LIQTECH INTERNATIONAL, INC. REPORTS 2017 THIRD QUARTER RESULTS

– Management to Host Conference Call Today at 11:00 am EST –

BALLERUP, Denmark November 14, 2017 – LiqTech International, Inc. (NYSE AMERICAN: LIQT), a clean technology company that manufactures and markets highly specialized filtration technologies, announces today its financial results for the three and nine months ended September 30, 2017.

Financial highlights for the three months ended September 30, 2017

Net sales for the three months ended September 30, 2017 were $2.5 million compared to $3.7 million for the same period in 2016, representing a decrease of $1.2 million or 32.4%.

The decrease in sales consisted of a decrease in sales of liquid filters and systems of $0.8 million, a decrease in sales of DPFs of $0.2 million and a decrease in kiln furniture of $0.2 million.

Gross profit for the three months ended September 30, 2017 was a loss of $0.3 million compared to a gross profit of $0.4 million for same period in 2016, representing a decrease of $0.7 million.

Included in gross profit is depreciation of $0.3 million and $0.3 million for the three months ended September 30, 2017 and 2016, respectively.

Total operating expenses for the three months ended September 30, 2017 were $1.1 million representing a decrease of $0.2 million or 15.4%, compared to $1.3 million for the same period in 2016.

Net loss for the three months ended September 30, 2017 was a loss of $1.5 million compared to a loss of $0.9 million for the comparable period in 2016, representing an increase in net loss of $0.6 million.

Total net loss of $1.5 million for the period ended September 30, 2017 includes non-cash charges for depreciation and amortization, bad debt expense, reserve for obsolete inventory and stock compensation expense charges for a total of approximately $0.2 million.

Financial highlights for the nine months ended September 30, 2017

Net sales for the nine months ended September 30, 2017 were $8.4 million compared to $11.3 million for the same period in 2016, representing a decrease of $2.9 million or 25.7%.

The decrease in sales consisted of a decrease in sales of liquid filters and systems of $4.2 million and a decrease in kiln furniture of $0.1 million offset by an increase in sales of DPFs of $1.4 million.

Gross profit for the nine months ended September 30, 2017 was $0.15 million compared to a gross profit of $2.3 million for same period in 2016, representing a decrease of $2.15 million or 93.5%.

Included in gross profit is depreciation of $0.7 million and $1.0 million for the nine months ended September 30, 2017 and 2016, respectively.

Total operating expenses for the nine months ended September 30, 2017 were $3.6 million representing a decrease of $0.7 million or 16.3%, compared to $4.3 million for the same period in 2016.

Net loss for the nine months ended September 30, 2017 was a loss of $3.5 million compared to a loss of $5.0 million for the comparable period in 2016, representing a decrease in net loss of $1.5 million or 30.0%.

Cash on hand and restricted cash for the period ended September 30, 2017 was $0.5 million compared to $1.2 million for the year ended December 31, 2016, representing a decrease of $0.7 million.

Working capital for the period ended September 30, 2017 was $2.8 million compared to $3.5 million for the year ended December 31, 2016 representing a decrease of $0.7 million or 20.0%.

Total net loss of $3.5 million for the period ended September 30, 2017 includes non-cash charges for depreciation and amortization, bad debt expense, reserve for obsolete inventory and stock compensation expense charges for a total of approximately $0.8 million.

Management Commentary

In discussing the third quarter 2017 results, Mr. Sune Mathiesen, LiqTech CEO, remarked:

“Our results for the third quarter were largely in line with our expectations. In the first nine months of 2017 we have continued to invest significant resources in developing the marine scrubber market. We have been active in this industry for more than 3 years, and following the IMO decision last year to implement a new lower global cap on sulphur emissions from international shipping, we now see that the pace of adoption of scrubber systems is picking up. From 2015 through first half year of 2017 we delivered a total of seven systems for marine scrubbers – In August we announced that we expected this number to more than double in the second half of 2017. We are pleased to note that we are well on track to exceed these expectations.

The fourth quarter so far has been very busy for us. We have already delivered systems for marine scrubbers and other systems for a.o. power plants. We are encouraged by the current positive development in our business, and we believe that our long-term commitment in the marine scrubber industry has positioned us well to be one of the market leaders for water treatment systems to this industry. Reports from leading markets analysts following the marine industry suggests that the adoption of scrubbers will continue to accelerate over the coming years. Based on the feed-back from our customer we share this belief, and we are ready to continue the ramp-up of our business to match the expected increased demand.

We believe that the marine scrubber industry will be an important part of the future of LiqTech. We are however also continuing our efforts to establish our technology in the swimming pool-, oil & gas-, mining-, drinking water- and aquaculture markets. The long-term goal is to see the same adoption of our technology as we now see in the marine scrubber market. We believe that we will see important orders for some of these industries in 2017.

Today we effected a private placement of 1,617,503 shares of Preferred Stock convertible into 6,470,012 shares of common stock. The net proceeds of approximately $1.9 million will further strengthen our balance sheet and will provide working capital to manage the current and anticipated ramp-up in our business related to the marine scrubber market.

We believe that our narrowed focus and the development of standardized systems has proven to be the right choice, and we expect an improved fourth quarter. We believe that the current ramp-up in business will continue and that 2018 will prove to be a turning point in our business.”

Conference Call Details

Interested parties may participate in the call by dialing (877) 407-8029 or (201) 689-8029. It is recommended to dial in approximately 10 to 15 minutes prior to the scheduled start time. The conference call will also be available on replay starting at 3:00 p.m. EST on November 14, 2017 and ending on December 5, 2017. To access the replay, please dial (877) 660-6853 or (201) 612-7415 and enter the conference id# 13673141

Callers from Denmark can dial in using the following numbers:

Denmark (fixed) ATT 80 25 21 64

Denmark (mobile) ATT 80 25 19 17

Financial Tables Follow

ABOUT LIQTECH INTERNATIONAL, INC.

LiqTech International, Inc., a Nevada corporation, is a clean technology company that for more than a decade has developed and provided state-of-the-art technologies for gas and liquid purification using ceramic silicon carbide filters, particularly highly specialized filters for the control of soot exhaust particles from diesel engines and for liquid filtration. Using nanotechnology, LiqTech develops products using proprietary silicon carbide technology. LiqTech’s products are based on unique silicon carbide membranes which facilitate new applications and improve existing technologies. In particular, LiqTech Systems A/S (www.provital.dk), the Company’s subsidiary, has developed a new standard of water filtration technology to meet the ever increasing demand for higher water quality. By incorporating LiqTech’s SiC liquid membrane technology with its longstanding systems design experience and capabilities it offers solutions to the most difficult water pollution problem.

For more information, please visit www.liqtech.com

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Forward-Looking Statements

This press release contains “forward-looking statements.” Although the forward-looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including the risk factors that attempt to advise interested parties of the risks that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.