Aduro Clean Technologies : Management Discussion & Analysis For the three and six months ended November 30, 2021 and 2020

ADURO CLEAN TECHNOLOGIES INC. (formerly Dimension Five Technologies Inc.)

Management Discussion & Analysis

For the three and six months ended November 30, 2021 and 2020

(in Canadian Dollars)

Management's Discussion and Analysis of Financial Condition and Results of Operations for the three and six months ended November 30, 2021

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") of Aduro Clean Technologies Inc. (formerly Dimension Five Technologies Inc.) (the "Company") should be read in conjunction with the Company's interim condensed consolidated financial statements and notes thereto for the three and six months ended November 30, 2021 (the "Financial Statements") and the audited financial statements for the year ended May 31, 2021 and the accompanying notes thereto, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"). The MD&A has been prepared as of January 28, 2022 pursuant to the disclosure requirements under National Instrument 51-102 - Continuous Disclosure Obligations ("NI 51-102") of the Canadian Securities Administrators ("CSA").

All dollar amounts are expressed in Canadian dollars. This MD&A contains forward-looking information within the meaning of Canadian securities laws, and the use of non-IFRS measures (the "Non-IFRS Measures"). Refer to "Cautionary Statement Regarding Forward-Looking Statements" and "Cautionary Statement Regarding Certain Non-IFRS Performance Measures" included within this MD&A. This MD&A and the Company's annual audited financial statements and other disclosure documents required to be filed by applicable securities laws have been filed in Canada on SEDAR at www.sedar.com. Additional information can also be found on the Company's website at http://aduroenergy.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This MD&A contains "forward-looking statements" that reflect the Company's current expectations and projections about its future results. Forward-looking statements are statements that are not historical facts, and include, but are not limited to: estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, capital raising initiatives, the impact of industry and macroeconomic factors on the Company's operations, and market opportunities; and statements regarding future performance. Any statements contained herein that are not statements of historical fact may be deemed to be forward looking statements, including those identified by the expressions "considers", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including "may", "future", "expected", "will", "intends", and "estimates". By their very nature 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 the forward-looking statements. The Company provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

The global pandemic related to an outbreak of the novel coronavirus disease ("COVID-19") has cast uncertainty on each of the underlying assumptions. There can be no assurance that they continue to be valid. The situation is dynamic and the ultimate duration and magnitude of the impact of COVID-19 on the economy and the financial effect on the Company's business remain unknown at this time. These impacts could include, amongst others, an impact on our ability to obtain debt or equity financing, increased credit risk on receivables, potential future decreases in revenue or profitability of the Company's ongoing operations.

Forward-looking statements used in this MD&A are subject to various risks, uncertainties and other factors, most of which are difficult to predict and are generally beyond the control of the Company. These risks, uncertainties and other factors may include, but are not limited to, those set forth under "Risks and Uncertainties" below. Forward looking statements in this MD&A include, but are not limited to, the plans

of the Company to implement a business model of licensing, royalties and research and development ("R&D"); the intention of the Company to achieve monetization of its clean energy platform by implementation of its business model, thereby reducing its need for cash while enabling an expedient path to commercialization; the Company's plan to develop commercial partnerships by means of demonstration projects; the Company's plans to capitalize on significant growth potential in the clean energy technology sector through the advancement and commercialization of the Company's proprietary technology; the Company's plans to continue to raise equity financing in order to execute its business plan, maintain a strong capital base and safeguard the Company's ability to continue as a going concern such that it can provide future returns for shareholders and benefits for other stakeholders.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this MD&A or as of the date otherwise specifically indicated herein. Due to risks, uncertainties and other factors, including the risks, uncertainties and other factors identified above and elsewhere in this MD&A, actual events may differ materially from current expectations and projections. In particular, risk that could change or prevent these statements from coming to fruition include, but are not limited to, that the Company may be unable to implement its business model as anticipated or at all due to a variety of reasons, including lack of future financing and capital, changes in technology or due to competition; the Company may be unable to achieve commercialization of its technology for various reasons; the Company may fail to develop significant commercial partnerships and competitors may offer more attractive products or alternatives; the clean energy technology sector may not develop as anticipated or the Company's technology may otherwise become obsolete; the Company may be unable to raise additional financing in order to advance its business or continue operations until it can generate significant revenues.

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, except as required by securities law.

The forward-looking statements contained herein are based on information available as of January 28, 2022.

Cautionary Statement Regarding Non-IFRS Performance Measures

This MD&A makes reference to certain Non-IFRS financial measures that are used by management to evaluate the Company's performance which are commonly used by financial analysts in evaluating the financial performance of companies, including companies in the medical and technology industry. Accordingly, we believe that the Non-IFRS Financial Measures may be useful metrics for evaluating the Company's financial performance, as they are measures that we use internally to assess the Company's performance, in addition to IFRS measures. Readers are cautioned that the Non-IFRS Financial Measures do not have a standardized meaning and should not be used in isolation or as a substitute for net (loss) income, cash flows from operating activities or other income or cash flow statement data prepared in accordance with IFRS.

ACHIEVEMENT OF FIRST MILESTONE AND DISCUSSIONS WITH POTENTIAL PARTNERS

On January 18, 2022, the Company achieved the first milestone under the securities exchange agreement dated October 22, 2021, as amended (the "SEA") (the "First Milestone") following the receipt of the third- party report and the successful review and independent validation of its patented chemical conversion technology by Dr. Paul Charpentier, an expert in chemistry and alternative energy applications. The objective of the review and independent validation was to confirm that Alberta bitumen, flowing continuously through the R2 reactor, was upgraded to lighter crude compared to the feedstock. The work carried out by Aduro demonstrated that the Aduro Hydrochemolytic™ chemical conversion technology was able to improve the properties of bitumen feedstock with an "API gravity" (density) of 14.6 ºAPI, upgrading it to lighter petroleum with a density of 19.5 ºAPI. Higher ºAPI values that mean lower density and higher market value.

The results of the work completed by Aduro and evaluated by Dr. Charpentier support continuation of work to establish the foundation for HCT scaleup to pilot plants, precommercial deployments, and full-scale commercial systems, while creating opportunities for Aduro to continue engagement of potential partners and customers through demonstration projects. Aduro worked with bitumen for completing the work on the First Milestone but the Company could have also worked with waste plastic and achieved the same outcome.

With respect the company activity on post-consumer waste plastic, the Company are in discussions with Switch Energy, a recycler and operator participating in Canada's agricultural & industrial film recycling program, to build a pilot plant in Ontario demonstrating Hydrochemolytic™ Technology for chemical recycling of agricultural and post-consumer plastic waste. While the Company are concentrating on agricultural waste which is mainly polyethylene or a single type of waste plastics, the Company anticipate that in the future attention will shift to other chain-growth polymers such as polypropylene or polystyrene. The goal of these discussions is to develop a framework whereby the two companies can work together to design, build, install, and operate a pilot plant to process waste polyethylene and other types of waste plastics, such as polypropylene.

The Company is also looking at a potential partnership with Brightlands Chemelot Campus ("Brightlands"), an international shared innovation community located in Limburg, The Netherlands. The objective of this partnership will be to initiate a project that will likely process a single type of waste polymers such as polyethylene but develop the path for an installation that applies Aduro Hydrochemolytic™ technology to demonstrate, on a tons per day scale, the conversion of a mixture of plastics. Brightlands have carried out a comprehensive review of the technology and the conclusion was that there seems to be distinct advantages for the process to operate on a mixture of polymers that otherwise would have been rejected by current traditional approaches such as pyrolysis. Work with Brightlands will focus on demonstrating that capability with the support of the eco systems that is already available on site.

BUSINESS OVERVIEW AND DESCRIPTION

The Company was incorporated in the Province of British Columbia on January 10, 2018, under the Business Corporations Act (British Columbia) (the "BCBCA"). On February 12, 2019, the Company's shares commenced trading on the Canadian Securities Exchange ("CSE") under the symbol "DFT". On April 27, 2021, in connection with the Transaction (as defined below), the Company's shares were re-listed on the CSE under the symbol "ACT". On July 20, 2021, the Company's shares commenced trading on the OTCQB in the United States under the symbol "ACTHF" and on July 28, 2021, on the Frankfurt Exchange in Germany under the symbol "9D50". On April 23, 2021, the Company closed the transaction with Aduro Energy Inc. ("Aduro") and Aduro's security holders whereby the Aduro's security holders sold their shares to the Company such that all of the issued and outstanding common shares of Aduro are now wholly owned by the Company (the "Transaction"). As part of the closing of the Transaction, the Company changed its name to "Aduro Clean Technologies Inc." from Dimension Five Technologies Inc. and the Company's shares were re‐listed under the symbol ACT. From April 23, 2021, the Company's only activity was as a holding company and its only holding is the investment in Aduro. For additional information on the Transaction, please see the section of this MD&A entitled "Reverse Takeover" below.

Aduro is an early-stage,Ontario-based clean technology company that has developed a highly flexible chemical recycling platform featuring three water-based technologies: Hydrochemolytic Plastics UpcyclingTM ("HPU"), Hydrochemolytic Renewables UpgradingTM ("HRU") and Hydrochemolytic Bitumen UpgradingTM ("HBU"). As at of today, the Company owns through acquisition and development, three granted and three pending patents.

Aduro's future business model is based principally on licensing, royalties, and research and development. However, the company is still investigating different business models that may be a better fit to its operations. Monetization of the Aduro clean energy platform through licensing model reduces the

Company's need for cash while enabling a relatively pathway to commercialization that management of the Company believes is relatively straightforward and fast.

Aduro aims to develop commercial partnerships by means of demonstration projects. Management believes the effectiveness of this strategy has been demonstrated to be very effective for securing customer feedstock and funding commitments. Deliverables include reports that detail: the technology; its performance (including yields and mass balance); the key parameters and operational variables including chemical characterization of the feedstock and products; economic considerations covering product value and operational costs; operational considerations, and environmental considerations including GHG footprint and life cycle analysis. Among the intended business benefits are developing long term relations, evaluation of different business models and better understanding of geographical territories behaviors and characteristic.

For the founders of Aduro, Ofer Vicus, Chief Executive Officer ("CEO"), and Marcus Trygstad, Chief Technology Officer, the impetus for the formation of Aduro was the vision to develop hydrothermal upgrading technology ("HTU") for upgrading heavy oils. But through R&D efforts of its scientists, management of Aduro found that HTU also could be applied beneficially in the seemingly unrelated fields of plastic and tire rubber upcycling and renewable oil upgrading. Moreover, discoveries made while pursuing those new applications provided management with deeper insights into fundamental chemistry, including operating in connection with the original work on heavy oil. From that developed the current, versatile Aduro Hydrochemolytic™ technology platform, which is protected by three patents and three patents pending (the "Intellectual Property") and is anticipated to yield five academic research papers that are due now in 2022. With support from industry partners as early as 2015, Aduro's pre-pilot demonstration projects have provided validation of Hydrochemolytic™ technology in key applications to support pre- commercial, pilot-scale demonstrations.

Aduro currently directs its Hydrochemolytic™ technology toward these three principal application areas. Aduro technology transforms lower-value feedstocks into useful, higher- value chemical feedstocks and fuels. Although Aduro's technology can be implemented in stand-alone operations, management believes its greatest economic relevance and impact is achieved through integration into thermal operation infrastructure at existing plants. Accordingly, Aduro engages entities in partnerships to demonstrate and implement the technology through licensing arrangements.

A key to this approach is the technology's adaptability that may confer both economic and operational flexibility to minimize implementation costs while maximizing implementation speed. The following are examples of the technology's adaptability and approaches that are under consideration and may be pursued by the Company;

1. Upgrading of Corn Distillers Corn Oil ("CDO"). A byproduct from ethanol production, CDO may be converted to renewable diesel by a patented application of the Company's Hydrochemolytic technology. Besides integration into the backend of ethanol plants, the Hydrochemolytic Renewables Upgrading process ("HRU") may also be applied to renewable oils from crushed oil seed operations, beef and poultry processing plants, and existing biodiesel plants to produce not only renewable diesel, but renewable specialty chemicals.
2. Plastics Upcycling. HPU may be applied to convert waste plastics or tire rubber into feedstocks for producing new plastics or hydrocarbon fuel production. Possible implementation scenarios may include at (a) existing oil refineries for mass processing of waste plastic and tires into petroleum streams; and (b) small and large waste disposal sites for direct production of fuels and high-value chemical feedstocks, thereby may avoid the negative impact of transportation emissions and reducing the footprint of the landfill in an advanced material processing ecosystem. Recently Aduro investigated the means of accessing such waste feedstocks before reaching the landfill in a possible B2B operations. The implication is that the business model focuses on diverting the waste plastic stream from landfills while also directly addressing new producer responsibility regulations.