Corporate Presentation May 2012

Forward looking statements

Certain information regarding Xebec Adsorption Inc. (XBC" or the "Company") set forth in this Presentation contains forward -looking statements. The use of any of the words "plan", "expect", "project", "intend", "believe", "should", "anticipate", "estimate" or other similar words, or statements that certain events or conditions "may" or "will" occur are typically intended to identify forward-looking statements. Forward-looking statements are not based on historical facts, but rather on XBC's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, product offerings, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of sales activities, business prospects and opportunities. These statements are only predictions, not guarantees, and actual events or results may differ materially. In particular, forward-looking statements included in this document include, but are not limited to, statements with respect to: XBC's growth strategy, technology development and growth plans. The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause actual results to vary, including but not limited to risks associated with: the impact of general economic conditions in Canada, Australia, the US and the UK as well as certain other countries in which XBC operates; industry conditions including changes in laws and regulations, and changes in how they are interpreted and enforced, in Canada, Australia, the US and the UK as well as certain other countries in which XBC operates; changes in both corporate and governmental budgets, as well as changes in personnel of the Company's current and prospective customers, competition; lack of availability of qualified personnel; the results of sales and related activities; negotiating with foreign governments as well as country risk associated with conducting international activities; fluctuations in foreign exchange or interest rates; changes in income tax laws or changes in tax laws; ability to access sufficient capital from internal and external sources; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect XBC's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). With respect to forward-looking statements contained in this document, XBC has made assumptions regarding: availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the impact of increasing competition; conditions in general economic and financial markets; effects of regulation by governmental agencies; future operating costs; and other matters. Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide readers with a more complete perspective on XBC's current and future operations and such information may not be appropriate for other purposes. XBC's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that XBC will derive therefrom. The forward looking statements or information contained in this Presentation are made as of the date hereof and the Company undertakes no obligation to update or revise any forward looking statements or information, whether as a result of new information, future events or otherwise unless required by applicable securities laws. The forward looking statements or information contained in this Presentation are expressly qualified by this cautionary statement. The past performance of XBC presented herein, including the case studies referred to in the Presentation, do not guarantee future results for the Company. The historical performance of XBC, including the case studies referred to in the Presentation, are shown for illustrative purposes only.

www.xebecinc.com

Mission Statement

Provide utilities, municipalities and industry with innovative, end-to-end gas upgrading and conditioning solutions that transform raw gases into marketable sources of clean energy.

www.xebecinc.com

Capital Markets Profile

Exchange and Ticker Info: Shares Outstanding: Shares Fully Diluted: Stock Price (June 18, 2012): XBC on TSX 39.3 M 53.4 M $0.38

52 Week High / Low:

Approx Market Cap (June 18, 2012): 2011 Revenues:

$0.45 / $0.09
$15 M $14.2 M

2012 - 3 Month Revenues:

2012 - 3 Month Net Income:* Inside Ownership %: Institutional Ownership %: *Resulted from Patent Sale to Air Products
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$1.5 M
$3.2 M 25% 46%
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Investment Considerations
Leading global technology Company offering end-to-end gas upgrading and purification

Global distribution strategy in markets that are experiencing significant near term and long term growth
Growing list of customers both new and recurring

Proprietary set of products with significant advantages over competition

Completed restructuring and recap in 2011 platform built for growth and profitability for 2012 and beyond Strong balance sheet and working capital in place to grow business Solid backlog of $15M and growing Key Customer agreements in place including exclusive distribution agreement for 15 biogas plants with Golden Green in China Plants range from $1.7M to $5.5M. Total estimated revenue over 4 years - $45M
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Natural and Renewable Gas Focus

Global presence, with headquarters in Montreal, Canada Toronto Stock Exchange (TSX: XBC)
Markets Focus
Biogas for pipeline injection Natural Gas Vehicles(NGV) for transportation Associated gas purification in the Oil & Gas industry Hydrogen purification for transportation and industrial use adjkhdajksdhakdja

Who we are
Leading designer, manufacturer and operator of natural and renewable gas systems and hydrogen purification

Strategy
Leverage key technological advantages into incremental sales through direct and indirect channels

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International Presence

Vancouver (BC)

Blainville (QC) Shanghai

Singapore

Headquarters in Blainville (QC) Manufacturing and Sales R&D in Blainville (QC) Sales and customer support Office in Vancouver (BC)

Manufacturing and Sales in Shanghai Sales Office in Singapore

Ability to gain business and service customers worldwide

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Business Segments
Natural gas dryers for NGV refueling stations
Growing market Cost leadership through Chinese manufacturing Key Customers: Clean Energy, Petrochina, Sinopec, Shell

Biogas upgrading plants

Rapidly growing market High recovery, high purity, low energy plants Key Customers: SEMPRA, Montauk Energy, Halla Engineering, Terasen Gas

Hydrogen purifiers for hydrogen recovery

Evolving market segment Market-leading performance for smallcapacity hydrogen purifiers Syngas purification

Associated Gas (Oil & Gas industry)

Evolving market segment Market-leading performance for associated gas purification Key Customer: Venocco, Warren

Key Customers: HydroChem, Air Liquide, Linde, Iwatani

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Technology

Xebec Technology
Proprietary Products and IP Assets
15 years of dedicated development in gas purification & separation and over $60M invested prior to current management Xebec owns the IP related to its products design

Complete proprietary product line with respect to rotary valves, structured adsorbent and Rapid cycle PSA
Sale and license back from Air products of 130 patents or applications in 39 patent families worldwide (March 2012)

Xebec unit installed at ExxonMobil refinery in 2007

Exclusivity for 2 years

Ability to simulate, develop and test gas separation technologies in line with market and customer requirements Ongoing development of next generation biogas upgrading technology Same PSA technology is applicable to all products

Pure Innovation
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Products
Biogas (BGX) Natural Gas (NGX) Hydrogen (H2X) Associated Gas (AGX)

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Key Customers & Partner

Biogas (BGX) Natural Gas (NGX) Hydrogen (H2X) Associated Gas (AGX)

20 customers

500+ customers

60 customers

4 customers 1 Partner 2 installations in the USA 1 in Indonesia 1 in India

5000+ installations in 40 countries

175 installations in 15 countries

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Market Summary: Natural Gas as Transportation Fuel

Natural Gas Market Global Focus

Average % NGV growth 2000 to present by region
60%

Asia has been growing at 51% The EU has seen growth in the NGV market space and is planning for accelerated growth in Germany, Italy, Sweden, Austria, Switzerland, Spain and others The U.S. and Canada are in the process of introducing favorable legislation, which will lead to significant future growth in the NGV sector Economics are driving growth currently Latin America is continuing to grow its NGV fleets Africa is seeing good growth

50% 40% 30% 20% 10% 0% Asia Europe N.A. L.A.

Africa

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Projected US NGV Refueling Requirements

2012 2013
Total Number of Natural Gas Stations

2014

2015

253

449

704

1220

School Bus Refueling Station

Total Number of Liquid Natural Gas Stations

102

196

322

479

Total Number of Liquid Natural Gas Plants

27

40

53

66

NGVAmerica Projections to 2015

The trend towards the adoption of natural gas vehicles will require as much as 6B$ investment in infrastructure, from which Xebec will benefit.
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Market Opportunity: BIOGAS

Fit in the Renewable and Natural Gas Value Chain

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Biogas Market: Focus on N.A. and Asia

The global market for biogas upgrading equipment was $52.3 million in 2010

Growth to $338.5 million by 2016

5-year compound annual growth rate (CAGR) of 22%

The Asia-Pacific market is estimated to reach nearly $30.1 million in 2011 and is expected to increase at a 22.8% compound annual growth rate to reach nearly $83.9 million in 2016

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Biogas Segment: Key Business Highlights

Started and commissioned Xebecs first two biogas plants: Halla (Korea) and Sempra (U.S.)

Received a RMB 7.1 Million order for a biogas upgrading plant for Heilongjiang Loonggas Investment Co., Ltd. in China Received order for RMB 11.5 Million for landfill gas upgrading system from Golden Green
Hal Snyder (Sempra), Mayor Sam Abed (Escondido) and Kurt Sorschak at press event in February 2011

Key agreements in place including exclusive distribution agreement for 15 biogas plants with Golden Green in China

Plants range from $1.7M to $5.5M Total estimated revenue over 4 years - $45M
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Xebec Biogas Installations

Project
2006 - 2009 Scenic View Dairy Rumpke Landfill Widnau Lavigny Farm UNH SKS Swiss Farmer STEP Hilarides Dairy MI, US OH, US Switzerland Switzerland NH, US Austria Switzerland Switzerland CA, US Digester Landfill Digester Digester Landfill Digester Digester Digester Digester Pipeline Pipeline Pipeline Pipeline Turbine CNG Pipeline Pipeline CNG

Location

Biogas Source

End-Use

Daesung
SKS 2010 - YTD Sempra Energy Halla Engineering SKS SKS SKS Verdemobil WELtec Huimiing Terasen Gas PT Indo Raya

Seoul, Korea
Austria

Landfill
Digester

CNG/LNG
CNG

CA, US Seoul, Korea Austria Austria Austria France China China Canada Indonesia

Waste Water Digester MSW MSW Waste Water MSW Agricultural Digester Landfill Landfill Chemical Plant

Pipeline CNG Pipeline Pipeline CNG CNG CNG CNG Pipeline Pipeline

Extensive experience in the biogas segment gained through the successful completion of multiple international projects

70% of all upgrading projects are for renewable gas to transportation fuel

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Market Analysis Landfill Sites North America

Available Sites 300 to 350 landfills Accepting waste or have been closed for less then five years At least 1.8 mm tons of waste in place Minimum Flow of 800 SCFM

Addressable market based on flow 461 342 SCFM X 2,200$* (per scfm per year) 1.1B$ market per year for renewable gas

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* 2,200$ (per scfm) based on Xebecs technological advantage

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Market Analysis Waste Water Treatment Plants

Available Sites 70 to 100 WWTP Operational AD Influent of min. 20 MGD Minimum Flow 350 SCFM

Addressable market based on flow 100 000* SCFM X 2,200$* (per scfm per year) 220M$ market per year for renewable gas

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* 2,200$ (per scfm) based on Xebecs technological advantage

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Market Summary: Hydrogen Purification

Hydrogen Purification Market

Global investment in plants and equipment estimated to be worth $2.2 billion in 2010 expected to increase to $5.4 billion in 2015

Largest segment - Energy Conversion

expected to increase from $1.3 billion to $3.7 billion by 2015 Second-largest segment Hydrogen Production expected to increase from $650 million in 2010, to $1.1 billion in 2015
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Xebec unit installed at ExxonMobil refinery in 2007

Hydrogen Segment: Recent Highlights

Delivered an H-3200 to Grasys (Russia)

Received an order $2.05 Million for a H-3200 hydrogen purification unit from Deok-Yang Company Ltd., the leading hydrogen supplier in South Korea
H-3100 in Japan for the HydroEdge project

Iwatani - Continued relationship +10 years) with solid orders in 2011

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Market Overview H2 and Syngas Gasification

Past Present Future
Biofuels

Gasification Plant

Steam power

Syngas clean-up

Hydrogen separation

Fuell cells

Refinery

Vehicles

Xebec PSAs, together with H2 gas scrubbing, as a solution, have a promising growth in the the Syngas markets
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Market Summary: Associated Gas

Market Summary: Associated Gas

Burning and/or flaring, wastes a valuable clean energy resource and emits carbon dioxide, a greenhouse gas. The World Bank estimates that over 150 billion cubic meters (or 5.3 trillion cubic feet) of natural gas are being flared and vented annually. Flaring gas adds about 350 million tons of CO2 in annual emissions. This is more than the potential yearly emission reductions from projects currently submitted under the Kyoto mechanisms. Xebecs PSA technology can help clean associated gas and make it available as a replacement for diesel. Xebec has entered into a co-marketing agreement with Primoris.
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Associated Gas : Recent Highlights

Delivered an M-3200 system ($1.2M) to PT Indo Raya Kimia in Indonesia, a leading producer of carbon disulphide in Asia Pacific Received an order for an M-3200 system to upgrade natural gas at a greenfield chemical plant to be constructed in Valayat, Gujarat State, India.

The total value of the contract was approximately CAD2.3 million. Xebec's PSA was purchased by Grasim Industries Limited, a leading producer of Viscose Stable Fiber ("VSF") in Asia.

PXP associated gas project for pipeline injection

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Growth Strategy, Backlog, Competition, Sales

Return to Profit and Growth

Profit
Leverage Chinese Supply Chain - Improve Margins

Tightly Control SG&A

Focus on higher margin recurring revenue opportunities (aftermarket & gas conversion/BOO) Grow Revenues

Growth
Launch new Associated Gas product applications Integrate current product offerings into end-to-end solutions Focus on North American NGV market Capitalize on upcoming Quebec Biogas opportunities Expand the sales distribution network in Asia-Pacific, Africa and in South America

Integrate other profitable companies in order to increase its critical mass through M&A activities
Carry on its R&D efforts in Blainville and through partnerships with universities
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Backlog and Revenue Model

The current backlog as of June 2012 is $15M The Golden Green agreement stands for 15 biogas plants, for which one PO has been received. Plants range from $1.7M to $5.5M. Total estimated revenue over 4 years: $45M In the Biogas market, the Company intends to move from being solely an equipment manufacturer to being an owner and operator of biogas plants Partnership agreement with Primoris Service Corporation in order to expand offering in the associated gas market to the oil & gas industry
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Competitors

Biogas (BGX)
Acrion Technologies Inc., Cirmac International BV, Lackeby Water Group (PURAC), Guild Associates Inc, MT-Biomethan GMBH, Carbotech AC GmbH, Haase Energietechnik AG, Ros Roca Group, Flotech/Greenlane, Yit Vatten Och Misjoteknik, Air Liquide, MalmBerg Water AB A.R.C. Technologies Corp.

Natural Gas (NGX)

Hydrogen (H2X)

SPX Corp., Parker-Hannifin Corporation, Aircel Corp., PSB Industries Inc., XiAn Unionfilter Purification Equipment Co. Ltd., Zander Aufbereitungstechnik GmbH Tecno Project Industriale s.r.l.

Air Liquide, HydroChem, Linde and Iwatani

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Competitive advantage
Lower capex and opex than any competing process Higher recovery Proven reliability and simple to maintain Higher purification rate in one single process Removes N2 and O2 in one single process Lower foot print
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Financial Information FY 2011 and Q1 2012

Diversified Product Lines (% of revenues)

2011 $14.2 M 2010 $13.5 M

2011 2010

Natural gas dryers 32% 41%

Aftermarket & Service 11% 23%

Air dryers (industrial) 1% 3%

Gas purification 35% 33%

Engineering services 11% 1%

Licensing 11% 0%

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Diversified Geographic Reach (% of revenues)

2011 2010

Middle

North

others Europe Asia

East
2011 2010 0% 1%

America
72% 53% 6% 10% 1% 11% 20% 20%

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2011 Selected Financial Information

(in C$ unless indicated otherwise) For the twelve months ended Dec 31
Revenue
Gross margin (%) EBITDA Net loss

2011
14,203,463
29% 100,000 (1,456,950)

2010
13,475,211
2% (12,000,000) (13,592,711)

Reflects the effect of the cost control measure and the restructuring of the company Lack of working capital slowed the growth, this improves in 2012 Reflects a non-recurring licenses revenue of $1.5M

Reflects a better revenue recognition policy

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Management
Kurt Sorschak, President & CEO, Director, Founder
Kurt Sorschak is the President and the Chief Executive Officer, of Xebec since 2007. From 2004 to 2007, he was the General Manager of the Canadian division of Domnick Hunters air dryer manufacturing facility, at that time the largest adsorption dryer plant in North America. In 2005, he became the General Manager for the Xebec division of Parker-Hannifin Corporation, after Parker-Hannifin Corporation bought Domnick Hunter Ltd. Mr. Sorschak also worked in different managerial capacities in Europe. He obtained an Associate Degree from the American University in Paris, France, in 1982, and a Masters of Law Degree from the University of Munich, Germany, in 1988.

Eric Favreau, Vice-president & CFO:

Mr. Favreau is Vice-President and Chief Financial Officer of Xebec since June 2011. From September 2008 to May 2011, he was Chief Financial Officer of Noveko International Inc. From September 2006 to September 2008, he was Vice-President and Chief Financial Officer of Eloda Corporation, from November 2005 to September 2006, CFO of Positron Networks PNI Inc., and from March 2005 to November 2005, he was a partner of NanoVenture LLP, an investment fund.

Graham Robson, Vice-president Asia-Pacific

Since joining Xebec in November 2004, Mr. Robson held the positions of VP Business Development and Director Supply Chain. Prior to joining Xebec, Mr. Robson held positions in manufacturing, operations improvement, program management and supply chain, with General Motors South Africa, Ford South Africa, Atlantis Diesel Engines, Toyota South Africa, Philips Electronics UK and Rolls Royce plc, in the UK and Canada. Mr. Robson held middle and senior management positions with Toyota, Philips Electronics and Rolls Royce. He is a Mechanical Engineering graduate from the Durban University of Technology.
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Investment Considerations
Leading global technology Company offering end-to-end gas upgrading and purification

Global distribution strategy in markets that are experiencing significant near term and long term growth
Growing list of customers both new and recurring

Proprietary set of products with significant advantages over competition

Completed restructuring and recap in 2011 platform built for growth and profitability for 2012 and beyond Strong balance sheet and working capital in place to grow business Solid backlog of $15M and growing Key Customer agreements in place including exclusive distribution agreement for 15 biogas plants with Golden Green in China Plants range from $1.7M to $5.5M. Total estimated revenue over 4 years - $45M
www.xebecinc.com 40