BluMetric Environmental : 2023 Q2

BLUMETRIC ENVIRONMENTAL INC.

MANAGEMENT'S DISCUSSION & ANALYSIS

FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2023

(expressed in Canadian Dollars)

May 25, 2023

Management's Discussion and Analysis

Financial Quarters Ended March 31, 2023 and

March 31, 2022

May 25, 2023

This Management Discussion and Analysis "MD&A" explains the material changes in BluMetric Environmental Inc's ("BluMetric" or the "Company") financial condition and results of operations for the six months ended March 31, 2023. The MD&A should be read in conjunction with the Company's financial statements and related notes for the period ended March 31, 2023, as well as the MD&A and audited financial statements and notes for the year ended September 30, 2022. The information provided in this document is not intended to be a comprehensive review of all matters concerning the Company.

This discussion and analysis of the financial condition and the results of operations contain forward looking statements about expected future events and the financial and operating performance of the Company. These statements, which include descriptions of the Company's business strategy, potential variances impacting the Company's internal and external performance drivers, and the Company's ability to meet its ongoing working capital needs through the ensuing 12 months, are included in the "Discussion of Results of Operations", "Liquidity", and "Business Outlook" sections which follow. These statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. This MD&A also refers to certain non-GAAP measures to assist users in assessing BluMetric's performance. Non-GAAP measures do not have any standard meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures are identified and described under the section "Financial Terms and Definitions".

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Management's Discussion and Analysis

Financial Quarters Ended March 31, 2023 and

March 31, 2022

Business Overview and Strategy

BluMetric is a Canadian company that provides cost-effective and sustainable solutions to help its clients overcome even the most difficult environmental and business challenges. Through a track record that spans 45 years, the Company has evolved into a full-service integrator of environmental solutions known for innovative work in the fields of water/wastewater treatment and professional environmental services.

With a focus on four key markets -Commercial and Industrial; Government; Military and Mining; - BluMetric's main services and products include:

• Environmental Engineering, Monitoring and Compliance
• Site Assessment and Remediation
• Water Resources and Geomatics
• Cleantech - treatment of water and wastewater
• Industrial Hygiene and Occupational Health and Safety

BluMetric's comprehensive, affordable offerings are tailored to the specific needs of not only each industry, but also each client. With innovation, agility and client-responsive service as its hallmarks, the Company builds partnerships with its customers by delivering a long-term, holistic approach to managing their complete environmental needs, and health and safety responsibilities. It is this high degree of service that differentiates BluMetric from competitors.

BluMetric's team of approximately 160 dedicated and passionate employees and its client-centric approach form the underpinning of its success, contributing to the following core elements of its value proposition:

• Solution-orientedconsultation, design, products and construction services
• Turn-keysolutions - BluMetric provides a complete end-to-end solution from assessment and evaluation to implementation to ongoing service and management
• World class expertise in the analysis, management and treatment of water in the environment
• Water treatment solutions that are compact, energy efficient, reliable and simple to operate

The Company has 10 offices across Ontario, Quebec, Yukon and Northwest Territories. BluMetric is proud to be a trusted provider of services to many of Canada's northern Indigenous communities.

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Management's Discussion and Analysis

Financial Quarters Ended March 31, 2023 and

March 31, 2022

Technology and Innovation

Innovation is driven by client demands as they face more stringent environmental regulations and everchanging world events. BluMetric's creative process for addressing problems consists of developing solutions that are both scientifically sound and economically viable.

The Company is expanding its standard products for water and wastewater treatment, largely in response to the developing needs for emergency water and wastewater systems due to global climate change. Designs have recently been completed and prototyping phases have started for both a mid-sized Portable Water Treatment System as well as a Mobile Wastewater Treatment Plant. These resilient water solutions are highly flexible and cost efficient and allow for rapid deployments for temporary needs, such as mineral exploration and humanitarian relief. The prototype designs are based on BluMetric's mobile militarized systems which provide emergency potable water to almost any community in Canada for 90 days when there is a community facing potable water issues. The wastewater system includes state of the art filtration technology that is more rugged for deployments and has decreased operational and maintenance costs. Both prototypes are expected to be completed in the summer of 2023. The mobile Wastewater Treatment Plant is set to be tested in the DND IDEaS competition in August 2023 at CFB Suffield in Alberta.

BluMetric is committed to pursuing new opportunities in technology and innovation.

Sales and Marketing

BluMetric's business development efforts are primarily focused on four key markets where the Company has identified the greatest demand for its products and services:

• Commercial and Industrial
• Government (with specific expertise in Northern Canada)
• Military
• Mining

BluMetric uses a client-centric approach to business development, which involves an emphasis on understanding each client's environmental issues and then identifying and preventing potential problems. This approach allows BluMetric to provide a complete and integrated solution.

Satisfied clients provide repeat business as well as incredibly valuable word-of-mouth referrals. BluMetric continues to actively leverage the successes of past projects to expand and diversify client relationships, strategic partnerships, and service offerings.

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