pollution control equipment $2B annual sales, $500M potential WHR add-ons EU and Japan best current markets 10-12% market growth in Asia Targets 24/7 processes: chemical mfg, food processing, refineries, kilns

5. 5 Thermal Pollution Control Heat Recovery Schematic w/heating 750º C 1000 scfm 4x 25kWe ThermoHeart Engines (2-stage config) 320º C 1000 scfm 114º C 1000 scfm 375º C 1350 lpm 290º C 1350 lpm Therminol HTF Loop 284 kWth Heat Rejection Radiator 206kWth 80º C 250 lpm 60º C 250 lpm AC or DC Electrical Load 78 kWe from ThermoHeart 1000 scfm Direct Fired Thermal Oxidizer 78 kWe total from ThermoHeart WHR system Water/glycol Heating loop 130kWth Space and Water Heating Load

6. 6 Waste Heat Recovery 5% to 10% power boost 1 Year payback @ 6000 hours/year >$2B annual market Live demo in 2013 7% power boost Does not reduce genset performance Simple exhaust hookup Niche #2: Diesel & NG Genset Exhaust Gas

7. 7 WHR from Remote Gensets Mining, oil & gas, islands dependent on diesel Stirling WHR improves genset efficiency 5% to 10% Diesel genset electricity costs >$0.35/kWh Cool Energy engine modules can be used in arrays 300K units 500kW

8. 8 Customer Value – 25kW WHR Simple Payback Elec Rate Payback IRR 7000 hours/yr, $0.10/kWh 4.0 years (US) 25% 7% loan$0.15/kWh 2.5 years (Calif) 40% NO SUBSIDIES $0.25/kWh 1.5 years (Italy) 67% or INCENTIVES! $0.35/kWh 1.0 years (genset) 100%

9. 9 Cool Energy ThermoHeart Engine 25kW Stirling Engine High efficiency, great customer IRR 3-year service interval (20,000 hours) Novel thermo-mechanical layout Clean and very quiet Modular design for systems 25 – 500 kW Cool EnergySmall ORCSolid State TE Cost/Watt$2.50$2.50 -$3.50$5-$10 Efficiency30%25%10% O&M-$/MWh$13$15$5 Temp range100-400C 350-650C Power25-500kW125-500kW10W-25kW CompaniesOrmat, GEAlphabet

10. 10 Technology & Deployment Jan 2007 Jan 2008 Jan 2009 Jan 2010 P1 - 350W 10% eff. Jan 2011 P2 - 2,000 Watts 16.5% efficiency @ 230°C P0 - 50W <5% eff. In demo 3x P3 - 3000W 22% efficiency @ 275°C Jan 2012 3kW ThermoHeart On 24/7 Test 25kW In build

11. 11 25kW First Unit Parts Arriving

12. 12 Marketing and Sales –Building sales pipeline: 20 units - 2015, 200 - 2016, 1500 - 2017 –Sales of $5M in 2016 and $45M in 2018 –Schneider Electric has 3kW engine on test –Quotation to Schneider for 8 25kW engines –Sales & licensing agreement with Edisun –Discussions ongoing with Fortune 10 US energy company Fortune 100 US defense contractor Three US thermal oxidizer suppliers Major power company in India

13. 13 Cool Energy Team Dr. Sam C. Weaver – Chairman and Co-founder –Ph.D., M.S., B.S. Metallurgical Engineering –Serial entrepreneur >40 years in materials and energy –Exits: Millen Mtls to Dyson, Nuclear Ceramics to Eagle-Picher Bill Gross – Board Member, Founder and CEO of Idealab –Founder of GNP Development & Knowledge Adventure –Founded Idealab in 1996: dozens of RE and tech startups –Trustee of Caltech (summary of BG exit values) Samuel P. Weaver – President/CEO and Co-founder –B.S., Engineering & Applied Science, Caltech –Engineering Lead: Network Photonics, InPhase Technologies –Director of Worldwide Sales, dBm Optics Brian Nuel – Director of Engineering –B.S., M.S. Mech. Eng., High Honors, UI, Urbana –Design of engines, medical devices, telecomm devices –Cummins, P&G, Medtronic, Zolo Technologies, LASP Biz Dev/Sales – Amtegrity, Ted Treanor, Burl Amsbury Financial – Novinger, Ball, & Zivi, P.C.

14. 14 Cool Energy Outlook Opportunity & Resources ‒Initial deliveries of 25kW engines Q1 2015 ‒Experienced team & continuous progress ‒Customer sales & licensing on-going ‒Diedrich Manufacturing, Schneider Electric, Edisun Heliostats ‒>$2.5B near-term WHR market ‒>$50B worldwide market for roadmap apps ‒Proprietary engine design tools are unique Licensing model for cash efficiency

15. 15 Appendix Information

16. 16 Pro Forma Financials Mfg Partners Cool Energy

17. 17 Waste Heat Recovery Nominal System Costs Assumptions: Volume Production of ThermoHeart Engine (500/year) Single engine application (BOS cost/W reduces for multiple-engine systems) Engine and electrical interconnection located near WHR source

18. 18 Waste Heat Recovery Customer Value Engine Peak Power20kW System Cost/Watt$2.50 Installed Cost$50,000 Annual O&M $/kWh$0.013 Financing Rate7.00% Years of Operation10 Levelized Cost of Electricity (LCOE) Potential Channel Partners: Coffee Roasters (Diedrich) Concentrated Solar (Edisun) Gensets (Cummins, Caterpillar) Pollution Control (Epcon, Anguil) Brick Makers Cement Kilns Industrial Kilns (CoorsTek) Competitive with Grid Electricity Capacity Factor is the ratio of the annual energy produced to the maximum that the engine could generate if operating at max output 24/7/365 (100% capacity factor)

19. 19 OECD Electricity Prices, Returns Engine Peak Power 20kW System Cost/Watt $2.50 Installed Cost $50,000 Annual O&M $/kWh $0.01 Capacity Factor 80% Years of Operation 10

20. 20 C&I Waste Heat Recovery Market Data from coops – 26,000 WHR opportunities 7% of electricity from coops – 370,000 total US sites 50% of sites suitable for SolarHeart (<100kW) $25B TAM at $2500/kW $8B SAM – 9.5GW capacity

21. 21 WHR Public Benefit Potential 9.5 GW of capacity from top 30% of sites 50 TWh annually @ 60% capacity factor $7.5B in annual energy savings @ $0.15/kWh 30 M tons CO 2 annual emissions reductions 135,000 tons SOx/NOx reduction

22. 22 WHR from Remote Gensets Mining, oil & gas, islands dependent on diesel Stirling WHR improves genset efficiency 5% to 10% Diesel genset electricity costs >$0.35/kWh Cool Energy engine modules can be used in arrays 300K units 500kW

23. 23 Waste Heat Recovery Military Applications “Unleash us from the tether of fuel.” – Gen James T Mattis, USMC, 2003 (DSB 2008-02-ESTF) Gensets are military’s largest wartime fuel consumer (34%) 125,000 gensets fielded; 2.1GW capacity; 10,000 new/yr Gensets use 360 Mgal/year JP-8 during wartime $15/gallon burdened fuel cost in theater 2003 – 2007: >3000 casualties in fuel/water supply ops Shipboard heat recovery also of interest

24. 24 Core Technology Advances SolarHeart ® Engine Low temperature Stirling engine Converts heat to electricity High-surface-area heat exchangers Non-metallic regenerator No circulating lubrication 3-year service interval (20,000 hours) Clean and very quiet 3kW Engine Specification 3.0 kW design @ 300C 36” diameter x 45” L >20% efficient at 250C >22% efficient at 300C Nitrogen working gas Reliability testing underway now Higher-power designs in progress Beta Prototype – 2000W 16.7% measured efficiency @215C Product Design – Cast Parts, Simpler Mechanism 22.3% measured efficiency at 270°C 3100W peak output to date

25. 25 Thermal Conversion Efficiency P3 Engine Design Measured

26. 26 Reliability and Manufacturing Planning –Units running currently on 24/7 reliability testing –Total engine testing to date: >280 million cycles (5000 hrs + 2860 hrs) –Measuring ring wear, piston wear –Tracking power/efficiency over time/cycles –Testing alternative (simpler) ring designs –Projected ring life – 16,000 hours, still improving –Exploring simpler manufacturing for regenerators, pistons, rings –Working with 2 contract manufacturers

27. 27 Technology & Deployment 200720082009201020112012 3kW ThermoHeart On 24/7 Test Benchtop Proto 50W 5% eff Solar Engine I 350W 10% eff Solar Engine II 2kW 16% eff 20132014 WHR Engine I 3 x 3kW 22% eff WHR Engine II 2 x 25kW 30% eff

28. 28 25kW Design Specifications 20/25kW ThermoHeart ® Engine Converts heat to electricity High-surface-area heat exchangers Non-metallic or metallic regenerator No circulating lubrication 3-year service interval (20,000 hours) Novel thermo-mechanical layout Rotary transmission mechanism Nitrogen working gas Clean and very quiet 20/25kW Engine Family Specification 15 kW design @ 200C 20 kW design @ 300C 25 kW design @ 400C 52” diameter x 105” L > 15% efficient at 200C > 25% efficient at 300C > 30% efficient at 400C

29. 29 Thermal Conversion Efficiency 20/25kW Engine Design Modeled

30. 30 Thermal Pollution Control Heat Recovery Schematic w/heating 750º C 1000 scfm 4x 25kWe ThermoHeart Engines (2-stage config) 320º C 1000 scfm 114º C 1000 scfm 375º C 1350 lpm 290º C 1350 lpm Therminol HTF Loop 284 kWth Heat Rejection Radiator 206kWth 80º C 250 lpm 60º C 250 lpm AC or DC Electrical Load 78 kWe from ThermoHeart 1000 scfm Direct Fired Thermal Oxidizer 78 kWe total from ThermoHeart WHR system Water/glycol Heating loop 130kWth Space and Water Heating Load

31. 31 WHR Market Channels Cool Energy Channel Markets Remote Generation WHR Industrial Customers DoD Customers DoD Customers 3)Strategic Partners OEM / Licensing 3)Strategic Partners OEM / Licensing Dealers 1) End Users for Pilots 2) Energy Service Companies Key steps: pilot demonstrations, channel partners, licensing Power Generator Integrators Power Generator Integrators....... Military WHR Solutions Industrial WHR Solutions Distributed Generation

32. 32 Advisors Bill Gross – Board Member, Founder and CEO of Idealab –Founded Idealab in 1996, has incubated dozens of startups in renewable energy and internet –Founder of GNP Development –Founder of Knowledge Adventure –Board member for multiple companies –On the Board of Trustees for the California Institute of Technology Andy Goldstein – Manufacturing –Executive positions in engineering, quality, manufacturing, marketing, and materials- startup companies and Fortune 1000 companies. –30 years technology commercialization in data storage, optical communications, and medical industries. –VP of Product Generation at Medtronic Navigation & founding members of Network Photonics, - raised $117M in venture funding Amir H. Massihzadeh– Business Development –B.S., Civil Engineering, CU – Boulder; Cert of Management – University of Denver –President and Founder, Rheinzink America, Inc. –Vice President of Sales, Puma Steel

33. 33 Key Intellectual Property Issued Patents Patent NumberWhat it ProtectsCompetitive Advantage 7,617,680 Power Generation Using Low- Temperature Liquids LNG re-gasification application Japan, Chine EU Markets 7,694,514 Direct Contact Thermal Exchange Heat Engine or Heat Pump Roadmap engine design Reduced cost - no internal heat exchangers Enables lubricated engine design 7,805,934 Displacer Motion Control Within Air Engines Roadmap engine design Very broad patent for ideal Striling engine operation Applies to beta and gamma style engines 7,810,330 Power Generation Using Thermal Gradients Maintained by Phase Transitions Broad patent on open-loop phase transition temperature differential for power production Roadmap application Further protection of LNG re-gasification application 7,877,999 8,539,771 Power Generation and Space Conditioning Using a Thermodynamic Engine Driven Through Environmental Heating and Cooling Application patent for power generation using solar thermal or geothermal temperature or evaporative cooling approaches for temperature differences Building-integrated applications 8,224,495 Control of Power Generation System Having Thermal Energy and Thermodynamic Engine Components Control system for arrangement of heat sources and uses in a building to maximize customer value Applies to control systems for buildings that include power generation use of heat

34. 34 Key Intellectual Property Pending and In-Process Patents Application Number What it ProtectsCompetitive Advantage 12/577,649 Patterned foil regenerator Superior regenerator design for performance Product of trade secret manufacturing method 12/790,583 Configurable plate and fin heat exchanger Protect form of 3kW heat exchanger Product of trade secret manufacturing method 61/444,653 Piston and ring design for ring-based self-lubricating piston assembly Protect form of 3kW and 20/25kW piston assembly Product of trade secret assembly method TBD Thermo-mechanical layout of 20/25 kW engine Unique high-performance layout Efficiency: minimizes dead volume Efficiency: fully isolates hot side gases from cold Cost: single kinematic linkage for two piston sets TBD Mechanical transmission assembly for four-cycle Stirling engine Protects mechanical linkage between pistons and generator in 20/25kW engine Efficiency: maximizes transmission of engine power Durability: minimizes wear friction Durability: true straight-line motion TBD Low-friction, low-wear cam and carriage assembly for Stirling engine transmission system Protects cam and follower system in kinematic transmission Durability: minimizes wear friction

35. 35 Key Intellectual Property Engine Modeling and Branding IP TypeWhat it ProvidesCompetitive Advantage In-House Numerical Model Ability to design thermo-dynamic configurations in high-dimensional Stirling engine trade-space by optimizing free variables for best customer ROI Cost: thermo-mechanical engine configuration optimized for lowest cost, best efficiency Optimizes over thousands of potential engines each run In-house tool unavailable to any other company In-House Numerical Model Ability to analyze and optimize kinematic mechanisms by optimizing free variables for highest engine durability within thermodynamic constraints O&M Cost: engine mechanism configuration optimized for lowest maintenance, best efficiency Optimizes over thousands of potential mechanisms each run In-house tool unavailable to any other company Trade secret Design and fabrication method for very high surface area heat exchangers using off-the- shelf components in a custom housing Cost: uses high-volume, high-precision, low-cost components Assembly is rapid, lends itself to automation Trade secret Fabrication method of non-metallic regenerators via a custom dimpling mechanism Unique in-house method developed to pattern high- temperature plastic Efficiency: has demonstrated 10% improvement in engine output Trade secret Techniques for controlling valves between the thermal cycles and the crankcase space for startup and shutdown of Stirling engines. Provides low-power method for starting kinematic engine Uses off-the-shelf components and controllers Trademarks Cool Energy (77631139), ThermoHeart (pending), SolarHeart (77631126), SolarFlow (77631112), Powering a Clean Tomorrow (85423664) Protects cam and follower system in kinematic transmission Durability: minimizes wear friction