Targeted Microwave Solutions Inc.
TSX VENTURE : TMS
OTCQX : TGTMF
FRANKFURT : A2ACNT

Targeted Microwave Solutions Inc.

December 22, 2016 19:32 ET

Targeted Microwave Solutions Announces Successful Commissioning of New Gen 3.0 Reactor and Strong Initial Test Results

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 22, 2016) - Targeted Microwave Solutions Inc. (TSX VENTURE:TMS)(OTCQX:TGTMF)(FRANKFURT:A2ACNT) ("TMS" or the "Company") announced today the successful commissioning of its Generation 3.0 ("Gen 3") Reactor at its commercial demonstration plant in King William, Virginia.

The Gen 3 Reactor incorporates a series of modifications to enhance efficiency and throughput beyond the capabilities of the Generation 2 ("Gen 2") design. Some of the key changes include moving from a rectangular to a circular vertical shaft, introducing a series of elements on the interior of the shaft to improve mixing of the material as it traverses the reactor, repositioning of wave guide ports to maximize energy transfer to the material and adding a series of structural features to improve air flow within the reactor to facilitate water removal.

Results of initial tests taken during the commissioning process, using coal as the sample material, indicate that the microwave based drying efficiency of Gen 3 had a significant improvement of more than 37% over Gen 2 technology, or more than 3.7 lbs H2O /Kwh versus 2.7 lbs H2O/Kwh respectively. Low rank coal has significant environmental and economic performance benefits for the energy industry.

Steve Lawson, Chief Technology Officer, said: "Eight months ago our engineers set out to achieve a major increase in drying efficiency and scale in delivering Gen 3 of our microwave drying technology. This is now complete. We are excited to be entering new territory with our technology. We are reaching drying efficiencies, at an industrial scale, that, as we know, have never been achieved by others in past attempts at industrialized microwave drying. These indications are before full optimization of the technology and therefore we are confident that there will be additional gains forthcoming."

The Gen 3 technology also can deliver up to a total of 2.5 MW of input energy to the drying process. This represents an increase of 313% over Gen 2 input energy delivery capacity of 0.8 MW, which TMS expects should translate to a similar increase in throughput. This important element of the process could add substantial flexibility in customizing drying applications in various industries.

"The commissioning of Gen 3 represents significant R&D progress. Microwave drying, at a commercial scale, has always been a compelling theory, and we now have made it a reality at our demonstration facility. Gen 3's impact on environmental performance, usable water production and high-efficiency makes it a strong comparative case for deployment. This progress also allows us to demonstrate increasingly positive economics. We are now actively introducing Gen 3 to high-potential target markets. We are being very well received in the China-based thermal coal energy industry. This confirms our expectation that we will be able to commercialize in this industry," said Dr. James Young, Chief Executive Officer and Chairman of the Board.

The Company remains focussed on achieving commercial deployment and rapid improvement of its technology. The Company is currently reviewing opportunities in thermal coal, wood based biofuel and clays.

On behalf of the Board of Directors,

Dr. James Young, Chief Executive Officer and Chairman

About Targeted Microwave Solutions Inc.

Targeted Microwave Solutions Inc. is a clean technology company that designs and builds large scale microwave reactors to dry and process industrial materials. The technology is more efficient, requires significantly lower capital expenditures and is more environmentally friendly than traditional fossil fuel-based drying technologies. TMS' reactors are designed to be fully automated, require less maintenance, occupy a much smaller footprint and dry more product in less time than conventional counterparts.

The Company's R&D and commercial demonstration plant in King William, Virginia is strategically located near several major industrial clay and biofuel manufactures. The marketing and testing facility in Shanghai, China collects and analyzes material samples from nearby coal power plants and coal mines. The Company is a reporting issuer in Canada and is listed on the following stock exchanges: (TSX VENTURE:TMS)(FRANKFURT:A2ACNT)(OTCQX:TGTMF)

For further information, please visit www.tmsenergy.com or review the Company's public disclosure filing on www.sedar.com.

FORWARD-LOOKING STATEMENTS

This news release contains certain statements which are, or may be deemed to be "forward-looking statements". Forward-looking statements are statements that address or discuss activities, events or developments that we expect or anticipate may occur in the future. Forward-looking statements consist of statements that are not purely historical and, in this news release, include, without limitation, statements regarding: the benefits to be derived from our Gen 3 technology, the results of future optimization of our Gen 3 technology and the future commercial deployment of our TMS technology in China and in new markets. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends", "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the then-current expectations, beliefs, assumptions, estimates and forecasts of our management. Because forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict, our actual results, performance or achievements or the actual results or performance of the industries and markets in which we operate and intend to operate may be materially different from those anticipated in our forward-looking statements. Forward-looking statements involve significant uncertainties and risks, should not be read as a guarantee of future performance or results and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in our forward-looking statements, including our success in harnessing the expected benefits of our Gen 3 technology, our ability to further optimize our Gen 3 technology, our ability to deploy our technology in China and in new markets and such other matters described in our public filings available on SEDAR at www.sedar.com. Accordingly, readers should exercise caution in relying upon our forward-looking statements and we undertake no obligation to publicly revise such statements to reflect subsequent events or circumstances, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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