| JUST ENERGY GROUP INC.                        |
|-----------------------------------------------|
| CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
| AS AT                                         |
| (in thousands of Canadian dollars)            |

|                                                                                     |   | Notes  |   |   | March 31, 2014 |   |       | March 31, 2013 |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|----------------|--------|------------|----------------|--------|
| ASSETS                                                                                   |   |   |   |   |           |   |       |           |   |
| Non-current assets                                                                       |   |   |   |   |           |   |       |           |   |
|      Property, plant and equipment                              |   |   | 5      |   |           | $      | 176,720    |           |   | $ | 258,003 |   |
|      Intangible assets                                          |   |   | 6      |   |           |   | 404,928    |           |   |   | 447,333 |   |
|      Contract initiation costs                                  |   |   |   |   |           |   | 75,731     |           |   |   | 58,446 |   |
|      Other non-current financial assets                         |   |   | 13     |   |           |   | 31,696     |           |   |   | 31,305 |   |
|      Non-current receivables                                    |   |   |   |   |           |   | 11,175     |           |   |   | 11,046 |   |
|      Investments                                                |   |   | 11     |   |           |   | 9,224      |           |   |   | 9,000 |   |
|      Deferred tax asset                                         |   |   | 18     |   |           |   | 1,676      |           |   |   | 24,858 |   |
|                                                                                     |   |   |   |   |           |   | 711,150    |           |   |   | 839,991 |   |
| Current assets                                                                           |   |   |   |   |           |   |       |           |   |   |   |   |
|      Inventory                                                  |   |   | 8      |   |           |   | 9,205      |           |   |   | 6,073 |   |
|      Gas delivered in excess of consumption                     |   |   |   |   |           |   | 7          |           |   |   | 5,224 |   |
|      Gas in storage                                             |   |   |   |   |           |   | 2,387      |           |   |   | 11,051 |   |
|      Current trade and other receivables                        |   |   |   |   |           |   | 426,971    |           |   |   | 315,551 |   |
|      Accrued gas receivables                                    |   |   |   |   |           |   | 48,634     |           |   |   | 33,989 |   |
|      Unbilled revenues                                          |   |   |   |   |           |   | 170,661    |           |   |   | 129,166 |   |
|      Prepaid expenses and deposits                              |   |   |   |   |           |   | 21,699     |           |   |   | 15,874 |   |
|      Other current financial assets                             |   |   | 13     |   |           |   | 103,502    |           |   |   | 33,005 |   |
|      Corporate tax recoverable                                  |   |   |   |   |           |   | 9,754      |           |   |   | 9,761 |   |
|      Restricted cash                                            |   |   | 7      |   |           |   | 12,017     |           |   |   | 13,320 |   |
|      Cash and cash equivalents                                  |   |   |   |   |           |   | 20,401     |           |   |   | 38,498 |   |
|                                                                                     |   |   |   |   |           |   | 825,238    |           |   |   | 611,512 |   |
|      Assets classified as held for sale                         |   |   | 10     |   |           |   | 106,262    |           |   |   | 77,439 |   |
|                                                                                     |   |   |   |   |           |   | 931,500    |           |   |   | 688,951 |   |
| TOTAL ASSETS                                                                             |   |   |   |   |           | $      | 1,642,650  |           |   | $ | 1,528,942 |   |
|                                                                                     |   |   |   |   |           |   |       |           |   |   |   |   |
| DEFICIT AND LIABILITIES                                                                  |   |   |   |   |           |   |       |           |   |   |   |   |
| Deficit attributable to equity holders of the parent                                     |   |   |   |   |           |   |       |           |   |   |   |   |
|    Deficit                                                                |   |   |   |   |           | $      | (1,294,987 | )              |   | $ | (1,300,280 | ) |
|    Accumulated other comprehensive income                                 |   |   | 14     |   |           |   | 71,997     |           |   |   | 47,155 |   |
|    Shareholders’ capital                                            |   |   | 15     |   |           |   | 1,033,557  |           |   |   | 1,018,082 |   |
|    Equity component of convertible debentures                             |   |   |   |   |           |   | 25,795     |           |   |   | 25,795 |   |
|    Contributed surplus                                                    |   |   |   |   |           |   | 65,569     |           |   |   | 70,893 |   |
| Shareholders’ deficit                                                              |   |   |   |   |           |   | (98,069    | )              |   |   | (138,355 | ) |
|                                                                                     |   |   |   |   |           |   |       |           |   |   |   |   |
| Non-controlling interest                                                                 |   |   | 12     |   |           |   | 6,427      |           |   |   | (702 | ) |
| TOTAL DEFICIT                                                                            |   |   |   |   |           |   | (91,642    | )              |   |   | (139,057 | ) |
|                                                                                     |   |   |   |   |           |   |       |           |   |   |   |   |
| Non-current liabilities                                                                  |   |   |   |   |           |   |       |           |   |   |   |   |
|      Long-term debt                                             |   |   | 17     |   |           |   | 930,027    |           |   |   | 795,224 |   |
|      Provisions                                                 |   |   | 19     |   |           |   | 3,760      |           |   |   | 3,773 |   |
|      Deferred lease inducements                                 |   |   |   |   |           |   | 813        |           |   |   | 1,044 |   |
|      Other non-current financial liabilities                    |   |   | 13     |   |           |   | 56,297     |           |   |   | 85,380 |   |
|      Deferred tax liability                                     |   |   | 18     |   |           |   | 32,935     |           |   |   | 31,327 |   |
|                                                                                     |   |   |   |   |           |   | 1,023,832  |           |   |   | 916,748 |   |
| Current liabilities                                                                      |   |   |   |   |           |   |       |           |   |   |   |   |
|      Trade and other payables                                   |   |   |   |   |           |   | 485,471    |           |   |   | 301,820 |   |
|      Accrued gas payable                                        |   |   |   |   |           |   | 34,589     |           |   |   | 28,476 |   |
|      Deferred revenue                                           |   |   |   |   |           |   | 82         |           |   |   | 13,017 |   |
|      Income taxes payable                                       |   |   |   |   |           |   | 6,280      |           |   |   | 5,143 |   |
|      Current portion of long-term debt                          |   |   | 17     |   |           |   | 51,999     |           |   |   | 162,474 |   |
|      Provisions                                                 |   |   | 19     |   |           |   | 3,052      |           |   |   | 3,063 |   |
|      Other current financial liabilities                        |   |   | 13     |   |           |   | 77,135     |           |   |   | 159,819 |   |
|                                                                                     |   |   |   |   |           |   | 658,608    |           |   |   | 673,812 |   |
|      Liabilities relating to assets classified as held for sale |   |   | 10     |   |           |   | 51,852     |           |   |   | 77,439 |   |
|                                                                                     |   |   |   |   |           |   | 710,460    |           |   |   | 751,251 |   |
| TOTAL LIABILITIES                                                                        |   |   |   |   |           |   | 1,734,292  |           |   |   | 1,667,999 |   |
| TOTAL DEFICIT AND LIABILITIES                                                            |   |   |   |   |           | $      | 1,642,650  |           |   | $ | 1,528,942 |   |
|                                                                                     |   |   |   |   |           |   |       |           |   |   |   |   |
| Commitments and Guarantees (Note 28)                                                     |   |   |   |   |           |   |       |           |   |   |   |   |
| See accompanying notes to the consolidated financial statements                          |   |   |   |   |           |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF INCOME                                                |
| FOR THE YEARS ENDED MARCH 31                                                     |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                                            |   | Notes  |   |   | 2014   |   |      | 2013   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|
| CONTINUING OPERATIONS                                           |   |   |   |   |   |   |      |   |   |
| SALES                                                           |   |   | 21     |   |   | $      | 3,611,058 |   |   | $ | 3,011,178 |   |
| COST OF SALES                                                   |   |   | 20(b)  |   |   |   | 3,045,459 |   |   |   | 2,487,074 |   |
| GROSS MARGIN                                                    |   |   |   |   |   |   | 565,599   |   |   |   | 524,104 |   |
| EXPENSES                                                        |   |   |   |   |   |   |      |   |   |   |   |   |
|    Administrative expenses                       |   |   |   |   |   |   | 139,359   |   |   |   | 137,333 |   |
|    Selling and marketing expenses                |   |   |   |   |   |   | 200,004   |   |   |   | 220,499 |   |
|    Other operating expenses                      |   |   | 20(a)  |   |   |   | 105,898   |   |   |   | 133,555 |   |
|                                                            |   |   |   |   |   |   | 445,261   |   |   |   | 491,387 |   |
| Operating profit before the following                           |   |   |   |   |   |   | 120,338   |   |   |   | 32,717 |   |
| Finance costs                                                   |   |   | 17     |   |   |   | (90,769   | )      |   |   | (74,000 | ) |
| Change in fair value of derivative instruments                  |   |   | 13     |   |   |   | 186,142   |   |   |   | 719,575 |   |
| Other income                                                    |   |   |   |   |   |   | 2,921     |   |   |   | 4,005 |   |
| Income before income taxes                                      |   |   |   |   |   |   | 218,632   |   |   |   | 682,297 |   |
| Provision for income taxes                                      |   |   | 18     |   |   |   | 52,440    |   |   |   | 86,385 |   |
| PROFIT FROM CONTINUING OPERATIONS                               |   |   |   |   |   | $      | 166,192   |   |   | $ | 595,912 |   |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
| DISCONTINUED OPERATIONS                                         |   |   |   |   |   |   |      |   |   |   |   |   |
| Loss from discontinued operations                               |   |   | 10     |   |   |   | (29,251   | )      |   |   | (71,289 | ) |
| PROFIT FOR THE YEAR                                             |   |   |   |   |   | $      | 136,941   |   |   | $ | 524,623 |   |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
| Attributable to:                                                |   |   |   |   |   |   |      |   |   |   |   |   |
| Shareholders of Just Energy                                     |   |   |   |   |   | $      | 135,907   |   |   | $ | 530,308 |   |
| Non-controlling interest                                        |   |   | 12     |   |   |   | 1,034     |   |   |   | (5,685 | ) |
| PROFIT FOR THE YEAR                                             |   |   |   |   |   | $      | 136,941   |   |   | $ | 524,623 |   |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
| Earnings per share from continuing operations                   |   |   | 23     |   |   |   |      |   |   |   |   |   |
| Basic                                                           |   |   |   |   |   | $      | 1.16      |   |   | $ | 4.26 |   |
| Diluted                                                         |   |   |   |   |   | $      | 1.12      |   |   | $ | 3.65 |   |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
| Loss per share from discontinued operations                     |   |   |   |   |   |   |      |   |   |   |   |   |
| Basic                                                           |   |   |   |   |   | $      | (0.17     | )      |   | $ | (0.50 | ) |
| Diluted                                                         |   |   |   |   |   | $      | (0.17     | )      |   | $ | (0.50 | ) |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
| Earnings per share available to shareholders                    |   |   | 23     |   |   |   |      |   |   |   |   |   |
| Basic                                                           |   |   |   |   |   | $      | 0.95      |   |   | $ | 3.79 |   |
| Diluted                                                         |   |   |   |   |   | $      | 0.94      |   |   | $ | 3.27 |   |
|                                                            |   |   |   |   |   |   |      |   |   |   |   |   |
| See accompanying notes to the consolidated financial statements |   |

----

| JUST ENERGY GROUP INC.                          |
|-------------------------------------------------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
| FOR THE YEARS ENDED MARCH 31                    |
| (in thousands of Canadian dollars)         |

|                                                                    |   | Notes  |   |   | 2014   |    |    | 2013   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------|---------|--------|--------|
| Profit for the year                                                     |   |   |   |   | $      | 136,941 |    |   | $      | 524,623 |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |
| Other comprehensive income (loss) to be reclassified to profit          |   |   |   |   |   |    |    |   |   |   |   |
|     or loss in subsequent years:                    |   |   | 14     |   |   |    |    |   |   |   |   |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Unrealized gain on translation of foreign operations from continuing    |   |   |   |   |   |    |    |   |   |   |   |   |
|      operations                                |   |   |   |   |   |    | 27,287  |   |   |   | 3,232 |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Unrealized gain on translation of foreign operations from discontinued  |   |   |   |   |   |    |    |   |   |   |   |   |
|      operations                                |   |   |   |   |   |    | 2,556   |   |   |   | 75 |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Amortization of deferred unrealized gain on discontinued hedges, net of |   |   |   |   |   |    |    |   |   |   |   |   |
|      income taxes of $207 (2013 - $5,479)      |   |   |   |   |   |    | (5,001  | )      |   |   | (26,445 | ) |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Other comprehensive income (loss) to be reclassified to profit          |   |   |   |   |   |    |    |   |   |   |   |   |
|      or loss in subsequent years, net of tax   |   |   |   |   |   |    | 24,842  |   |   |   | (23,138 | ) |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Total comprehensive income for the year, net of tax                     |   |   |   |   |   | $       | 161,783 |   |   | $ | 501,485 |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Total comprehensive income attributable to:                             |   |   |   |   |   |    |    |   |   |   |   |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Shareholders of Just Energy                                             |   |   |   |   |   | $       | 160,749 |   |   | $ | 507,170 |   |
| Non-controlling interest                                                |   |   |   |   |   |    | 1,034   |   |   |   | (5,685 | ) |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| Total comprehensive income for the year, net of tax                     |   |   |   |   |   | $       | 161,783 |   |   | $ | 501,485 |   |
|                                                                    |   |   |   |   |   |    |    |   |   |   |   |   |
| See accompanying notes to the consolidated financial statements         |   |

----

| JUST ENERGY GROUP INC.                                            |
|-------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT |
| FOR THE YEARS ENDED MARCH 31                                      |
| (in thousands of Canadian dollars)                           |

|                                                                                                    |   | Notes  |   |   | 2014   |       |       | 2013   |   |
|---------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|------------|------------|--------|--------|
| ATTRIBUTABLE TO THE SHAREHOLDERS                                                                        |   |   |   |   |   |       |       |   |   |
| Accumulated earnings                                                                                    |   |   |   |   |   |       |       |   |   |
| Accumulated earnings, beginning of year                                                                 |   |   |   |   | $      | 87,496     |       |   | $      | (442,812 | ) |
| Loss on acquisition of non-controlling interest                                                         |   |   |   |   |   | (7,185     | )          |   |   | - |   |
| Profit for the year, attributable to shareholders                                                       |   |   |   |   |   | 135,907    |       |   |   | 530,308 |   |
| Accumulated earnings, end of year                                                                       |   |   |   |   |   | 216,218    |       |   |   | 87,496 |   |
|                                                                                                    |   |   |   |   |   |       |       |   |   |   |   |
| DIVIDENDS                                                                                               |   |   |   |   |   |       |       |   |   |   |   |
| Dividends, beginning of year                                                                            |   |   |   |   |   | (1,387,776 | )          |   |   | (1,209,376 | ) |
| Dividends                                                                                               |   |   | 27     |   |   |       | (123,429   | )      |   |   | (178,400 | ) |
| Dividends, end of year                                                                                  |   |   |   |   |   |       | (1,511,205 | )      |   |   | (1,387,776 | ) |
| DEFICIT                                                                                                 |   |   |   |   |   | $          | (1,294,987 | )      |   | $ | (1,300,280 | ) |
|                                                                                                    |   |   |   |   |   |       |       |   |   |   |   |   |
| ACCUMULATED OTHER COMPREHENSIVE INCOME                                                                  |   |   | 14     |   |   |       |       |   |   |   |   |   |
| Accumulated other comprehensive income, beginning of year                                               |   |   |   |   |   | $          | 47,155     |   |   | $ | 70,293 |   |
| Other comprehensive income (loss)                                                                       |   |   |   |   |   |       | 24,842     |   |   |   | (23,138 | ) |
| Accumulated other comprehensive income, end of year                                                     |   |   |   |   |   | $          | 71,997     |   |   | $ | 47,155 |   |
|                                                                                                    |   |   |   |   |   |       |       |   |   |   |   |   |
| SHAREHOLDERS’ CAPITAL                                                                             |   |   | 15     |   |   |       |       |   |   |   |   |   |
| Shareholders’ capital, beginning of year                                                          |   |   |   |   |   | $          | 1,018,082  |   |   | $ | 993,181 |   |
| Share-based compensation awards exercised                                                               |   |   |   |   |   |       | 7,240      |   |   |   | 3,320 |   |
| Shares issued (cancelled)                                                                               |   |   |   |   |   |       | -          |   |   |   | 7 |   |
| Dividend reinvestment plan                                                                              |   |   |   |   |   |       | 8,235      |   |   |   | 21,574 |   |
| Shareholders’ capital, end of year                                                                |   |   |   |   |   | $          | 1,033,557  |   |   | $ | 1,018,082 |   |
|                                                                                                    |   |   |   |   |   |       |       |   |   |   |   |   |
| EQUITY COMPONENT OF CONVERTIBLE DEBENTURES                                                              |   |   |   |   |   |       |       |   |   |   |   |   |
| Balance, beginning of year                                                                              |   |   |   |   |   | $          | 25,795     |   |   | $ | 25,795 |   |
| Balance, end of year                                                                                    |   |   |   |   |   | $          | 25,795     |   |   | $ | 25,795 |   |
|                                                                                                    |   |   |   |   |   |       |       |   |   |   |   |   |
| CONTRIBUTED SURPLUS                                                                                     |   |   |   |   |   |       |       |   |   |   |   |   |
| Balance, beginning of year                                                                              |   |   |   |   |   | $          | 70,893     |   |   | $ | 62,147 |   |
| Add:  Share-based compensation awards                                                         |   |   | 20(a)  |   |   |       | 1,796      |   |   |   | 11,952 |   |
|           Non-cash deferred share grant distributions |   |   |   |   |   |       | 120        |   |   |   | 114 |   |
| Less: Share-based compensation awards exercised                                                         |   |   |   |   |   |       | (7,240     | )      |   |   | (3,320 | ) |
| Balance, end of year                                                                                    |   |   |   |   |   | $          | 65,569     |   |   | $ | 70,893 |   |
|                                                                                                    |   |   |   |   |   |       |       |   |   |   |   |   |
| NON-CONTROLLING INTEREST                                                                                |   |   | 12     |   |   |       |       |   |   |   |   |   |
| Balance, beginning of year                                                                              |   |   |   |   |   | $          | (702       | )      |   | $ | (637 | ) |
| Investment by non-controlling shareholders                                                              |   |   |   |   |   |       | 11,063     |   |   |   | 6,147 |   |
| Distributions to non-controlling shareholders                                                           |   |   |   |   |   |       | (6,144     | )      |   |   | - |   |
| Foreign exchange impact on non-controlling interest                                                     |   |   |   |   |   |       | 1,176      |   |   |   | (527 | ) |
| Income (loss) attributable to non-controlling interest                                                  |   |   |   |   |   |       | 1,034      |   |   |   | (5,685 | ) |
| Balance, end of year                                                                                    |   |   |   |   |   | $          | 6,427      |   |   | $ | (702 | ) |
| TOTAL DEFICIT                                                                                           |   |   |   |   |   | $          | (91,642    | )      |   | $ | (139,057 | ) |
| See accompanying notes to the consolidated financial statements                                         |   |   |   |   |   |

----

| JUST ENERGY GROUP INC.                  |
|-----------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS   |
| FOR THE YEARS ENDED MARCH 31            |
| (in thousands of Canadian dollars) |

| Net outflow of cash related to the following activities                            |   | Notes  |   |   | 2014   |    |     | 2013   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|---------|----------|--------|--------|
|                                                                               |   |   |   |   |   |    |     |   |   |
| OPERATING                                                                          |   |   |   |   |   |    |     |   |   |
| Income from continuing operations before income taxes                              |   |   |   |   | $      | 218,632 |     |   | $      | 682,297 |   |
| Items not affecting cash                                                           |   |   |   |   |   |    |     |   |   |   |   |
|    Amortization of intangible assets and related supply contracts   |   |   | 20(a)  |   |   |    | 52,510   |   |   |   | 86,328 |   |
|    Amortization of contract initiation costs                        |   |   |   |   |   |    | 20,622   |   |   |   | 17,439 |   |
|    Amortization of property, plant and equipment                    |   |   | 20(a)  |   |   |    | 4,431    |   |   |   | 4,425 |   |
|    Amortization included in cost of sales                           |   |   | 20(b)  |   |   |    | 13,136   |   |   |   | 9,193 |   |
|    Share-based compensation                                         |   |   | 20(a)  |   |   |    | 1,796    |   |   |   | 11,952 |   |
|    Financing charges, non-cash portion                              |   |   |   |   |   |    | 14,271   |   |   |   | 10,534 |   |
|    Other                                                            |   |   |   |   |   |    | (242     | )      |   |   | (541 | ) |
|    Change in fair value of derivative instruments                   |   |   |   |   |   |    | (186,142 | )      |   |   | (719,575 | ) |
|    Cash inflow from operating activities of discontinued operations |   |   |   |   |   |    | (4,191   | )      |   |   | 8,612 |   |
|                                                                               |   |   |   |   |   |    | (83,809  | )      |   |   | (571,633 | ) |
| Adjustment required to reflect net cash receipts from gas sales                    |   |   | 29     |   |   |    | (6,186   | )      |   |   | (4,536 | ) |
|                                                                               |   |   |   |   |   |    |     |   |   |   |   |   |
| Changes in non-cash working capital                                                |   |   | 30     |   |   |    | 38,726   |   |   |   | (9,769 | ) |
|                                                                               |   |   |   |   |   |    | 167,363  |   |   |   | 96,359 |   |
| Income tax paid                                                                    |   |   |   |   |   |    | (1,965   | )      |   |   | (3,238 | ) |
| Cash inflow from operating activities                                              |   |   |   |   |   |    | 165,398  |   |   |   | 93,121 |   |
|                                                                               |   |   |   |   |   |    |     |   |   |   |   |   |
| INVESTING                                                                          |   |   |   |   |   |    |     |   |   |   |   |   |
| Purchase of property, plant and equipment                                          |   |   |   |   |   |    | (35,540  | )      |   |   | (38,370 | ) |
| Purchase of intangible assets                                                      |   |   |   |   |   |    | (8,089   | )      |   |   | (14,563 | ) |
| Advances of long-term receivables                                                  |   |   |   |   |   |    | (129     | )      |   |   | (4,571 | ) |
| Investments                                                                        |   |   |   |   |   |    | -        |   |   |   | (8,942 | ) |
| Acquisition of minority interest                                                   |   |   |   |   |   |    | (7,185   | )      |   |   | (1,551 | ) |
| Contract initiation costs                                                          |   |   |   |   |   |    | (37,304  | )      |   |   | (31,090 | ) |
| Cash flows used in investing activities of discontinued operations                 |   |   |   |   |   |    | (24,996  | )      |   |   | (63,756 | ) |
| Cash outflow from investing activities                                             |   |   |   |   |   |    | (113,243 | )      |   |   | (162,843 | ) |
|                                                                               |   |   |   |   |   |    |     |   |   |   |   |   |
| FINANCING                                                                          |   |   |   |   |   |    |     |   |   |   |   |   |
| Dividends paid                                                                     |   |   |   |   |   |    | (115,072 | )      |   |   | (156,651 | ) |
| Shares issued for cash                                                             |   |   |   |   |   |    | -        |   |   |   | 7 |   |
| Issuance of long-term debt                                                         |   |   |   |   |   |    | 653,928  |   |   |   | 471,719 |   |
| Repayment of long-term debt                                                        |   |   |   |   |   |    | (611,154 | )      |   |   | (277,620 | ) |
| Restricted cash                                                                    |   |   |   |   |   |    | 2,178    |   |   |   | 699 |   |
| Debt issuance costs                                                                |   |   |   |   |   |    | (11,245  | )      |   |   | (7,599 | ) |
| Investment made by minority shareholder                                            |   |   |   |   |   |    | -        |   |   |   | 5,032 |   |
| Cash flows provided by financing activities of discontinued operations             |   |   |   |   |   |    | 21,131   |   |   |   | 22,265 |   |
| Distributions to minority shareholder                                              |   |   |   |   |   |    | (6,143   | )      |   |   | - |   |
| Cash inflow (outflow) from financing activities                                    |   |   |   |   |   |    | (66,377  | )      |   |   | 57,852 |   |
| Effect of foreign currency translation on cash balances                            |   |   |   |   |   |    | 1,276    |   |   |   | (2,690 | ) |
| Net cash outflow                                                                   |   |   |   |   |   |    | (12,946  | )      |   |   | (14,560 | ) |
| Cash and cash equivalents reclassified to assets held for sale                     |   |   |   |   |   |    | (5,151   | )      |   |   | (162 | ) |
| Cash and cash equivalents, beginning of year                                       |   |   |   |   |   |    | 38,498   |   |   |   | 53,220 |   |
| Cash and cash equivalents, end of year                                             |   |   |   |   |   | $       | 20,401   |   |   | $ | 38,498 |   |
|                                                                               |   |   |   |   |   |    |     |   |   |   |   |   |
|                                                                               |   |   |   |   |   |    |     |   |   |   |   |   |
| Supplemental cash flow information:                                                |   |   |   |   |   |    |     |   |   |   |   |   |
| Interest paid                                                                      |   |   |   |   |   | $       | 78,500   |   |   | $ | 66,500 |   |
|                                                                               |   |   |   |   |   |    |     |   |   |   |   |   |
| See accompanying notes to the consolidated financial statements                    |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 1. | ORGANIZATION |
|----|--------------|

| 2. | OPERATIONS |
|----|------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 3. | SIGNIFICANT ACCOUNTING POLICIES |
|----|---------------------------------|

|   | (b) | Principles of consolidation |
|--------|-----|-----------------------------|

|   |  (c) | Cash and cash equivalents and restricted cash |
|--------|-----------|-----------------------------------------------|

|   |  (d) | Accrued gas receivables/accrued gas payable or gas delivered in excess of consumption/deferred revenue |
|--------|-----------|--------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (e) | Inventory |
|--------|-----|-----------|

|   | (f) | Property, plant and equipment |
|--------|-----|-------------------------------|

| Asset category                | Depreciation method | Rate/useful life |
|-------------------------------|---------------------|------------------|
| Furniture and fixtures        | Declining balance   | 20%              |
| Office equipment              | Declining balance   | 20%              |
| Computer equipment            | Declining balance   | 30%              |
| Buildings                     | Straight-line       | 15-35 years      |
| Water heaters                 | Straight-line       | 10-15 years      |
| Furnaces and air conditioners | Straight-line       | 15 years         |
| Leasehold improvements        | Straight-line       | Term of lease    |
| Vehicles                      | Straight-line       | 5 years          |
| Thermostats                   | Straight-line       | 5 years          |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (g) | Goodwill |
|--------|-----|----------|

|   | (h) | Intangible assets |
|--------|-----|-------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| Intangible asset category                 | Amortization method | Rate             |
|-------------------------------------------|---------------------|------------------|
| Customer contracts                        | Straight-line       | Term of contract |
| Contract initiation costs                 | Straight-line       | Term of contract |
| Commodity billing and settlement systems  | Straight-line       | 5 years          |
| Sales network and affinity relationships  | Straight-line       | 5-8 years        |
| Information technology system development | Straight-line       | 5 years          |
| Software                                  | Straight-line       | 1 year           |
| Other intangible assets                   | Straight-line       | 5 years          |

|   | (i) | Impairment of non-financial assets |
|--------|-----|------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (j) | Leases |
|--------|-----|--------|

|   | (k) | Financial instruments |
|--------|-----|-----------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (l) | Derivative instruments |
|--------|-----|------------------------|

|   |  (m) | Offsetting of financial instruments |
|--------|-----------|-------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (n) | Fair value of financial instruments |
|--------|-----|-------------------------------------|

|   | (o) | Revenue recognition |
|--------|-----|---------------------|

|   | (p) | Foreign currency translation |
|--------|-----|------------------------------|

|   | ● | assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate at the date of that consolidated statement of financial position; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | ● | income and expenses for each consolidated statement of income are translated at the exchange rates prevailing at the dates of the transactions. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | Per share amounts |
|--------|-----|-------------------|

|   | (r) | Share-based compensation plans |
|--------|-----|--------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (s) | Employee future benefits |
|--------|-----|--------------------------|

|   | (t) | Income taxes |
|--------|-----|--------------|

|   | ● | Where the deferred tax asset/liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | In respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | ● | Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | Provisions |
|--------|-----|------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (v) | Selling and marketing expenses and contract initiation costs |
|--------|-----|--------------------------------------------------------------|

|   | (w) | Non-current assets held for sale and discontinued operations |
|--------|-----|--------------------------------------------------------------|

|   | (x) | New standards, interpretations and amendments adopted by the Company during the year |
|--------|-----|--------------------------------------------------------------------------------------|

|   | ● | IAS 1, Presentation of Items of Other Comprehensive Income – Amendments to IAS 1 |
|--------|---------|----------------------------------------------------------------------------------------|

|   | ● | IFRS 7, Disclosures – Offsetting Financial Assets and Financial Liabilities – Amendments to IFRS 7 |
|--------|---------|----------------------------------------------------------------------------------------------------------------|

|   | ● | IFRS 10, Consolidated Financial Statements |
|--------|---------|--------------------------------------------|

|   | ● | IFRS 11, Joint Arrangements |
|--------|---------|-----------------------------|

|   | ● | IFRS 12, Disclosure of Interests in Other Entities |
|--------|---------|----------------------------------------------------|

|   | ● | IFRS 13, Fair Value Measurement |
|--------|---------|---------------------------------|

|   | ● | IAS 28, Investments in Associates and Joint Ventures |
|--------|---------|------------------------------------------------------|

|   | ● | IAS 32, Offsetting Financial Assets and Financial Liabilities – Amendments to IAS 32 |
|--------|---------|--------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | 4. | (i) | SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS |
|--------|----|-----|-------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (ii) | ACCOUNTING STANDARDS ISSUED BUT NOT YET APPLIED |
|--------|------|-------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 5. | PROPERTY, PLANT AND EQUIPMENT |
|----|-------------------------------|

| As at March 31, 2014                |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |
|-------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|--------|--------|--------|--------------|--------|--------|----------|--------|--------|
|                                |   | Computer  |   |   |      |   |   |   |   |   | Furniture    |   |   |     |   |   | Office |   |   | Home services |   |   | Leasehold |   |   | Solar |   |   |   |   |
|                                |   | equipment |   |   | Buildings |   |   | Land   |   |   | and fixtures |   |   | Vehicles |   |   | equipment |   |   | equipment |   |   | improvements |   |   | equipment |   |   | Total |   |
| Cost:                               |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Opening balance -                   |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April 1, 2013                       |   | $         | 11,729 |   |      | $      | 670    |   |   | $      | -            |   |   | $        | 6,590  |   |   | $ | 22 |   |   | $ | 19,216 |   |   | $ | 164,539 |   |   | $ | 8,974 |   |   | $ | 101,003 |   |   | $ | 312,743 |   |
| Additions/(disposals)               |   |      | 1,709  |   |      |   | (695   | )      |   |   | -            |   |   |     | 94     |   |   |   | - |   |   |   | 1,691 |   |   |   | 32,388 |   |   |   | 45 |   |   |   | - |   |   |   | 35,232 |   |
| Transfer to discontinued operations |   |      | (4     | )      |      |   | -      |   |   |   | -            |   |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (101,003 | ) |   |   | (101,007 | ) |
| Exchange differences                |   |      | 257    |   |      |   | 25     |   |   |   | -            |   |   |     | 180    |   |   |   | - |   |   |   | 250 |   |   |   | 93 |   |   |   | 60 |   |   |   | - |   |   |   | 865 |   |
| Ending balance,                     |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2014                      |   |      | 13,691 |   |      |   | -      |   |   |   | -            |   |   |     | 6,864  |   |   |   | 22 |   |   |   | 21,157 |   |   |   | 197,020 |   |   |   | 9,079 |   |   |   | - |   |   |   | 247,833 |   |
| Accumulated                         |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization:     |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Opening balance -                   |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April 1, 2013                       |   |      | (7,510 | )      |      |   | (56    | )      |   |   | -            |   |   |     | (4,422 | )      |   |   | (14 | ) |   |   | (11,720 | ) |   |   | (23,024 | ) |   |   | (6,516 | ) |   |   | (1,478 | ) |   |   | (54,740 | ) |
| Amortization charge                 |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to cost of sales  |   |      | -      |   |      |   | -      |   |   |   | -            |   |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | (13,136 | ) |   |   | - |   |   |   | - |   |   |   | (13,136 | ) |
| Amortization charge                 |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    for the year      |   |      | (1,622 | )      |      |   | (18    | )      |   |   | -            |   |   |     | (502   | )      |   |   | (3 | ) |   |   | (1,699 | ) |   |   | - |   |   |   | (587 | ) |   |   | - |   |   |   | (4,431 | ) |
| Disposals                           |   |      | -      |   |      |   | 76     |   |   |   | -            |   |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 76 |   |
| Transfer to discontinued operations |   |      | 2      |   |      |   | -      |   |   |   |         |   |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,478 |   |   |   | 1,480 |   |
| Exchange differences                |   |      | (133   | )      |      |   | (2     | )      |   |   | -            |   |   |     | (80    | )      |   |   | - |   |   |   | (117 | ) |   |   | (4 | ) |   |   | (26 | ) |   |   | - |   |   |   | (362 | ) |
| Ending balance,                     |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2014                      |   |      | (9,263 | )      |      |   | -      |   |   |   | -            |   |   |     | (5,004 | )      |   |   | (17 | ) |   |   | (13,536 | ) |   |   | (36,164 | ) |   |   | (7,129 | ) |   |   | - |   |   |   | (71,113 | ) |
| Net book value,                     |   |      |   |   |      |   |   |   |   |   |         |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2014                      |   | $         | 4,428  |   |      | $      | -      |   |   | $      | -            |   |   | $        | 1,860  |   |   | $ | 5 |   |   | $ | 7,621 |   |   | $ | 160,856 |   |   | $ | 1,950 |   |   | $ | - |   |   | $ | 176,720 |   |

| As at March 31, 2013               |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |
|------------------------------------|--------|-----------|--------|--------|---------------|--------|----------|--------|--------|--------|--------------|--------|--------|----------|--------|--------|-----------|--------|--------|---------------|--------|--------|--------------|--------|--------|-----------|---------|--------|--------|--------|
|                               |   | Computer  |   |   | Buildings and |   |     |   |   |   | Furniture    |   |   |     |   |   | Office    |   |   | Home services |   |   | Leasehold    |   |   | Solar     |    |   |   |   |
|                               |   | equipment |   |   | ethanol plant |   |     | Land   |   |   | and fixtures |   |   | Vehicles |   |   | equipment |   |   | equipment     |   |   | improvements |   |   | equipment |    |   | Total  |   |
| Cost:                              |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |
| Opening balance -                  |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |
| April 1, 2012                      |   | $         | 9,453  |   |          | $      | 158,500  |   |   | $      | 299          |   |   | $        | 6,572  |   |      | $      | 212    |          |   | $      | 20,028       |   |   | $         | 117,755 |   |   | $      | 8,642 |   |   | $ | 35,789 |   |   | $ | 357,250 |   |
| Additions/(disposals)              |   |      | 2,402  |   |          |   | -        |   |   |   | -            |   |   |     | 459    |   |      |   | (25    | )             |   |   | 1,193        |   |   |      | 46,784  |   |   |   | 384 |   |   |   | 63,616 |   |   |   | 114,813 |   |
| Transfer to discontinued           |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations       |   |      | (173   | )      |          |   | (157,842 | )      |   |   | (299         | )      |   |     | (476   | )      |      |   | (165   | )             |   |   | (2,052       | )      |   |      | -       |   |   |   | (64 | ) |   |   | - |   |   |   | (161,071 | ) |
| Exchange differences               |   |      | 47     |   |          |   | 12       |   |   |   | -            |   |   |     | 35     |   |      |   | -      |          |   |   | 47           |   |   |      | -       |   |   |   | 12 |   |   |   | 1,598 |   |   |   | 1,751 |   |
| Ending balance,                    |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2013                     |   |      | 11,729 |   |          |   | 670      |   |   |   | -            |   |   |     | 6,590  |   |      |   | 22     |          |   |   | 19,216       |   |   |      | 164,539 |   |   |   | 8,974 |   |   |   | 101,003 |   |   |  - | 312,743 |   |
| Accumulated                        |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization:    |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Opening balance -                  |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| April 1, 2012                      |   |      | (6,160 | )      |          |   | (24,498  | )      |   |   | -            |   |   |     | (4,141 | )      |      |   | (108   | )             |   |   | (11,435      | )      |   |      | (13,835 | )      |   |   | (5,999 | ) |   |   | (13 | ) |   |   | (66,189 | ) |
| Amortization charge                |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to cost of sales |   |      | -      |   |          |   | -        |   |   |   | -            |   |   |     | -      |   |      |   | -      |          |   |   | -            |   |   |      | (9,193  | )      |   |   | - |   |   |   | (1,422 | ) |   |   | (10,615 | ) |
| Amortization charge                |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    for the year     |   |      | (1,433 | )      |          |   | (19      | )      |   |   | -            |   |   |     | (546   | )      |      |   | (5     | )             |   |   | (1,879       | )      |   |      | -       |   |   |   | (543 | ) |   |   | - |   |   |   | (4,425 | ) |
|  Disposals                    |   |      | -      |   |          |   | 161      |   |   |   | -            |   |   |     | -      |   |      |   | -      |          |   |   | -            |   |   |      | -       |   |   |   | - |   |   |   | - |   |   |   | 161 |   |
| Transfer to discontinued           |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations       |   |      | 102    |   |          |   | 24,301   |   |   |   | -            |   |   |     | 266    |   |      |   | 99     |          |   |   | 1,612        |   |   |      | -       |   |   |   | 34 |   |   |   | - |   |   |   | 26,414 |   |
| Exchange differences               |   |      | (19    | )      |          |   | (1       | )      |   |   | -            |   |   |     | (1     | )      |      |   | -      |          |   |   | (18          | )      |   |      | 4       |   |   |   | (8 | ) |   |   | (43 | ) |   |   | (86 | ) |
| Ending balance,                    |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2013                     |   |      | (7,510 | )      |          |   | (56      | )      |   |   | -            |   |   |     | (4,422 | )      |      |   | (14    | )             |   |   | (11,720      | )      |   |      | (23,024 | )      |   |   | (6,516 | ) |   |   | (1,478 | ) |   |   | (54,740 | ) |
| Net book value,                    |   |      |   |   |          |   |     |   |   |   |         |   |   |     |   |   |      |   |   |          |   |   |         |   |   |      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2013                     |   | $         | 4,219  |   |          | $      | 614      |   |   | $      | -            |   |   | $        | 2,168  |   |      | $      | 8      |          |   | $      | 7,496        |   |   | $         | 141,515 |   |   | $      | 2,458 |   |   | $ | 99,525 |   |   | $ | 258,003 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 6. | INTANGIBLE ASSETS |
|----|-------------------|

| As at March 31, 2014 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|                                |   |          |     |   | Electricity |   |     | Water heater |   |   |     |   |   | Sales network and affinity |    |   |   |   |    |     |   |   | IT system   |   |   |   |    |   |   |   |
|-------------------------------------|--------|---------------|----------|--------|-------------|--------|----------|--------------|--------|--------|----------|--------|--------|----------------------------|---------|--------|--------|--------|---------|----------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|
|                                |   | Gas contracts |     |   | contracts   |   |     | contracts    |   |   | Goodwill |   |   |  relationships        |    |   | Brand  |   |    | Software |   |   | development |   |   | Other  |    |   | Total  |   |
| Cost:                               |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |
| Opening balance -                   |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |
| April 1, 2013                       |   | $             | 114,367  |   |        | $      | 250,487  |         |   | $      | 51,235   |   |   | $                          | 256,382 |   |   | $      | 125,361 |     |   | $      | 23,802      |   |   | $      | 17,534  |   |   | $      | 23,470 |   |   | $ | 7,829 |   |   | $ | 870,467 |   |
| Transfer to discontinued operations |   |          | -        |   |        |   | -        |         |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | (3      | )      |   |   | - |   |   |   | - |   |   |   | (3 | ) |
| Additions                           |   |          | -        |   |        |   | -        |         |   |   | 604      |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | 4,980   |   |   |   | 1,163 |   |   |   | 1,342 |   |   |   | 8,089 |   |
| Exchange differences                |   |          | 2,420    |   |        |   | 22,066   |         |   |   | -        |   |   |                       | 7,654   |   |   |   | 11,043  |     |   |   | 2,097       |   |   |   | 919     |   |   |   | 1,766 |   |   |   | 582 |   |   |   | 48,547 |   |
| Ending balance,                     |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2014                      |   |          | 116,787  |   |        |   | 272,553  |         |   |   | 51,839   |   |   |                       | 264,036 |   |   |   | 136,404 |     |   |   | 25,899      |   |   |   | 23,430  |   |   |   | 26,399 |   |   |   | 9,753 |   |   |   | 927,100 |   |
| Accumulated                         |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization:     |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Opening balance -                   |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    April 1, 2013     |   |          | (96,073  | )      |        |   | (228,651 | )            |   |   | (7,129   | )      |   |                       | -       |   |   |   | (56,921 | )        |   |   | -           |   |   |   | (13,634 | )      |   |   | (14,131 | ) |   |   | (6,595 | ) |   |   | (423,134 | ) |
| Transfer to discontinued operations |   |          | -        |   |        |   | -        |         |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | 3       |   |   |   | - |   |   |   | - |   |   |   | 3 |   |
| Amortization charge                 |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    for the year      |   |          | (8,238   | )      |        |   | (6,724   | )            |   |   | (4,511   | )      |   |                       | -       |   |   |   | (22,851 | )        |   |   | -           |   |   |   | (5,545  | )      |   |   | (4,339 | ) |   |   | (302 | ) |   |   | (52,510 | ) |
| Amortization in mark                |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to market         |   |          | (10,056  | )      |        |   | (4,668   | )            |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | (14,724 | ) |
| Exchange differences                |   |          | (2,420   | )      |        |   | (20,630  | )            |   |   | -        |   |   |                       | -       |   |   |   | (6,102  | )        |   |   | -           |   |   |   | (811    | )      |   |   | (1,269 | ) |   |   | (575 | ) |   |   | (31,807 | ) |
| Ending balance,                     |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2014                      |   |          | (116,787 | )      |        |   | (260,673 | )            |   |   | (11,640  | )      |   |                       | -       |   |   |   | (85,874 | )        |   |   | -           |   |   |   | (19,987 | )      |   |   | (19,739 | ) |   |   | (7,472 | ) |   |   | (522,172 | ) |
| Net book value,                     |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2014                      |   | $             | -        |   |        | $      | 11,880   |         |   | $      | 40,199   |   |   | $                          | 264,036 |   |   | $      | 50,530  |     |   | $      | 25,899      |   |   | $      | 3,443   |   |   | $      | 6,660 |   |   | $ | 2,281 |   |   | $ | 404,928 |   |

| As at March 31, 2013 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|                               |   |          |     |   | Electricity |   |     | Water heater |   |   |     |   |   | Sales network and affinity |    |   |   |   |    |     |   |   | IT system   |   |   |   |    |   |   |   |
|------------------------------------|--------|---------------|----------|--------|-------------|--------|----------|--------------|--------|--------|----------|--------|--------|----------------------------|---------|--------|--------|--------|---------|----------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|
|                               |   | Gas contracts |     |   | contracts   |   |     | contracts    |   |   | Goodwill |   |   | relationship               |    |   | Brand  |   |    | Software |   |   | development |   |   | Other  |    |   | Total  |   |
| Cost:                              |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |
| Opening balance -                  |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |
|    April 1, 2012    |   | $             | 250,745  |   |        | $      | 479,853  |         |   | $      | 24,043   |   |   | $                          | 254,799 |   |   | $      | 123,078 |     |   | $      | 23,369      |   |   | $      | 13,922  |   |   | $      | 27,538 |   |   | $ | 9,370 |   |   | $ | 1,206,717 |   |
| Remove fully                       |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    amortized assets |   |          | (137,287 | )      |        |   | (233,950 | )            |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | (978    | )      |   |   | (4,433 | ) |   |   | (2,343 | ) |   |   | (378,991 | ) |
| Transfer to discontinued           |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations       |   |          | -        |   |        |   | -        |         |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | (164    | )      |   |   | - |   |   |   | - |   |   |   | (164 | ) |
| Additions                          |   |          | -        |   |        |   | -        |         |   |   | 27,192   |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | 4,634   |   |   |   | 4 |   |   |   | 673 |   |   |   | 32,503 |   |
| Exchange differences               |   |          | 909      |   |        |   | 4,584    |         |   |   | -        |   |   |                       | 1,583   |   |   |   | 2,283   |     |   |   | 433         |   |   |   | 120     |   |   |   | 361 |   |   |   | 129 |   |   |   | 10,402 |   |
| Ending balance,                    |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2013                     |   |          | 114,367  |   |        |   | 250,487  |         |   |   | 51,235   |   |   |                       | 256,382 |   |   |   | 125,361 |     |   |   | 23,802      |   |   |   | 17,534  |   |   |   | 23,470 |   |   |   | 7,829 |   |   |   | 870,467 |   |
| Accumulated                        |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Amortization:    |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Opening balance -                  |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    April 1, 2012    |   |          | (208,147 | )      |        |   | (380,139 | )            |   |   | (4,444   | )      |   |                       | -       |   |   |   | (34,284 | )        |   |   | -           |   |   |   | (9,528  | )      |   |   | (14,195 | ) |   |   | (6,571 | ) |   |   | (657,308 | ) |
| Remove fully                       |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    amortized assets |   |          | 137,287  |   |        |   | 233,950  |         |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | 978     |   |   |   | 4,433 |   |   |   | 2,343 |   |   |   | 378,991 |   |
| Transfer to discontinued           |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    operations       |   |          | -        |   |        |   | -        |         |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | 113     |   |   |   | - |   |   |   | - |   |   |   | 113 |   |
| Amortization charge                |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    for the year     |   |          | (12,627  | )      |        |   | (37,782  | )            |   |   | (2,685   | )      |   |                       | -       |   |   |   | (21,696 | )        |   |   | -           |   |   |   | (5,130  | )      |   |   | (4,158 | ) |   |   | (2,250 | ) |   |   | (86,328 | ) |
| Amortization in mark               |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    to market        |   |          | (11,695  | )      |        |   | (41,027  | )            |   |   | -        |   |   |                       | -       |   |   |   | -       |     |   |   | -           |   |   |   | -       |   |   |   | - |   |   |   | - |   |   |   | (52,722 | ) |
| Exchange differences               |   |          | (891     | )      |        |   | (3,653   | )            |   |   | -        |   |   |                       | -       |   |   |   | (941    | )        |   |   | -           |   |   |   | (67     | )      |   |   | (211 | ) |   |   | (117 | ) |   |   | (5,880 | ) |
| Ending balance,                    |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2013                     |   |          | (96,073  | )      |        |   | (228,651 | )            |   |   | (7,129   | )      |   |                       | -       |   |   |   | (56,921 | )        |   |   | -           |   |   |   | (13,634 | )      |   |   | (14,131 | ) |   |   | (6,595 | ) |   |   | (423,134 | ) |
| Net book value,                    |   |          |     |   |        |   |     |         |   |   |     |   |   |                       |    |   |   |   |    |     |   |   |        |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| March 31, 2013                     |   | $             | 18,294   |   |        | $      | 21,836   |         |   | $      | 44,106   |   |   | $                          | 256,382 |   |   | $      | 68,440  |     |   | $      | 23,802      |   |   | $      | 3,900   |   |   | $      | 9,339 |   |   | $ | 1,234 |   |   | $ | 447,333 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 7. | RESTRICTED CASH |
|----|-----------------|

|   | (i) | As part of the acquisition of FRH, Just Energy was required to transfer $11,152 into a restricted cash account.  The balance as of March 31, 2014 is $9,832. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Restricted cash relating to the debt assumed with the water heater contract purchase, Note 17(c), is required as a security to the lender.  Annually, NHS is able to withdraw set amount of cash from this account as the debt is repaid.  Currently the balance in this account is $2,168. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | INVENTORY |
|----|-----------|

| 9. | ACQUIRED ASSETS |
|----|-----------------|

| 10. | DISCONTINUED OPERATIONS |
|-----|-------------------------|

|   | (i) | Solar |
|--------|-----|-------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                                                      |   | For the year ended March 31, |    |
|---------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                      |   |                         |    |   |   |   |
|                                                                      |   | 2014                         |    |   | 2013 |   |
|                                                                      |   |                         |    |   |   |   |
| Sales                                                                     |   | $                            | 3,894   |   |   | $ | 3,186 |   |
| Cost of sales                                                             |   |                         | 3,802   |   |   |   | 1,422 |   |
| Gross margin                                                              |   |                         | 92      |   |   |   | 1,764 |   |
|                                                                      |   |                         |    |   |   |   |   |   |
| Expenses                                                                  |   |                         |    |   |   |   |   |   |
| Administrative and operating expenses                                     |   |                         | 6,682   |   |   |   | 1,543 |   |
| Operating income (loss)                                                   |   |                         | (6,590  | ) |   |   | 221 |   |
| Finance costs                                                             |   |                         | (7,677  | ) |   |   | (1,151 | ) |
| Profit (loss) from discontinued operations before undernoted              |   |                         | (14,267 | ) |   |   | (930 | ) |
| Change in fair value of derivative instruments                            |   |                         | 2,500   |   |   |   | - |   |
| Other income (loss)                                                       |   |                         | (3      | ) |   |   | 1,691 |   |
| Impairment loss recognized on re-measurement to estimated fair value less |   |                         |    |   |   |   |   |   |
| costs to sell                                                             |   |                         | (35,058 | ) |   |   | - |   |
| PROFIT (LOSS) FOR THE YEAR FROM DISCONTINUED OPERATIONS                   |   | $                            | (46,828 | ) |   | $ | 761 |   |
|                                                                      |   |                         |    |   |   |   |   |   |
|                                                                      |   |                         |    |   |   |   |   |   |
| Earnings (loss) per share                                                 |   |                         |    |   |   |   |   |   |
| Basic and diluted earnings (loss) per share from discontinued operations  |   | $                            | (0.32   | ) |   | $ | 0.01 |   |

| Tax liabilities relating to HES are as follows:                                  |   |   |   |   |   |   |
|----------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                             |   | 2014   |   |   | 2013   |   |
|                                                                             |   |   |   |   |   |   |
| Deferred tax liability not reflected in the current year                         |   | $      | (7,173 | )      |   | $      | (12,816 | ) |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Unrecognized tax losses available for carryforward are set to expire as follows: |   |
| 2032                                                                        |   | $      | 1,948  |   |   |   |   |   |
| 2033                                                                        |   |   | 8,590  |   |   |   |   |   |
| 2034                                                                        |   |   | 10,435 |   |   |   |   |   |
|                                                                             |   | $      | 20,973 |   |   |   |   |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                                       |   | As at          |    |
|------------------------------------------------------------|--------|----------------|---------|
|                                                       |   | March 31, 2014 |    |
| Assets                                                     |   |           |    |
| Non-current assets                                         |   |           |    |
| Property, plant and equipment                              |   | $              | 94,410  |   |
| Other non-current financial assets                         |   |           | 2,727   |   |
|                                                       |   |           |    |   |
| Current assets                                             |   |           |    |   |
| Current trade and other receivables                        |   |           | 864     |   |
| Prepaid expenses, deposits and funds in escrow             |   |           | 4,909   |   |
| Cash and cash equivalents                                  |   |           | 3,352   |   |
| ASSETS CLASSIFIED AS HELD FOR SALE                         |   | $              | 106,262 |   |
|                                                       |   |           |    |   |
| Current Liabilities                                        |   |           |    |   |
| Long-term debt                                             |   | $              | 34,213  |   |
| Trade and other payables                                   |   |           | 880     |   |
| Deferred revenue                                           |   |           | 15,829  |   |
| Provisions                                                 |   |           | 930     |   |
| LIABILITIES RELATING TO ASSETS CLASSIFIED AS HELD FOR SALE |   | $              | 51,852  |   |

|   | (ii) | Disposal of TGF |
|--------|------|-----------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                                                     |   | 2014   |   |   | 2013   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                     |   |   |   |   |
| Sales                                                                    |   | $      | 82,982 |   |   | $      | 107,145 |   |
| Cost of sales                                                            |   |   | 70,280 |   |   |   | 98,943 |   |
| Gross margin                                                             |   |   | 12,702 |   |   |   | 8,202 |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Expenses                                                                 |   |   |   |   |   |   |   |   |
| Administrative and operating expenses                                    |   |   | 5,131  |   |   |   | 9,412 |   |
| Operating income (loss)                                                  |   |   | 7,571  |   |   |   | (1,210 | ) |
| Finance costs                                                            |   |   | (4,511 | )      |   |   | (6,111 | ) |
| Profit (loss) from discontinued operations before the undernoted         |   |   | 3,060  |   |   |   | (7,321 | ) |
| Loss on disposal of net assets                                           |   |   | (8,653 | )      |   |   | - |   |
| Future income tax recovery                                               |   |   | 24,151 |   |   |   | - |   |
| Transaction costs                                                        |   |   | (981   | )      |   |   | - |   |
| Impairment loss recognized on the re-measurement to estimated            |   |   |   |   |   |   |   |   |
| fair value less costs to sell                                            |   |   | -      |   |   |   | (64,729 | ) |
| PROFIT (LOSS) ON DISCONTINUED OPERATIONS                                 |   | $      | 17,577 |   |   | $      | (72,050 | ) |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |
| Earnings (loss) per share                                                |   |   |   |   |   |   |   |   |
| Basic and diluted earnings (loss) per share from discontinued operations |   | $      | 0.12   |   |   | $      | (0.51 | ) |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| Assets                                                     |   |   |   |
|------------------------------------------------------------|--------|--------|--------|
| Non-current assets                                         |   |   |   |
| Property, plant and equipment                              |   | $      | 63,289 |   |
| Intangible assets                                          |   |   | 39     |   |
|                                                       |   |   |   |   |
| Current assets                                             |   |   |   |   |
| Current trade and other receivables                        |   |   | 5,215  |   |
| Prepaid expenses and deposits                              |   |   | 1,068  |   |
| Inventory                                                  |   |   | 7,666  |   |
| Cash and cash equivalents                                  |   |   | 162    |   |
| ASSETS CLASSIFIED AS HELD FOR SALE                         |   | $      | 77,439 |   |
|                                                       |   |   |   |   |
| Liabilities                                                |   |   |   |   |
| Bank indebtedness                                          |   | $      | 5,191  |   |
| Trade and other payables                                   |   |   | 6,013  |   |
| Deferred revenue                                           |   |   | 19     |   |
| Long-term debt                                             |   |   | 66,216 |   |
| LIABILITIES RELATING TO ASSETS CLASSIFIED AS HELD FOR SALE |   | $      | 77,439 |   |

| 11. | INVESTMENTS |
|-----|-------------|

|   | (i) | In August 2012, the Company issued a US$2,500 promissory note to the non-controlling shareholder of a subsidiary.  The promissory note receivable matures on August 24, 2037, and bears interest at the annual federal rate established by the Internal Revenue Service.  Interest earned on this promissory note is recorded in other income. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | In August 2012, Just Energy through a subsidiary acquired a 12% interest in ecobee Inc., a private company that designs, manufactures and distributes smart thermostats for an amount of $6,460.  The Company markets these smart thermostats in all its core markets, bundling the thermostats with commodity and home service products. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 12. | MINORITY INTEREST |
|-----|-------------------|

| Name                     |   | 2014   |     |   | 2013   |   |
|--------------------------|--------|--------|----------|--------|--------|--------|
|                     |   |   |     |   |   |   |
| Just Ventures (a)        |   |   | 50       | %      |   |   | 50 | % |
| Amigo Power LLC          |   |   | 67       | %      |   |   | 67 | % |
| Hudson Solar Entities(b) |   |   | 49% - 51 | %      |   |   | 49% - 51 | % |

|   | a) | Just Energy has a 50% interest in Just Ventures.  These entities operate out of North Carolina and are involved in the marketing of Just Energy products primarily through Internet and telemarketing-based efforts.  The non-controlling shareholder also has a 50% interest in these entities. Management has determined that Just Energy controls these entities due to its ability to affect the variable returns from these entities as a result of its control over the structuring and pricing of products, determining credit risk, servicing and billing customers and the level of input on the marketing activity in given regions. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Just Energy through its Solar division, has interests in entities with minority shareholders.  In these structures Just Energy has equity interests of between 49% and 51%.  Management has determined that Just Energy controls these entities due to its ability to affect the variable returns from these entities as a result of its control over negotiating power purchase agreements and managing the relevant activities of the underlying solar assets over their useful life. These entities are included in assets and liabilities held for sale as at March 31, 2014 as disclosed in Note 10. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Name                                          |   | 2014   |   |   | 2013   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                |   |   |   |   |   |   |
| Accumulated balances of non-controlling interest    |   |
|  Amigo Power LLC                               |   |   | (2,385 | )      |   |   | (1,817 | ) |
|  Hudson Solar Entities                         |   |   | 8,812  |   |   |   | 1,115 |   |
|                                                |   |   |   |   |   |   |   |   |
| Profit (loss) allocated to non-controlling interest |   |
|  Just Ventures                                 |   | $      | 6,144  |   |   | $      | (5,032 | ) |
|  Amigo Power LLC                               |   |   | (685   | )      |   |   | (653 | ) |
|  Hudson Solar Entities                         |   |   | (4,425 | )      |   |   | - |   |
|                                                |   |   |   |   |   |   |   |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| Summarized financial information for 2014:                                |          |
|---------------------------------------------------------------------------|---------------|
|                                                                      | Just Ventures |   | Amigo |   | Solar |   |
|  Gross margin                                                        |          | $ | 28,690 |   |   | $ | 648 |   |   | $ | - |   |
|  Selling and marketing expenses                                      |          |   | 16,402 |   |   |   | 2,599 |   |   |   | - |   |
|  Administrative expenses                                             |          |   | - |   |   |   | 125 |   |   |   | - |   |
|  Profit from continuing operations                                   |          |   | 12,288 |   |   |   | (2,076 | ) |   |   | - |   |
|  Loss from discontinued operations                                   |          |   | - |   |   |   | - |   |   |   | (662 | ) |
|  Assets                                                              |          |   | - |   |   |   | - |   |   |   | 31,210 | 1  |
|  Liabilities                                                         |          |   | - |   |   |   | - |   |   |   | 11,700 | 1  |
|  Cash flows provided by (used in) operating activities               |          |   | 12,288 |   |   |   | (2,076 | ) |   |   | (1,701 | )2  |
|  Cash flows used in investing activities                             |          |   | - |   |   |   | - |   |   |   | (14,490 | )2  |
|  Cash flows provided by financing activities                         |          |   | (6,144 | ) |   |   | - |   |   |   | 13,180 | 2  |
|                                                                      |          |   |   |   |   |   |   |   |   |   |   |   |
| Summarized financial information for 2013:                                |          |
|                                                                      | Just Ventures |   | Amigo |   | Solar |   |
|  Gross margin                                                        |          | $ | 4,850 |   |   | $ | 710 |   |   | $ | - |   |
|  Selling and marketing expenses                                      |          |   | 14,914 |   |   |   | 1,934 |   |   |   | - |   |
|  Administrative expenses                                             |          |   | - |   |   |   | 755 |   |   |   | - |   |
|  Loss from continuing operations                                     |          |   | (10,064 | ) |   |   | (1,979 | ) |   |   | - |   |
|  Loss from discontinued operations                                   |          |   | - |   |   |   | - |   |   |   | (600 | ) |
|  Assets                                                              |          |   | - |   |   |   | - |   |   |   | 16,096 | 1  |
|  Liabilities                                                         |          |   | - |   |   |   | - |   |   |   | 10,058 | 1  |
|  Cash flows provided by (used in) operating activities               |          |   | (10,064 | ) |   |   | (1,979 | ) |   |   | 602 | 2  |
|  Cash flows used in investing activities                             |          |   | - |   |   |   | - |   |   |   | (14,978 | )2  |
|  Cash flows provided by financing activities                         |          |   | 5,032 |   |   |   | - |   |   |   | 10,193 | 2  |
|                                                                      |          |   |   |   |   |   |   |   |   |   |   |   |
| 1 The assets and liabilities are classified as held for sale.        |          |
| 2 These are classified with cash flows from discontinued operations. |          |
|                                                                      |          |   |   |   |   |   |   |   |   |   |   |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 13. | FINANCIAL INSTRUMENTS |
|-----|-----------------------|

|   | (a) | Fair value |
|--------|-----|------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| Change in fair value of derivative instruments    |   |           |    |   |           |   |
|---------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
|                                              |   | For the year   |    |   | For the year   |   |
|                                              |   | ended          |    |   | ended          |   |
|                                              |   | March 31, 2014 |    |   | March 31, 2013 |   |
|                                              |   |           |    |   |           |   |
| Fixed-for-floating electricity swaps (i)          |   | $              | 82,877  |   |           | $      | 235,703 |   |
| Renewable energy certificates (ii)                |   |           | 3,658   |   |           |   | 1,089 |   |
| Verified emission-reduction credits (iii)         |   |           | 840     |   |           |   | 468 |   |
| Options (iv)                                      |   |           | (4,503  | )      |           |   | 1,610 |   |
| Physical gas forward contracts (v)                |   |           | 65,826  |   |           |   | 197,846 |   |
| Physical electricity forward contracts (viii)     |   |           | 19,345  |   |           |   | 179,005 |   |
| Transportation forward contracts (vi)             |   |           | (756    | )      |           |   | 9,318 |   |
| Fixed financial swaps (vii)                       |   |           | 43,317  |   |           |   | 104,410 |   |
| Unforced capacity forward contracts (ix)          |   |           | 2,226   |   |           |   | 1,820 |   |
| Unforced capacity physical contracts (x)          |   |           | (488    | )      |           |   | 10,874 |   |
| Heat rate swaps (xi)                              |   |           | (10,731 | )      |           |   | (6,667 | ) |
| Foreign exchange forward contracts (xii)          |   |           | (572    | )      |           |   | (665 | ) |
| Amortization of deferred unrealized gains on      |   |           |    |   |           |   |   |   |
|     discontinued hedges       |   |           | 5,208   |   |           |   | 31,924 |   |
| Share swap                                        |   |           | 3,736   |   |           |   | (15,915 | ) |
| Amortization of derivative financial instruments  |   |           |    |   |           |   |   |   |
|     related to acquisitions   |   |           | (14,724 | )      |           |   | (52,722 | ) |
| Liability associated with exchangeable shares and |   |           |    |   |           |   |   |   |
|     equity-based compensation |   |           | (146    | )      |           |   | (414 | ) |
| Other derivative options                          |   |           | (8,971  | )      |           |   | 400 |   |
| Change in fair value of contingent consideration  |   |           | -       |   |           |   | 21,491 |   |
|                                              |   |           |    |   |           |   |   |   |
| Change in fair value of derivative instruments    |   | $              | 186,142 |   |           | $      | 719,575 |   |
|                                              |   |           |    |   |           |   |   |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                          |   | Other financial assets |    |   | Other financial assets |   |   | Other financial liabilities |   |   | Other financial liabilities |   |
|-----------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                          |   | (current)              |    |   | (non-current)          |   |   | (current)                   |   |   | (non-current)               |   |
|                                          |   |                   |    |   |                   |   |   |                        |   |   |                        |   |
|                                          |   |                   |    |   |                   |   |   |                        |   |   |                        |   |
| Fixed-for floating electricity swaps (i)      |   | $                      | 29,989  |   |                   | $      | 4,013  |                        |   | $      | 15,966                      |   |   | $ | 12,947 |   |
| Renewable energy certificates (ii)            |   |                   | 2,316   |   |                   |   | 5,072  |                        |   |   | 1,809                       |   |   |   | 2,017 |   |
| Verified emission-reduction credits (iii)     |   |                   | 179     |   |                   |   | 1,212  |                        |   |   | 913                         |   |   |   | 667 |   |
| Options (iv)                                  |   |                   | -       |   |                   |   | -      |                        |   |   | 5,389                       |   |   |   | - |   |
| Physical gas forward contracts (v)            |   |                   | 49      |   |                   |   | 4      |                        |   |   | 18,786                      |   |   |   | 4,577 |   |
| Physical electricity forward contracts (viii) |   |                   | 42,611  |   |                   |   | 14,956 |                        |   |   | 6,874                       |   |   |   | 8,640 |   |
| Transportation forward contracts (vi)         |   |                   | 879     |   |                   |   | 527    |                        |   |   | 944                         |   |   |   | 1,428 |   |
| Fixed financial swaps (vii)                   |   |                   | 12,344  |   |                   |   | 840    |                        |   |   | 6,804                       |   |   |   | 7,625 |   |
| Unforced capacity forward contracts (ix)      |   |                   | -       |   |                   |   | -      |                        |   |   | (172                        | )      |   |   | - |   |
| Unforced capacity physical contracts (x)      |   |                   | 8,810   |   |                   |   | 2,941  |                        |   |   | 5,037                       |   |   |   | 1,075 |   |
| Heat rate swaps (xi)                          |   |                   | 6,325   |   |                   |   | 1,888  |                        |   |   | -                           |   |   |   | - |   |
| Foreign exchange forward contracts (xii)      |   |                   | -       |   |                   |   | -      |                        |   |   | 1,058                       |   |   |   | - |   |
| Share swap                                    |   |                   | -       |   |                   |   | -      |                        |   |   | 12,179                      |   |   |   | - |   |
| Cash-out option on stock-based compensation   |   |                   | -       |   |                   |   | -      |                        |   |   | 560                         |   |   |   | - |   |
| Other derivative options                      |   |                   | -       |   |                   |   | 243    |                        |   |   | 988                         |   |   |   | 17,321 |   |
| As at March 31, 2014                          |   | $                      | 103,502 |   |                   | $      | 31,696 |                        |   | $      | 77,135                      |   |   | $ | 56,297 |   |

|                                         |   | Other financial assets |   |   | Other financial assets |   |   | Other financial liabilities |   |   | Other financial liabilities |   |
|----------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                         |   | (current)              |   |   | (non-current)          |   |   | (current)                   |   |   | (non-current)               |   |
|                                         |   |                   |   |   |                   |   |   |                        |   |   |                        |   |
|                                         |   |                   |   |   |                   |   |   |                        |   |   |                        |   |
| Fixed-for floating electricity swaps (i)     |   | $                      | 2,632  |   |                   | $      | 1,421  |                        |   | $      | 42,959                      |   |   | $ | 38,524 |   |
| Renewable energy certificates (ii)           |   |                   | 1,413  |   |                   |   | 686    |                        |   |   | 1,326                       |   |   |   | 1,033 |   |
| Verified emission-reduction credits (iii)    |   |                   | 60     |   |                   |   | 73     |                        |   |   | 568                         |   |   |   | 579 |   |
| Options (iv)                                 |   |                   | 214    |   |                   |   | -      |                        |   |   | 909                         |   |   |   | 67 |   |
| Physical gas forward contracts (v)           |   |                   | 2      |   |                   |   | -      |                        |   |   | 63,284                      |   |   |   | 25,586 |   |
| Physical electricity forward contracts(viii) |   |                   | 10,970 |   |                   |   | 16,515 |                        |   |   | 2,804                       |   |   |   | 51 |   |
| Transportation forward contracts (vi)        |   |                   | 970    |   |                   |   | 437    |                        |   |   | 1,557                       |   |   |   | 51 |   |
| Fixed financial swaps (vii)                  |   |                   | 4,052  |   |                   |   | 23     |                        |   |   | 27,350                      |   |   |   | 19,200 |   |
| Unforced capacity forward contracts (ix)     |   |                   | 456    |   |                   |   | -      |                        |   |   | 2,134                       |   |   |   | 289 |   |
| Unforced capacity physical contracts (x)     |   |                   | 2,008  |   |                   |   | 3,865  |                        |   |   | 113                         |   |   |   | - |   |
| Heat rate swaps (xi)                         |   |                   | 10,228 |   |                   |   | 7,885  |                        |   |   | -                           |   |   |   | - |   |
| Foreign exchange forward contracts (xii)     |   |                   | -      |   |                   |   | -      |                        |   |   | 486                         |   |   |   | - |   |
| Share swap                                   |   |                   | -      |   |                   |   | -      |                        |   |   | 15,915                      |   |   |   | - |   |
| Cash-out option on stock-based compensation  |   |                   | -      |   |                   |   | -      |                        |   |   | 414                         |   |   |   | - |   |
| Other derivative options                     |   |                   | -      |   |                   |   | 400    |                        |   |   | -                           |   |   |   | - |   |
| As at March 31, 2013                         |   | $                      | 33,005 |   |                   | $      | 31,305 |                        |   | $      | 159,819                     |   |   | $ | 85,380 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   |                                      |                    | Total            |              |           | Fair value     |       |
|--------|-------------------------------------------|-------------------------|------------------|-------------------|----------------|----------------|------------|
|   | Contract type                             | Notional volume         | remaining        | Maturity date     | Fixed price    | favourable/    | Notional   |
|   |                                      |                    | volume           |              |           | (unfavourable) | value      |
|   |                                      |                    |             |              |           |           |       |
| (i)    | Fixed-for-floating                        | .0001 - 90              | 16,387,305  | April 1, 2014     | $0.39-$142.66  | $5,089         | $790,940   |
|   |    electricity swaps       | MWh                     | MWh              | December 31, 2018 |           |           |       |
| (ii)   | Renewable energy                          | 20-200,000              | 6,777,618   | May 31, 2014      | $0.55-$309.54  | $3,562         | $50,694    |
|   |    certificates            | MWh                     | MWh              | December 31, 2023 |           |           |       |
| (iii)  | Verified emission-                        | 2,000-73,082            | 973,000     | December 31, 2014 | $1.16-$11.50   | ($189)         | $4,037     |
|   |    reduction credits       | tonnes                  | tonnes           | December 31, 2018 |           |           |       |
| (iv)   | Options                                   | 10,550-3,798,000        | (23,843,000)     | April 30, 2014    | $4.67-$10.03   | ($5,389)       | $80        |
|   |                                      | GJ                      | GJ               | March 31, 2015    |           |           |       |
| (v)    | Physical gas forward                      | 10-21,200               | 55,933,902  | April 1, 2014     | $0.01-$11.00   | ($23,310)      | $279,444   |
|   |    contracts               | GJ                      | GJ               | December 31, 2018 |           |           |       |
| (vi)   | Transportation forward                    | 500-11,000              | 7,686,620   | April 30, 2014    | $0.05-$1.92    | ($966)         | $4,614     |
|   |    contracts               | GJ                      | GJ               | October 31, 2016  |           |           |       |
| (vii)  | Fixed financial swaps                     | 1,994-408,813           | 91,756,916  | April 30, 2014    | $0.02-$8.92    | ($1,245)       | $399,597   |
|   |                                      | GJ                      | GJ               | December 31, 2018 |           |           |       |
| (viii) | Physical electricity                      | 0.79-150.00             | 28,172,861  | April 1, 2014     | $0.83-$128.09  | $42,053        | $1,447,217 |
|   |    forwards contracts      | MWh                     | MWh              | July 31, 2019     |           |           |       |
| (ix)   | Unforced capacity                         | 4,500-11,160            | 162,510     | May 31, 2014      | $66.96-$200.89 | $172           | $31,566    |
|   |    forward contracts       | MWCap                   | MWCap            | May 31, 2015      |           |           |       |
| (x)    | Unforced capacity                         | 1-210                   | 7,743       | April 30, 2014    | $6.63-$13,542  | $5,639         | $72,439    |
|   |    physical contracts      | MWCap                   | MWCap            | May 31, 2016      |           |           |       |
| (xi)   | Heat rate swaps                           | 1-10                    | 743,087     | April 30, 2014    | $32.62-$61.30  | $8,213         | $32,370    |
|   |                                      | MWh                     | MWh              | October 31, 2016  |           |           |       |
| (xii)  | Foreign exchange                          | US$1,000,000-$5,000,000 | n/a              | April 1, 2014     | $1.02-$1.13    | ($1,058)       | $37,000    |
|   |     forward contracts |                    |             | January 7, 2015   |           |           |       |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                              |   | Level 1 |   |   | Level 2 |   |    | Level 3 |   |   | Total    |   |
|-----------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|--------|----------|--------|
| Financial assets                  |   |    |   |   |    |   |    |    |   |   |     |   |
| Derivative financial assets       |   | $       | -      |   |    | $      | -       |    |   | $      | 135,198  |   |   | $ | 135,198 |   |
| Discontinued operations (Note 10) |   |    | -      |   |    |   | -       |    |   |   | 106,262  |   |   |   | 106,262 |   |
| Financial liabilities             |   |    |   |   |    |   |    |    |   |   |     |   |   |   |   |   |
| Derivative financial liabilities  |   |    | -      |   |    |   | (10,990 | )       |   |   | (122,442 | )      |   |   | (133,432 | ) |
| Discontinued operations (Note 10) |   |    | -      |   |    |   | -       |    |   |   | (51,852  | )      |   |   | (51,852 | ) |
| Total net derivative liabilities  |   | $       | -      |   |    | $      | (10,990 | )       |   | $      | 67,166   |   |   | $ | 56,176 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                              |   | Level 1 |   |   | Level 2 |   |    | Level 3 |   |   | Total    |   |
|-----------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|--------|----------|--------|
| Financial assets                  |   |    |   |   |    |   |    |    |   |   |     |   |
| Derivative financial assets       |   | $       | -      |   |    | $      | -       |    |   | $      | 64,310   |   |   | $ | 64,310 |   |
| Discontinued operations (Note 10) |   |    | -      |   |    |   | -       |    |   |   | 77,439   |   |   |   | 77,439 |   |
| Financial liabilities             |   |    |   |   |    |   |    |    |   |   |     |   |   |   |   |   |
| Derivative financial liabilities  |   |    | -      |   |    |   | (32,243 | )       |   |   | (212,956 | )      |   |   | (245,199 | ) |
| Discontinued operations (Note 10) |   |    | -      |   |    |   | -       |    |   |   | (77,439  | )      |   |   | (77,439 | ) |
| Total net derivative liabilities  |   | $       | -      |   |    | $      | (32,243 | )       |   | $      | (148,646 | )      |   | $ | (180,889 | ) |

|   | (i) | discount/premium for lack of marketability up to 3%.  Discount for lack of marketability represents the amounts that Just Energy has determined that market participants would take into account for these premiums and discount when pricing these derivative instruments, |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | discount for counterparty non-performance risk up to 5%, and |
|--------|------|--------------------------------------------------------------|

|   | (iii) | discount rate in the range of 6-8%. |
|--------|-------|-------------------------------------|

|                       |   | 2014   |     |   | 2013   |   |
|----------------------------|--------|--------|----------|--------|--------|--------|
| Balance, beginning of year |   | $      | (148,646 | )      |   | $      | (819,354 | ) |
| Total gains                |   |   | 37,799   |   |   |   | 79,853 |   |
| Purchases                  |   |   | 49,006   |   |   |   | 49,885 |   |
| Sales                      |   |   | (14,972  | )      |   |   | (525 | ) |
| Settlements                |   |   | 89,569   |   |   |   | 541,495 |   |
| Discontinued operations    |   |   | 54,410   |   |   |   | - |   |
| Balance, end of year       |   | $      | 67,166   |   |   | $      | (148,646 | ) |

|   | (b) | Classification of financial assets and liabilities |
|--------|-----|----------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (i) | the $330 million and $100 million convertible debentures, which are fair valued based on market value, and, |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (ii) | the fair value of the $105 million senior unsecured note is based on discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities, and, |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the carrying value of the US$150 million convertible bonds approximates fair value due to the limited time that has passed since its issuance. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Management of risks arising from financial instruments |
|--------|-----|--------------------------------------------------------|

|   | (i) | Market risk |
|--------|-----|-------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (ii) | Credit risk |
|--------|------|-------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|               |   | March 31, 2014 |    |   | March 31, 2013 |   |
|--------------------|--------|----------------|---------|--------|----------------|--------|
|               |   |           |    |   |           |   |
| Current            |   | $              | 104,297 |   |           | $      | 86,604 |   |
| 1 – 30 days  |   |           | 36,236  |   |           |   | 33,944 |   |
| 31 – 60 days |   |           | 10,405  |   |           |   | 7,893 |   |
| 61 – 90 days |   |           | 6,809   |   |           |   | 4,340 |   |
| Over 91 days       |   |           | 51,517  |   |           |   | 31,853 |   |
|               |   | $              | 209,264 |   |           | $      | 164,634 |   |

|                            |   | March 31, 2014 |    |   | March 31, 2013 |   |
|---------------------------------|--------|----------------|---------|--------|----------------|--------|
|                            |   |           |    |   |           |   |
| Balance, beginning of year      |   | $              | 40,190  |   |           | $      | 34,926 |   |
| Provision for doubtful accounts |   |           | 47,161  |   |           |   | 30,850 |   |
| Bad debts written off           |   |           | (25,845 | )      |           |   | (23,120 | ) |
| Other                           |   |           | (509    | )      |           |   | (2,466 | ) |
| Balance, end of year            |   | $              | 60,997  |   |           | $      | 40,190 |   |

|   | (iii) | Liquidity risk |
|--------|-------|----------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                     |   |            |      |   | Contractual cash |   |      |             |   |   |        |   |   |        |      |   | More than 5 |   |
|--------------------------|--------|-----------------|-----------|--------|------------------|--------|-----------|------------------|--------|--------|-------------|--------|--------|-------------|-----------|--------|-------------|--------|
|                     |   | Carrying amount |      |   | flows            |   |      | Less than 1 year |   |   | 1 - 3 years |   |   | 4 - 5 years |      |   | years       |   |
| Trade and other payables |   | $               | 485,471   |   |             | $      | 485,471   |             |   | $      | 485,471     |   |   | $           | -         |   |        | $      | - |   |   | $ | - |   |
| Long-term debt*          |   |            | 982,026   |   |             |   | 1,043,061 |             |   |   | 51,999      |   |   |        | 166,276   |   |        |   | 605,103 |   |   |   | 219,683 |   |
| Derivative instruments   |   |            | 133,432   |   |             |   | 3,112,996 |             |   |   | 1,668,975   |   |   |        | 1,183,717 |   |        |   | 257,893 |   |   |   | 2,411 |   |
|                     |   | $               | 1,600,929 |   |             | $      | 4,641,528 |             |   | $      | 2,206,445   |   |   | $           | 1,349,993 |   |        | $      | 862,996 |   |   | $ | 222,094 |   |

|                     |   |            |      | Contractual cash |   |             |      |        |   |        |      | More than 5 |
|--------------------------|--------|-----------------|-----------|------------------|--------|------------------|-----------|-------------|--------|-------------|-----------|-------------|
|                     |   | Carrying amount |      | flows            |   | Less than 1 year |      | 1 - 3 years |   | 4 - 5 years |      | years       |
| Trade and other payables |   | $               | 301,820   |             |   | $                | 301,820   |        |   | $           | 301,820   |        |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Long-term debt*          |   |            | 957,698   |             |   |             | 1,014,227 |        |   |        | 162,474   |        |   |   | 189,801 |   |   |   | 403,946 |   |   |   | 258,006 |   |
| Derivative instruments   |   |            | 245,199   |             |   |             | 2,549,866 |        |   |        | 1,372,855 |        |   |   | 993,719 |   |   |   | 182,020 |   |   |   | 1,272 |   |
|                     |   | $               | 1,504,717 |             |   | $                | 3,865,913 |        |   | $           | 1,837,149 |        |   | $ | 1,183,520 |   |   | $ | 585,966 |   |   | $ | 259,278 |   |

|              | Less than 1 year |   | 1 - 3 years |   | 4 - 5 years |   | More than 5 years |   |
|-------------------|------------------|--------|-------------|--------|-------------|--------|-------------------|--------|
| Interest payments |             | $      | 66,224      |   |        | $      | 120,463           |   |   | $ | 66,438 |   |   | $ | 11,569 |   |

|   | (iv) | Supplier risk |
|--------|------|---------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 14. | ACCUMULATED OTHER COMPREHENSIVE INCOME |
|-----|----------------------------------------|

| For the year ended March 31, 2014                                                           |        |   |      |   |   |   |    |   |   |
|---------------------------------------------------------------------------------------------|-------------|--------|-----------|--------|--------|--------|---------|--------|--------|
|                                                                                        |        |   |      |   |   |   |    |   |   |
|                                                                                        | Foreign     |   |      |   |   |   |
|                                                                                        | currency    |   |      |   |   |   |
|                                                                                        | translation |   | Cash flow |   |   |   |
|                                                                                        | adjustments |   | hedges    |   | Total  |   |
| Balance, beginning of year                                                                  |        | $      | 42,154    |   |   | $      | 5,001   |   |   | $ | 47,155 |   |
| Other comprehensive income (loss) to be reclassified to profit or loss in subsequent years: |        |   |      |   |   |   |    |   |   |   |   |   |
| Unrealized foreign currency translation adjustment                                          |        |   | 29,843    |   |   |   | -       |   |   |   | 29,843 |   |
| Amortization of deferred unrealized gain on discontinued                                    |        |   |      |   |   |   |    |   |   |   |   |   |
|   hedges, net of income taxes of $207                                             |        |   | -         |   |   |   | (5,001  | )      |   |   | (5,001 | ) |
| Balance, end of year                                                                        |        | $      | 71,997    |   |   | $      | -       |   |   | $ | 71,997 |   |
|                                                                                        |        |   |      |   |   |   |    |   |   |   |   |   |
| For the year ended March 31, 2013                                                           |        |   |      |   |   |   |    |   |   |   |   |   |
|                                                                                        |        |   |      |   |   |   |    |   |   |   |   |   |
|                                                                                        | Foreign     |   |      |   |   |   |    |   |   |   |
|                                                                                        | currency    |   |      |   |   |   |    |   |   |   |
|                                                                                        | translation |   | Cash flow |   |   |   |    |   |
|                                                                                        | adjustments |   | hedges    |   | Total  |   |
| Balance, beginning of year                                                                  |        | $      | 38,847    |   |   | $      | 31,446  |   |   | $ | 70,293 |   |
| Other comprehensive income (loss) to be reclassified to profit or loss in subsequent years: |        |   |      |   |   |   |    |   |   |   |   |   |
| Unrealized foreign currency translation adjustment                                          |        |   | 3,307     |   |   |   | -       |   |   |   | 3,307 |   |
| Amortization of deferred unrealized gain on discontinued                                    |        |   |      |   |   |   |    |   |   |   |   |   |
|   hedges, net of income taxes of $5,479                                           |        |   | -         |   |   |   | (26,445 | )      |   |   | (26,445 | ) |
| Balance, end of year                                                                        |        | $      | 42,154    |   |   | $      | 5,001   |   |   | $ | 47,155 |   |

| 15. | SHAREHOLDERS’ CAPITAL |
|-----|-----------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                         | Year ended              |   | Year ended     |
|------------------------------|-------------------------|--------|----------------|
| Issued and outstanding       | March 31, 2014          |   | March 31, 2013 |
|                         | Shares                  |   | Amount         |   | Shares |   | Amount |
|                         |                    |   |           |   |   |   |   |   |   |
| Balance, beginning of year   |  142,029,340  |   | $              |  1,018,082  |   |  139,348,926  |   | $ |  993,181  |
| Share-based awards exercised |  550,382      |   |           |  7,240  |   |  235,301  |   |   |  3,320  |
| Dividend reinvestment plan   |  1,171,754    |   |           |  8,235  |   |  2,444,284  |   |   |  21,574  |
| Shares issued for cash       |  -            |   |           |  -  |   |  829  |   |   |  7  |
| Balance, end of year         |  143,751,476  |   | $              |  1,033,557  |   |  142,029,340  |   | $ |  1,018,082  |

| 16. | SHARE-BASED COMPENSATION PLANS |
|-----|--------------------------------|

|   | (a) | Stock option plan |
|--------|-----|-------------------|

| 2014           |   |   |                |   |    |                   |   |   |                |   |   |        |   |   |           |   |
|----------------|--------|--------|---------------------|--------|---------|------------------------|--------|--------|---------------------|--------|--------|-------------|--------|--------|----------------|--------|
|           |   |   | Options outstanding |   |    |                   |   |   | Options exercisable |   |
|           |   |   |                |   |    | Weighted average       |   |   | Weighted            |   |   |        |   |   | Weighted       |   |
|           |   |   | Number              |   |    | remaining              |   |   | average exercise    |   |   | Number      |   |   | average        |   |
|           |   |   | outstanding         |   |    | contractual life (yrs) |   |   | price               |   |   | exercisable |   |   | exercise price |   |
| Exercise price |   |   |                |   |    |                   |   |   |                |   |   |        |   |   |           |   |
| $              | 7.88   |   |                |   | 500,000 |                   |   |   | 9                   |   |   | $           | 7.88   |   |           |   | 200,000 |   |   | $ | 7.88 |   |
|           |   |   |                |   |    |                   |   |   |                |   |   |        |   |   |           |   |   |   |   |   |   |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 2013           |   |   |                |   |    |                   |   |   |                |   |   |        |   |   |           |   |
|----------------|--------|--------|---------------------|--------|---------|------------------------|--------|--------|---------------------|--------|--------|-------------|--------|--------|----------------|--------|
|           |   |   | Options outstanding |   |    |                   |   |   | Options exercisable |   |
|           |   |   |                |   |    | Weighted average       |   |   | Weighted            |   |   |        |   |   | Weighted       |   |
|           |   |   | Number              |   |    | remaining              |   |   | average exercise    |   |   | Number      |   |   | average        |   |
|           |   |   | outstanding         |   |    | contractual life (yrs) |   |   | price               |   |   | exercisable |   |   | exercise price |   |
| Exercise price |   |   |                |   |    |                   |   |   |                |   |   |        |   |   |           |   |
| $              | 7.88   |   |                |   | 500,000 |                   |   |   | 10                  |   |   | $           | 7.88   |   |           |   | 100,000 |   |   | $ | 7.88 |   |
|           |   |   |                |   |    |                   |   |   |                |   |   |        |   |   |           |   |   |   |   |   |   |   |

|                        | Year ended     |   |    | Year ended     |   |
|-----------------------------|----------------|--------|---------|----------------|--------|
| Options available for grant | March 31, 2014 |   |    | March 31, 2013 |   |
|                        |           |   |    |           |   |
| Balance, beginning of year  |           |   | 814,166 |           |   |   | 1,264,166 |   |
| Add: Cancelled/forfeited    |           |   | -       |           |   |   | 50,000 |   |
| Less: Granted               |           |   | -       |           |   |   | (500,000 | ) |
| Balance, end of year        |           |   | 814,166 |           |   |   | 814,166 |   |

|   | (b) | Restricted share grants |
|--------|-----|-------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| RSGs available for grant   |   | 2014   |      |   | 2013   |   |
|----------------------------|--------|--------|-----------|--------|--------|--------|
| Balance, beginning of year |   |   | 708,676   |   |   |   | 1,454,181 |   |
| Less: Granted              |   |   | (234,903  | )      |   |   | (763,604 | ) |
| Add: Cancelled/forfeited   |   |   | 593,287   |   |   |   | 18,099 |   |
| Balance, end of year       |   |   | 1,067,060 |   |   |   | 708,676 |   |

|   | (c) | Performance bonus grants |
|--------|-----|--------------------------|

| PBGs available for grant                             |   | 2014   |      |
|------------------------------------------------------|--------|--------|-----------|
| Add:  Increase in PBGs available for grant |   |   | 4,000,000 |   |
| Less:  Granted                             |   |   | (839,296  | ) |
| Add: Cancelled/forfeited                             |   |   | 410,080   |   |
|                                                 |   |   | 3,570,784 |   |

|   | (d) | Deferred share grants |
|--------|-----|-----------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| DSGs available for grant                             |   | 2014   |    |   | 2013   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Balance, beginning of year                           |   |   | 25,006  |   |   |   | 54,638 |   |
| Add:  Increase in DSGs available for grant |   |   | 200,000 |   |   |   | - |   |
| Less: Granted during the year                        |   |   | (24,536 | )      |   |   | (29,632 | ) |
| Balance, end of year                                 |   |   | 200,470 |   |   |   | 25,006 |   |

| 17. | LONG-TERM DEBT AND FINANCING |
|-----|------------------------------|

|                                                       |   | March 31, 2014 |    |   | March 31, 2013 |   |
|------------------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
| Credit facility (a)                                        |   | $              | 69,500  |   |           | $      | 110,121 |   |
|    Less: debt issue costs (a)               |   |           | (2,449  | )      |           |   | (427 | ) |
| $105 million senior unsecured note (b)                     |   |           | 105,000 |   |           |   | 105,000 |   |
|    Less: debt issue costs (b)               |   |           | (6,221  | )      |           |   | (7,335 | ) |
| NHS financing (c)                                          |   |           | 272,561 |   |           |   | 257,427 |   |
| $90 million convertible debentures (d)                     |   |           | -       |   |           |   | 87,610 |   |
| $330 million convertible debentures (e)                    |   |           | 304,458 |   |           |   | 297,928 |   |
| $100 million convertible debentures (f)                    |   |           | 89,430  |   |           |   | 87,579 |   |
| US$150 million convertible bonds (g)                       |   |           | 149,572 |   |           |   | - |   |
| HES financing (h)                                          |   |           |    |   |           |   |   |   |
|   Credit facility                                |   |           | -       |   |           |   | 11,431 |   |
|   Construction loan                              |   |           | -       |   |           |   | 9,776 |   |
|       Less: debt issue costs |   |           | -       |   |           |   | (1,884 | ) |
| Capital leases (i)                                         |   |           | 175     |   |           |   | 472 |   |
|                                                       |   |           | 982,026 |   |           |   | 957,698 |   |
| Less: current portion                                      |   |           | (51,999 | )      |           |   | (162,474 | ) |
|                                                       |   | $              | 930,027 |   |           | $      | 795,224 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                    |   | Less than 1 year |   |   | 1 to 3years |   |    | 4 to 5years |   |   | More than5 years |   |   | Total  |    |
|-----------------------------------------|--------|------------------|--------|--------|-------------|--------|---------|-------------|--------|--------|------------------|--------|--------|--------|---------|
| Credit facility (a)                     |   | $                | -      |   |        | $      | 69,500  |        |   | $      | -                |   |   | $      | -       |   |   | $ | 69,500 |   |
| $105 million senior unsecured note (b)  |   |             | -      |   |        |   | -       |        |   |   | 105,000          |   |   |   | -       |   |   |   | 105,000 |   |
| NHS financing (c)                       |   |             | 51,824 |   |        |   | 96,776  |        |   |   | 70,103           |   |   |   | 53,858  |   |   |   | 272,561 |   |
| $330 million convertible debentures (e) |   |             | -      |   |        |   | -       |        |   |   | 330,000          |   |   |   | -       |   |   |   | 330,000 |   |
| $100 million convertible debentures (f) |   |             | -      |   |        |   | -       |        |   |   | 100,000          |   |   |   | -       |   |   |   | 100,000 |   |
| US$150 million convertible bonds (g)    |   |             | -      |   |        |   | -       |        |   |   | -                |   |   |   | 165,825 |   |   |   | 165,825 |   |
| Capital leases (i)                      |   |             | 175    |   |        |   | -       |        |   |   | -                |   |   |   | -       |   |   |   | 175 |   |
|                                    |   | $                | 51,999 |   |        | $      | 166,276 |        |   | $      | 605,103          |   |   | $      | 219,683 |   |   | $ | 1,043,061 |   |

|                                          |   | For the year ended |   |   | For the year ended |   |
|-----------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
|                                          |   | March 31, 2014     |   |   | March 31, 2013     |   |
| Credit facility (a)                           |   | $                  | 13,779 |   |               | $      | 14,725 |   |
| $105 million senior unsecured note (b)        |   |               | 11,759 |   |               |   | 2,950 |   |
| NHS financing (c)                             |   |               | 21,329 |   |               |   | 15,846 |   |
| $90 million convertible debentures (d)        |   |               | 7,605  |   |               |   | 6,910 |   |
| $330 million convertible debentures (e)       |   |               | 26,330 |   |               |   | 25,792 |   |
| $100 million convertible debentures (f)       |   |               | 7,601  |   |               |   | 7,450 |   |
| US$150 million convertible bonds (g)          |   |               | 2,192  |   |               |   | - |   |
| Capital lease interest (i)                    |   |               | 22     |   |               |   | 43 |   |
| Unwinding of discount on provisions (Note 19) |   |               | 152    |   |               |   | 284 |   |
|                                          |   | $                  | 90,769 |   |               | $      | 74,000 |   |

|   | (a) | As at March 31, 2014, Just Energy has a $290 million credit facility to meet working capital requirements. The syndicate of lenders includes Canadian Imperial Bank of Commerce, Royal Bank of Canada, National Bank of Canada, The Toronto-Dominion Bank, The Bank of Nova Scotia, HSBC Bank Canada and Alberta Treasury Branches. The term of the credit facility expires on October 2, 2015.  The credit facility was $370 million as of March 31, 2013, with a reduction of $30 million to $340 million with the credit facility renewal on October 2, 2013 as well as a further reduction of $50 million with the issuance of the US$150 million convertible bonds in February 2014. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (b) | Just Energy issued $105 million in senior unsecured notes (“$105 million senior unsecured note”) bearing interest at 9.75% and maturing in June 2018.  As at March 31, 2014, unamortized debt issue costs are $6,221. These costs will be charged to operations as finance costs over the term of the debt. The $105 million senior unsecured note is subject to certain financial and other covenants.  As at March 31, 2014, all of these covenants have been met. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Three months ended March 31, 2014 |      |   | For the year ended March 31, 2014 |   |
|-----------------------------------------------|--------|-----------------------------------|-----------|--------|-----------------------------------|--------|
|                                          |   |                              |      |   |                              |   |   |   |
| Sales                                         |   | $                                 | 1,087,233 |   |                              | $      | 3,428,585 |   |
| Gross margin                                  |   |                              | 133,645   |   |                              |   | 496,658 |   |
| Finance costs                                 |   |                              | 19,191    |   |                              |   | 69,441 |   |
| Profit for the year                           |   |                              | 168,384   |   |                              |   | 59,217 |   |
| Non-cash financing costs                      |   |                              | 4,712     |   |                              |   | 14,271 |   |
| Intercompany interest charges                 |   |                              | -         |   |                              |   | 18,148 |   |
| Share-based compensation                      |   |                              | (3,170    | )      |                              |   | 1,518 |   |
| Income tax paid                               |   |                              | 2,433     |   |                              |   | 1,965 |   |
| Dividends paid from unrestricted subsidiaries |   |                              | -         |   |                              |   | - |   |

|   | (c) | NHS has a long-term financing agreement for the funding of new and existing rental water heater, furnace, air conditioner and thermostat contracts. Pursuant to the agreement, NHS receives financing of an amount equal to the present value of the five, seven or ten years of monthly rental income, discounted at the agreed upon financing rate of 7.25% to 7.99%, and is required to remit an amount equivalent to the rental stream from |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (d) | In conjunction with the acquisition of Universal Energy on July 1, 2009, Just Energy assumed the obligations of convertible unsecured subordinated debentures which had a face value of $90 million. On March 19, 2014, Just Energy redeemed the $90 million convertible debentures.  The redemption was funded by the issuance of the US$150 million convertible bonds in January 2014. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Just Energy issued $330 million of convertible extendible unsecured subordinated debentures (the “$330 million convertible debentures”).  The $330 million convertible debentures bear interest at a rate of 6% per annum payable semi-annually in arrears on June 30 and December 31, with a maturity date of June 30, 2017.  Each $1,000 principal amount of the $330 million convertible debentures is convertible at any time prior to maturity or on the date fixed for redemption, at the option of the holder, into approximately 55.6 common shares of the Company, representing a conversion price of $18 per share.  During the year ended March 31, 2014, interest expense amounted to $26,330. On or after June 30, 2013, but prior to June 30, 2015, the $330 million convertible debentures may be redeemed by the Company, in whole or in part, on not more than 60 days’ and not less than 30 days’ prior notice, at a redemption price equal to the principal amount thereof, plus accrued and unpaid interest, provided that the current market price (as defined herein) on the date on which notice of redemption is given is not less than 125% of the conversion price ($22.50). On and after June 30, 2015, and prior to maturity, the $330 million convertible debentures may be redeemed by Just Energy, in whole or in part, at a redemption price equal to the principal amount thereof, plus accrued and unpaid interest. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (f) | Just Energy issued $100 million of convertible unsecured subordinated debentures (the “$100 million convertible debentures”), which was used to purchase FRH.  The $100 million convertible debentures bear interest at an annual rate of 5.75%, payable semi-annually on March 31 and September 30 in each year and have a maturity date of September 30, 2018.  Each $1,000 principal amount of the $100 million convertible debentures is convertible at the option of the holder at any time prior to the close of business on the earlier of the maturity date and the last business day immediately preceding the date fixed for redemption into 56.0 common shares of Just Energy, representing a conversion price of $17.85.  The $100 million convertible debentures are not redeemable at the option of the Company on or before September 30, 2014.  After September 30, 2014 and prior to September 30, 2016, the $100 million convertible debentures may be redeemed by the Company, in whole or in part, on not more than 60 days’ and not less than 30 days’ prior notice, at a price equal to their principal amount plus accrued and unpaid interest, provided that the weighted average trading price of the common shares is at least 125% of the conversion price. On or after September 30, 2016, the $100 million convertible debentures may be redeemed in whole or in part from time to time at the option of the Company on not more than 60 days’ and not less than 30 days’ prior notice, at a price equal to their principal amount plus accrued and unpaid interest. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | On January 29, 2014, Just Energy issued US$150 million of European-focused senior convertible unsecured convertible bonds (the “$150 million convertible bonds”). The $150 million convertible bonds bear interest at an annual rate of 6.5%, payable semi-annually in arrears in equal installments on January 29 and July 29 in each year with a maturity date of July 29, 2019.  The Company incurred transaction costs of $7,079 and have shown these costs net of the $150 million convertible bonds. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (h) | As at March 31, 2014, HES has the following credit arrangements: |
|--------|-----|------------------------------------------------------------------|

|   | (i) | Effective August 2012, HES through a subsidiary entered into a US$30 million financing agreement to assist with the construction of certain solar projects.  The credit facility matures August 1, 2014 with no prepayment permitted, bearing interest, and payable quarterly, at U.S. prime plus 6.9% or Eurodollar rate plus 7.9%. As at March 31, 2014, HES had drawn $13,763 and had unamortized debt issue costs relating to the facility of $325. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | As at March 31, 2014, HES has $13,824 owing under term loans used to satisfy prior construction loans and has unamortized debt issue costs of $2,562.  The term loans bear interest at 8% and mature between May and June 2019.  In addition, during the year ended March 31, 2014, HES received $10,183 from an institutional investor under this arrangement.  The minority shareholder has approximately 49% interest in certain projects and is entitled to a significant portion of the tax incentives generated by these projects. The minority shareholder’s interest will decrease to 5% in approximately five years from the original investment. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | As at March 31, 2014, HES has $9,879 owing under a 15-year term loan used to satisfy prior construction loans which has unamortized debt issue costs of $366.  This term loan bears interest at approximately 11% and can be repaid in cash or through the issuance of Solar Renewable Energy Credits (“SRECs”) generated by the underlying projects.  If Just Energy elects to repay the term loan with SRECs, the SRECs will be valued at the greater of their market value and a range of $325 to $410 per SREC.  In addition, during the period ended March 31, 2014, HES received approximately $800 from a minority shareholder.  Under this arrangement, HES receives the majority of the tax benefits associated with the Solar division and the minority shareholder receives the majority of the cash generated from these projects. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | The Company, through its subsidiaries, leases certain computer and office equipment and software.  These financing arrangements bear interest at a rate of 9% and mature between April 1, 2014 and January 31, 2015. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 18. | INCOME TAXES |
|-----|--------------|

|   | (a) | Tax expense |
|--------|-----|-------------|

|                                                                            |   | 2014   |   |   | 2013   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Tax recognized in profit or loss                                                |   | $      | 3,358  |   |   | $      | 2,061 |   |
| Current tax expense                                                             |   |   | 3,358  |   |   |   | 2,061 |   |
|                                                                            |   |   |   |   |   |   |   |   |
| Deferred tax expense                                                            |   |   |   |   |   |   |   |   |
| Origination and reversal of temporary differences                               |   | $      | 55,522 |   |   | $      | 224,993 |   |
| Benefit arising from a previously unrecognized tax loss or temporary difference |   |   | (6,440 | )      |   |   | (140,669 | ) |
| Deferred tax expense                                                            |   |   | 49,082 |   |   |   | 84,324 |   |
|                                                                            |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                      |   | $      | 52,440 |   |   | $      | 86,385 |   |

|   | (b) | Reconciliation of the effective tax rate |
|--------|-----|------------------------------------------|

|                                                                                     |   | 2014   |    |   | 2013   |   |
|------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Income before income taxes from continuing operations                                    |   | $      | 218,632 |   |   | $      | 682,297 |   |
| Combined statutory Canadian federal and provincial income tax rate                       |   |   | 26.50   | %      |   |   | 26.50 | % |
| Income tax expense based on statutory rate                                               |   | $      | 57,937  |   |   | $      | 180,809 |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Increase(decrease) in income taxes resulting from                                        |   |   |    |   |   |   |   |   |
| Cost (benefit) of mark to market loss and other temporary differences not recognized     |   | $      | (6,440  | )      |   | $      | (140,669 | ) |
| Variance between combined Canadian tax rate and the tax rate applicable to U.S. earnings |   |   | 3,388   |   |   |   | 44,647 |   |
| Other permanent items                                                                    |   |   | (2,445  | )      |   |   | 1,598 |   |
| Total income tax expense                                                                 |   | $      | 52,440  |   |   | $      | 86,385 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (c) | Recognized deferred tax assets and liabilities |
|--------|-----|------------------------------------------------|

|                                               |   | 2014   |    |   | 2013   |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Mark to market losses on derivative instruments    |   | $      | 15,685  |   |   | $      | 46,107 |   |
| Tax losses and excess of tax basis over book basis |   |   | 25,105  |   |   |   | 9,480 |   |
| Partnership loss deferred for tax purposes         |   |   | 328     |   |   |   | 1,319 |   |
| Total deferred tax asset                           |   |   | 41,118  |   |   |   | 56,906 |   |
| Offset of deferred taxes                           |   |   | (39,698 | )      |   |   | (32,258 | ) |
| Net deferred tax asset                             |   | $      | 1,420   |   |   | $      | 24,648 |   |
|                                               |   |   |    |   |   |   |   |   |
| Partnership income deferred for tax purposes       |   | $      | (30,479 | )      |   | $      | (16,579 | ) |
| Book to tax differences on customer contracts      |   |   | -       |   |   |   | (4,707 | ) |
| Mark to market gains on derivative instruments     |   |   | (657    | )      |   |   | (146 | ) |
| Book to tax differences on other assets            |   |   | (32,956 | )      |   |   | (31,740 | ) |
| Convertible debentures                             |   |   | (8,286  | )      |   |   | (10,203 | ) |
| Total deferred tax liability                       |   |   | (72,378 | )      |   |   | (63,375 | ) |
| Offset of deferred taxes                           |   |   | 39,698  |   |   |   | 32,258 |   |
| Net deferred tax liability                         |   | $      | (32,680 | )      |   | $      | (31,117 | ) |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (d) | Movement in deferred tax balances |
|--------|-----|-----------------------------------|

|                                                    |   | Balance April 1, 2013       |    |   | Recognized in profit or loss |   |    | Recognized in equity |   |   | Recognized in OCI |   |   | Foreign exchange impact |   |   | Balance March 31, 2014 |   |
|---------------------------------------------------------|--------|-----------------------------|---------|--------|------------------------------|--------|---------|----------------------|--------|--------|-------------------|--------|--------|-------------------------|--------|--------|------------------------|--------|
| Partnership income deferred for tax                     |   | $                           | (15,259 | )      |                         | $      | (14,892 | )                    |   | $      | -                 |   |   | $                       | -      |   |                   | $      | - |   |   | $ | (30,151 | ) |
| Book to tax differences - customer contracts            |   |                        | (9,846  | )      |                         |   | 4,707   |                 |   |   | -                 |   |   |                    | -      |   |                   |   | - |   |   |   | (5,139 | ) |
| Book to tax differences  on other assets      |   |                        | (17,126 | )      |                         |   | 14,410  |                 |   |   | -                 |   |   |                    | -      |   |                   |   | - |   |   |   | (2,716 | ) |
| Mark to market gains (losses) on derivative instruments |   |                        | 45,965  |   |                         |   | (31,073 | )                    |   |   | -                 |   |   |                    | 162    |   |                   |   | (22 | ) |   |   | 15,032 |   |
| Convertible debentures                                  |   |                        | (10,203 | )      |                         |   | 1,917   |                 |   |   | -                 |   |   |                    | -      |   |                   |   | - |   |   |   | (8,286 | ) |
|                                                    |   | $                           | (6,469  | )      |                         | $      | (24,931 | )                    |   | $      | -                 |   |   | $                       | 162    |   |                   | $      | (22 | ) |   | $ | (31,260 | ) |
|                                          |   |  Balance April 1, 2012 |    |   | Recognized in profit or loss |   |    | Recognized in equity |   |   | Recognized in OCI |   |   | Foreign exchange impact |   |   | Balance March 31, 2013 |   |
| Partnership income deferred for tax                     |   | $                           | (35,459 | )      |                         | $      | 20,200  |                 |   | $      | -                 |   |   | $                       | -      |   |                   | $      | - |   |   | $ | (15,259 | ) |
| Book to tax differences - customer contracts            |   |                        | (17,763 | )      |                         |   | 7,917   |                 |   |   | -                 |   |   |                    | -      |   |                   |   | - |   |   |   | (9,846 | ) |
| Book to tax differences on other assets                 |   |                        | 20,776  |   |                         |   | (38,038 | )                    |   |   | -                 |   |   |                    | 136    |   |                   |   | - |   |   |   | (17,126 | ) |
| Mark to market (losses) gains on derivative instruments |   |                        | 113,827 |   |                         |   | (73,256 | )                    |   |   | -                 |   |   |                    | 5,414  |   |                   |   | (20 | ) |   |   | 45,965 |   |
| Convertible debentures                                  |   |                        | (9,056  | )      |                         |   | (1,147  | )                    |   |   | -                 |   |   |                    | -      |   |                   |   | - |   |   |   | (10,203 | ) |
|                                                    |   | $                           | 72,325  |   |                         | $      | (84,324 | )                    |   | $      | -                 |   |   | $                       | 5,550  |   |                   | $      | (20 | ) |   | $ | (6,469 | ) |

|   | (e) | Unrecognized deferred tax assets |
|--------|-----|----------------------------------|

|                                               |   | 2014   |   |   | 2013   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Losses available for carryforward                  |   | $      | 3,269  |   |   | $      | 670 |   |
| Mark to market on losses on derivative instruments |   |   | 17,403 |   |   |   | 17,601 |   |
| Excess of tax over book basis                      |   |   | 8,778  |   |   |   | 3,371 |   |
| Excess of tax over book - customer contracts       |   |   | 8,778  |   |   |   | 17,773 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                      |   | 2014   |    |
|---------------------------|--------|--------|---------|
| 2028                      |   | $      | 2,202   |   |
| 2029                      |   |   | 6,114   |   |
| After 2030 and thereafter |   |   | 142,474 |   |
| Total                     |   | $      | 150,790 |   |

| 19. | PROVISIONS |
|-----|------------|

|                                                      |   | 2014   |   |   | 2013   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Cost                                                      |   |   |   |   |   |   |
| Balance, beginning of year                                |   | $      | 6,836  |   |   | $      | 6,294 |   |
| Discontinued operations                                   |   |   | (504   | )      |   |   | - |   |
| Unwinding of discount recorded in discontinued operations |   |   | -      |   |   |   | 17 |   |
| Provisions made during the year                           |   |   | 645    |   |   |   | 1,055 |   |
| Provisions reversed and used during the year              |   |   | (844   | )      |   |   | (908 | ) |
| Unwinding of discount                                     |   |   | 152    |   |   |   | 284 |   |
| Foreign exchange impact                                   |   |   | 527    |   |   |   | 94 |   |
| Balance, end of year                                      |   | $      | 6,812  |   |   | $      | 6,836 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Current                                                   |   |   | 3,052  |   |   |   | 3,063 |   |
| Non-current                                               |   |   | 3,760  |   |   |   | 3,773 |   |
|                                                      |   | $      | 6,812  |   |   | $      | 6,836 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 20. | OTHER INCOME, EXPENSES AND ADJUSTMENTS |
|-----|----------------------------------------|

|   | (a) | Other operating expenses |
|--------|-----|--------------------------|

|                                                     |     |   | For the year   |    |   | For the year   |   |
|----------------------------------------------------------|----------|--------|----------------|---------|--------|----------------|--------|
|                                                     |     |   | ended          |    |   | ended          |   |
|                                                     | Note     |   | March 31, 2014 |    |   | March 31, 2013 |   |
| Amortization of gas contracts                            |     |   | $              | 8,238   |   |           | $      | 12,627 |   |
| Amortization of electricity contracts                    |     |   |           | 6,724   |   |           |   | 37,782 |   |
| Amortization of acquired water heater and HVAC contracts |     |   |           | 4,511   |   |           |   | 2,685 |   |
| Amortization of other intangible assets                  |     |   |           | 33,037  |   |           |   | 33,234 |   |
| Amortization of property, plant and equipment            |     |   |           | 4,431   |   |           |   | 4,425 |   |
| Bad debt expense                                         |     |   |           | 47,161  |   |           |   | 30,850 |   |
| Share-based compensation                                 |  16 |   |           | 1,796   |   |           |   | 11,952 |   |
|                                                     |     |   | $              | 105,898 |   |           | $      | 133,555 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | (b) | Amortization and energy costs included in cost of sales in the consolidated statements of income |
|--------|-----|--------------------------------------------------------------------------------------------------|

|                          |   | For the year   |      |   | For the year   |   |
|-------------------------------|--------|----------------|-----------|--------|----------------|--------|
|                          |   | ended          |      |   | ended          |   |
|                          |   | March 31, 2014 |      |   | March 31, 2013 |   |
| Amortization                  |   | $              | 13,136    |   |           | $      | 9,193 |   |
| Direct energy costs and other |   |           | 3,032,323 |   |           |   | 2,477,881 |   |
|                          |   | $              | 3,045,459 |   |           | $      | 2,487,074 |   |

|   | (c) | Included in change in fair value of derivative instruments |
|--------|-----|------------------------------------------------------------|

|                                  | For the        |   | For the        |   |
|---------------------------------------|----------------|--------|----------------|--------|
|                                  | year ended     |   | year ended     |   |
|                                  | March 31, 2014 |   | March 31, 2013 |   |
| Amortization of gas contracts         |           | $      | 10,056         |   |   | $ | 11,695 |   |
| Amortization of electricity contracts |           |   | 4,668          |   |   |   | 41,027 |   |

|   | (e) | Employee benefits expense |
|--------|-----|---------------------------|

|                            |           | For the    |           |   | For the    |   |
|---------------------------------|----------------|------------|----------------|--------|------------|--------|
|                            |           | year ended |           |   | year ended |   |
|                            | March 31, 2014 |       | March 31, 2013 |   |
| Wages, salaries and commissions |           | $          | 197,827        |   |       | $      | 218,594 |   |
| Benefits                        |           |       | 23,323         |   |       |   | 22,879 |   |
|                            |           | $          | 221,150        |   |       | $      | 241,473 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 21. | REPORTABLE BUSINESS SEGMENTS |
|-----|------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|                                     |   | Consumer |      |   | Commercial |   |      |    |   |   |          |   |   |   |    |   |         |   |
|------------------------------------------|--------|----------|-----------|--------|------------|--------|-----------|---------|--------|--------|---------------|--------|--------|--------|---------|--------|--------------|--------|
|                                     |   | division |      |   | division   |   |      | Ethanol |   |   | Home services |   |   | Solar  |    |   | Consolidated |   |
|                                     |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |
| Sales                                    |   | $        | 2,022,270 |   |       | $      | 1,512,344 |    |   | $      | -             |   |   | $      | 76,444  |   |         | $      | - |   |   | $ | 3,611,058 |   |
| Gross margin                             |   |     | 372,598   |   |       |   | 132,933   |    |   |   | -             |   |   |   | 60,068  |   |         |   | - |   |   |   | 565,599 |   |
| Amortization of property, plant          |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| and equipment                            |   |     | 2,930     |   |       |   | 1,221     |    |   |   | -             |   |   |   | 280     |   |         |   | - |   |   |   | 4,431 |   |
| Amortization of intangible assets        |   |     | 23,260    |   |       |   | 24,735    |    |   |   | -             |   |   |   | 4,515   |   |         |   | - |   |   |   | 52,510 |   |
| Administrative expenses                  |   |     | 84,646    |   |       |   | 32,067    |    |   |   | -             |   |   |   | 22,646  |   |         |   | - |   |   |   | 139,359 |   |
| Selling and marketing expenses           |   |     | 130,153   |   |       |   | 59,737    |    |   |   | -             |   |   |   | 10,114  |   |         |   | - |   |   |   | 200,004 |   |
| Other operating expenses                 |   |     | 38,997    |   |       |   | 8,651     |    |   |   | -             |   |   |   | 1,309   |   |         |   | - |   |   |   | 48,957 |   |
| Operating profit for the                 |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| year                                     |   | $        | 92,612    |   |       | $      | 6,522     |    |   | $      | -             |   |   | $      | 21,204  |   |         | $      | - |   |   | $ | 120,338 |   |
| Finance costs                            |   |     | (31,462   | )      |       |   | (37,979   | )       |   |   | -             |   |   |   | (21,328 | )      |         |   | - |   |   |   | (90,769 | ) |
| Change in fair value of derivative       |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| instruments                              |   |     | 175,440   |   |       |   | 10,702    |    |   |   | -             |   |   |   | -       |   |         |   | - |   |   |   | 186,142 |   |
| Other income (loss)                      |   |     | 3,444     |   |       |   | (523      | )       |   |   | -             |   |   |   | -       |   |         |   | - |   |   |   | 2,921 |   |
| Provision for income taxes               |   |     | 45,267    |   |       |   | 2,923     |    |   |   | -             |   |   |   | 4,250   |   |         |   | - |   |   |   | 52,440 |   |
| Profit (loss) from continuing operations |   | $        | 194,767   |   |       | $      | (24,201   | )       |   | $      | -             |   |   | $      | (4,374  | )      |         | $      | - |   |   | $ | 166,192 |   |
| Discontinued operations                  |   |     | -         |   |       |   | -         |    |   |   | 17,577        |   |   |   | -       |   |         |   | (46,828 | ) |   |   | (29,251 | ) |
| Profit (loss) for the year               |   | $        | 194,767   |   |       | $      | (24,201   | )       |   | $      | 17,577        |   |   | $      | (4,374  | )      |         | $      | (46,828 | ) |   | $ | 136,941 |   |
| Capital expenditures                     |   | $        | 4,796     |   |       | $      | 2,498     |    |   | $      | -             |   |   | $      | 28,246  |   |         | $      | 23,526 |   |   | $ | 59,066 |   |
| Total goodwill                           |   | $        | 216,391   |   |       | $      | 47,362    |    |   | $      | -             |   |   | $      | 283     |   |         | $      | - |   |   | $ | 264,036 |   |
| Total assets                             |   | $        | 876,164   |   |       | $      | 363,125   |    |   | $      | -             |   |   | $      | 297,098 |   |         | $      | 106,263 |   |   | $ | 1,642,650 |   |
| Total liabilities                        |   | $        | 1,209,884 |   |       | $      | 160,563   |    |   | $      | -             |   |   | $      | 311,993 |   |         | $      | 51,852 |   |   | $ | 1,734,292 |   |
|                                     |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |

|                                     |   | Consumer |      |   | Commercial |   |      |    |   |   |          |   |   |   |    |   |         |   |
|------------------------------------------|--------|----------|-----------|--------|------------|--------|-----------|---------|--------|--------|---------------|--------|--------|--------|---------|--------|--------------|--------|
|                                     |   | division |      |   | division   |   |      | Ethanol |   |   | Home services |   |   | Solar  |    |   | Consolidated |   |
|                                     |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |
| Sales                                    |   | $        | 1,525,801 |   |       | $      | 1,431,846 |    |   | $      | -             |   |   | $      | 53,531  |   |         | $      | - |   |   | $ | 3,011,178 |   |
| Gross margin                             |   |     | 331,258   |   |       |   | 150,910   |    |   |   | -             |   |   |   | 41,936  |   |         |   | - |   |   |   | 524,104 |   |
| Amortization of property, plant          |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| and equipment                            |   |     | 2,960     |   |       |   | 1,242     |    |   |   | -             |   |   |   | 223     |   |         |   | - |   |   |   | 4,425 |   |
| Amortization of intangible assets        |   |     | 21,467    |   |       |   | 62,162    |    |   |   | -             |   |   |   | 2,699   |   |         |   | - |   |   |   | 86,328 |   |
| Administrative expenses                  |   |     | 88,836    |   |       |   | 29,300    |    |   |   | -             |   |   |   | 19,197  |   |         |   | - |   |   |   | 137,333 |   |
| Selling and marketing expenses           |   |     | 153,554   |   |       |   | 61,774    |    |   |   | -             |   |   |   | 5,171   |   |         |   | - |   |   |   | 220,499 |   |
| Other operating expenses                 |   |     | 31,286    |   |       |   | 10,112    |    |   |   | -             |   |   |   | 1,404   |   |         |   | - |   |   |   | 42,802 |   |
| Operating profit (loss) for the          |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| year                                     |   | $        | 33,155    |   |       | $      | (13,680   | )       |   | $      | -             |   |   | $      | 13,242  |   |         | $      | - |   |   | $ | 32,717 |   |
| Finance costs                            |   |     | (19,238   | )      |       |   | (38,916   | )       |   |   | -             |   |   |   | (15,846 | )      |         |   | - |   |   |   | (74,000 | ) |
| Change in fair value of derivative       |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| instruments                              |   |     | 563,991   |   |       |   | 155,759   |    |   |   | -             |   |   |   | (175    | )      |         |   | - |   |   |   | 719,575 |   |
| Other income (loss)                      |   |     | 4,137     |   |       |   | (132      | )       |   |   | -             |   |   |   | -       |   |         |   | - |   |   |   | 4,005 |   |
| Provision for income taxes               |   |     | 29,832    |   |       |   | 25,530    |    |   |   | -             |   |   |   | 31,023  |   |         |   | - |   |   |   | 86,385 |   |
| Profit (loss) from continuing operations |   | $        | 552,213   |   |       | $      | 77,501    |    |   | $      | -             |   |   | $      | (33,802 | )      |         | $      | - |   |   | $ | 595,912 |   |
| Discontinued operations                  |   |     | -         |   |       |   | -         |    |   |   | (72,050       | )      |   |   | -       |   |         |   | 761 |   |   |   | (71,289 | ) |
| Profit (loss) for the year               |   | $        | 552,213   |   |       | $      | 77,501    |    |   | $      | (72,050       | )      |   | $      | (33,802 | )      |         | $      | 761 |   |   | $ | 524,623 |   |
| Capital expenditures                     |   | $        | 2,446     |   |       | $      | 1,273     |    |   | $      | -             |   |   | $      | 41,121  |   |         | $      | 63,043 |   |   | $ | 107,883 |   |
| As at March 31, 2013                     |   |     |      |   |       |   |      |    |   |   |          |   |   |   |    |   |         |   |   |   |   |   |   |   |
| Total goodwill                           |   | $        | 212,572   |   |       | $      | 43,527    |    |   | $      | -             |   |   | $      | 283     |   |         | $      | - |   |   | $ | 256,382 |   |
| Total assets                             |   | $        | 800,271   |   |       | $      | 276,835   |    |   | $      | 77,439        |   |   | $      | 266,933 |   |         | $      | 107,464 |   |   | $ | 1,528,942 |   |
| Total liabilities                        |   | $        | 955,104   |   |       | $      | 307,629   |    |   | $      | 77,439        |   |   | $      | 294,401 |   |         | $      | 33,426 |   |   | $ | 1,667,999 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| Geographic information          |   |   |   |   |   |
|---------------------------------|--------|--------|--------|--------|--------|
|                            |   |   |   |   |   |
| Revenue from external customers |   |   |   |   |   |

|                                                |           | For the year |           |   | For the year |   |
|-----------------------------------------------------|----------------|--------------|----------------|--------|--------------|--------|
|                                                | ended          |         | ended          |   |
|                                                | March 31, 2014 |         | March 31, 2013 |   |
| Canada                                              |           | $            | 834,409        |   |         | $      | 872,987 |   |
| United States                                       |           |         | 2,706,486      |   |         |   | 2,131,592 |   |
| United Kingdom                                      |           |         | 70,163         |   |         |   | 6,599 |   |
| Total revenue per consolidated statements of income |           | $            | 3,611,058      |   |         | $      | 3,011,178 |   |

|                 |   | As at March 31, 2014 |    |   | As at March 31, 2013 |   |
|----------------------|--------|----------------------|---------|--------|----------------------|--------|
|  Canada         |   | $                    | 386,561 |   |                 | $      | 391,420 |   |
|  United States  |   |                 | 194,346 |   |                 |   | 312,823 |   |
|  United Kingdom |   |                 | 741     |   |                 |   | 1,093 |   |
|  Total          |   | $                    | 581,648 |   |                 | $      | 705,336 |   |

| 22. | IMPAIRMENT TESTING OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE LIVES |
|-----|----------------------------------------------------------------------------|

|     | Consumer division |   | Commercial division |   |   | Home services |    |   | Total  |   |
|----------|-------------------|--------|---------------------|--------|--------|---------------|---------|--------|--------|--------|
|     | 2014              |   |                | 2013   |   | 2014          |    |   | 2013   |   | 2014 |   |   | 2013 |   |   | 2014 |   |   | 2013 |   |
| Goodwill |              | $      | 216,391             |   |   | $             | 212,572 |   |   | $      | 47,362 |   |   | $ | 43,527 |   |   | $ | 283 |   |   | $ | 283 |   |   | $ | 264,036 |   |   | $ | 256,382 |   |
| Brand    |              |   | 12,190              |   |   |          | 12,600  |   |   |   | 13,709 |   |   |   | 11,202 |   |   |   | - |   |   |   | - |   |   |   | 25,899 |   |   |   | 23,802 |   |
|     |              | $      | 228,581             |   |   | $             | 225,172 |   |   | $      | 61,071 |   |   | $ | 54,729 |   |   | $ | 283 |   |   | $ | 283 |   |   | $ | 289,935 |   |   | $ | 280,184 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

|   | - | Customer consumption assumptions used in determining gross margin |
|--------|---|-------------------------------------------------------------------|

|   | - | New customer additions and attrition and renewals |
|--------|---|---------------------------------------------------|

|   | - | Selling costs |
|--------|---|---------------|

|   | - | Discount rates |
|--------|---|----------------|

|   | - | Growth rates used to extrapolate cash flows beyond the budget period |
|--------|---|----------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 23. | EARNINGS PER SHARE |
|-----|--------------------|

|                                                                                                                                                                                           |   | 2014   |        |   | 2013   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|  Basic earnings per share                                                                                                                                                                 |   |   |        |   |   |   |
|  Profit from continuing operations                                                                                                                                                        |   | $      | 166,192     |   |   | $      | 595,912 |   |
|  Profit available to shareholders                                                                                                                                                         |   | $      | 135,907     |   |   | $      | 530,308 |   |
|  Basic shares outstanding                                                                                                                                                                 |   |   | 143,044,739 |   |   |   | 140,041,759 |   |
|  Basic earnings per share from continuing operations                                                                                                                                      |   | $      | 1.16        |   |   | $      | 4.26 |   |
|  Basic earnings per share available to shareholders                                                                                                                                       |   | $      | 0.95        |   |   | $      | 3.79 |   |
|                                                                                                                                                                                           |   |   |        |   |   |   |   |   |
|  Diluted earnings per share                                                                                                                                                               |   |   |        |   |   |   |   |   |
|  Profit from continuing operations                                                                                                                                                        |   | $      | 166,192     |   |   | $      | 595,912 |   |
|  Profit available to shareholders                                                                                                                                                         |   | $      | 135,907     |   |   | $      | 530,308 |   |
|  Adjustment for dilutive impact of convertible debentures                                                                                                                                 |   |   | 25,048      |   |   |   | 29,281 |   |
|  Adjusted earnings from continuing operations                                                                                                                                             |   | $      | 191,240     |   |   | $      | 625,193 |   |
|  Adjusted earnings available to shareholders                                                                                                                                              |   | $      | 160,955     |   |   | $      | 559,589 |   |
|  Basic shares outstanding                                                                                                                                                                 |   |   | 143,044,739 |   |   |   | 140,041,759 |   |
|  Dilutive effect of:                                                                                                                                                                      |   |   |        |   |   |   |   |   |
|  Restricted share grants                                                                                                                                                                  |   |   | 3,760,097   |   |   |   | 3,687,837 |   |
|  Deferred share grants                                                                                                                                                                    |   |   | 165,047     |   |   |   | 154,341 |   |
|  Convertible debentures                                                                                                                                                                   |   |   | 23,935,574  | (i)    |   |   | 27,413,163 |   |
|  Shares outstanding on a diluted basis                                                                                                                                                    |   |   | 170,905,457 |   |   |   | 171,297,100 |   |
|  Diluted earnings per share from continuing operations                                                                                                                                    |   | $      | 1.12        |   |   | $      | 3.65 |   |
|  Diluted earnings per share available to shareholders                                                                                                                                     |   | $      | 0.94        |   |   | $      | 3.27 |   |
| (i)The assumed conversion into shares results in an anti-dilutive position for the $150 million convertible bonds; therefore, these items have been excluded from dilutive earnings per share. |   |

| 24. | CAPITAL DISCLOSURE |
|-----|--------------------|

|   | i) | enabling it to operate efficiently; |
|--------|----|-------------------------------------|

|   | ii) | providing liquidity and access to capital for growth opportunities; and |
|--------|-----|-------------------------------------------------------------------------|

|   | iii) | providing returns and generating predictable cash flow for dividend payments to shareholders. |
|--------|------|-----------------------------------------------------------------------------------------------|

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 25. | GUARANTEES |
|-----|------------|

|   | (a) | Officers and directors |
|--------|-----|------------------------|

|   | (b) | Operations |
|--------|-----|------------|

| 26. | RELATED PARTY TRANSACTIONS AND KEY MANAGEMENT PERSONNEL REMUNERATION |
|-----|----------------------------------------------------------------------|

|                                                                     | 2014   |   | 2013   |      |
|--------------------------------------------------------------------------|--------|--------|--------|-----------|
|  Salaries and benefits                                              |   | $      | 2,200  |      |   | $ | 2,122 |   |
|  Share-based compensation                                           |   |   | (1,771 | ) 1  |   |   | 5,500 |   |
|                                                                     |   | $      | 429    |      |   | $ | 7,622 |   |
| 1 This reflects the forfeiture on RSGs for the CEO upon resignation |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 27. | DIVIDENDS PAID AND PROPOSED |
|-----|-----------------------------|

| 28. | COMMITMENTS AND GUARANTEES |
|-----|----------------------------|

| As at March 31, 2014                    |             |
|-----------------------------------------|------------------|
|                                    |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                    | Less than 1 year |   | 1 - 3 years |   | 4 - 5 years |   | More than 5 years |   |   | Total |   |
| Premises and equipment leasing          |             | $ | 8,223 |   |   | $ | 12,655 |   |   | $ | 7,845 |   |   | $ | 4,537 |   |   | $ | 33,260 |   |
| Royalty payments                        |             |   | - |   |   |   | 4,489 |   |   |   | 9,643 |   |   |   | 31,650 |   |   |   | 45,782 |   |
| Long-term gas and electricity contracts |             |   | 1,668,975 |   |   |   | 1,183,717 |   |   |   | 257,893 |   |   |   | 2,411 |   |   |   | 3,112,996 |   |
|                                    |             | $ | 1,677,198 |   |   | $ | 1,200,861 |   |   | $ | 275,381 |   |   | $ | 38,598 |   |   | $ | 3,192,038 |   |

| As at March 31, 2013                    |             |
|-----------------------------------------|------------------|
|                                    |             |   |   |   |   |   |   |   |   |   |   |
|                                    | Less than 1 year |   | 1 - 3 years |   | 4 - 5 years |   | More than 5 years |   |   | Total |   |
| Premises and equipment leasing          |             | $ | 7,550 |   |   | $ | 10,755 |   |   | $ | 7,037 |   |   | $ | 6,258 |   |   | $ | 31,600 |   |
| Royalty payments                        |             |   | - |   |   |   | 4,489 |   |   |   | 9,643 |   |   |   | 31,650 |   |   |   | 45,782 |   |
| Long-term gas and electricity contracts |             |   | 1,372,855 |   |   |   | 993,719 |   |   |   | 182,020 |   |   |   | 1,272 |   |   |   | 2,549,866 |   |
|                                    |             | $ | 1,380,405 |   |   | $ | 1,008,963 |   |   | $ | 198,700 |   |   | $ | 39,180 |   |   | $ | 2,627,248 |   |

----

| JUST ENERGY GROUP INC.                                                           |
|----------------------------------------------------------------------------------|
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS                                   |
| FOR THE YEAR ENDED MARCH 31, 2014                                                |
| (in thousands of Canadian dollars, except where indicated and per share amounts) |

| 29. | ADJUSTMENTS REQUIRED TO REFLECT NET CASH RECEIPTS FROM GAS SALES |
|-----|------------------------------------------------------------------|

|                                   |   | 2014   |    |   | 2013   |   |
|----------------------------------------|--------|--------|---------|--------|--------|--------|
| Changes in:                            |   |   |    |   |   |   |
| Accrued gas receivables                |   | $      | (16,493 | )      |   | $      | (25,867 | ) |
| Gas delivered in excess of consumption |   |   | 8,642   |   |   |   | 6,459 |   |
| Accrued gas payable                    |   |   | 6,886   |   |   |   | 21,213 |   |
| Deferred revenue                       |   |   | (5,221  | )      |   |   | (6,341 | ) |
|                                   |   | $      | (6,186  | )      |   | $      | (4,536 | ) |

| 30. | CHANGES IN NON-CASH WORKING CAPITAL |
|-----|-------------------------------------|

|                                      |   | 2014   |     |   | 2013   |   |
|-------------------------------------------|--------|--------|----------|--------|--------|--------|
| Accounts receivable and unbilled revenues |   | $      | (119,807 | )      |   | $      | (15,050 | ) |
| Gas in storage                            |   |   | 6,431    |   |   |   | 576 |   |
| Prepaid expenses and deposits             |   |   | (3,132   | )      |   |   | (2,708 | ) |
| Inventory                                 |   |   | (5,200   | )      |   |   | (5,258 | ) |
| Trade and other payables and provisions   |   |   | 160,434  |   |   |   | 12,671 |   |
|                                      |   | $      | 38,726   |   |   | $      | (9,769 | ) |

| 31. | COMPARATIVE CONSOLIDATED FINANCIAL STATEMENTS |
|-----|-----------------------------------------------|