May 2016

Forward-looking Statements This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of ENTREC Corporation (“ENTREC” or the “Company”). These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forwardlooking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, fluctuations in commodity prices, weather, access to capital markets, competition, changes in technology and government policies, decreases in capital spending by customers, decreases in exploration and development spending by customers, the ability or inability of the Company to increase profit margins or utilization, the ability or inability of the Company to expand to new markets, the ability or inability of the Company to successfully acquire and integrate other businesses, the ability or inability of the Company to leverage its existing presence to expand its geographic footprint, the ability or inability of the Company to improve operational efficiencies, and the degree to which committed and prospective bookings materialize. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of ENTREC will be achieved. The Company believes that the expectations reflected in these forward-looking statements are reasonable; however, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this presentation should not be relied upon. In addition, these forward-looking statements relate to the date on which they are made. Unless otherwise required by applicable securities legislation, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Investment Highlights  Diversified industry exposure and client base – Broad exposure to customers in the oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

 Niche industry with high barriers to entry – Actively increasing market share (completed 14 acquisitions since 2011)

 Strong recurring revenue base – Multiple touch points with customers through construction and maintenance, repair and operation phases

 Historically strong track record of revenue and EBITDA growth – 2015 revenue of $166 mm generating $23 mm of EBITDA

 Proven management team with extensive operating background  Significantly undervalued despite best-in-class long-lived assets

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Company Information

Toronto Stock Exchange

ENT

Basic Shares Outstanding (March 31, 2016)

107.8 million

Share Price (May 1, 2016):

$0.30

Market Capitalization:

$32 million

Working capital (March 31, 2016)

$16 million

Property, plant and equipment (March 31, 2016)

$235 million

Net Debt (March 31, 2016)

$156 million

Net tangible asset value (March 31, 2016)

$114 million

52 Week Trading Range:

$0.23/$0.64

Management and Board Holdings

50%

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The Right Management Team Extensive Industry Experience

Rod Marlin Executive Chairman

 Former

President, CEO and Director of Eveready Inc., acquired by Clean Harbors Inc. in July 2009  Founder and former President of Marlin Travel Group, Canada’s largest travel company, until 1993 sale

John Stevens President, CEO + Director

 Former

Jason Vandenberg CFO

 Former

Glen Fleming Executive VP, Operations

 Former

Gavin Mcleod VP, Finance + Operations

 Former

Whitney Irwin VP, HSE and Training

 Formerly

President and Director of NC Services Group, a private crane and hauling company  Former Senior Vice President of Eveready and its predecessor companies CFO of Eveready and its predecessor companies  Former accountant with Grant Thornton Executive Vice President of Clean Harbors post acquisition of Eveready  Prior thereto, was Vice President and COO of Eveready

Director of Finance with Petrocom Construction  Joined ENTREC in 2011

with Flint Energy Services, a former parent company of ENTREC  Re-joined ENTREC in 2011

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Asset Overview  ENTREC has an extensive fleet of cranes, trailers and tractors that serve all industries –

215 cranes with multiple uses allow ENTREC to provide a crane for every application

–

Large fleet of trailers reaching up to 96 wheels

 March 31, 2016 book value of $76.1 mm; net tangible asset value of $113.5 mm Equipment Crane Fleet Crawler Cranes

24

Rough Terrain Cranes

52

Carry Deck Cranes

8

All Terrain Cranes

29

Hydraulic Truck Cranes

14

Boom / Picker Trucks

88

Total

Net Tangible Asset Value

Units

215

Specialized Transportation Fleet Conventional Multi-Wheeled Trailers

760

Hydraulic Platform Trailer Lines

400

Tractors

200

Total Assets Less: intangible assets Add: fair market value of PPE Less: net book value of PPE Tangible Assets

$270,003 ($2,154) $275,000 ($235,401) $307,448

Total Liabilities

$193,927

Tangible Net Asset Value

$113,521

Per Basic Share Current Share Price (May 1, 2016) Premium (Discount) to Net Tangible Asset Value

$1.05 $0.30 (71.5%)

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Specialized Cranes for Every Application 1

Crawler Cranes: 24 FMV: $41 MM Used for: oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

2

Rough Terrain Cranes: 52 FMV: $27 MM Used for: oil sands mining and in situ construction, LNG construction, other construction and LNG drilling 4

3

All Terrain Cranes: 29 FMV: $47 MM Used for: oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

Carry Deck Cranes: 8 FMV: $1 MM Used for: plant site maintenance and construction 5

Hydraulic Truck Cranes: 14 FMV: $13 MM Used for: oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

6

Boom/Picker Trucks: 88 FMV: $36 MM Used for: oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

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Specialized Heavy Haul Fleet

1

1 Conventional Multi-

2

2 Hydraulic Platform

3

3 Tractors: 215

wheeled Trailers: 770

Trailers: 400

FMV: $34 MM

FMV: $35 MM

FMV: $14 MM

Multiple configurations (up to 96 wheels)

Modular, highly customizable

Large diverse fleet of prime movers, winch tractors and highway tractors

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Positioned to Benefit from Increased Infrastructure Spending Federal Infrastructure Spend is Growing  Federal government has proposed $32 billion in infrastructure spending over the next 10 years – British Columbia - $5.2 billion – Alberta - $3.9 billion  Alberta’s provincial government has budgeted an additional $9 billion committed to transportation initiatives and over $8 billion for municipal infrastructure support from now until year end 2020

– Saskatchewan - $1.3 billion

Why we will win Contracts?     

Coordinated heavy haul and heavy lift services Large, highly specialized equipment fleet Extensive engineering and logistics support Highly skilled employees Excellent safety track record

Source: Government of Canada (Infrastructure Canada)

Over $32 Billion in Proposed Federal Infrastructure Spending Alone 9

New Exposure to Power Transmission Spending Recent Acquisition Provides Exposure to Several Proposed Power Transmission Projects  ENTREC now has the ability to bid on diversified power transmission projects throughout Canada –

Power projects include upgrades, extensions and/or new: power plants, transmission lines and substations, generating stations, power generating dams, solar and other power infrastructure projects

 Stable and consistent spending over near to medium term through Canadian, US and government owned entities with growing capital power spending project budgets:

ATCO/Alberta Powerline: Fort McMurray west transmission line, ATCO: gas fired power plant and forest fire damage rehabilitation Valard transmission line GTE Power: Brooks 1 Solar + TransAlta: Sundance gas fired power plant SaskPower: Boundary Dam upgrades and expansion, transmission lines and substations

FGE Texas: Mitchell County $1.2 bn natural gas power plant

Manitoba Hydro: Keeyask Generating Station, Bipole III project, Conawapa generating station

MAXIM: Deerland Peaking station

Opportunities with Basin Electric’s $1 bn worth of projects in North Dakota

Tenaska: Building of Brownsville electric generating station in Cameron County, Texas

Ontario Hydro: Mattagami, New Post Creek, Ranney Falls station, Niagara Tunnel, P.Sutherland Gen station

Nalcor Energy: LabradorIsland Link transmission system

Emera: Maritim e Link

Northeast Texas approved transmission line projects: MarshallHallsville improvements + Valliant-NW Texarkana

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Positioned to Benefit from future Canadian LNG Projects LNG Capital Expenditure Pattern

LNG Well Count Forecast

Based on the development of three LNG projects (LNG Canada, Pacific Northwest LNG and Kitimat LNG) 18

$15

1,500 Well Count

16

Dollars Spent Pipeline Construction

14

$Billions

$Billions

$10

1,000

12 10 8 6

$5

500

LNG Export Terminal

4 Drilling 2 0

$0

0 Year 1

Year 5

Year 10

Year 15

Year 1

Year 3

Year 5

Year 7

Year 9

Source: Company Reports, ARC Financial Research

ENTREC can Support Drilling, Pipelines and Terminal Construction 11

Where We Operate Industries Served:    

Conventional oil & gas Mining Petro chemical Pulp & paper

 Infrastructure  Refining  Power generation

Western Canada & North Dakota Exposure to natural resource, infrastructure and transportation industries

Thompson, Manitoba Recent Expansion into Manitoba market through HighMark Crane acquisition

Oil Sands LNG Industry Bakken Oil Fields Bakken Oil Fields ENTREC Location General Movement of Goods

Midland, Texas Recent greenfield expansion into the Permian Basin

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Diverse Customer Base

Natural Resource Producers

EPCs / Manu. / Oilfield Service

13

High Barriers to Entry  High capital costs to build competitive fleet  Scale of fleet

 Requires specialized knowledge and extensive experience  Critical importance of safety

14

Competitive Position Heavy Haul Conventional

Cranes

Platform

Mobile, RTs & Crawlers

Pickers/ Boom Trucks

ENTREC

~15%

~25%

~7.5%

~7.5%

Mammoet

~1%

~25%

~20%

~1%

NC Services

~5%

~15%

~10%

~1%

Sterling

N/A

N/A

~20%

~1%

Premay

~10%

~10%

N/A

N/A

Sarens

N/A

~5%

~2.5%

N/A

Myshak

N/A

N/A

~5%

~2.5%

~69%

~20%

~35%

~87%

Other

Management estimates of % market share Western Canada

Conventional Heavy Haul & Crane Segments are Highly Fragmented 15

Annual Results Adjusted EBITDA & Margin

Revenue $260

$80

28%

25%

$232

25%

$213 $195

$60

21%

20%

$54 EBITDA ($mm)

$132 $130

$46 $40

14%

14%

$33

EBITDA Margin (%)

Revenue ($mm)

$166

$23 $65

$20

$0

$0 2012 2012

2013 2013

2014 2014

2012

Acquisitions Capex (net of disposals) Total Capital Spend

2015 2015

2013

7%

2012 2012

2013 2013

2014 2014

2015 2015

2014

2015

$114 mm

$60 mm

$9 mm

$0 mm

$41 mm

$56 mm

$56 mm

$16 mm

$155 mm

$116 mm

$65 mm

$16 mm

0%

16

Quarterly Results Quarterly Revenue Revenue ($mm)

$75 $60

$62

$59 $52

$53

$49

$59

$58

$53

$51 $41

$45

$38

$35

$31

$30

$15 $0 Q1 2013

Q2

Q3

Q4

Q1 2014

2013

Q2

Q3

Q4

Q1 2015

2014

Q2

Q3 2015

Q4

Q1 2016

Adjusted EBITDA & Margin $25

30%

27%

26%

$20

$15

$13

24%

22%

21%

22%

$16

17%

$13

$13 $11

$11

18%

19% $11

$11

18%

14%

12%

$10

12%

$7

$7

9%

$5

$5

5% $3

6%

EBITDA Margin (%)

EBITDA ($mm)

26%

$1 $0

0% Q1 2013

Q2

Q3

2013

Q4

Q1 2014

Q2

Q3

2014

Q4

Q1 2015

Q2

Q3 2015

Q4

Q1 2016 2016

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ABL Senior Debt Facility  $240 mm ABL Facility led by Wells Fargo  No Principal repayments until maturity in March 2019  Effective interest rate (including transaction costs) of 2.7% on USD debt and 3.2% of CAD debt  Borrowing base calculated on net orderly liquidation value of fleet plus accounts receivable  No cash flow financial covenants as long as excess borrowing capacity exceeds 12.5% of borrowing base  Key Metrics at March 31, 2016: Borrowing base (% of equipment and accts receivable)

$184.2 mm

ABL Facility utilized

$124.9 mm

Excess borrowing capacity

$59.3 mm

Minimum excess borrowing capacity required before senior debt to EBITDA financial covenant applies

$23.0 mm

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Strong Strategic Ownership Positions Top Institutional Shareholders

Shares (000s)

Interest

JV Driver Corporation Manitoulin Transport Foyston Gordon & Payne

22,422 21,246 11,027

20.8% 19.7% 10.2%

Top Institutional Shareholders

54,695

50.8%

Top Insider Shareholders

Shares (000s)

Interest

Glen Fleming - Executive VP, Operations Rod Marlin - Executive Chairman Peter Lacey - Director John M. Stevens - President, CEO & Director Jason Vandenberg - CFO Other Directors and Officers

3,766 3,556 1,372 800 250 173

3.5% 3.3% 1.3% 0.7% 0.2% 0.2%

Top Insider Shareholders

9,917

9.2%

Employee Ownership Plans (excluding RSUs)

2,356

2.2%

Implied Retail and Unidentified Institutional

40,786

37.9%

107,754

100.0%

Basic Shares Outstanding

41% Ownership Between two strategic investors in the industry

11% Ownership Employee Ownership

Majority of Company Ownership between Two Industry Members and ENTREC Employees 19

Strategic Ownership in ENTREC

 Alberta based company established in 1989  Provider of contractor and fabrication services for the industrial, commercial / multi-unit residential and industrial buildings, marine, environmental and public infrastructure industries  Clients include CNRL, Imperial Oil, Shell, Devon  Currently hold 20.8% of ENTREC’s basic shares outstanding

 Manitoulin has one of the most extensive transportation networks in Canada –

50 years of operating experience

 Provides truckload, less than truckload, trans-border, rail intermodal and specialized transportation services from over 100 locations across Canada  Recently acquired Hi-Way 13’s less-thantruckload division (built out Alberta coverage) –

$136 mm transaction value (including debt)

 On October 29, 2015, Manitoulin Transport announced a strategic investment into ENTREC, acquiring ownership of 15.4% –

Since then, they have acquired more stock to take ownership up to 19.7%

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Strategy  Short-term strategy – Focus on MRO business – Infrastructure projects – Power transmission – Cross sell crane and heavy haul services – Cost reduction initiatives – Reduction of long-term debt

 Long-term strategy – Continued geographic expansion and industry diversification

21

Investment Highlights  Diversified industry exposure and client base – Broad exposure to customers in the oil & gas, mining, petro chemical, pulp & paper, power generation and infrastructure industries

 Niche industry with high barriers to entry – Actively increasing market share (completed 14 acquisitions since 1995)

 Strong recurring revenue base – Multiple touch points with customers through construction and maintenance, repair and operation phases

 Historically strong track record of revenue and EBITDA growth – 2015 revenue of $166 mm generating $23 mm of EBITDA

 Proven management team with extensive operating background  Significantly undervalued despite best-in-class long-lived assets

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Appendix

23

Board of Directors Board of Directors Rod Marlin Executive Chairman



Peter Lacey Director



Dwayne Hunka Director



Mark Maybank Director



Charles Sanders Director



Don Goodwill Director



Brian Tod Director

















John Stevens President, CEO and Director

 

Former President, CEO and Director of Eveready Inc., acquired by Clean Harbors Inc in July 2009 Founder and former President of Marlin Travel Group, Canada’s largest travel company, until sale in 1993 President, CEO and Director of Cervus Equipment Corporation and its predecessor companies since 1998 Former Director and Chairman of Eveready and its predecessor companies until sale in 2009 President of DHI Group and Hunka Capital Prior thereto, was VP, Business Development for JV Driver Projects, a provider of construction services Active private investor, director, advisor and entrepreneur associated with a variety of private companies Former President and COO of Canaccord Genuity until 2011 CFO with JV Driver since 2008, formerly held the position of corporate accountant with the organization Former accountant with Hill and Partners President of Manitoulin Transport, a Canadian transportation company with 74 Canadian terminal locations Became a Director of ENTREC on November 23, 2015 following a significant investment into the company Business lawyer acting as counsel to the Edmonton office of Miller Thomson, a national law firm Has been with Miller Thomson since 1971 Former President and Director of NC Services Group, a private crane and hauling company Former Senior Vice President of Eveready and its predecessor companies

Experienced Board of Directors 24

Contact Information Corporate Office

ENTREC Corporation 26420 Township Road 531A Acheson, AB T7X 5A3 Company Contacts Rod Marlin Executive Chairman 780.962.1600 [email protected]

John Stevens President and Chief Executive Officer 780.960.5625 [email protected]

Jason Vandenberg Chief Financial Officer 780.960.5630 [email protected]

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