| Title of each class |   | Name of each exchange on which registered |
|---------------------|--------|-------------------------------------------|
|  Common shares |   |  Toronto Stock Exchange, NYSE Amex   |

----

| PART I                                                                                |   5   |
|---------------------------------------------------------------------------------------|------------|
| ITEM 1. Identity of Directors, Senior Management and Advisors                         |   5   |
| ITEM 2. Offer Statistics and Expected Timetable                                       |   5   |
| ITEM 3. Key Information                                                               |   5   |
| ITEM 4. Information on the Company                                                    |   22  |
| ITEM 4A. Unresolved Staff Comments                                                    |   58  |
| ITEM 5. Operating and Financial Review and Prospects                                  |   58  |
| ITEM 6. Directors, Senior Management and Employees                                    |   82  |
| ITEM 7. Major Shareholders and Related Party Transactions                             |   99  |
| ITEM 8. Financial Information                                                         |   102 |
| ITEM 9. The Offer and Listing                                                         |   102 |
| ITEM 10. Additional Information                                                       |   104 |
| ITEM 11. Quantitative and Qualitative Disclosures about Market Risk                   |   115 |
| ITEM 12. Description of Securities other than Equity Securities                       |   115 |
| PART II                                                                               |   116 |
| ITEM 13. Defaults, Dividend Arrearages and Delinquencies                              |   116 |
| ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds |   116 |
| ITEM 15. Controls and Procedures                                                      |   117 |
| ITEM 16. [Reserved]                                                                   |   118 |
| ITEM 16A. Audit Committee Financial Expert                                            |   118 |
| ITEM 16B. Code of Ethics                                                              |   119 |
| ITEM 16C. Principal Accountant Fees and Services                                      |   119 |
| ITEM 16D. Exemptions from the Listings Standard for Audit Committees                  |   119 |
| ITEM 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers      |   120 |
| ITEM 16F. Changes in Registrants Certifying Accountant                                |   121 |
| ITEM 16G. Corporate Governance                                                        |   122 |
| PART III                                                                              |   123 |
| ITEM 17. Financial Statements                                                         |   123 |
| ITEM 18. Financial Statements                                                         |   123 |
| ITEM 19. Exhibits                                                                     |   124 |
| SIGNATURES                                                                            |   125 |

----

| ●   | statements contained in “Risk Factors”; |
|---------------------|-----------------------------------------------------|

| ●   | statements contained in “Operating and Financial Review and Prospects” and the notes to our consolidated financial statements, such as the potential impact of exchange rate fluctuations and potential changes in and effects of government regulation on our business; and estimates in our critical accounting policies; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | statements contained in “Information on the Company” concerning our strengths, business strategies, competitiveness, teacher recruiting and retention and compliance with applicable law, rules and regulations; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | statements throughout concerning our legal structure and the regulation of our business. |
|---------------------|------------------------------------------------------------------------------------------|

| ●   | our anticipated strategies for growth; |
|---------------------|----------------------------------------|

| ●   | our ability to manage our planned growth and integrate new business opportunities into our existing operations; |
|---------------------|-----------------------------------------------------------------------------------------------------------------|

| ●   | our need for additional capital to expand our operations; |
|---------------------|-----------------------------------------------------------|

| ●   | our dependence on key personnel, CIBT center facility providers and educational service providers; |
|---------------------|----------------------------------------------------------------------------------------------------|

| ●   | our ability to compete effectively with competitors that have greater financial, marketing and other resources; |
|---------------------|-----------------------------------------------------------------------------------------------------------------|

| ●   | risks involving the Chinese legal system, tax system, and foreign currency limitation; and |
|---------------------|--------------------------------------------------------------------------------------------|

| ●   | risks related to government regulations and approvals of private providers of educational services in China. |
|---------------------|--------------------------------------------------------------------------------------------------------------|

----

|           | High   | Low    | Average |
|----------------|--------|--------|---------|
| January 2012   | 1.0272 | 0.9986 | 1.0130  |
| December 2011  | 1.0403 | 1.0106 | 1.0235  |
| November 2011  | 1.0487 | 1.0125 | 1.0246  |
| October 2011   | 1.0440 | 0.9932 | 1.0187  |
| September 2011 | 1.0389 | 0.9751 | 1.0021  |
| August 2011    | 0.9909 | 0.9577 | 0.9816  |

|                             | Average |
|----------------------------------|---------|
| Year ended August 31, 2011       | 1.0256  |
| Year ended August 31, 2010       | 0.9579  |
| Year ended August 31, 2009       | 0.8502  |
| Year ended August 31, 2008       | 0.9937  |
| Two months ended August 31, 2007 | 0.9427  |
| Year ended June 30, 2007         | 0.8873  |

----

----

PART I

ITEM 1.  Identity of Directors, Senior Management and Advisors

ITEM 2.  Offer Statistics and Expected Timetable

ITEM 3.  Key Information

----

|                                        |   | Year Ended August 31, 2011 |        |   | Year Ended August 31, 2010 |   |       | Year Ended August 31, 2009 |   |   | Year Ended August 31, 2008 |   |   | Two Months Ended August 31, 2007 |       |   | Year EndedJune 30, 2007 |   |
|---------------------------------------------|--------|----------------------------|-------------|--------|----------------------------|--------|------------|----------------------------|--------|--------|----------------------------|--------|--------|----------------------------------|------------|--------|-------------------------|--------|
| Consolidated Income Statement Data (1)      |   | (C$)                       |        |   | (C$)                       |   |       | (C$)                       |   |   | (C$)                       |   |   | (C$)                             |       |   | (C$)                    |   |
| Revenues                                    |   |                       | 58,575,126  |   |                       |   | 55,954,852 |                       |   |   | 44,550,958                 |   |   |                             | 31,161,279 |   |                    |   | 1,166,769 |   |   |   | 9,303,448 |   |
| Direct costs                                |   |                       | 21,430,791  |   |                       |   | 20,670,302 |                       |   |   | 16,234,348                 |   |   |                             | 12,067,789 |   |                    |   | 547,266 |   |   |   | 4,587,634 |   |
| Other expenses                              |   |                       | 41,216,072  |   |                       |   | 33,669,709 |                       |   |   | 27,731,472                 |   |   |                             | 22,625,691 |   |                    |   | 1,152,735 |   |   |   | 5,839,938 |   |
| Income (loss) from operations               |   |                       | (4,071,737  | )      |                       |   | 1,614,841  |                       |   |   | 585,138                    |   |   |                             | (3,532,201 | )      |                    |   | (533,232 | ) |   |   | (1,124,124 | ) |
| Other income (expenses)                     |   |                       | (6,470,385  | )      |                       |   | (3,027,643 | )                          |   |   | 193,213                    |   |   |                             | (1,124,461 | )      |                    |   | (148,031 | ) |   |   | 1,729,392 |   |
| Income (loss) before income taxes           |   |                       | (10,542,122 | )      |                       |   | (1,412,802 | )                          |   |   | 778,351                    |   |   |                             | (4,589,071 | )      |                    |   | (681,263 | ) |   |   | 605,268 |   |
| Income tax recovery (provision)             |   |                       | 894,623     |   |                       |   | 2,365,055  |                       |   |   | (285,241                   | )      |   |                             | (351,432   | )      |                    |   | (32,508 | ) |   |   | (243,684 | ) |
| Non-controlling interests                   |   |                       | (443,565    | )      |                       |   | (369,883   | )                          |   |   | (477,103                   | )      |   |                             | (109,155   | )      |                    |   | 65,334 |   |   |   | (58,294 | ) |
| Net income (loss)                           |   |                       | (10,091,064 | )      |                       |   | 582,370    |                       |   |   | 16,007                     |   |   |                             | (5,049,678 | )      |                    |   | (648,437 | ) |   |   | 303,290 |   |
| Basic and diluted earnings (loss) per share |   |                       | (0.15       | )      |                       |   | 0.01       |                       |   |   | 0.00                       |   |   |                             | (0.09      | )      |                    |   | (0.01 | ) |   |   | 0.01 |   |

|   Consolidated Income Statement Data (1) |   | Year Ended August 31, 2011(C$) |         |   | Year Ended August 31, 2010(C$) |   |       | Year Ended August 31, 2009(C$) |   |   | Year Ended August 31, 2008(C$) |   |   | Two Months Ended August 31, 2007(C$) |       |   | Year EndedJune 30,2007(C$) |   |
|-----------------------------------------------|--------|--------------------------------|--------------|--------|--------------------------------|--------|------------|--------------------------------|--------|--------|--------------------------------|--------|--------|--------------------------------------|------------|--------|----------------------------|--------|
| Revenues                                      |   |                           | 58,575,126   |   |                           |   | 55,954,852 |                           |   |   | 44,550,958                     |   |   |                                 | 31,161,279 |   |                       |   | 1,166,769 |   |   |   | 9,303,448 |   |
| Income (loss) from operations                 |   |                           | (4,071,737)  |   |                           |   | 1,614,841  |                           |   |   | 585,138                        |   |   |                                 | (3,532,201 | )      |                       |   | (533,232 | ) |   |   | (1,124,124 | ) |
| Net income(loss)                              |   |                           | (10,211,769) |   |                           |   | 273,599    |                           |   |   | 16,007                         |   |   |                                 | (5,905,655 | )      |                       |   | (648,437 | ) |   |   | 158 |   |
| Basic and diluted earnings (loss) per share   |   |                           | (0.15)       |   |                           |   | 0.01       |                           |   |   | 0.00                           |   |   |                                 | (0.10      | )      |                       |   | (0.01 | ) |   |   | (0.01 | ) |

----

|   Consolidated Balance Sheet Data          |   | As at August 31, 2011(C$) |       |   | As at August 31, 2010(C$) |   |       | As at August 31, 2009(C$) |   |   | As at August 31, 2008(C$) |   |   | As at August 31, 2007(C$) |       |   | As atJune 30, 2007(C$) |   |
|-------------------------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|------------|---------------------------|--------|--------|---------------------------|--------|--------|---------------------------|------------|--------|------------------------|--------|
| Current assets                                  |   |                      | 16,577,428 |   |                      |   | 24,523,282 |                      |   |   | 22,015,521                |   |   |                      | 18,393,197 |   |                   |   | 17,732,653 |   |   |   | 15,232,534 |   |
| Current liabilities                             |   |                      | 21,179,327 |   |                      |   | 26,359,720 |                      |   |   | 21,574,878                |   |   |                      | 18,217,681 |   |                   |   | 5,058,432 |   |   |   | 2,685,972 |   |
| Working capital (deficit)                       |   |                      | (4,601,899 | )      |                      |   | (1,836,438 | )                         |   |   | 440,643                   |   |   |                      | 175,516    |   |                   |   | 12,674,221 |   |   |   | 12,546,562 |   |
| Other assets                                    |   |                      | 24,583,006 |   |                      |   | 30,446,056 |                      |   |   | 25,506,171                |   |   |                      | 25,424,368 |   |                   |   | 6,594,395 |   |   |   | 6,072,375 |   |
| Total assets                                    |   |                      | 41,160,434 |   |                      |   | 54,969,338 |                      |   |   | 47,521,692                |   |   |                      | 43,817,565 |   |                   |   | 24,327,048 |   |   |   | 21,304,909 |   |
| Capital lease obligations                       |   |                      | 249,132    |   |                      |   | 222,810    |                      |   |   | 291,220                   |   |   |                      | 176,143    |   |                   |   | 65,370 |   |   |   | 68,513 |   |
| Long-term debt                                  |   |                      | 34,232     |   |                      |   | 36,724     |                      |   |   | 44,327                    |   |   |                      | 10,322     |   |                   |   | 3,265,594 |   |   |   | 3,212,756 |   |
| Non-controlling interests                       |   |                      | 1,238,271  |   |                      |   | 1,327,126  |                      |   |   | 1,198,606                 |   |   |                      | 1,345,065  |   |                   |   | 1,043,996 |   |   |   | 653,982 |   |
| Total liabilities and non-controlling interests |   |                      | 23,363,064 |   |                      |   | 27,946,380 |                      |   |   | 24,850,638                |   |   |                      | 21,322,758 |   |                   |   | 9,433,392 |   |   |   | 6,621,223 |   |
| Share capital                                   |   |                      | 48,182,766 |   |                      |   | 47,709,836 |                      |   |   | 44,350,606                |   |   |                      | 44,350,606 |   |                   |   | 26,861,878 |   |   |   | 26,851,807 |   |
| Shareholders’ equity                      |   |                      | 17,797,370 |   |                      |   | 27,022,958 |                      |   |   | 22,671,054                |   |   |                      | 22,494,807 |   |                   |   | 14,893,656 |   |   |   | 14,683,686 |   |
| Number of common shares outstanding             |   |                      | 71,949,344 |   |                      |   | 69,226,011 |                      |   |   | 64,109,297                |   |   |                      | 44,350,606 |   |                   |   | 47,858,225 |   |   |   | 47,840,073 |   |

|                                            |   | As at August 31, 2011 |       |   | As at August 31, 2010 |   |       | As at August 31, 2009 |   |   | As at August 31, 2008 |   |   | As at August 31, 2007 |       |   | As atJune 30, 2007 |   |
|-------------------------------------------------|--------|-----------------------|------------|--------|-----------------------|--------|------------|-----------------------|--------|--------|-----------------------|--------|--------|-----------------------|------------|--------|--------------------|--------|
| Consolidated Balance Sheet Data                 |   | (C$)                  |       |   | (C$)                  |   |       | (C$)                  |   |   | (C$)                  |   |   | (C$)                  |       |   | (C$)               |   |
| Total assets                                    |   |                  | 40,881,372 |   |                  |   | 54,690,276 |                  |   |   | 47,521,692            |   |   |                  | 43,817,565 |   |               |   | 24,327,048 |   |   |   | 21,511,074 |   |
| Total liabilities and non-controlling interests |   |                  | 22,275,207 |   |                  |   | 26,648,963 |                  |   |   | 23,652,032            |   |   |                  | 19,977,691 |   |               |   | 9,638,785 |   |   |   | 6,824,450 |   |
| Share capital                                   |   |                  | 48,182,766 |   |                  |   | 47,709,836 |                  |   |   | 44,350,606            |   |   |                  | 44,350,606 |   |               |   | 26,861,878 |   |   |   | 26,851,807 |   |
| Shareholders’ equity                      |   |                  | 18,606,165 |   |                  |   | 28,041,313 |                  |   |   | 23,869,660            |   |   |                  | 23,839,874 |   |               |   | 14,688,263 |   |   |   | 14,686,624 |   |
| Number of common shares outstanding             |   |                  | 71,949,344 |   |                  |   | 69,226,011 |                  |   |   | 64,109,297            |   |   |                  | 44,350,606 |   |               |   | 47,858,225 |   |   |   | 47,840,073 |   |

----

----

----

| ●   | controlling costs and developing operating efficiencies to manage the financial side of our expansion; |
|---------------------|--------------------------------------------------------------------------------------------------------|

| ●   | maintaining the consistency of our teaching quality and our culture to ensure that recognition of our brands does not suffer; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------|

| ●   | improving our existing operational, administrative and technological systems and our internal control over financial reporting; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ●   | recruiting, training and retaining additional qualified instructors and management personnel as well as other administrative and sales and marketing personnel, particularly as we expand into new markets; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | continuing to market the CIBT and Sprott-Shaw brands to recruit new students for existing and future learning centers; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------|

| ●   | obtaining the necessary government approvals to operate in new countries. |
|---------------------|---------------------------------------------------------------------------|

----

----

----

----

----

----

----

| ●   | levying fines; |
|---------------------|----------------|

| ●   | revoking our business licenses and other approvals; |
|---------------------|-----------------------------------------------------|

| ●   | requiring us to restructure our ownership or operations; and |
|---------------------|--------------------------------------------------------------|

| ●   | requiring us to discontinue any portion or all of our education business in China. |
|---------------------|------------------------------------------------------------------------------------|

----

----

----

----

----

ITEM 4.  Information on the Company

| 1.  | CIBT, which conducts operations primarily in China and in which we currently hold a 100% ownership interest; |
|----------|--------------------------------------------------------------------------------------------------------------|

| 2.  | Sprott-Shaw, which operates primarily in Canada and with a presence in Asia and the Middle East, in which we acquired a 100% ownership interest on December 17, 2007; and |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.  | The KGIC Colleges, which are comprised of KGIC Business College (2010) Corp. and KGIC Language College (2010) Corp., our wholly-owned subsidiaries that operate primarily in Canada, and were organized in connection with the acquisition of substantially all of the assets of KGIC on March 15, 2010. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Subsidiary                         | Date of Incorporation | Country of Incorporation | Percentage of Ownership | Principal Business                                                                                                                                                                                                         |
|------------------------------------|-----------------------|--------------------------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CIBT                               | February 9, 1994      | British Columbia, Canada | 100%                    | Provide education and training services primarily in China through our CIBT GLN Centers, CIBT Beihai International College, CIBT Wyotech Automotive Institute, CIBT-BJUT School of Business and Tourism Training Institute |
| Sprott-Shaw                        | December 7, 2007      | British Columbia, Canada | 100%                    | Holding company of Sprott-Shaw Community College, Sprott-Shaw Degree College and Sprott-Shaw International Language College and provider of education and training services primarily in Canada and parts of Asia          |
| KGIC Business College (2010) Corp. | February 22, 2010     | British Columbia, Canada | 100%                    | Provide business education and training services in Canada                                                                                                                                                            |
| KGIC Language College (2010) Corp. | February 22, 2010     | British Columbia, Canada | 100%                    | Provide English language education and training services primarily in Canada                                                                                                                                               |
| IRIX                               | October 5, 1994       | British Columbia, Canada | 51%                     | Provide graphic design, marketing and advertising services in Canada, Hong Kong and the U.S.                                                                                                                               |

----

----

----

| ●   | further integrate the assets and personnel of KGIC into our operations, especially KGIC’s network of international recruiting offices and agents; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | integrate any other assets or businesses acquired into our operations; |
|---------------------|------------------------------------------------------------------------|

| ●   | continue to consolidate and streamline the operations of CIBT, Sprott-Shaw and KGIC; |
|---------------------|--------------------------------------------------------------------------------------|

| ●   | continue building a network of new GLN Centers in additional Asian cities; |
|---------------------|----------------------------------------------------------------------------|

| ●   | increase revenues by increasing student enrollments at our campuses and CIBT center locations; |
|---------------------|------------------------------------------------------------------------------------------------|

| ●   | expand the presence of Sprott-Shaw and KGIC in Asia through its CIBT GLN Centers; |
|---------------------|-----------------------------------------------------------------------------------|

| ●   | enhance our product offerings by increasing our focus on the college preparation market and implementing a new Certified General Accountant program combined with a  Bachelor degree in Canada and Asia; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | increase the number of English language students at KGIC (and all of our other schools) who subsequently enroll in certificate or degree-granting, programs at Sprott-Shaw and other schools within our system; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | continue to develop closer marketing and cross-selling relationships between Sprott-Shaw, CIBT and KGIC in order to encourage more Chinese and foreign students to come to Sprott-Shaw’s Canadian campuses to study; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | maintain  strong relationships with our CIBT center and campus location facility and educational service providers, as well as with the Chinese authorities; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | continue to promote our businesses and brands. |
|---------------------|------------------------------------------------|

----

| (a)  | Traditional Campus settings (that we call “campuses”); |
|-----------|--------------------------------------------------------------------|

| (b)  | Mini-campuses, or Centers, located in urban & remote locations (that we call “centers”); |
|-----------|----------------------------------------------------------------------------------------------------------|

| (c)  | GLN Centers located in partner institution campuses (where we enter into arrangements with other educational institutions and organizations in China, Canada and other countries in order to construct a facility within the partner institution’s facility to offer our curriculum and courses using video-conferencing technology); |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)  | Joint Program Schools (where we enter into arrangements with other educational institutions and organizations in China, Canada and other countries in order to share their facilities, resources and programs under a revenue sharing arrangement); |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)  | International recruiting offices (which house our recruitment personnel and marketing agents in foreign countries, which personnel recruit international students and provide student services to support them); and |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)  | Corporate offices (where administrative functions take place). |
|-----------|----------------------------------------------------------------|

| Subsidiary Name | Campuses                     | Centers                         | Joint Program Schools                            | International Recruiting Offices               | Corporate Offices                       | Total  |
|-----------------|------------------------------|---------------------------------|--------------------------------------------------|------------------------------------------------|-----------------------------------------|--------|
|            | Full scale teaching facility | Small scale teaching facilities | Programs offered at other academic institutions. | International marketing and recruiting offices | Headquarters and administrative offices |   |
| CIBT            | 4                            | 4                               | 22                                               | 0                                              | 3                                       | 33     |
| Sprott-Shaw     | 13                           | 5                               | 2                                                | 0                                              | 1                                       | 21     |
| KGIC Colleges   | 8                            | 0                               | 0                                                | 4                                              | 0                                       | 12     |
| TOTAL           | 25                           | 9                               | 24                                               | 4                                              | 4                                       | 66     |

----

----

----

----

| ●   | CIBT Beihai International College, China (associate degree granted by a Chinese college) |
|---------------------|------------------------------------------------------------------------------------------|

| ●   | CIBT School of Business, China (business and vocational schools) |
|---------------------|------------------------------------------------------------------|

| ●   | CIBT Wyotech Automotive Institute, China (automotive, diesel and marine technician school) |
|---------------------|--------------------------------------------------------------------------------------------|

| ●   | Sprott-Shaw Degree College Corp, Canada (Bachelor degree college/university) |
|---------------------|------------------------------------------------------------------------------|

| ●   | Sprott-Shaw Community College, Canada (career and vocational college) |
|---------------------|-----------------------------------------------------------------------|

| ●   | KGIC (2010) Language College, Canada (ESL and other English language school) |
|---------------------|------------------------------------------------------------------------------|

| ●   | KGIC (2010) Business College, Canada (hotel and business school) |
|---------------------|------------------------------------------------------------------|

| Subsidiary Name | Campuses | Centers | Joint Program Schools | International Recruiting Offices | Corporate Offices | Total |
|-----------------|----------|---------|-----------------------|----------------------------------|-------------------|-------|
| CIBT            | 4        | 4       | 22                    | 0                                | 3                 | 33    |

----

| Campus                                       | Location                          |
|----------------------------------------------|-----------------------------------|
| Beijing University of Technology West Campus | Beijing, China                    |
| Shuanglong CIBT Campus                       | Beijing, China                    |
| CIBT Beihai International College            | Weifang, Shandong province, China |
| CIBT Wyotech Automotive Institute            | Weifang, Shandong province, China |

| Centers                       | CIBT Center Facility Provider         | Location                          |
|-------------------------------|---------------------------------------|-----------------------------------|
| Weifang CIBT Center, China    | Weifang Commercial School             | Weifang, Shandong Province, China |
| Jinhua CIBT Center, China     | Jinhua Career & Technical College | Jinhua, Zhejiang Province, China  |
| Zhangzhou, CIBT Center, China | Zhangzhou Normal University           | Zhangzhou, Fujian Province, China |
| Weifang CIBT Center, China    | Weifang Technician College            | Weifang, Shandong Province, China |

----

| Joint Program Schools                                      | Location                      |
|------------------------------------------------------------|-------------------------------|
| CIBT AHL-EI Joint Program at Kunming Center                | Kunming, Yunnan Province      |
| CIBT AHL-EI Joint Program in Guizhou                       | Guizhou, Guizhou Province     |
| CIBT AHL-EI Joint Program at Beijing Hospitality Institute | Beijing                       |
| CIBT AHL-EI Joint Program in Chongqing                     | Chongqing, Sichuan Province   |
| CIBT AHL-EI Joint Program at Sichuan University-Suzhou     | Suzhou, Jiangsu Province      |
| CIBT AHL-EI Joint Program in Sichuan-Chengdu               | Chengdu, Sichuan Province     |
| CIBT AHL-EI Joint Program in Changsha                 | Changsha, Hunan Province      |
| CIBT AHL-EI Joint Program in Shengyang                     | Shenyang, Liaoning Province   |
| CIBT AHL-EI Joint Program in Sanya                         | Sanya, Hainan Province        |
| CIBT AHL-EI Joint Program in Shenzhen                      | Shenzhen, Guangdong Province  |
| CIBT AHL-EI Joint Program in Wuhan                         | Wuhan,  Hubei Province   |
| CIBT AHL-EI Joint Program in Zhengzhou                     | Zhengzhou, Henan Province     |
| CIBT AHL-EI Joint Program in Shenzhen Fuyou                | Shenzhen, Guangdong Province  |
| CIBT AHL-EI Joint Program in Guangzhou                     | Guangzhou, Guangdong Province |

----

| Joint Program Schools                           | Location               |
|-------------------------------------------------|------------------------|
| Baotou Normal University                        | Baotou, Inner Mongolia |
| Beijing Gucheng Tourism Vocational College      | Beijing                |
| China International Travel Service              | Beijing                |
| Chongqing Light Industry Polytechnic College    | Chongqing              |
| China Central Radio & TV University         | Beijing                |
| Grand Skylight Catic Hotel Beijing              | Beijing                |
| Guangzhou University, Guangdong Boya            | Guangzhou, Guangdong   |
| Guangdong Zhaoqing College                      | Zhaoqing, Guangdong    |
| Guizhou Puruisiting Hotel Management Company    | Guizhou                |
| Guizhou Xingke Hotel Management Company         | Guizhou                |
| Hainan College of Business and Economics        | Hainan                 |
| Hainan Labor Bureau HR Development              | Hainan                 |
| Hangzhou Xingang Education Training Corporation | Hangzhou, Zhejiang     |
| Zhejiang University                             | Zhejiang               |
| Hebei Radio & TV University                 | Hebei                  |
| Henan Radio & TV University                 | Henan                  |
| Xiangxi Congwen Education Group                 | Xiangxi                |
| Ningbo Vocational and Technology College        | Ningbo                 |
| Nuoshan Investment Consulting Company           | Nuoshan                |
| Ordos Vocational High School                    | Inner Mongolia         |
| Phoenix Hotel Management Company                | Guangzhou, Guangdong   |
| Shanghai Huamao Learning Institute              | Shanghai               |
| Hebei Normal University                         | Hebei                  |
| Taiyuan Foreign Language Association            | Taiyuan, Shanxi        |
| Wuhan Chutian Education Consulting Company      | Wuhan, Hubei           |
| Yunnan Education Exchange Centre                | Yunnan                 |

----

| Offices                              | Location                            |
|--------------------------------------|-------------------------------------|
| Global Corporate Headquarters Office | Vancouver, British Columbia, Canada |
| Beijing Office                       | Beijing, China                      |
| Weifang Office                       | Weifang, Shandong Province, China   |

| Subsidiary Name | Campuses | Centers | Joint Program Schools | International Recruiting Offices | Corporate Offices | Total |
|-----------------|----------|---------|-----------------------|----------------------------------|-------------------|-------|
| Sprott-Shaw     | 13       | 5       | 2                     | 0                                | 1                 | 21    |

| Campus               | Location                                  |
|----------------------|-------------------------------------------|
| Abbotsford           | Abbotsford, British Columbia, Canada      |
| East Vancouver       | East Vancouver, British Columbia, Canada  |
| Kamloops             | Kamloops, British Columbia, Canada        |
| Kelowna              | Kelowna, British Columbia, Canada         |
| Maple Ridge          | Maple Ridge, British Columbia, Canada     |
| Nanaimo              | Nanaimo, British Columbia, Canada         |
| New Westminster      | New Westminster, British Columbia, Canada |
| Penticton            | Penticton, British Columbia, Canada       |
| Prince George        | Prince George, British Columbia, Canada   |
| Surrey               | Surrey, British Columbia, Canada          |
| Vancouver (Downtown) | Vancouver, British Columbia, Canada       |
| Vernon               | Vernon, British Columbia, Canada          |
| Victoria             | Victoria, British Columbia, Canada        |

----

| Centers                                 | Facility Provider                    | Location                      |
|-----------------------------------------|--------------------------------------|-------------------------------|
| SSCC Career Coaching Center, Canada     | Sprott-Shaw Community College        | Surrey, Canada                |
| Quezon SSCC Center, Philippines         | Far Eastern University               | Quezon, Philippines           |
| Manila SSCC Center, Philippines         | Far Eastern University               | Manila, Philippines           |
| Silang SSCC Center, Philippines         | Far Eastern University               | Silang, Philippines           |
| Brown’s Town SSCC Center, Jamaica | Brown’s Town Community College | Browns Town, St. Ann, Jamaica |

| Joint Program Schools             | Location       |
|-----------------------------------|----------------|
| Sprott-Shaw Vietnam Joint Program | Hanoi, Vietnam |
| Sprott-Shaw Jordan Joint Program  | Amman, Jordan  |

----

| Subsidiary Name | Campuses | CIBT Centers | Joint Program Schools | International Recruiting Offices | Corporate Offices | Total |
|-----------------|----------|--------------|-----------------------|----------------------------------|-------------------|-------|
| KGIC Colleges   | 8        | 0            | 0                     | 4                                | 0                 | 12    |

| Campus                                                | Size (Square Feet) | Location                            |
|-------------------------------------------------------|--------------------|-------------------------------------|
| KGIC Vancouver Campus                                 | 22,295             | Vancouver, British Columbia, Canada |
| KGIC Vancouver Business College Campus                | 14,071             | Vancouver, British Columbia, Canada |
| KGIC & KGI Business College Victoria  Campus | 10,961             | Victoria, British Columbia, Canada  |
| KGIC Surrey Campus                                    | 9,152              | Surrey, British Columbia, Canada    |
| KGIC Toronto ESL Campus                               | 12,435             | Toronto, Ontario, Canada            |
| KGIC Toronto Business Campus                          | 8,610              | Toronto, Ontario, Canada            |
| KGIC Canada TESOL Campus                              | 8,208              | Vancouver, British Columbia, Canada |
| KGIC Halifax Campus                                   | 5,007              | Halifax, Nova Scotia, Canada        |

| Recruiting Office                | Location        |
|----------------------------------|-----------------|
| KGIC International Office Japan  | Tokyo, Japan    |
| KGIC International Office Korea  | Seoul, Korea    |
| KGIC International Office Taiwan | Taipei, Taiwan  |
| KGIC International Office Spain  | Valencia, Spain |

----

----

| Academic Partners List                                         |
|----------------------------------------------------------------|
| Country                                                        | Academic Partner | Types of Programs | Subsidiary |
| Australia                                                      | La Trobe University | 2+2 Bachelor Degree Program | CIBT |
| William Blue College                                           | 2+2 Bachelor Degree Program | CIBT |
| La Trobe University                                            | University Prep Program | CIBT |
| University of New South Wales                                  | University Prep Program | CIBT |
| University of Wollongong                                       | University Prep Program | CIBT |
| University of South Australia                                  | University Prep Program | CIBT |
| Macquarie University                                           | University Prep Program | CIBT |
| Canada                                                         | Thompson Rivers University` | 2+2 Bachelor Degree Program | CIBT |
| Sprott-Shaw Degree College                                     | 2+2 Bachelor Degree Program | CIBT |
| York University                                                | University Prep Program | CIBT |
| University of PEI                                              | University Prep Program | KGIC |
| Saint Mary’s University                                  | University Prep Program | KGIC |
| Laurentian University                                          | University Prep Program | KGIC |
| Mount Saint Vincent University                                 | University Prep Program | KGIC |
| Thompson Rivers University                                     | University Prep Program | KGIC |
| Fairleigh Dickinson University                                 | University Prep Program | KGIC |
| DeVry University                                               | University Prep Program | KGIC |
| China                                                          | Weifang Commercial School | Business Program | CIBT |
| Jinhua Career & Technical College                          | English Training, Business Program | CIBT |
| Zhangzhou Normal University                                    | English Training, Business ProgramAHL-EI Program | CIBT |
| Weifang Technician College                                     | English Training, Business Program | CIBT |
| Weifang University                                             | English Training, IT Programs,Automotive Training Programs,Corporate and Executive Training,Business English Training,AHL-EI Program,Accounting Program | CIBT |
| Kunming Youzi Training Centre                                  | AHL-EI Program | CIBT |
| Guizhou China Tourism Corp.                                    | AHL-EI Program | CIBT |
| Beijing Hospitality Institute                                  | AHL-EI Program | CIBT |
| Chongqing Jinxiuqiancheng Education Consulting Company Ltd.    | AHL-EI Program | CIBT |
| Sichuan University Suzhou Academy                              | AHL-EI Program | CIBT |
| Changsha Liyou Education Consulting Company Ltd.               | AHL-EI Program | CIBT |
| Shenyang Bohiu Education Training Center                       | AHL-EI Program | CIBT |
| Sanya Tech Vocational College                                  | AHL-EI Program | CIBT |
| Shenzhen Qijian International Hotel Training Institute         | AHL-EI Program | CIBT |
| Wuhan Jinhe Hotel Management Company Ltd.                      | AHL-EI Program | CIBT |
| Zhengzhou Junyue Culture Media Company Ltd.                    | AHL-EI Program | CIBT |
| Shenzhen Fuyou International Education Investment Company Ltd. | AHL-EI Program | CIBT |
| CIBT Beijing School of Business                                | 2+2 Business Program | Sprott-Shaw |

----

|                                                                  | Academic Partners List                                                                            |                        |
|-----------------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------|
|   Country                                                        |   Academic Partner                                                                           |   Types of Programs    |   Subsidiary |
| Jordan                                                                | Canadian-Jordanian Institute                                                                      | Business Programs           | Sprott-Shaw |
| Malaysia                                                              | Help University College                                                                           | 2+2 Bachelor Degree Program | CIBT |
| Netherlands                                                           | Hanze University Cronigen                                                                         | 2+2 Bachelor Degree Program | CIBT |
| New Zealand                                                           | UNITECH Institute of Technology                                                                   | 2+2 Bachelor Degree Program | CIBT |
| Philippines                                                           | Maridian International Business & Arts College                                                | 2+2 Bachelor Degree Program | CIBT |
| Far Eastern University                                                | Allied Health Care, Hotel and Tourism Management                                                  | Sprott-Shaw                 |
| Manuel S. Enverga University Foundation                               | Allied Health Care, Hotel and Tourism Management                                                  | Sprott-Shaw                 |
| Treston International College                                         | Hotel and Tourism Management, Accounting/information technology, international trade and business | Sprott-Shaw                 |
| University of Baguio                                                  | Hotel and Tourism Management                                                                      | Sprott-Shaw                 |
| Switzerland                                                           | International Hotel Management School                                                             | 2+2 Bachelor Degree Program | CIBT |
| U.K.                                                                  | The University of Portsmouth                                                                      | 2+2 Bachelor Degree Program | CIBT |
| London Hotel School                                                   | 2+2 Bachelor Degree Program                                                                       | CIBT                        |
| University of Derby                                                   | 2+2 Bachelor Degree Program                                                                       | CIBT                        |
| Lancaster University                                                  | University Prep Program                                                                           | CIBT                        |
| Bangor University                                                     | University Prep Program                                                                           | CIBT                        |
| University of Essex                                                   | University Prep Program                                                                           | CIBT                        |
| Swansea University                                                    | University Prep Program                                                                           | CIBT                        |
| Portsmouth University                                                 | University Prep Program                                                                           | CIBT                        |
| U.S.                                                                  | California State University, Sacramento                                                           | 2+2 Bachelor Degree Program | CIBT |
| Detroit University Mercy                                              | 2+2 Bachelor Degree Program                                                                       | CIBT                        |
| Johnson and Wales University                                          | 2+2 Bachelor Degree Program                                                                       | CIBT                        |
| Purdue University                                                     | University Prep Program                                                                           | CIBT                        |
| University of California                                              | University Prep Program                                                                           | CIBT                        |
| Michigan State University                                             | University Prep Program                                                                           | CIBT                        |
| Detroit University Mercy                                              | University Prep Program                                                                           | CIBT                        |
| Kansas State University                                               | University Prep Program                                                                           | CIBT                        |
| Patten University                                                     | Pre-Masters Program                                                                               | CIBT                        |
| Northeastern State University Oklahoma                                | Pre-Masters Program                                                                               | CIBT                        |
| Wyotech Institute                                                     | Automotive Training Programs                                                                      | CIBT                        |
| National University, San Diego                                        | University Prep Program                                                                           | KGIC                        |
| Antioch University                                                    | 2+2 Business Program                                                                              | Sprott-Shaw                 |
| Lawrence Technological University                                     | Pre-EMBA Program                                                                                  | Sprott-Shaw                 |
| AHL-EI (American Hotel and Lodging Association Educational Institute) | Hotel and Tourism Management                                                                      | Sprott-Shaw                 |

----

| Name of Program                                                 | Duration of Program              | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------------------------------|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Information Technology Program (IT program)                     | Three years                      | CIBT offers IT diplomas in multimedia design, software engineering and applied service management.  The IT program consists of 20 courses.                                                                                                                                                                                                                                                                                                                                                |
| Automotive Technical Training Programs (auto training programs) | From three months to three years | CIBT’s auto training program is designed to teach students how to disassemble, inspect and assemble engines and accessories, cooling systems, transmissions and clutches, drive lines, and braking and suspension systems. Differing numbers of courses are provided depending on the duration of study. This program includes a short-term program (three months), a mid-term program (eighteen months) and a three-year program.                                                            |
| Corporate and Executive Training Program (CET program)          | Three years                      | The CET program aims to provide managers or senior officers with organizational and interpersonal skills that will allow them to work effectively with others and adapt to a culturally diverse business environment. Students will learn American management skills and modern business dynamics to develop their capacity to work under pressure and build leadership and coaching skills.                                                                                                        |
| 2+2 Program or 1+1 Program (Joint Program)                      | Two years orfour years           | We offer two cooperative international bachelor degree programs, the 2+2 Program and the 1+1 Program. The 2+2 Program allows students to spend two years studying at our Shuanglong CIBT campus before completing the final two years at one of our overseas educational service providers’ campuses. The 1+1 Program allows students to study for one year at our Shuanglong CIBT campus and then spend the final year at one of our overseas educational service providers’ campuses. |
| English Program                                                 | From one monthto four months     | CIBT’s English program is intended to assist students to develop listening and speaking skills and recognize and practice grammatical structures and sentence patterns.  CIBT offers two different schedules for this program, a one month intensive program, or a weekends-only program that is conducted over the course of four months.                                                                                                                                          |
| English Teacher Program                                         | From three to nine months        | CIBT provides a program to English instructors with high-intermediate to advanced proficiency in English.  The program focuses on topics inspired by current language teaching approaches, methods and practices and is designed to meet the changing needs and interests of students.                                                                                                                                                                                                    |
| Business English Program                                        | Three years                      | CIBT offers a diploma program in business English. The business English program focuses on business conversation, business issues, presentation skills and business document writing.                                                                                                                                                                                                                                                                                                               |
| Hotel Management Program                                        | From one to three years          | CIBT’s hotel management program is designed to teach students all aspects of hotel management, including rooms, food and beverage, culinary, marketing and sales, conferences and catering. CIBT offers general courses such as business communications and computer skills to ensure students meet industry demand regarding technical and interpersonal skills.                                                                                                                             |
| Accounting Program                                              | Three years                      | CIBT’s accounting program gives students the financial and planning information to solve management problems and provides the necessary skills to help students develop, improve, and implement operating procedures in a management accounting context.                                                                                                                                                                                                                                      |

----

| Name of Program                                          | Duration of Program | Description                                                                                                                                                                                                                                                                                                                                                                     |
|----------------------------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Business Program – BBA                             | Four years          | The Bachelor of Business Administration provides full coverage of the following functional areas of business: Accounting, Finance, Production, Marketing, Industrial Relations, Law and Human Resources Management.  Additional concentrations in Marketing and Human Resources are also available.                                                                        |
| Certified General Accountant Program                     | Four years          | The Certified General Accountant Program in combination with the Bachelor Degree in Accounting offered by us allows students to complete this combined accounting program in four years rather than the usual six years required to complete both programs.                                                                                                                     |
| Business Program – Diploma                         | 12 to 45 weeks      | Programs offered within the Faculty of Business include: Administrative Assistant, Legal Secretary, Medical Office Assistant, Advanced Business Management & E-Commerce, Business Administration, Business Office Concepts, Marketing & Sales Essentials, Payroll Administrator, Professional Business Management, Tourism Hospitality Management and Flight Attendant. |
| Health Sciences & Social Development – Diploma | 27 to 50 weeks      | The Faculty of Health Science & Social Development provides programs in: Community Support Worker (Assisted Living and Social Services), Early Childhood Education (Basic and Post-Basic), Pharmacy Technician, Practical Nursing, Resident Care Attendant and Spa Body Therapy.                                                                                            |
| Trades & Applied Technology – Diploma          | 26 weeks to 1 year  | The Faculty of Trades & Applied Technology provides the following programs: Residential Construction Framing Technician, Construction Electrician – Level 1 and 2, and Electrical Apprentice Training.                                                                                                                                                                |
| International Studies                                    | 25 to 45 weeks      | International Studies provide programs in International Hospitality Management, International Trade & Business Management, and International Trade Diploma.                                                                                                                                                                                                                 |
| Accelerated Programs                                     | 12 to 24 weeks      | Accelerated Programs include Business Management & E-Commerce, Business Administration, Legal Secretary, Medical Office Assistant, Pharmacy Technician, Professional Business Management, Tourism and Hospitality Management, and Payroll Administrator.                                                                                                                    |

----

| Name of Program                                              | Duration of Program | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Business Management Diploma and Certification Programs       | 3 to 25 weeks       | The Business Management Diploma and Certification Programs offer both experienced professionals and newcomers to business training in areas of business, including accounting, finance and marketing.  Programs include field trips and expert industry guest speakers.  There is also an opportunity for a practicum.                                                                                                                                                                                                                          |
| Hotel Management AHL-EI Diploma and Certification Programs   | 8 to 36 weeks       | The Hotel Management Diploma and Certification Programs offers students training in hotel management, including rooms, food and beverage, and marketing and sales. The program uses world-recognized AHL-EI curriculum taught by AHL-EI accredited instructors. In addition to a diploma, students receive AHL-EI certificates throughout the program for completion of modules.  There is also an opportunity for a practicum.                                                                                                                      |
| International Office Management Diploma Program              | 12 to 16 weeks      | The International Office Management Diploma Program offers training in the use of office technology, office management skills, and communication skills. This program prepares students for the world of business, office administration, or small business management. The office management program is offered in three main course components: Office Management, Business English, and Information Technology.                                                                                                                                        |
| Interpreting and Translation Diploma Programs (ITDP)         | 8 weeks             | The Interpreting and Translation Diploma Programs offer training in interpreting and translating English, Korean and Japanese languages. The translation programs are taught by a team of native Canadian English speakers and qualified Korean and Japanese multi-lingual instructors. A bonus component includes one-on-one counseling to discuss individual progress and performance.                                                                                                                                                                  |
| English Preparation for Interpreting and Translation Program | 4 weeks             | English Preparation for Interpreting and Translation is a preparation program designed to prepare students for the advanced ITDP-Korean program and offers training in interpreting and translating English and Korean languages.                                                                                                                                                                                                                                                                                                                         |
| Power Speaking and Modern Media Program                      | 4 to 8 weeks        | The Power Speaking and Modern Media (PMM) program offers training in public speaking and the media and are designed to improve communication skills while exploring the world of modern media. PMM uses current events, popular culture, movies and television to help students express themselves with confidence, ease and accuracy. This program also offers students the chance to develop professional presentation skills. Bonus component includes direct error correction, videotaping and feedback during role-plays and presentation exercises. |
| IELTS International English Language Testing Program         | 4 to 12 weeks       | IELTS is the world's leading English language testing program, used by organizations, government agencies, universities and colleges through-out the world. This program is designed to assist students in preparing for this test and to improve their overall English skills.                                                                                                                                                                                                                                                                           |
| TOEFL Test of English as a Foreign Language                  | 4 to 8 weeks        | The Test of English as a Foreign Language is designed to assist students to prepare for the TOEFL test and provides exercises in grammar, listening, reading and composition. TOEFL also includes one-on-one after school counseling, and immediate feedback and error correction. Bonus component includes school placement counseling for students interested in attending university in North America.                                                                                                                                                 |
| First Certificate in English Cambridge Program               | 4 to 12 weeks       | The FCE Cambridge test preparation program is designed for students to practice listening and reading comprehension, writing, speaking, grammar, vocabulary and phrasal verbs and improve their general English skills through exam relevant content such as real English used in everyday work, study and leisure situations.                                                                                                                                                                                                                            |
| Advanced Business Management Diploma Program                 | 52 weeks            | The Advanced Business Management Diploma Program formally integrates a student's academic studies with paid or unpaid work experience in partner companies.                                                                                                                                                                                                                                                                                                                                                                                               |
| Advanced Hotel Management AHL-EI Diploma Program             | 60 weeks            | The Advanced Hotel Management Diploma Program is a co-operative education option that includes all the components of the Hotel Management Diploma Program but also offers students an opportunity to gain experience in the work place.                                                                                                                                                                                                                                                                                                                   |
| English as a Second Language Program                         | Weekly intakes      | The English program is designed to help students improve in all skill areas including grammar, reading, writing, speaking, listening and pronunciation.  With a unique flexible level structure, the KGIC system allows students to study at a level that directly corresponds to their ability in each skill area.                                                                                                                                                                                                                                  |
| Business English Diploma Program                             | 4 to 12 weeks       | The program is primarily a communications course targeting all students working in an English-speaking business environment. As a communications course, the program offers the traditional polishing of writing and speaking skills and focuses on business conversation, business issues and presentation skills.                                                                                                                                                                                                                                       |

----

----

| Subsidiary Name |   | Total Annual Student Starts(9/1/2010 – 8/31/2011) |   |   | Total Student Populationsas at 8/31/2011 |   |
|-----------------|--------|-------------------------------------------------------------------|--------|--------|------------------------------------------|--------|
| CIBT            |   |                                                              | 1,808  |   |                                     |   | 1,970 |   |
| SSDC            |   |                                                              | 2,740  |   |                                     |   | 1,560 |   |
| KGIC            |   |                                                              | 6,753  |   |                                     |   | 1,596 |   |
| Total           |   |                                                              | 11,301 |   |                                     |   | 5,126 |   |

| Name of Program                                                 | Duration of Program              | Tuition Fee(1) ($)                                                                                                                               |
|-----------------------------------------------------------------|----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Information Technology Program (IT program)                     | Three years                      | $1,800 per year                                                                                                                                  |
| Automotive Technical Training Programs (auto training programs) | Three Months to Three Years      | Wyotech Institute(2) programs: $315 for three months program;$2,100 for eighteen month program;Weifang University program: $1,800 per year       |
| Corporate and Executive Training Program (CET program)          | Three years                      | $1,800 per year                                                                                                                                  |
| 2+2 Program or 1+1 Program(3)                                   | Two years or four years          | $5,500 per year for 2+2 Program$3,800 per year for 1+1 ProgramSome students will continue their studies in Sprott-Shaw’s business programs |
| English Program                                                 | From one month to four months    | $50 to $80 per month                                                                                                                             |
| English Teach Program                                           | From three months to nine months | $50 per month                                                                                                                                    |
| Business English Program                                        | Three years                      | $1,800 per year                                                                                                                                  |
| Hotel Management Program                                        | From one to three years          | From $80 per course to $4,100 per year                                                                                                           |
| Accounting Program                                              | Three years                      | $1,800 per year                                                                                                                                  |

| (1)   | Tuition fees are shown on a gross basis in Canadian Dollars. |
|-----------------|--------------------------------------------------------------|

| (2)   | Wyotech Institute is a subsidiary of Corinthian Colleges, Inc. (NASDAQ: COCO). |
|-----------------|--------------------------------------------------------------------------------|

| (3)   | We only receive payment of tuition for our 1+1 master’s and 2+2 bachelor’s degree programs for the periods of time that the students actually spend at a CIBT owned/operated institution. The portion of tuition revenue related to the time that the student spends overseas at the facilities of an educational service provider are retained by that educational service provider, and CIBT does not share in any of those revenues. However, CIBT is negotiating with some of its educational service providers to obtain a referral fee for students sent to these overseas institutions. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name of Program                                          | Duration of Program | Approximate Tuition Fees                                                                                       |
|----------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------|
| Business Program – BBA                             | Four years          | $2,880 per semester for local students; $4,000 per semester for international students (less a 20% agency fee) |
| Certified General Accountant Program                     | Four years          | $6,450 per semester for local students                                                                         |
| Business Program – Diploma                         | 12 to 45 weeks      | $203/week                                                                                                      |
| Health Sciences & Social Development – Diploma | 27 to 50 weeks      | $256/week                                                                                                      |
| Trades & Applied Technology – Diploma          | 26 weeks to 1 year  | $280/week                                                                                                      |
| International Studies                                    | 25 to 45 weeks      | $203/week                                                                                                      |
| Accelerated Programs                                     | 12 to 24 weeks      | $203/week                                                                                                      |

| Name of Program                                              | Duration of Program | Approximate Tuition Fees                  |
|--------------------------------------------------------------|---------------------|-------------------------------------------|
| Business Management Diploma Programs                         | 3 to 25 weeks       | $1,000 for 3 weeks to $7,000 for25 weeks  |
| Hotel Management AHL-EI Diploma Program                      | 8 to 36 weeks       | $2,860 for 8 weeks to $11,460 for36 weeks |
| International Office Management Diploma Program              | 3 to 16 weeks       | $940 for 3 weeks to $3,690 for16 weeks    |
| Interpreting and Translation Diploma Programs                | 8 weeks             | $2,880                                    |
| English Preparation for Interpreting and Translation Program | 4 weeks             | $1,500                                    |
| Power Speaking and Modern Media Program                      | 8 weeks             | $2,880                                    |
| IELTS English Testing Program                                | 4 to 12 weeks       | $1,260 for 4 weeks to $3,590 for12 weeks  |
| TOEFL Test of English as a Foreign Language                  | 4 to 8 weeks        | $1,320 for 4 weeks to $2,640 for8 weeks   |
| First Certificate in English Cambridge Program               | 4 to 12 weeks       | $1,260 for 4 weeks to $3,590 for12 weeks  |
| Advanced Business Management Diploma Program                 | 52 weeks            | $7,000                                    |
| Advanced Hotel Management AHL-EI Diploma Program             | 60 weeks            | $11,460                                   |
| English as a Second Language Programs                        | 4 to 73 weeks  | $1,260 for 4 weeks to $12,850 for52 weeks |
| Power Writing and Journalism Program                         | 8 weeks             | $2,880                                    |
| Power Speaking and Modern Media Program                      | 4 to 8 weeks        | $1,440 for 4 weeks to $2,880 for 8 weeks  |
| Business English Diploma Programs                            | 4 to 12 weeks       | $1,500 for 4 weeks to $3,690 for12 weeks  |

----

|        | Full-time instructors | Part-time instructors | Total number of instructors |
|-------------|-----------------------|-----------------------|-----------------------------|
| CIBT        | 5                     | 30                    | 35                          |
| Sprott-Shaw | 52                    | 206                   | 258                         |
| KGIC        | 42                    | 135                   | 177                         |
| TOTAL       | 99                    | 371                   | 470                         |

|        | Total Instructors | Administrative and Other Employees | Total Employees |
|-------------|-------------------|------------------------------------|-----------------|
| CIBT        | 35                | 60                                 | 95              |
| Sprott-Shaw | 258               | 122                                | 380             |
| KGIC        | 177               | 60                                 | 237             |
| TOTAL       | 470               | 242                                | 712             |

----

----

----

| ●   | U.S. or Canadian-based for-profit post-secondary and ESL education companies that also offer educational services in Canada.  Examples of our competitors include the Eminata Group, a Vancouver based corporation that operates a number of different colleges, including CDI College and Vancouver Career College.  We also face competition from a growing number of independent ESL schools that offer similar courses in Canada. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Chinese, U.S. or European-based for-profit post-secondary education companies that also offer western-style educational programs in China.  Examples of our competitors include New Oriental Education and Technology Group, China Distance Education Holdings Ltd., China Education Alliance, Inc., and ChinaEdu Corp. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | For-profit post-secondary education companies offering Chinese language training and professional training programs.  This segment consists of thousands of small training companies operating schools with a few dozen to a few hundred students.  This segment is the most significant competitor to our IT and Automotive Technical Training programs.  Examples of our competition in this segment include Nllt School and Aptech School (IT program). In Weifang alone, there are three other schools that offer automotive technical training programs: North China Auto School, Lan Xiang Career College, and DAZhong Auto School. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Not-for-profit post-secondary education companies that offer western-style educational programs.  These are typically joint ventures established between U.S. or European universities and Chinese universities, and are generally offered in the larger cities.  There are currently a large number of these arrangements in China, and they pose the biggest competitive threat to the business programs we offer.  For instance, in Beijing, both Yangtze River Business School and China Agriculture University/Luton University of the United Kingdom provide business programs which are comparable to those offered by us. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Not-for-profit post-secondary education companies that do not offer western-style educational programs. These are typically public schools run by the Chinese government.  However, despite not offering programs based on the western education style, their programs are in high demand and they are one of our significant competitors. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Online education companies, whose offerings including download and self-study, language based one-on-one video conference teaching using low cost personal computers, and American and Canadian universities (such as Simon Fraser University and Richard Ivey School of Business) who use video conferencing equipment to deliver classes within their system of school, but do not operate outside of that system of schools.  This segment competes indirectly with the GLN infrastructure. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Ministry of Education - The Ministry of Education in China is the government’s national agency that is responsible for approvals of all Chinese and foreign bachelor’s and master’s degree programs offered in China. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Provincial Education Committees – A provincial committee provides provincial approvals to operate a campus or school in a Canadian province, as well as approvals for bachelor and master’s degree programs to be offered in the province. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Municipal Education Bureaus – A municipal education bureau provides municipal approvals to operate a campus or school in a Canadian city, as well as approvals for certificate, bachelor or master degree programs to be offered in the city. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Campus                                       | Location                   | Offered Programs in each campus                                          | Approval Authority             | Approval Date     | Renewal Date           |
|----------------------------------------------|----------------------------|--------------------------------------------------------------------------|--------------------------------|-------------------|------------------------|
| Shuanglong CIBT Campus                       | Beijing China              | 2+2, 1+1, Business program                                               | Beijing Education Committee    | December 19, 1999 | Renewal not required 1 |
| Beijing University of Technology West Campus | Beijing, Capital of China  | Business program – bachelor degree, 2+2, 1+1,                      | Beijing Education Committee    | December 29, 1999 | Renewal not required 1 |
| CIBT Beihai International College            | Weifang, Shandong province | IT program, Business English program, CET program, Auto training program | Shandong Provincial Government | October 31, 2004  | Renewal not required   |
| CIBT WyoTech Automotive Institute            | Weifang, Shandong province | Auto training program                                                    | Shandong Education Committee   | December 14, 2006 | Renewal not required1  |

| (1)   | We do not need to renew the government issued approval, but we are required to obtain a new approval for each new educational service provider. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ●   | Private Career Training Institutions Agency (“PCTIA”): The PCTIA is the regulatory agency for private training institutions in the Province of British Columbia. PCTIA is given its authority by the Province of British Columbia, Canada, Ministry of Advanced Education, under the Private Career Training Institutions Act, Regulations, and Bylaws. PCTIA has responsibility under the Private Career Training Institutions Act to: provide consumer protection to the students and prospective students of registered institutions; establish standards of quality that must be met by accredited institutions; and establish and manage the Student Training Completion Fund. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | College of Licensed Practical Nurses of British Columbia (“CLPNBC”): The CLPNBC is responsible for regulating the profession of Licensed Practical Nurses in the public interest |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Ministry of Children and Families: The Ministry of Children and Families provides programs and services to ensure that healthy children and responsible families are living in safe, caring and inclusive communities. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Industry Training Authority (“ITA”): The ITA is a provincial crown agency. It was established in 2004 and is responsible for managing BC’s industry training system to develop the skilled workforce needed to ensure the competitiveness and economic prosperity of our businesses and the Province of British Columbia. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Degree Quality Assessment Board (“DQAB”): The DQAB was appointed by the Minister of Advanced Education and Labour Market Development who established criteria, in consultation with the board, to be applied when a private or out-of-province public institution applies for consent to provide degree programs or use the word “university” in British Columbia. The same program review criteria apply to new degree programs proposed by British Columbia public post-secondary institutions. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Ministry of Training, Colleges and Universities (“MTCU”): In Ontario, MTCU is responsible for the administration of laws relating to education and skills training. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ●   | licenses; |
|---------------------|-----------|

| ●   | affiliation agreements; |
|---------------------|-------------------------|

| ●   | recruiting agent agreements; and |
|---------------------|----------------------------------|

| ●   | course curriculum. |
|---------------------|--------------------|

----

| Description                                               | Percentage of Overall Revenues |
|-----------------------------------------------------------|--------------------------------|
| Graphic Design                                            | 45%                            |
| Marketing Consulting Service                              | 15%                            |
| Production Services for print, video, film and multimedia | 10%                            |
| Media Booking Agency                                      | 20%                            |
| Interior Design and Conceptual Space Design               | 5%                             |
| Interior Design and Product Design                        | 2%                             |
| Other Services                                            | 3%                             |

| ●   | Real estate |
|---------------------|-------------|

| ●   | Banking and Financial Services |
|---------------------|--------------------------------|

| ●   | Retail and Consumer Products |
|---------------------|------------------------------|

| ●   | Food and Beverage Products |
|---------------------|----------------------------|

| ●   | Manufacturing |
|---------------------|---------------|

| ●   | Low barriers to entry. It is relatively easy and inexpensive for competitors to enter this industry, and IRIX may face a number of new competitors. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Economic downturns. In the event of a downturn in the economy, expenditures on marketing products are often more likely to be reduced over other costs, which may adversely effect IRIX’s revenues. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Customer demography. A large portion of IRIX’s customers are Asian. Should there be a downturn in the immigration environment in Vancouver, this could adversely effect IRIX’s revenues and curtail our growth. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Function                   | Number of Employees |
|----------------------------|---------------------|
| Marketing Director/Manager | 2                   |
| Project Manager            | 1                   |
| Designers                  | 5                   |
| Copywriter                 | 1                   |
| Web Development            | 1                   |
| Account Executives         | 2                   |

----

| 1.  | CIBT, which conducts operations primarily in China and in which we currently hold a 100% ownership interest; |
|----------|--------------------------------------------------------------------------------------------------------------|

| 2.  | Sprott-Shaw, which operates primarily in Canada and with a presence in Asia and the Middle East, in which we acquired a 100% ownership interest on December 17, 2007; and |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.  | The KGIC Colleges, which are comprised of KGIC Business College (2010) Corp. and KGIC Language College (2010) Corp., our wholly-owned subsidiaries that operate primarily in Canada, and which were organized in connection with the acquisition of substantially all of the assets of KGIC on March 15, 2010. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Subsidiary                         | Date of Incorporation | Country of Incorporation | Percentage of Ownership | Principal Business                                                                                                                                                                                                               |
|------------------------------------|-----------------------|--------------------------|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CIBT                               | February 9, 1994      | British Columbia, Canada | 100%                    | Provide education and training services primarily in China through our CIBT education centers, CIBT Beihai International College, CIBT Wyotech Automotive Institute, CIBT-BJUT School of Business and Tourism Training Institute |
| Sprott-Shaw                        | December 7, 2007      | British Columbia, Canada | 100%                    | Holding company of Sprott-Shaw Community College, Sprott-Shaw Degree College and Sprott-Shaw International Language College and provider of education and training services primarily in Canada and parts of Asia                |
| KGIC Business College (2010) Corp. | February 22, 2010     | British Columbia, Canada | 100%                    | Provide business education and training services primarily in Canada                                                                                                                                                             |
| KGIC Language College (2010) Corp. | February 22, 2010     | British Columbia, Canada | 100%                    | Provide English language education and training services primarily in Canada                                                                                                                                                     |
| IRIX                               | October 5, 1994       | British Columbia, Canada | 51%                     | Provide graphic design, marketing and advertising services in Canada, Hong Kong, and the U.S.                                                                                                                                    |

----

----

ITEM 4A.  Unresolved Staff Comments

ITEM 5.  Operating and Financial Review and Prospects

----

|                                           |   | Year EndedAugust 31, 2011 |        |   | Year EndedAugust 31, 2010 |   |       | Year EndedAugust 31, 2009 |   |
|------------------------------------------------|--------|---------------------------|-------------|--------|---------------------------|--------|------------|---------------------------|--------|
| Consolidated Income Statement Data             |   | (C$)                      |        |   | (C$)                      |   |       | (C$)                      |   |
| Revenues                                       |   |                      | 58,575,126  |   |                      |   | 55,954,852 |                      |   |   | 44,550,958 |   |
| Direct costs                                   |   |                      | 21,430,791  |   |                      |   | 20,670,302 |                      |   |   | 16,234,348 |   |
| Other expenses                                 |   |                      | 41,216,072  |   |                      |   | 33,669,709 |                      |   |   | 27,731,472 |   |
| Income (loss) from operations                  |   |                      | (4,071,737  | )      |                      |   | 1,614,841  |                      |   |   | 585,138 |   |
| Other income (expenses)                        |   |                      | (6,470,385  | )      |                      |   | (3,027,643 | )                         |   |   | 193,213 |   |
| Income (loss) before income taxes              |   |                      | (10,542,122 | )      |                      |   | (1,412,802 | )                         |   |   | 778,351 |   |
| Income tax recovery (provision)                |   |                      | 894,623     |   |                      |   | 2,365,055  |                      |   |   | (285,241 | ) |
| Non-controlling interests                      |   |                      | (443,565    | )      |                      |   | (369,883   | )                         |   |   | (477,103 | ) |
| Net income (loss)                              |   |                      | (443,565    | )      |                      |   | 582,370    |                      |   |   | 16,007 |   |
| Basic and diluted earnings (loss) per share(1) |   |                      | (0.15       | )      |                      |   | 0.01       |                      |   |   | 0.00 |   |

----

----

| ●   | further integrate the assets and personnel of KGIC into our operations, especially its network of international agents and recruiting offices; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | integrate any other assets or businesses acquired into our operations; |
|---------------------|------------------------------------------------------------------------|

| ●   | continue to consolidate and streamline the operations of CIBT, Sprott-Shaw and KGIC; |
|---------------------|--------------------------------------------------------------------------------------|

| ●   | further develop our current programs, campuses and CIBT center locations; |
|---------------------|---------------------------------------------------------------------------|

| ●   | continue building a network of new GLN Centers in additional Asian cities; |
|---------------------|----------------------------------------------------------------------------|

| ●   | increase revenues by increasing student enrollments at our campuses and CIBT center locations; |
|---------------------|------------------------------------------------------------------------------------------------|

| ●   | enhance our product offerings by increasing our focus on the college preparation market and implementing a new Certified General Accountant program combined with a  Bachelors degree in Canada and Asia; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | increase the number of English language students at KGIC and all of our schools who subsequently enroll in certificate or degree-granting programs at Sprott-Shaw and other schools within our system; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | continue to develop closer marketing and cross-selling relationships between Sprott-Shaw, CIBT and KGIC in order to encourage more Chinese and foreign students to come to Sprott-Shaw’s Canadian campuses to study; |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | maintain  strong relationships with our CIBT center and campus location facility and educational service providers, as well as the Chinese authorities; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | continue to promote our businesses and brands. |
|---------------------|------------------------------------------------|

----

|                                               |   | Year EndedAugust 31, 2011 |        |   | Percentage of Revenues |   |   | Year EndedAugust 31, 2010 |   |   | Percentage of Revenues |   |
|----------------------------------------------------|--------|---------------------------|-------------|--------|------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|
|                                               |   | (C$)                      |        |   |                   |   |   | (C$)                      |   |   |                   |   |
| Revenues                                           |   |                      |        |   |                   |   |   |                      |   |   |                   |   |
|   – CIBT (education)               |   |                      | 4,206,757   |   |                   |   | 7      | %                         |   |   | 7,166,099              |   |   |   | 13 | % |
|   – Sprott-Shaw (education)        |   |                      | 30,619,935  |   |                   |   | 52     | %                         |   |   | 36,919,922             |   |   |   | 66 | % |
|   – KGIC (education)               |   |                      | 21,838,554  |   |                   |   | 37     | %                         |   |   | 10,302,107             |   |   |   | 18 | % |
|   – IRIX (advertising)             |   |                      | 1,909,880   |   |                   |   | 3      | %                         |   |   | 1,566,724              |   |   |   | 3 | % |
| Revenues –  Consolidated           |   |                      | 58,575,126  |   |                   |   | 100    | %                         |   |   | 55,954,852             |   |   |   | 100 | % |
| Direct costs                                       |   |                      | 21,430,791  |   |                   |   | 37     | %                         |   |   | 20,670,302             |   |   |   | 37 | % |
| Revenues net of direct costs                       |   |                      | 37,144,335  |   |                   |   | 63     | %                         |   |   | 35,284,550             |   |   |   | 63 | % |
| General and administrative expenses                |   |                      | 39,467,375  |   |                   |   | 67     | %                         |   |   | 31,899,806             |   |   |   | 57 | % |
| Amortization and stock-based compensation expenses |   |                      | 1,748,697   |   |                   |   | 3      | %                         |   |   | 1,537,277              |   |   |   | 3 | % |
| Income (loss) before income taxes                  |   |                      | (10,542,122 | )      |                   |   | (18    | %)                        |   |   | (1,412,802             | )      |   |   | (3 | )% |
| Income tax (recovery) provision                    |   |                      | 894,623     |   |                   |   | 2      | %                         |   |   | 2,365,055              |   |   |   | 4 | % |
| Non-controlling interests                          |   |                      | (443,565    | )      |                   |   | (      | *)                        |   |   | (369,883               | )      |   |   | ( | *) |
| Net income (loss)                                  |   |                      | (10,091,064 | )      |                   |   | (17    | %)                        |   |   | 582,370                |   |   |   | 1 | % |

----

----

----

|                                      |   | Year EndedAugust 31, 2011 |       |   | Percentage ofRevenues |   |   | Year EndedAugust 31, 2010 |   |   | Percentage ofRevenues |   |
|-------------------------------------------|--------|---------------------------|------------|--------|-----------------------|--------|--------|---------------------------|--------|--------|-----------------------|--------|
|                                      |   | (C$)                      |       |   | (C$)                  |   |   | (C$)                      |   |   | (C$)                  |   |
| Revenues                                  |   |                      | 58,575,126 |   |                  |   | 100    | %                         |   |   | 55,954,852            |   |   |   | 100 | % |
| Advertising                               |   |                      | 12,190,564 |   |                  |   | 21     | %                         |   |   | 8,700,663             |   |   |   | 16 | % |
| Consulting and management fees            |   |                      | 1,964,726  |   |                  |   | 3      | %                         |   |   | 1,380,305             |   |   |   | 25 | % |
| Office and general                        |   |                      | 4,538,292  |   |                  |   | 8      | %                         |   |   | 4,055,573             |   |   |   | 7 | % |
| Professional fees                         |   |                      | 1,369,960  |   |                  |   | 2      | %                         |   |   | 1,940,634             |   |   |   | 3 | % |
| Rent                                      |   |                      | 6,092,868  |   |                  |   | 10     | %                         |   |   | 4,108,635             |   |   |   | 7 | % |
| Salaries and benefits                     |   |                      | 12,031,267 |   |                  |   | 21     | %                         |   |   | 10,645,586            |   |   |   | 19 | % |
| Total general and administrative expenses |   |                      | 39,237,013 |   |                  |   | 67     | %                         |   |   | 31,899,806            |   |   |   | 57 | % |

----

----

|                                               |   | Year EndedAugust 31, 2010 |       |   | Percentage of Revenues |   |   | Year EndedAugust 31, 2009 |   |   | Percentage of Revenues |   |
|----------------------------------------------------|--------|---------------------------|------------|--------|------------------------|--------|--------|---------------------------|--------|--------|------------------------|--------|
|                                               |   | (C$)                      |       |   |                   |   |   | (C$)                      |   |   |                   |   |
| Revenues                                           |   |                      |       |   |                   |   |   |                      |   |   |                   |   |
|   – CIBT (education)               |   |                      | 7,166,099  |   |                   |   | 13     | %                         |   |   | 9,576,706              |   |   |   | 21 | % |
|   – Sprott-Shaw (education)        |   |                      | 36,919,922 |   |                   |   | 66     | %                         |   |   | 33,659,924             |   |   |   | 76 | % |
|   – KGIC (education)               |   |                      | 10,302,107 |   |                   |   | 18     | %                         |   | Nil    |                   |   | Nil |   |
|   – IRIX (advertising)             |   |                      | 1,566,724  |   |                   |   | 3      | %                         |   |   | 1,314,328              |   |   |   | 3 | % |
| Revenues –  Consolidated           |   |                      | 55,954,852 |   |                   |   | 100    | %                         |   |   | 44,550,958             |   |   |   | 100 | % |
| Direct costs                                       |   |                      | 20,670,302 |   |                   |   | 37     | %                         |   |   | 16,234,348             |   |   |   | 36 | % |
| Revenues net of direct costs                       |   |                      | 35,284,550 |   |                   |   | 63     | %                         |   |   | 28,316,610             |   |   |   | 64 | % |
| General and administrative expenses                |   |                      | 31,899,806 |   |                   |   | 57     | %                         |   |   | 25,531,613             |   |   |   | 57 | % |
| Amortization and stock-based compensation expenses |   |                      | 1,537,277  |   |                   |   | 3      | %                         |   |   | 1,636,761              |   |   |   | 4 | % |
| Income (loss) before income taxes                  |   |                      | (1,412,802 | )      |                   |   | (3     | )%                        |   |   | 778,351                |   |   |   | 2 | % |
| Income tax (recovery) provision                    |   |                      | 2,365,055  |   |                   |   | 4      | %                         |   |   | (285,241               | )      |   |   | (1 | %) |
| Non-controlling interests                          |   |                      | (369,883   | )      |                   |   | (      | *)                        |   |   | (477,103               | )      |   |   | (1 | %) |
| Net income (loss)                                  |   |                      | 582,370    |   |                   |   | 1      | %                         |   |   | 16,007                 |   |   |   | * |   |

----

|                                      |   | Year EndedAugust 31, 2010 |       |   | Percentage ofRevenues |   |   | Year EndedAugust 31, 2009 |   |   | PercentageofRevenues |   |
|-------------------------------------------|--------|---------------------------|------------|--------|-----------------------|--------|--------|---------------------------|--------|--------|----------------------|--------|
|                                      |   | (C$)                      |       |   |                  |   |   | (C$)                      |   |   |                 |   |
| Revenues                                  |   |                      | 55,954,852 |   |                  |   | 100    | %                         |   |   | 44,550,958           |   |   |   | 100 | % |
| Advertising                               |   |                      | 8,700,663  |   |                  |   | 16     | %                         |   |   | 5,699,158            |   |   |   | 13 | % |
| Consulting and management fees            |   |                      | 1,380,305  |   |                  |   | 25     | %                         |   |   | 1,230,128            |   |   |   | 3 | % |
| Office and general                        |   |                      | 4,055,573  |   |                  |   | 7      | %                         |   |   | 3,557,686            |   |   |   | 8 | % |
| Professional fees                         |   |                      | 1,940,634  |   |                  |   | 3      | %                         |   |   | 1,544,022            |   |   |   | 3 | % |
| Rent                                      |   |                      | 4,108,635  |   |                  |   | 7      | %                         |   |   | 3,019,407            |   |   |   | 7 | % |
| Salaries and benefits                     |   |                      | 10,645,586 |   |                  |   | 19     | %                         |   |   | 9,631,436            |   |   |   | 22 | % |
| Total general and administrative expenses |   |                      | 31,899,806 |   |                  |   | 57     | %                         |   |   | 25,513,613           |   |   |   | 57 | % |

----

----

|                                   |   | Year EndedAugust 31, 2010(C$) |      |   | Year EndedAugust 31, 2009(C$) |   |
|----------------------------------------|--------|-------------------------------|-----------|--------|-------------------------------|--------|
| Amortization of property and equipment |   |                          | 1,131,255 |   |                          |   | 1,076,219 |   |
| Amortization of intangible assets      |   |                          | 406,022   |   |                          |   | 560,542 |   |
| TOTAL                                  |   |                          | 1,537,277 |   |                          |   | 1,636,761 |   |

|   | (a) | the satisfaction of certain conditions; and |
|--------|-----|---------------------------------------------|

|   | (b) | adjustments based on the final determination of the working capital acquired at the time of closing. |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (a) | up to $886,333 if the net income of Sprott-Shaw before EBITDA is equal to or exceeds $2,300,000 for the period from September 1, 2007 to August 29, 2008, such amount to be calculated according to a formula which is based upon the excess; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | up to a maximum of $886,333 if the EBITDA for Sprott-Shaw is equal to or exceeds $2,300,000 for the period from August 30, 2008 to August 28, 2009, such amount to be calculated according to a formula which is based upon the excess; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | up to a maximum of $386,333 if the EBITDA for Sprott-Shaw is equal to or exceeds $2,300,000 for the period August 29, 2009 to August 27, 2010, such amount to be calculated according to a formula which is based upon the excess. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   Assets and Liabilities Acquired in Acquisition of Sprott-Shaw |   | Fair Value of Assets Acquired(C$) |        |
|----------------------------------------------------------------------|--------|-----------------------------------|-------------|
| Accounts receivable                                                  |   |                              | 5,453,877   |   |
| Inventory                                                            |   |                              | 703,530     |   |
| Prepaids and other current assets                                    |   |                              | 380,965     |   |
| Property and equipment                                               |   |                              | 2,371,397   |   |
| Intangible assets subject to amortization                            |   |                              | 3,275,000   |   |
| Intangible assets not subject to amortization                        |   |                              | 5,982,000   |   |
| Goodwill                                                             |   |                              | 3,161,203   |   |
| Bank overdraft                                                       |   |                              | (117,174    | ) |
| Accounts payable and accrued liabilities                             |   |                              | (2,157,135  | ) |
| Deferred revenue                                                     |   |                              | (10,177,278 | ) |
| Long term debt and lease obligations                                 |   |                              | (1,017,542  | ) |
| Due to related parties                                               |   |                              | (411,285    | ) |
| Net assets acquired equal to purchase price                          |   |                              | 7,447,558   |   |

----

| (a) | we paid $3,817,497 in cash at closing, after an adjustment for negative working capital based on the amount by which current liabilities exceeded current assets of KGIC at the time of closing; |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | we paid $700,000 in cash to KGIC from funds held in escrow, including $650,000 in the year ended August 31, 2010, and $50,000 in the year ended August 31, 2011. In the year ended August 31, 2011, the parties further amended the purchase consideration whereby $700,000 of the purchase price was repaid by KGIC to us; and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | on January 10, 2012, we paid a one-time earn out payment of $150,000 to the vendor in lieu of further consideration of $3,917,810 that would have been payable under the terms of the original purchase agreement had certain net revenue and EBITDA milestones been met by KGIC in fiscal 2011. The one-time earn out was paid pursuant to an earn out agreement dated January 3, 2012 between us and the vendors. The earn out agreement is included as an exhibit to this annual report. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Assets and Liabilities Acquired in Acquisition of KGIC |   | Fair Value of Assets Acquired(C$) |       |
|---------------------------------------------------------------|--------|-----------------------------------|------------|
| Cash                                                          |   |                              | 19,744     |   |
| Accounts receivable                                           |   |                              | 809,750    |   |
| Inventory                                                     |   |                              | 110,620    |   |
| Prepaids and other current assets                             |   |                              | 258,872    |   |
| Property and equipment                                        |   |                              | 352,089    |   |
| Intangible assets subject to amortization                     |   |                              | 1,610,000  |   |
| Intangible assets not subject to amortization                 |   |                              | 1,230,000  |   |
| Goodwill                                                      |   |                              | 3,542,488  |   |
| Accounts payable and accrued liabilities                      |   |                              | (361,562   | ) |
| Deferred revenue                                              |   |                              | (3,475,442 | ) |
| Net assets acquired equal to purchase price                   |   |                              | 4,096,559  |   |

----

|   Financial Position     |   | As at August 31,2011(C$) |       |   | As at August 31,2010(C$) |   |       | As at August 31,2009(C$) |   |
|-------------------------------|--------|--------------------------|------------|--------|--------------------------|--------|------------|--------------------------|--------|
| Cash and cash equivalents     |   |                     | 6,456,568  |   |                     |   | 11,511,835 |                     |   |   | 10,337,128 |   |
| Working capital (deficit) (1) |   |                     | (4,601,899 | )      |                     |   | (1,836,438 | )                        |   |   | 440,643 |   |
| Total assets                  |   |                     | 41,160,434 |   |                     |   | 54,969,338 |                     |   |   | 47,521,692 |   |
| Long-term liabilities         |   |                     | 283,364    |   |                     |   | 259,534    |                     |   |   | 2,077,154 |   |
| Non-controlling interest      |   |                     | 1,238,271  |   |                     |   | 1,327,126  |                     |   |   | 1,198,606 |   |
| Shareholders’ equity    |   |                     | 17,797,370 |   |                     |   | 27,022,958 |                     |   |   | 22,671,054 |   |

----

| ●   | Held-to-maturity investments measured at amortized cost using effective interest method; |
|---------------------|------------------------------------------------------------------------------------------|

| ●   | Available-for-sale assets measured at fair value; |
|---------------------|---------------------------------------------------|

| ●   | Assets and liabilities held-for-trading measured at fair value; |
|---------------------|-----------------------------------------------------------------|

| ●   | Loans and receivables measured at amortized cost using effective interest method; and |
|---------------------|---------------------------------------------------------------------------------------|

| ●   | Other financial liabilities measured at amortized cost using effective interest method. |
|---------------------|-----------------------------------------------------------------------------------------|

----

----

| ●   | Leasehold improvements – straight-line over the lesser of five years and the remaining lease term; |
|---------------------|----------------------------------------------------------------------------------------------------------|

| ●   | Furniture and equipment – 20% declining balance; and |
|---------------------|------------------------------------------------------------|

| ●   | Computer equipment – 20% to 30% declining balance. |
|---------------------|----------------------------------------------------------|

----

| ●   | Under Canadian GAAP acquisition related costs are treated as part of the total purchase price of the acquisition.  Under U.S. GAAP these costs are expensed when incurred. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Under Canadian GAAP the financial statement benefit of tax positions taken is recognized.  Under U.S. GAAP, the financial statement benefit of a tax position is recognized only after determining that the relevant tax authority would more likely than not ultimately sustain the position following an audit.  For positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Under Canadian GAAP non controlling interests in a subsidiary are disclosed after total liabilities but before equity.  Under U.S. GAAP, non controlling interests are considered to be part of equity.  As to ASC 810, prior-period payments related to changes in ownership interest in a consolidated subsidiary should be reclassified from investing to financing activities in the Statement of Cash Flow. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                            |   | Year EndedAugust 31, 2011 |   |   | Year EndedAugust 31, 2010 |   |    | Year EndedAugust 31, 2009 |   |
|---------------------------------|--------|---------------------------|--------|--------|---------------------------|--------|---------|---------------------------|--------|
| Foreign exchange gains (losses) |   | $                         | 10,771 |   |                      | $      | (96,677 | )                         |   | $ | 162,537 |   |

----

----

|                          |   | Payments Due by Period |       |
|-------------------------------|--------|------------------------|------------|
| Contractual Obligations       |   | Total                  |       |   | Less Than 1 Year |   |   | 1-3 Years |   |   | 4-5 Years |   |   | After 5 Years |   |
| Long-Term Debt Obligations(1) |   | $                      | 2,186,724  |   |   | $ | 2,152,492 |   |   | $ | 34,232 |   |   |   | - |   |   |   | - |   |
| Capital Lease Obligations(2)  |   | $                      | 350,897    |   |   | $ | 101,765 |   |   | $ | 199,352 |   |   | $ | 49,780 |   |   |   | - |   |
| Operating Leases(3)           |   | $                      | 10,989,989 |   |   | $ | 3,311,193 |   |   | $ | 6,835,059 |   |   | $ | 843,737 |   |   |   | - |   |
| TOTAL                         |   | $                      | 18,512,051 |   |   | $ | 10,549,891 |   |   | $ | 7,068,643 |   |   | $ | 893,517 |   |   |   | - |   |

| (1)   | Long-term debt obligations relate to term loans and promissory notes. |
|-----------------|-----------------------------------------------------------------------|

| (2)   | Capital lease obligations relate to capitalized leased assets. |
|-----------------|----------------------------------------------------------------|

| (3)   | Operating leases relate to leased office and campus premises. |
|-----------------|---------------------------------------------------------------|

----

----

ITEM 6.  Directors, Senior Management and Employees

| Name                    | Age           | Titles                                               | Appointment Date  |
|-------------------------|---------------|------------------------------------------------------|-------------------|
| Toby Chu                | 50            | President, Chief Executive Officer and Vice Chairman | May 11, 1994      |
| Dennis Dan Huang        | 49            | Corporate Secretary                                  | June 28, 2010     |
| Chief Financial Officer | June 28, 2010 |
| Patrick Dang(1)         | 52            | President of Sprott-Shaw                             | November 17, 2010 |
| Sung Sub Lim            | 46            | President of the KGIC Colleges                       | March 7, 2010     |
| Steve Sohn              | 50            | Vice President of the KGIC Colleges                  | March 7, 2010     |

| (1)   | Mr. Patrick Dang was the acting President of Sprott-Shaw from November 17, 2010 to December 9, 2010, and was formally appointed as President of Sprott-Shaw on December 10, 2010. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                 | Age | Appointment or Election Date |
|----------------------|-----|------------------------------|
| Toby Chu (3)(4)      | 50  | May 11, 1994                 |
| Tony David (2)       | 71  | July 28, 1998                |
| Troy Rice (1)(3)     | 48  | October 28, 2005             |
| David Hsu (1)(2)(4)  | 69  | February 27, 2006            |
| Shane Weir (1)(3)    | 57  | December 12, 2008            |
| Derek Feng (1)(2)(4) | 46  | July 19, 2011                |

| (1)   | Member of our audit committee |
|-----------------|-------------------------------|

| (2)   | Member of our compensation committee |
|-----------------|--------------------------------------|

| (3)   | Member of our corporate governance committee |
|-----------------|----------------------------------------------|

| (4)   | Member of executive committee |
|-----------------|-------------------------------|

----

----

| Name of Director | Other Directorship | Company                         |
|------------------|--------------------|---------------------------------|
| Shane Weir       | Director           | e-Kong Group Limited            |
| Derek Feng       | Director           | ChinaCast Education Corporation |

----

| ●   | any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                | Year (1) |   | Salary(C$) |    |   | Bonus(C$) |   |   | Stock Awards(C$) |   |   | Option Awards(C$)(2) |   |   | Non-Equity Incentive Plan Compensation(C$) |   |   | Nonqualified Deferred Compensation Earnings(C$) |   |    | Total(C$) |   |
|---------------------|----------|--------|------------|---------|--------|-----------|--------|--------|------------------|--------|--------|----------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------------------------------|--------|---------|-----------|--------|
| Toby Chu(3)         | 2011     |   |       | 206,667 |   |      |   | -      |             |   |   | -                    |   |   |                                       | 44,000 |   |                                            |   | 293,333 |      |   |   | - |   |   |   | 544,000 |   |
| Dennis Dan Huang(4) | 2011     |   |       | 100,000 |   |      |   | -      |             |   |   | -                    |   |   |                                       | 26,000 |   |                                            |   | -       |      |   |   | - |   |   |   | 126,000 |   |
| Patrick Dang(5)     | 2011     |   |       | 184,312 |   |      |   | -      |             |   |   |                 |   |   |                                       | 22,000 |   |                                            |   | -       |      |   |   | - |   |   |   | 206,312 |   |
| Alvin Chu(6)        | 2011     |   |       | 120,581 |   |      |   | -      |             |   |   | -                    |   |   |                                       | 3,300  |   |                                            |   | -       |      |   |   | - |   |   |   | 123,881 |   |
| Sung Sub Lim(7)     | 2011     |   |       | 186,357 |   |      |   | -      |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -       |      |   |   | - |   |   |   | 186,357 |   |

| (1)   | “2011” denotes for the fiscal year 2011 from September 1, 2010 to August 31, 2011. |
|-----------------|------------------------------------------------------------------------------------------------|

| (2)   | The fair value of these options on the grant date has been calculated in accordance with Section 3870 of the Canadian Institute of Chartered Accountants Handbook (accounting fair value) using the Black-Scholes model. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Toby Chu is the President, Chief Executive Officer and a director of CIBT Education Group and the Chief Executive Officer and a director of CIBT. Mr. Chu is also a director of Sprott-Shaw, as well as a director and the secretary of IRIX. In 2011, options to purchase up to 200,000 common shares of CIBT Education Group Inc. were granted to Toby Chu for Mr. Chu’s services as a director and are exercisable at a price of $0.42 per share until March 1, 2016. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Dennis Dan Huang is the Chief Financial Officer and Corporate Secretary of CIBT Education Group. In 2011, options to purchase up to 100,000 common shares of CIBT Education Group Inc. were granted to Mr. Huang and are exercisable at a price of $0.54 per share until October 13, 2013. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Patrick Dang was appointed as the President of Sprott-Shaw on December 10, 2010, and was its Acting President from November 17, 2010 to December 9, 2010. In 2011, options to purchase up to 100,000 common shares of CIBT Education Group Inc. were granted to Mr. Dang and are exercisable at a price of $0.42 per share until March 1, 2016. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Alvin Chu is the President and Chief Executive Officer of IRIX, and is Toby Chu’s brother. In 2011, options to purchase up to 15,000 common shares of CIBT Education Group Inc. were granted to Mr. Chu and are exercisable at a price of $0.42 per share until March 1, 2016. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Sung Sub Lim has been the President of KGIC since March 7, 2010. |
|-----------------|------------------------------------------------------------------|

----

| Name             | Year(1) |   | Salary(C$) |   |   | Bonus(C$) |   |   | Stock Awards(C$) |   |   | Option Awards(C$)(2) |   |   | Non-Equity Incentive Plan Compensation(C$) |   |   | Nonqualified Deferred Compensation Earnings(C$) |   |   | Total(C$) |   |
|------------------|---------|--------|------------|--------|--------|-----------|--------|--------|------------------|--------|--------|----------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------|--------|
| Troy Rice(3)     | 2011    |   |       | 9,893  | (11)   |      |   | -      |             |   |   | -                    |   |   |                                       | 22,000 |   |                                            |   | -      |      |   |   | - |   |   |   | 31,893 |   |
| Tony David(4)    | 2011    |   |       | 9,893  | (11)   |      |   | -      |             |   |   | -                    |   |   |                                       | 5,500  |   |                                            |   | -      |      |   |   | - |   |   |   | 15,393 |   |
| David Warnock(5) | 2011    |   |       | 9,893  | (11)   |      |   | -      |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 9,893 |   |
| Shane Weir(6)    | 2011    |   |       | 9,893  | (11)   |      |   | -      |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 9,893 |   |
| David Hsu(7)     | 2011    |   |       | 9,893  | (11)   |      |   | -      |             |   |   | -                    |   |   |                                       | 22,000 |   |                                            |   | -      |      |   |   | - |   |   |   | 31,893 |   |
| David Kong (8)   | 2011    |   |       | 9,893  | (11)   |      |   | -      |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 9,893 |   |
| Derek Feng(9)    | 2011    |   |       | -      |   |      |   | -      |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | - |   |

| (1)   | “2011” denotes for the fiscal year 2011 from September 1, 2010 to August 31, 2011. |
|-----------------|------------------------------------------------------------------------------------------------|

| (2)   | The fair value of these options on the grant date has been calculated in accordance with Section 3870 of the Canadian Institute of Chartered Accountants Handbook (accounting fair value) using the Black-Scholes model. In fiscal 2011, options to purchase 100,000 common shares each were granted to our directors, Troy Rice and David Hsu, and 25,000 common shares to our director, Tony David. Options granted to directors expire on March 1, 2016 and are exercisable at a price of $0.42 per share. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Troy Rice is a director of CIBT Education Group and CIBT and was previously Chief Operating Officer of CIBT. |
|-----------------|--------------------------------------------------------------------------------------------------------------|

| (4)   | Tony David is a director of CIBT Education Group. |
|-----------------|---------------------------------------------------|

| (5)   | David Warnock resigned as a director of CIBT Education Group on July 19, 2011. |
|-----------------|--------------------------------------------------------------------------------|

| (6)   | Shane Weir is a director of CIBT Education Group. |
|-----------------|---------------------------------------------------|

| (7)   | David Hsu is a director and Chairman of CIBT Education Group and director of CIBT. |
|-----------------|------------------------------------------------------------------------------------|

| (8)   | David Kong did not stand for re-election as a director of CIBT Education Group and ceased to be a director on December 16, 2011. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Derek Feng was appointed as a director of CIBT Education Group on July 19, 2011. |
|-----------------|----------------------------------------------------------------------------------|

| (10)   | Directors received compensation of US$10,000 for their services as directors in fiscal 2011 which was converted to Canadian dollars at the average rate of exchange for the period of US$1 = C$0.9893. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 1.   | The term of any options granted under the Current Plan will be fixed by the compensation committee of the Board, or any other committee of the Board established to monitor and recommend on compensation matters, or in the absence of any such committee, the Board itself (the “Committee”) at the time such options are granted, provided that options will not be permitted to exceed a term of ten years. Except where not permitted by the Toronto Stock Exchange, where an option expires during a black-out period, or within 10 business days following the end of a black out period, the term of the option will be extended to the date which is five business days following the last day of the black-out period. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The Committee may place limits on the maximum number of shares which may be issuable pursuant to options granted under the Current Plan to any particular optionee or category of optionees. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The exercise price of any options granted under the Current Plan will be determined by the Committee, but shall not be less than the average closing trading price of our common shares on the five trading days (on which at least one board lot of the shares was traded) preceding the grant of such options (the “Market Price”). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Options granted under the Current Plan will be subject to such vesting provisions as the Committee in its sole discretion shall determine. We may, during the term of any Option, give at least 30 days notice in writing to all of the optionees that (i) all options outstanding under the Current Plan that have not vested as at the time of the notice are immediately deemed vested, or (ii) all options outstanding under the Current Plan that have not been exercised shall cease and terminate and be of no further force and effect unless the optionees exercise such options before their termination on the 30th day after delivery of the notice. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | All options will be non-assignable and non-transferable. |
|----------------|----------------------------------------------------------|

| 6.   | We are restricted from issuing in any one year period, or having issuable at any time, to insiders more than 10% of our total issued and outstanding common shares when combined with all of our other security based compensation arrangements with insiders, unless we obtain disinterested shareholder approval pursuant to the policies of the Toronto Stock Exchange. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7.   | If an optionee ceases to be a director or officer of us or our subsidiaries or a service provider, each option held by the optionee shall be exercisable in respect of that number of option shares that have vested pursuant to the terms of the option agreement governing such option as follows: |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | If the optionee, or in the case of an option granted to any optionee who satisfies the definition of service provider, the optionee’s employer, ceases to be employed or engaged by us and any of our subsidiaries (including by way of voluntary resignation or retirement as a director, officer or service provider), each option held by the optionee shall be exercisable in respect of that number of option shares that have vested pursuant to the terms of the option agreement governing such option at any time up to but not after the earlier of the expiry date of that option and the date which is 30 days after the optionee ceases to be a director or officer of us and our subsidiaries or service provider; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Notwithstanding paragraph (a) above, if the optionee ceases to be a director or officer of us and any of our subsidiaries or a service provider due to death or disability or, in the case of an optionee that is a company, the death or disability of the person who provides management or consulting services to us or to any subsidiary of us, each option held by the optionee shall be exercisable in respect of that number of option shares that have vested pursuant to the terms of the option agreement governing such option at any time up to but not after the earlier of the expiry date of that option and the date which is 12 months after the date of death or disability; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Notwithstanding paragraph (a), if the optionee, or, in the case of an option granted to an optionee who satisfies the definition of service provider, the optionee’s employer: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | ceases to be employed or engaged by us and any of our subsidiaries for cause, as that term is determined by the Board, or interpreted by the courts of the jurisdiction in which the optionee or optionee’s employer is employed or engaged if subject to court review; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | ceases to be a director or officer of us and any of our subsidiaries or a service provider by order of any securities commission, recognized stock exchange, or any regulatory body having jurisdiction to so order; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | ceases to provide investor relations services if the optionee’s primary function with us was the provision of such services; or |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | ceases to be eligible to hold office as a director of us and any of our subsidiaries under the provisions of the applicable corporate statute, |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | We may generally amend or terminate the terms and conditions of the Current Plan or any option agreement, as applicable, by resolution of the Committee and without seeking shareholder approval (the “Amendment Procedure”).  Any amendment to the Current Plan will apply to options granted after the effective date of such amendment, provided that it may apply to any outstanding options with mutual consent from us and the optionees to whom such options have been granted.  Disinterested shareholder approval will be required for the following types of amendments: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | amendments that increase the number of shares or bonus shares issuable under the Current Plan, except such increases by operation of section 6 of the Current Plan; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | any reduction in the option price of an option held by an insider at the time of the proposed amendment; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | (c) | any extension of the expiry date of an option held by an insider at the time of the proposed extension; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (d) | other amendments required to be approved by shareholders under applicable law or pursuant to the rules, regulations and policies of the Toronto Stock Exchange. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.   | The Committee may grant stock appreciation rights to any optionee in conjunction with any grant of options.  Each grant of stock appreciation rights shall be confirmed within the option agreement pertaining to such options. An optionee may only exercise a stock appreciation right at the same time, and to the same extent, that the option related thereto is exercisable.  Upon the exercise by an optionee of any stock appreciation right, the corresponding portion of the related option shall be surrendered to us. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | The Committee may allot, issue and deliver common shares in our capital (“Bonus Shares”), from time to time in each calendar year, in such amounts as the Committee deems fit, in an aggregate annual amount of up to 2% of the number of issued and outstanding shares as at December 31st of the year in respect of which the Bonus Shares are being issued, to those directors and officers of us or of any of our subsidiaries and service providers whom the Committee deems to have provided extraordinary contributions to our advancement. The Bonus Shares will be issued in consideration of the fair value of the extraordinary contribution to us by the recipient, as determined by the Committee, in its discretion, and shall be issued at a deemed price determined by the Committee at the time of issuance of such Bonus Shares, but such price shall not be less than the Market Price on the trading day immediately preceding the day on which the Bonus Shares are issued.  No Bonus Shares shall be issued at a time when it is unlawful to fix the price for such Bonus Shares. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | the option price will be adjusted to a price per common share which is the product of: |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (i) | the option price in effect immediately before that effective date or record date; and |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (ii) | a fraction the numerator of which is the total number of common shares outstanding on that effective date or record date before giving effect to the Share Reorganization, and the denominator of which is the total number of common shares that are or would be outstanding immediately after such effective date or record date after giving effect to the Share Reorganization; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the number of unissued option shares will be adjusted by multiplying (i) the number of unissued option shares immediately before such effective date or record date by (ii) a fraction which is the reciprocal of the fraction described in paragraph (a)(ii) above. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12. | Subject to the prior approval of the TSX, whenever we issue by way of a dividend or otherwise distribute to all or substantially all holders of our common shares: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | shares in our capital, other than common shares; |
|--------|-----|--------------------------------------------------|

|   | (b) | evidences of indebtedness; |
|--------|-----|----------------------------|

|   | (c) | any cash or other assets, excluding cash dividends (other than cash dividends which the Board of Directors has determined to be outside the normal course); or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | rights, options or warrants, |
|--------|-----|------------------------------|

----

| 13.  | Whenever there is: |
|-----------|--------------------|

|   | (a) | a reclassification of outstanding common shares, a change of common shares into other shares or securities, or any other capital reorganization of our company, other than as described in paragraphs 11 and 12 above; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a consolidation, merger or amalgamation of our company with or into another corporation resulting in a reclassification of outstanding common shares into other shares or securities or a change of our common shares into other shares or securities; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | a transaction whereby all or substantially all of our company’s undertaking and assets become the property of another corporation, |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | If a bona fide offer (an “Offer”) for common shares is made to our shareholders generally or to a class of shareholders which includes the optionee, which Offer, if accepted in whole or in part, would result in the offeror becoming a control person of our company, within the meaning of subsection 1(1) of the Securities Act (British Columbia), we shall, immediately upon receipt of notice of the Offer, notify each optionee of full particulars of the Offer, whereupon all options outstanding under the Current Plan that have not vested at the time of such Offer will become immediately vested and any such option may be exercised in whole or in part by the optionee so as to permit the optionee to tender the common shares received upon such exercise, pursuant to the Offer. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | However, if: |
|--------|--------------|

|   | (a) | the Offer is not completed within the time specified therein; or |
|--------|-----|------------------------------------------------------------------|

|   | (b) | all of the common shares tendered by the optionee pursuant to the Offer are not taken up or paid for by the offeror in respect thereof, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | If, at any time when an option granted under the Current Plan remains unexercised, an Offer is made by an offeror, the Committee may declare, upon notifying each optionee of full particulars of the Offer, that all options outstanding under the Current Plan that have not vested at the time of such declaration are immediately deemed vested and that all options outstanding under the Current Plan that have not been exercised shall cease and terminate and be of no further force and effect unless the optionees exercise such options before their termination on the date when common shares must be tendered pursuant to the Offer, provided the Offer is completed. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 16. | In the event of a change of control (as defined in the Current Plan), all options outstanding under the Current Plan that have not vested at the time of such change of control will become immediately vested, whereupon optionees holding such options may immediately exercise in whole or in part such options. Furthermore, the Committee may, upon notifying each optionee of a change of control, declare that all options outstanding under the Current Plan that have not been exercised shall cease and terminate and be of no further force and effect unless the optionees exercise such options before their termination on the date on which the change of control occurs, provided such change of control does occur. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                | Number of common shares underlying options held              | Grant Date                                                                                       | Exercise or base price (C$/Share) | Expiration date                                                                                  |
|---------------------|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------------|
| Toby Chu            | 100,000100,000 (1)100,00010,000200,000 (1)440,000100,000 (1) | June 22, 2007June 22, 2007January 22, 2009May 3, 2010March 1, 2011January 6, 2012January 6, 2012 | 1.531.530.510.800.420.240.24      | June 21, 2012June 21, 2012January 21, 2012May 2, 2013March 1, 2016January 6, 2017January 6, 2017 |
| Dennis Dan Huang(2) | 50,000100,000100,000                                         | June 22, 2007October 14, 2010January 6, 2012                                                     | 1.530.540.24                      | June 21, 2012October 13, 2013January 6, 2017                                                     |
| Patrick Dang(3)     | 100,000                                                      | March 1, 2011                                                                                    | 0.42                              | March 1, 2016                                                                                    |
| Alvin Chu           | 15,000                                                       | March 1, 2011                                                                                    | 0.42                              | March 1, 2016                                                                                    |
| Sung Sub Lim        | 50,000                                                       | January 6, 2012                                                                                  | 0.24                              | January 6, 2017                                                                                  |
| Troy Rice           | 100,00010,000100,000150,000                                  | June 22, 2007May 3, 2010March 1, 2011January 6, 2012                                             | 1.530.800.420.24                  | June 21, 2012May 2, 2013March 1, 2016January 6, 2017                                             |
| Tony David          | 20,00010,00025,00070,000                                     | June 22, 2007May 3, 2010March 1, 2011January 6, 2012                                             | 1.530.800.420.24                  | June 21, 2012May 2, 2013March 1, 2016January 6, 2017                                             |
| David Hsu           | 100,00010,000100,000150,000                                  | June 22, 2007May 3, 2010March 1, 2011January 6, 2012                                             | 1.530.800.420.24                  | June 21, 2012May 2, 2013March 1, 2016January 6, 2017                                             |
| David Warnock (4)   | -                                                            | -                                                                                                | -                                 | -                                                                                                |
| Shane Weir          | 10,00090,000                                                 | May 3, 2010January 6, 2012                                                                       | 0.800.24                          | May 2, 2013January 6, 2017                                                                       |
| David Kong(5)       | 50,000                                                       | August 9, 2010                                                                                   | 0.60                              | August 8, 2013                                                                                   |
| Derek Feng(6)       | 100,000                                                      | January 6, 2012                                                                                  | 0.24                              | January 6, 2017                                                                                  |

| (1)   | Held by Concordia Financial Management Corp., over which Mr. Chu exercises control. |
|-----------------|-------------------------------------------------------------------------------------|

| (2)   | Mr. Huang became the Chief Financial Officer and Corporate Secretary of CIBT Education Group and of CIBT on June 28, 2010. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------|

| (3)   | Mr. Dang was appointed as the President of Sprott-Shaw on December 10, 2010, and was its Acting President from November 17, 2010 to December 9, 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Mr. Warnock resigned as a director effective July 19, 2011. |
|-----------------|-------------------------------------------------------------|

| (5)   | Mr. Kong did not stand for re-election as a director and ceased to be one of our directors on December 16, 2011. |
|-----------------|------------------------------------------------------------------------------------------------------------------|

| (6)   | Mr. Feng was appointed as a director on July 19, 2011. |
|-----------------|--------------------------------------------------------|

----

----

| ●   | reviewing and approving our overall business strategies and our annual business plan, our annual corporate budget and forecast, significant capital investments outside the approved budget, and succession planning; |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | assessing management’s performance against approved business plans and industry standards; |
|---------------------|--------------------------------------------------------------------------------------------------|

| ●   | reviewing and approving continuous disclosure documents; |
|---------------------|----------------------------------------------------------|

| ●   | ensuring the effective operation of the Board of Directors; and |
|---------------------|-----------------------------------------------------------------|

| ●   | safeguarding shareholders’ equity interests through the optimum utilization of our capital resources. |
|---------------------|-------------------------------------------------------------------------------------------------------------|

| ●   | financial reporting and the accounting system, |
|---------------------|------------------------------------------------|

| ●   | our systems of internal control over financial reporting, and |
|---------------------|---------------------------------------------------------------|

| ●   | the annual independent audit of our financial statements. |
|---------------------|-----------------------------------------------------------|

----

| David Hsu  | Independent(1) | Financially literate(1) |
|------------|----------------|-------------------------|
| Troy Rice  | Independent(1) | Financially literate(1) |
| Shane Weir | Independent(1) | Financially literate(1) |
| Derek Feng | Independent(1) | Financially literate(1) |

| (1)   | As defined in National Instrument 52-110 Audit Committees, which sets out the requirement governing audit committees in Canada. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------|

----

|        | CIBT Education Group Vancouver | CIBT China | IRIX Vancouver | Sprott-Shaw | KGIC Colleges | Total |
|-------------|--------------------------------|------------|----------------|-------------|---------------|-------|
| Executive   | 3                              | 3          | 1              | 6           | 2             | 15    |
| Management  | 2                              | 20         | 3              | 28          | 10            | 63    |
| Other Staff | 1                              | 35         | 8              | 104         | 53            | 201   |
| Instructors | -                              | 35         | -              | 254         | 153           | 442   |
| TOTAL       | 6                              | 93         | 12             | 392         | 218           | 721   |

| Name of Beneficial Owner              | Amount and Nature ofBeneficial Ownership of Shares | Percent of Class |
|---------------------------------------|----------------------------------------------------|------------------|
| Toby Chu                              | 5,483,247 (1)                                      | 7.6%             |
| Dennis Huang                          | 250,000 (2)                                        | *                |
| Patrick Dang                          | 100,000 (3)                                        | *                |
| Alvin Chu                             | 15,000 (4)                                         | *                |
| Sung Sub Lim                          | 50,000 (5)                                         | *                |
| Tony David                            | 817,085 (6)                                        | 1.1%             |
| David Hsu                             | 4,600,986 (7)                                      | 6.4%             |
| Troy Rice                             | 790,200 (8)                                        | 1.1%             |
| David Warnock                         | - (9)(10)                                          | -                |
| David Kong                            | 150,000 (11)                                       | *                |
| Shane Weir                            | 766,666 (12)                                       | 1.1%             |
| Derek Feng                            | 100,000 (13)                                       | *                |
| All Officers and Directors as a Group | 13,123,184                                         | 18.2%            |

----

| (1)  | Toby Chu is a director, Vice Chairman, President and Chief Executive Officer of us and CIBT and a director and secretary of IRIX. Mr. Chu’s direct holdings equal 385,400 common shares and options to purchase: (i) 100,000 common shares at an exercise price of C$1.53 per share until June 21, 2012; (ii) 100,000 common shares at $0.51 per common share until January 21, 2012; (iii) 10,000 common shares at $0.80 per share until May 2, 2013; and (iv) 440,000 common shares at an exercise price of $0.24 per share until January 6, 2017. The grant dates of these options were (a) June 22, 2007; (b) January 22, 2009; (c) May 3, 2010; and (d) January 6, 2012. Toby Chu also has voting and investment control over Concordia Financial Management Corp., a company that holds 3,847,847 common shares of CIBT Education Group and options to purchase: (i) 100,000 common shares at C$1.53 per share until June 21, 2012; (ii) 200,000 common shares at $0.42 per share until March 1, 2016; and (iii) 100,000 common shares at $0.24 per share until January 6, 2017. The grant dates of these options were (a) June 22, 2007; (b) March 1, 2011; and (c) January 6, 2012. Concordia Financial Management Corp. also holds warrants to purchase 200,000 common shares at an exercise price of $0.35 per common share until July 11, 2014. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | Dennis Dan Huang was appointed as the Chief Financial Officer and Corporate Secretary of us and the Chief Financial Officer and Corporate Secretary of CIBT on June 28, 2010. Mr. Huang’s security holdings include options to purchase: (i) 50,000 common shares of CIBT Education Group at an exercise price of C$1.53 per share until June 21, 2012; (ii) options to purchase 100,000 common shares of CIBT Education Group at an exercise price of C$0.54 until October 13, 2013; and (iii) options to purchase 100,000 common shares of CIBT Education Group at an exercise price of C$0.24 per share until January 6, 2017. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Patrick Dang was appointed as the President of Sprott-Shaw on December 10, 2010, and was its Acting President from November 17, 2010 to December 9, 2010. Mr. Dang holds options to purchase 100,000 common shares at an exercise price of $0.42 per common until March 1, 2016. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Alvin Chu is the President and Chief Executive Officer of IRIX and is the brother of Toby Chu. Mr. Chu’s securityholdings include options to purchase 15,000 common shares at an exercise price of C$0.42 per share until March 1, 2016. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | Sung Sub Lim was appointed as the Vice President of each of the KGIC Colleges on March 7, 2010 in connection with the acquisition of substantially all of the assets of KGIC on March 15, 2010. Mr. Lim’s holdings include options to purchase 50,000 common shares at an exercise price of $0.24 per share until January 6, 2017. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)  | Tony David is President of Sprott-Shaw.  His shareholdings include 264,418 common shares in his name and options to purchase common shares of CIBT Education Group as follows: (a) 20,000 common shares until June 21, 2012 at an exercise price of C$1.53 per share; (b) 10,000 common shares at $0.80 per common share until May 2, 2013; (c) 25,000 common shares at an exercise price of $0.42 per share until March 1, 2016; and (d) 70,000 common shares at an exercise price of $0.24 per share until January 6, 2017. Tony David also has voting and investment control over H Tony David Holdings Ltd., a company that holds  361,000 common shares of CIBT Education Group and warrants to purchase 66,667 common shares at an exercise price of $0.35 per common share until July 11, 2014. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | David Hsu is a director and Chairman of CIBT Education Group and CIBT. His shareholdings include 1,607,000 common shares in his own name and options to purchase: (a) 100,000 common shares at C$1.53 per share until June 21, 2012; (b) 10,000 common shares at $0.80 per common share until May 2, 2013; (c) 100,000 common shares at an exercise price of $0.42 per share until March 1, 2016; and (d) 150,000 common shares at an exercise price of $0.24 per share until January 6, 2017. David Hsu also has voting and investment control over First International Management Ltd., a company that holds 200,000 common shares. Golden Field Company is a company controlled by David Hsu that holds 2,063,546 common shares. An additional 370,440 common shares are held by Grande Dame Nevada LLC, a company controlled by David Hsu. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)  | Troy Rice is a director of CIBT Education Group. His shareholdings include 430,200 common shares of CIBT Education Group and options to purchase: (a) 100,000 common shares at C$1.53 per share until June 21, 2012; (b) 10,000 common shares at $0.80 per common share until May 2, 2013; (c) 10,000 common shares at $0.80 per common share until May 2, 2013; (c) 100,000 common shares at an exercise price of $0.42 per share until March 1, 2016; and (d) 150,000 common shares at an exercise price of $0.24 per share until January 6, 2017. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | David Warnock was a director of CIBT Education Group until his resignation on July 19, 2011. Mr. Warnock is a member of the Board of Managers of Shane Corp. and is a party to a written employment agreement with Camden Partners Holdings, LLC. Shane Corp. is wholly-owned by Shane GP.  Shane GP’s partners are the Camden Funds. Shane Corp. holds 10,794,558 of our common shares. The Camden Funds collectively hold 10,894,558 of our common shares. Further details regarding Shane Corp. are provided in note (11) to this table. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)  | Pursuant to CIBT’s ownership restructuring, Shane Corp. loaned US$5 million to CIBT and CIBT issued a debenture and share purchase warrants to Shane Corp.  The debenture of US$5 million was to be due on April 24, 2010.  However, Shane Corp. exercised its 5,361,667 share purchase warrants effective December 10, 2007 resulting in an aggregate exercise price payable to CIBT of US$5 million.  CIBT and Shane Corp. agreed that Shane Corp. would pay the US$5 million exercise price payable to CIBT by surrendering the US$5 million debenture.  The exercise of the share purchase warrants by Shane Corp. reduced our ownership in CIBT to 78.1%.  After the issuance of the CIBT shares to Shane Corp., we acquired all of these newly issued shares in CIBT from Shane Corp. in exchange for the issuance of 10 million of our common shares, thereby increasing our ownership in CIBT from 78.1% to 100%.  The address for Shane Corp. is c/o Camden Partners, 500 East Pratt Street, Suite 1200, Baltimore, MD, 21202. |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)  | David Kong was a director of CIBT Education Group until his resignation on December 16, 2011. His holdings include options to purchase 50,000 common shares at $0.60 per common share until August 8, 2013 and warrants to purchase 100,000 common shares at $0.35 per common share until July 11, 2014. |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)  | Shane Weir was elected a director of CIBT Education Group on December 12, 2008. He holds options to purchase: (a) 10,000 common shares at $0.80 per common share until May 2, 2013; and (b) 90,000 common shares at C$0.24 per share until January 6, 2017. Concepts & Creations Ltd. is a company controlled by Shane Weir that holds 333,333 common shares of CIBT Education Group and warrants to purchase 333,333 common shares at $0.35 per common share until July 11, 2014. |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)  | Derek Feng has been a director of CIBT Education Group since July 19, 2011. His holdings include options to purchase 100,000 common shares at C$0.24 per share until January 6, 2017. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| As of February 28, 2012                                                              |                                                        |
|--------------------------------------------------------------------------------------|-------------------------------------------------------------|
| Number of  Common Shares to be Issued upon Exercise of Outstanding Options | Weighted-Average Exercise Price of Outstanding Options (C$) | Number of Common Shares Remaining Available for Future Issuance under the Stock Option Plan |
| 5,733,000                                                                            | 0.56                                                        | 1,461,934 |

----

ITEM 7. Major Shareholders and Related Party Transactions

| Title of Class | Name of Beneficial Owner        | Amount and Nature of Beneficial Ownership | Percent of Class (%) |
|----------------|---------------------------------|-------------------------------------------|----------------------|
| Common shares  | Toby Chu                        | 5,483,247 (1)                             | 7.6%                 |
| Common shares  | David Hsu                       | 4,600,986 (2)                             | 6.4%                 |
| Common shares  | MacKenzie Financial Corporation | 4,770,900 (3)                        | 6.6%                 |
| Common shares  | Shane Corp.                     | 10,794,558 (4) (5)                        | 15.0%                |

| (1)   | Toby Chu is a director, Vice Chairman, President and Chief Executive Officer of us and CIBT and a director and secretary of IRIX. Mr. Chu’s direct holdings equal 385,400 common shares and options to purchase: (i) 100,000 common shares at an exercise price of C$1.53 per share until June 21, 2012; (ii) 100,000 common shares at $0.51 per common share until January 21, 2012; (iii) 10,000 common shares at $0.80 per share until May 2, 2013; and (iv) 440,000 common shares at an exercise price of $0.24 per share until January 6, 2017. The grant dates of these options were (a) June 22, 2007; (b) January 22, 2009; (c) May 3, 2010; and (d) January 6, 2012. Toby Chu also has voting and investment control over Concordia Financial Management Corp., a company that holds 3,847,847 common shares of CIBT Education Group and options to purchase: (i) 100,000 common shares at C$1.53 per share until June 21, 2012; (ii) 200,000 common shares at $0.42 per share until March 1, 2016; and (iii) 100,000 common shares at $0.24 per share until January 6, 2017. The grant dates of these options were (a) June 22, 2007; (b) March 1, 2011; and (c) January 6, 2012. Concordia Financial Management Corp. also holds warrants to purchase 200,000 common shares at an exercise price of $0.35 per common share until July 11, 2014. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | David Hsu is a director and Chairman of CIBT Education Group and CIBT. His shareholdings include 1,607,000 common shares in his own name and options to purchase: (a) 100,000 common shares at C$1.53 per share until June 21, 2012; (b) 10,000 common shares at $0.80 per common share until May 2, 2013; (c) 100,000 common shares at an exercise price of $0.42 per share until March 1, 2016; and (d) 150,000 common shares at an exercise price of $0.24 per share until January 6, 2017. David Hsu also has voting and investment control over First International Management Ltd., a company that holds 200,000 common shares. Golden Field Company is a company controlled by David Hsu that holds 2,063,546 common shares. An additional 370,440 common shares are held by Grande Dame Nevada LLC, a company controlled by David Hsu. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | The shareholdings of Mackenzie Financial Corporation are as of December 31, 2010 and include 4,770,900 common shares of CIBT Education Group. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Pursuant to CIBT’s ownership restructuring, Shane Corp. loaned US$5 million to CIBT and CIBT issued a debenture and share purchase warrants to Shane Corp.  The debenture of US$5 million was to be due on April 24, 2010.  However, Shane Corp. exercised its 5,361,667 share purchase warrants effective December 10, 2007 resulting in an aggregate exercise price payable to CIBT of US$5 million.  CIBT and Shane Corp. agreed that Shane Corp. would pay the US$5 million exercise price payable to CIBT by surrendering the US$5 million debenture to CIBT.  The exercise of the share purchase warrants by Shane Corp. reduced our ownership in CIBT to 78.1%.  After the issuance of these 5,361,667 CIBT shares to Shane Corp., we acquired all of these newly issued shares in CIBT from Shane Corp. in exchange for the issuance of 10 million of our common shares, thereby increasing our ownership in CIBT from 78.1% to 100%.  The address for Shane Corp. is c/o Camden Partners Holdings, LLC, 500 East Pratt Street, Suite 1200, Baltimore, MD, 21202. Shane Corp. is wholly-owned by Shane GP. Shane GP’s partners are the Camden Funds.  David Warnock, one of our directors, is a member of the Board of Managers of Shane Corp. and is a party to a written employment agreement with Camden Partners Holdings, LLC, a diversified investment management firm that provides management services to the Camden Funds and their general partners. As a result of these relationships, David Warnock, Shane GP, Shane Corp. and the Camden Funds could be deemed to beneficially own the shares directly held by the others.  Under this annual report, we assume Shane Corp.’s beneficial ownership includes 100,000 of our common shares directly held by the Camden Funds.] |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Shane Corp. directly holds 10,794,558 common shares.  As a result of the relationships described in note (4) to this table, Shane Corp. may be deemed to beneficially own an additional 10,459,865 common shares held directly by Camden Partners Strategic Fund III, L.P. and 434,693 common shares held directly by Camden Partners Strategic Fund III-A, L.P.  All of the options granted to David Warnock as a director described in “Director and Officer Stock Option Grants” are excluded from the common shares reported as being beneficially owned by Shane Corp. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ●   | Toby Chu’s ownership interest was 5% as of March 13, 2009, 5.4% as of February 24, 2011, and 7.6% as of February 28, 2012. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ●   | David Hsu’s ownership interest was 6% as of March 13, 2009, 5.6% as of February 24, 2011 and 6.4% as of February 28, 2012. |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------|

| ●   | MacKenzie Financial Corporation’s ownership interest decreased from 8.8% as of February 25, 2010 to 6.9% as of December 31, 2010, and 6.6% as of February 28, 2012. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Shane Corp.’s ownership interest was 16% as of March 13, 2009, 15.6% as of February 24, 2011 and 15.0% as of February 28, 2012. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|

----

----

ITEM 8.  Financial Information

ITEM 9.  The Offer and Listing

----

|                                      |   | TSX and TSX-V |   |   | Amex   |   |
|-------------------------------------------|--------|---------------|--------|--------|--------|--------|
|                                      |   | High          |   |   | Low    |   |   | High |   |   | Low |   |
|                                      |   | (C$)          |   |   | (C$)   |   |   | (US$) |   |   | (US$) |   |
| August 31, 2011                           |   |          | 0.25   |   |   |   | 0.25 |   |   |   | 0.26 |   |   |   | 0.26 |   |
| August 31, 2010                           |   |          | 0.92   |   |   |   | 0.52 |   |   |   | 0.87 |   |   |   | 0.48 |   |
| August 31, 2009                           |   |          | 1.61   |   |   |   | 0.35 |   |   |   | 1.45 |   |   |   | 0.28 |   |
| August 31, 2008                           |   |          | 2.59   |   |   |   | 1.38 |   |   |   | 2.33 |   |   |   | 1.30 |   |
| June 30, 2007                             |   |          | 1.74   |   |   |   | 0.72 |   |   |   | N/A |   |   |   | N/A |   |
|                                      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Quarterly Market Prices for quarter ended |   |          |   |   |   |   |   |   |   |   |   |   |   |
| November 30, 2011                         |   |          | 0.30   |   |   |   | 0.19 |   |   |   | 0.29 |   |   |   | 0.18 |   |
| August 31, 2011                           |   |          | 0.37   |   |   |   | 0.22 |   |   |   | 0.35 |   |   |   | 0.20 |   |
| May 31, 2011                              |   |          | 0.42   |   |   |   | 0.24 |   |   |   | 0.45 |   |   |   | 0.25 |   |
| February 28, 2011                         |   |          | 0.52   |   |   |   | 0.35 |   |   |   | 0.58 |   |   |   | 0.36 |   |
| November 30, 2010                         |   |          | 0.64   |   |   |   | 0.43 |   |   |   | 0.60 |   |   |   | 0.41 |   |
| August 31, 2010                           |   |          | 0.79   |   |   |   | 0.52 |   |   |   | 0.77 |   |   |   | 0.48 |   |
| May 31, 2010                              |   |          | 0.92   |   |   |   | 0.72 |   |   |   | 1.00 |   |   |   | 0.58 |   |
| February 28, 2010                         |   |          | 0.87   |   |   |   | 0.63 |   |   |   | 0.85 |   |   |   | 0.62 |   |
| November 30, 2009                         |   |          | 0.85   |   |   |   | 0.55 |   |   |   | 0.82 |   |   |   | 0.51 |   |
|                                      |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Monthly Market Prices                     |   |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| January 2012                              |   |          | 0.35   |   |   |   | 0.20 |   |   |   | 0.30 |   |   |   | 0.18 |   |
| December 2011                             |   |          | 0.29   |   |   |   | 0.19 |   |   |   | 0.30 |   |   |   | 0.21 |   |
| November 2011                             |   |          | 0.30   |   |   |   | 0.19 |   |   |   | 0.29 |   |   |   | 0.20 |   |
| October 2011                              |   |          | 0.25   |   |   |   | 0.22 |   |   |   | 0.26 |   |   |   | 0.19 |   |
| September 2011                            |   |          | 0.27   |   |   |   | 0.20 |   |   |   | 0.26 |   |   |   | 0.18 |   |
| August 2011                               |   |          | 0.34   |   |   |   | 0.22 |   |   |   | 0.35 |   |   |   | 0.20 |   |

----

ITEM 10.  Additional Information

----

| Agreement(s)                                                     | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Employment Agreement and Extension Agreements with Toby Chu      | On January 1, 2003 we entered into a two year employment agreement with Toby Chu as President and Chief Executive Officer. The employment agreement includes non-compete provisions pursuant to which Mr. Chu has agreed not to engage in other business activities or serve as a director or officer of a company other entity in competition with us or our subsidiaries during his employment with us and for a period of 90 days after ceasing to serve in such capacities or be employed by us. Mr. Chu also agreed not to own or hold any securities resulting in an ownership interest in excess of 5% in any of our competitors whose securities are listed on a stock exchange or traded on an over the counter market.We extended the employment agreement with Toby Chu by separate agreement dated January 1, 2005. Mr. Chu’s employment is for an indefinite term. Provisions were added to allow for termination only if mutually acceptable to both parties, and to allow the parties to review the financial terms of the agreement no more than once every two years upon request by either party. On April 19, 2007, we extended the agreement with the same provisions except that Mr. Chu has the option to terminate the agreement upon provided a 90-day notice to us or we may terminate the agreement upon providing a six-month notice to Mr. Chu. The agreement includes a provision for termination by us without prior notice upon the occurrence of certain events.                                                                                      |
| CIBT Centre Agreement with Weifang University                    | In May 2005, CIBT entered into an agreement with Weifang University to establish a CIBT Centre which began operating in August 2007. CIBT and Weifang University have also agreed to cooperate to provide joint educational programs, develop curriculum and course materials and train instructors.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Agreement to License Wyotech Automotive Technology Programs      | On October 24, 2005 CIBT entered into an agreement to license certain automotive technology programs from Titan Schools, Inc., dba Wyotech, to be provided in China. Wyotech is a provider of automotive certificate and diploma programs offered at its campuses in the United States. The license is for a period of ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Agreement with Weifang Commercial School                         | In August 2007, CIBT signed an agreement with Weifang Commercial School to provide automotive maintenance, hotel management and accounting programs to Weifang Commercial School.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Agreement and Plan of Reorganization with Shane Corp.            |  On December 10, 2007 we and our subsidiary CIBT entered into an agreement and plan of reorganization with Shane Corp. in order to increase our ownership of CIBT. Under this agreement, we issued 10,000,000 common shares to Shane Corp. in exchange for 5,361,667 common shares in CIBT acquired by Shane Corp. upon the exercise of share purchase warrants. Following this, our total interest in CIBT was 100%. See “Management’s Discussion and Analysis of Financial Condition and Results` of Operations – Reorganization” for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Acquisition of Sprott-Shaw                                       | Effective December 17, 2007, we acquired the primary assets and liabilities used in the operation of Sprott-Shaw Community College through Sprott-Shaw, our newly incorporated wholly owned subsidiary. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Employment Agreement with Dean Dupperon                          | The services of Dean Dupperon, President of Sprott-Shaw, are provided pursuant to an employment agreement between Mr. Dupperon and Sprott-Shaw dated December 17, 2007 for a term expiring on December 16, 2012.  Mr. Dupperon is entitled to an annual salary of $400,000, except that if EBITDA at Sprott-Shaw is less than $2 million in fiscal 2010 or fiscal 2011, Mr. Dupperon’s salary will be reduced to $320,000 annually.  In addition, Mr. Dupperon is entitled to an annual bonus equal to 10% of EBITDA in excess of $2.6 million at Sprott-Shaw, as well as options to purchase up to 100,000 of our common shares.  We may terminate the agreement immediately for just cause.  Mr. Dupperon may terminate the agreement upon two weeks prior written notice.  We may terminate the agreement at any time, subject to the payment of his remuneration and a lump sum termination payment. The employment agreement with Mr. Dupperon was entered into pursuant to the Sprott-Shaw acquisition agreement. The employment agreement contains non-competition and non-solicitation provisions. Mr. Dupperon agreed not to hold any interest or have any involvement in, directly or indirectly, any business that competes with the business of Sprott-Shaw in such locations that are within 100 kilometers of our locations of operations until the later of the fifth anniversary after the date of acquisition of Sprott-Shaw and three years after any termination of Mr. Dupperon’s employment with Sprott-Shaw. |
| CIBT Centre Agreement with Jinhua Career & Technical College | In January 2008 CIBT signed an agreement to establish a CIBT center in China at the Jinhua Career & Technical College in Jinhua City, China.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Acquisition of Tourism Training Institute                        | On April 30, 2008, we acquired the primary assets and liabilities used in the operation of Tourism Training Institute, an accredited institution based in Vancouver, Canada with branch offices in Beijing. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| AHL-EI License Agreement                                         | On May 1, 2008 we entered into an agreement with Global Education in Tourism Ltd. whereby we were assigned a license granted by AHL-EI to use and market certain AHL-EI products, courses, programs and services. The license agreement between Global Education in Tourism Ltd. was signed on April 16, 2007. The license expires on December 1, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Education Cooperation Agreement with Far Eastern University      | In May 2008, Sprott-Shaw entered into an agreement with Far Eastern University in Manila, Philippines to offer courses at a second university campus. In 2008, we had entered into an agreement with the Far Eastern University and established a CIBT Education Center at Far Eastern University that offers our resident care attendant and practical nursing programs to students in English.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

| Agreement(s)                                                                                                                   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Material Distribution and Teaching Rights Agreement between Tourism Training Institute and AHL-EI                              | In June 2008 Tourism Training Institute renewed an exclusive license agreement with AHL-EI for sole marketing, material distribution and teaching rights of certain AHL-EI products and products until December 1, 2012.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Memorandum of Understanding with Thompson Rivers University and Vancouver Community College                                    | In June 2008, CIBT entered into a memorandum of understanding with Thompson Rivers University and Vancouver Community College to allow students completing a two-year business administration and computer sciences diploma program with CIBT in China to continue studies towards a baccalaureate degree at Thompson Rivers after successfully completing a nine to 12 month English upgrading and learning competency training program at Vancouver Community College.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| Acquisition of Concordia Career College Ltd.                                                                                   | Effective September 4, 2008, we acquired certain assets used in the operation of Concordia Career College Ltd. through Sprott-Shaw, our newly incorporated wholly owned subsidiary. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Acquisition of Pan Pacific International College Inc.                                                                          | Effective December 12, 2008 we acquired certain property and assets, including intellectual property rights and regulatory approvals, and assumed certain obligations of Pan Pacific International College Inc., an English language college located in Victoria, Canada, targeting the Japanese and Latin American ESL student market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Memorandum of Understanding with the Jamaican Ministry of Training and Social Security                                         | On January 29, 2009 Sprott-Shaw entered into a memorandum of understanding with the Jamaican Ministry of Training and Social Security to offer hospitality and tourism training to Jamaican students through a combination of classroom studies at Sprott-Shaw’s campus in Kelowna, British Columbia, Canada, online self-directed learning and industry practicums in Vancouver, British Columbia, Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Memorandum of Understanding with Brown’s Town College of Jamaica and the Jamaican Ministry of Labour and Social Security | On February 16, 2009 Sprott-Shaw entered into a memorandum of understanding with Brown’s Town College of Jamaica and the Jamaican Ministry of Labour and Social Security to offer the curriculum for Sprott-Shaw’s resident care attendant and practical nursing training programs to students attending Brown’s Town College. These programs involve an academic portion to be completed in Jamaica and a practicum portion to be completed in Vancouver, British Columbia, Canada. Enrollment in the programs began in May 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| CIBT Centre Agreement in Korea                                                                                                 | On June 4 2009, CIBT entered into an agreement with Truenet Media Group Ltd. to establish a CIBT Education Center in Seoul, South Korea at National Cambridge College. After the CIBT Education Center is completed, it will offer CIBT’s International Foundation Program to students in Korea.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Memorandum of Understanding and Licensing Agreement with Thang Long University                                                 | In September 2009, we signed an agreement with a Canadian investment holdings company to license our brands CIBT School of Business and Sprott-Shaw Community College in Vietnam. In connection with this license, Sprott-Shaw entered into a memorandum of understanding dated September 16, 2009 with Thang Long University in Hanoi, Vietnam to develop programs aimed at preparing Vietnamese nursing graduates to work abroad by providing training that meets international nursing standards and developing their English language proficiency.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Cooperation Agreement with China Central Radio and Television University                                                       | On October 16, 2009 we signed an agreement with China Central Radio and Television University in Beijing, China to develop programs incorporating course content from CIBT’s operations in China, Sprott-Shaw’s operations, and programs offered by AHL-EI into China Central Radio and Television University’s programs. These programs will in turn be offered to a global audience through select CIBT and Sprott-Shaw locations in a number of countries, including Canada, the Philippines, South Korea, Jamaica and Vietnam.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Memorandum of Understanding with Hanoi Tourism College                                                                         | On November 18, 2009 Sprott-Shaw signed a memorandum of understanding with Hanoi Tourism College in Hanoi, Vietnam that relates to a number of initiatives including delivery of Sprott-Shaw’s English language and hotel tourism management programs at Hanoi Tourism College, recruitment of qualified Vietnamese students by Hanoi Tourism College for enrollment at Sprott-Shaw campuses in Canada and CIBT campuses in China, and co-development of an internship program for the hotel tourism management program allowing students to intern with major hotels in Vietnam.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Employment Agreement with Steve Sohn                                                                                           | Mr. Steve Sohn entered into an employment agreement with the KGIC Colleges to act as Vice President of each effective March 7, 2010 for an indefinite period. Mr. Sohn will receive annual compensation of $102,000 and a bonus based on performance that will consider factors such as meeting or exceeding target revenue and target EBITDA. Mr. Sohn may terminate the agreement upon eight week’s prior written notice. The KGIC Colleges may terminate the agreement any time without cause by providing eight week’s prior written notice or salary in lieu thereof at the discretion of the KGIC Colleges. Mr. Sohn also agreed not to compete with us during his employment and for a period of 18 months after ceasing to be an employee. The employment agreement also includes non-solicitation and non-compete provisions. The non-compete provision extends to setting up a business in direct competition with us within a 50 mile radius of our campus locations in the primary countries in which we do business, or being employed or otherwise retained to recruit students by an agent that Mr. Sohn worked with during his employment with us. |
| Acquisition of KGIC Language College (2010) Corp. and KGIC Business College (2010) Corp.                                       | On March 15, 2010 we completed the acquisition of certain assets and assumption of certain liabilities of KGIC pursuant to an asset purchase agreement among our newly incorporated subsidiaries, the KGIC Colleges, and KGIC. KGIC operates English language training schools internationally and in the provinces of British Columbia, Ontario and Nova Scotia, Canada. See “Business – KGIC Colleges” for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Memorandum of Understanding with Meridian International Business and Arts College                                              | We entered into a Memorandum of Understanding with Meridian International Business and Arts College with an effective date of April 1, 2010 to deliver our English language training programs and university preparatory programs in the Philippines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Cooperation Agreement with Open University of China                                                                            | In January 2011, we announced entry into an agreement with OUC to launch a series of international hotel management education and training programs through OUC’s education system in China, including the AHL-EI program. The programs will be offered by establishing a GLN Center classroom at OUC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Global Recruitment Agreement with Southpointe Academy                                                                          | On February 23, 2011, we signed an agreement with Southpointe Academy, a private elementary and high school located in Delta, British Columbia, to act as the school’s exclusive recruiter of international and expatriate students. We have also agreed to co-develop academic preparation programs that we will launch overseas, designed to prepare prospective applicants for Southpointe Academy’s vigorous pre-entrance examinations and programs at the grade 10 to 12 level. We earn all tuition fees for each student we recruit for the academic preparation programs and a portion of the tuition fees for each student we recruit for enrollment at Southpointe Academy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| Cooperation Agreement with Yunnan International Exchange Center                                                                | On March 18, 2011, we entered into a cooperation agreement with the Yunnan International Exchange Center, a subsidiary of the Yunnan Provincial Department of Education, to cooperate on establishing a GLN Center classroom at the Yunnan International Exchange Center, as well as to recruit students to study at our subsidiary schools in Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| GLN Center Agreement with University of Zhejiang Continuing Studies and CIBT                                                   | In April 2011, we entered into an agreement with Zhejiang University, located in the city of Hangzhou, Zhejiang Province, to jointly launch programs in English Language Training and Hospitality Management, with the educational content to be provided by KGIC and the AHL-EI licensed curriculum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| GLN Center Agreement with Guangzhou University and CIBTCooperation Agreement with Zhaoqing University and CIBT                 | In February 2011, we entered into an agreement with Guangzhou University and in March 2011 we entered into an agreement with Zhaoqing University, located in the Guangdong province of China, to establish GLN Center classrooms within each university’s campus and offer the following programs: Pre-Masters degree, TESOL, Tourism and Hospitality Management, Overseas Study Preparation, and Hotel Industry English programs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| GLN Center Agreement between CIBT and Hebei Normal University Foreign Language College                                         | In July 2011, we entered into an agreement with Hebei Normal University Foreign Language College to jointly establish and offer educational programs in both English Language Training and Hotel and Tourism Management through our GLN Center classroom established at Hebei’s campus located in Hebei, China.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| GLN Center Agreement CIBT and Henan Radio and Television University                                                            | In July 2011, we entered into an agreement with Henan Radio and Television University, a member of the Open University of China, to jointly offer educational programs in Hotel and Tourism Management by establishing a GLN Center classroom at Henan Radio and Television University, located in Henan Province, China.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| GLN Center Agreement between CIBT and Hunan Radio and Television University                                                    | In August 2011, we entered into an agreement with Hunan Radio and Television University, a member of the Open University of China, to jointly offer Hotel and Tourism Management Programs by establishing a GLN Center classroom at Hunan Radio and Television University’s campus located in Hunan Province, China.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Agreement with Hainan Human Resources Training Center                                                                          | In November 2011, we announced the launch of AHL-EI programs for hotel industry professionals in Hainan Province, China to be offered by the Hainan Human Resources Training Center.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Employment Agreement with Dennis Huang                                                                                         | On July 1, 2011, we entered into a five year employment agreement with Dennis Huang to act as our Chief Financial Officer. The employment agreement includes non-compete provisions pursuant to which Mr. Huang has agreed not to provide his services to any competing business in Canada or China during his employment with us and for a period of 6 months after ceasing to serve in such capacities or be employed by us. Mr. Huang also agreed not to own or hold any securities resulting in an ownership interest in excess of 5% in any of our competitors whose securities are listed on a stock exchange or traded on an over the counter market. Mr. Huang and we may terminate the agreement upon providing a six-month notice. The agreement includes a provision for termination by us without prior notice upon the occurrence of certain events.                                                                                                                                                                                                                                                                                                         |
| Earn-Out  Agreement with Vendors of KGIC                                                                             | On January 3, 2012, we entered into an earn out agreement with the vendors of KGIC to pay a one-time earn out amount of $150,000 to the vendors in lieu of future earn-out amounts of up to $3.9 million that were payable to the vendors pursuant to the KGIC acquisition agreement had certain net revenue and EBITDA targets been met by KGIC in fiscal 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| GLN Center Agreement with the Canadian Institute of Education in Iraq                                                          | In January 2012, we entered into an agreement with the Canadian Institute of Education to establish a GLN Center offering Sprott-Shaw’s business and healthcare programs and KGIC’s English language programs to students in the northern provinces of Iraq. The Canadian Institute of Education has also agreed to recruit students in Iraq for Sprott-Shaw and KGIC. Students will complete a portion of their studies in Iraq and then transfer to Sprott-Shaw or KGIC’s campuses to further their education and obtain work experience in Canada before returning to Iraq.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| GLN Center Agreement with Beijing Language and Culture University                                                              | In February 2012, we entered into an agreement with Beijing Language and Culture University to establish a GLN Center within the university’s Beijing campus. The GLN Center will deliver AHL-EI hospitality programs and KGIC language programs. The agreement also provides for students to transfer to KGIC and Sprott-Shaw for further studies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| ●   | acquisition of our common shares by a person in the ordinary course of that person’s business as a trader or dealer in securities; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | acquisition or control of us in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of the Investment Act; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | acquisition or control of us by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control in fact of us, through the ownership of voting interests, remains unchanged. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

| 1.   | CIBT, which conducts operations primarily in China and in which we currently hold a 100% ownership interest; |
|----------------|--------------------------------------------------------------------------------------------------------------|

| 2.   | Sprott-Shaw, which operates primarily in Canada and with a presence in Asia and the Middle East, in which we acquired a 100% ownership interest on December 17, 2007; and |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The KGIC Colleges, which are comprised of KGIC Business College (2010) Corp. and KGIC Language College (2010) Corp., our wholly-owned subsidiaries that operate primarily in Canada, and which were organized in connection with the acquisition of substantially all of the assets of KGIC on March 15, 2010. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 11.  Quantitative and Qualitative Disclosures about Market Risk

ITEM 12.  Description of Securities other than Equity Securities

----

PART II

ITEM 13.  Defaults, Dividend Arrearages and Delinquencies

ITEM 14.  Material Modifications to the Rights of Security Holders and Use of Proceeds

----

ITEM 15.  Controls and Procedures

| ●   | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and members of our board of directors; and |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of our assets that could have a material effect on our financial statements. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | In the process of documenting and improving our controls over financial reporting in the last three fiscal years, management has identified certain material weaknesses that existed in the design or operation of our ICFR, including ineffective control over the financial reporting of recently acquired subsidiaries; insufficient staffing in our accounting and financing business segments; and ineffective controls related to the period-end financial reporting process that impacts management’s ability to oversee the preparation of our consolidated financial statements. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ●   | Enhance our risk assessment, internal control design and documentation and develop a plan for testing in accordance with COSO standards; and |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Develop and implement other procedures in the internal control function. |
|---------------------|--------------------------------------------------------------------------|

ITEM 16.  [Reserved]

ITEM 16A.  Audit Committee Financial Expert

----

ITEM 16B.  Code of Ethics

ITEM 16C. Principal Accountant Fees and Services

|                   |   | For the year endedAugust 31, 2010 |    |   | For the year endedAugust 31, 2011 |   |
|------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|
|                   |   | (C$)                              |    |   | (C$)                              |   |
| Audit Fees (1)         |   |                              | 516,406 |   |                              |   | 300,500 |   |
| Audit-Related Fees (2) |   |                              | 261,660 |   |                              |   | 199,200 |   |
| Tax Fees (3)           |   |                              | 97,868  |   |                              |   | 58,362 |   |
| All Other Fees (4)     |   |                              | 106,839 |   |                              |   | 18,000 |   |
| Total                  |   |                              | 982,773 |   |                              |   | 576,062 |   |

| (1)   | “Audit fees” means the aggregate fees billed for professional services rendered by our independent registered public accounting firm for the audit of our annual financial statements and the review of our comparative financial statements. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | “Audit-related fees” represents aggregate fees billed for professional services rendered by our independent registered public accounting firm for the assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not reported under “Audit fees.” |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | “Tax fees” represents the aggregated fees billed for professional services rendered by our independent registered public accounting firm for tax compliance, tax advice, and tax planning services. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | All other fees consist of fees billed which are not included under audit fees, audit related fees or tax fees. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

ITEM 16D.  Exemptions from the Listings Standard for Audit Committees

----

ITEM 16E.  Purchases of Equity Securities by the Issuer and Affiliated Purchasers

|                                   | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit)(C$) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs |
|----------------------------------------|---------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
| July 1 to July 31, 2006                | 5,000                                       | 0.90                                       | 253,500                                                                                     | 746,500 (1)                                                                                                             |
| August 1  to August 31, 2006 | 20,000                                      | 0.88                                       | 273,500                                                                                     | 726,500 (1)                                                                                                             |
| September 1 to September 30, 2006      | 32,000                                      | 0.87                                       | 305,500                                                                                     | 694,500 (1)                                                                                                             |
| October 1 to October 31, 2006          | 44,000                                      | 0.81                                       | 349,500                                                                                     | 650,500 (1)1,000,000 (2)                                                                                                |
| November 1 to November 30, 2006        | 257,000                                     | 0.78                                       | 257,000                                                                                     | 743,000 (2)                                                                                                             |
| December 1 to December 31, 2006        | 119,396                                     | 0.78                                       | 376,396                                                                                     | 366,604 (2)                                                                                                             |
| January 1 to January 31, 2007          | 312,500                                     | 0.80                                       | 688,896                                                                                     | 311,104 (2)                                                                                                             |
| February 1 to February 28, 2007        | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| March 1 to March 31, 2007              | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| April 1 to April 30, 2007              | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| May 1 to May 31, 2007                  | Nil                                         | Nil                                        | Nil                                                                                         | 1,000,000 (3)                                                                                                           |
| June 1 to June 30, 2007                | 644,300                                     | 1.51                                       | 644,300                                                                                     | 355,700 (3)                                                                                                             |
| July 1 to July 31, 2007                | 256,400                                     | 1.73                                       | 900,700                                                                                     | 99,300 (3)800,000 (4)899,300 (3)                                                                                        |
| August 1 to August 31, 2007            | 29,000                                      | 1.68                                       | 929,700                                                                                     | 870,300 (3)                                                                                                             |
| September 1 to September 30, 2007      | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| October 1 to October 31, 2007          | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| November 1 to November 30, 2007        | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| December 1 to December 31, 2007        | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| January 1 to January 31, 2008          | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| February 1 to February 28, 2008        | N/A                                         | N/A                                        | N/A                                                                                         | N/A                                                                                                                     |
| March 1 to March 31, 2008              | 142,200                                     | 2.01                                       | 142,200                                                                                     | 1,500,000 (5)1,357,800 (5)                                                                                              |
| April 1 to April 30, 2008              | 376,200                                     | 2.14                                       | 518,400                                                                                     | 981,600 (5)                                                                                                             |
| May 1 to May 31, 2008                  | 101,000                                     | 2.03                                       | 101,000                                                                                     | 880,600 (5)                                                                                                             |
| June 1 to June 30, 2008                | 36,000                                      | 1.90                                       | 554,400                                                                                     | 844,600 (5)                                                                                                             |
| July 1 to July 31, 2008                | 653,900                                     | 1.65                                       | 754,900                                                                                     | 190,700 (5)                                                                                                             |
| August 1 to August 31, 2008            | 178,900                                     | 1.51                                       | 733,300                                                                                     | 11,800 (5)                                                                                                              |
| September 1 to September 30, 2008      | 11,800                                      | 1.50                                       | 766,700                                                                                     | -                                                                                                                       |
| October 1 to October 31, 2008          | 163,500                                     | 0.48                                       | 163,500                                                                                     | 1,000,000 (6)836,500 (6)                                                                                                |
| November 1 to November 30, 2008        | 42,500                                      | 0.67                                       | 206,000                                                                                     | 794,000 (6)                                                                                                             |
| December 1 to December 31, 2008        | 108,000                                     | 0.42                                       | 314,000                                                                                     | 686,000 (6)                                                                                                             |
| January 1 to January 31, 2009          | 57,000                                      | 0.54                                       | 371,000                                                                                     | 629,000 (6)                                                                                                             |
| February 1 to February 28, 2009        | 26,000                                      | 0.59                                       | 397,000                                                                                     | 626,400                                                                                                                 |
| March 1 to March 31, 2009              | 128,500                                     | 0.49                                       | 525,500                                                                                     | 497,900                                                                                                                 |
| April 1 to April 30, 2009              | 61,500                                      | 0.58                                       | 587,000                                                                                     | 436,400                                                                                                                 |
| May 1 to May 31, 2009                  | -                                           | -                                          | -                                                                                           | -                                                                                                                       |
| June 1 to June 30, 2009                | 5,500                                       | 0.56                                       | 592,500                                                                                     | 430,900                                                                                                                 |
| July 1 to July 31, 2009                | 34,000                                      | 0.66                                       | 626,500                                                                                     | 396,900                                                                                                                 |
| August 1 to August 31, 2009            | 32,500                                      | 0.55                                       | 659,000                                                                                     | 364,400                                                                                                                 |
| September 1 to September 30, 2009      | 15,000                                      | 0.68                                       | 674,000                                                                                     | 349,400                                                                                                                 |
| October 1 to October 31, 2009          | 20,000                                      | 0.70                                       | 694,000                                                                                     | 329,400                                                                                                                 |
| November 1, 2009 to February 3, 2011   | -                                           | -                                          | -                                                                                           | -                                                                                                                       |
| February 4 to February 28, 2011        | 5,000                                       | 0.40                                       | 5,000                                                                                       | 2,995,000 (7)                                                                                                           |
| March 1 to March 31, 2011              | -                                           | -                                          | -                                                                                           | -                                                                                                                       |
| April 1 to April 30, 2011              | 41,000                                      | 0.27                                       | 46,000                                                                                      | 2,954,000 (7)                                                                                                           |
| May 1 to May 31, 2011                  | 55,000                                      | 0.27                                       | 101,000                                                                                     | 2,899,000 (7)                                                                                                           |
| June 1 to June 30, 2011                | -                                           | -                                          | -                                                                                           | -                                                                                                                       |
| July 1 to July 31, 2011                | -                                           | -                                          | -                                                                                           | -                                                                                                                       |
| August 1 to August 31, 2011            | -                                           | -                                          | -                                                                                           | -                                                                                                                       |
| September 1 to September 30, 2011      | 24,500                                      | 0.24                                       | 125,500                                                                                     | 2,874,500 (7)                                                                                                           |
| October 1 to October 31, 2011          | 29,500                                      | 0.23                                       | 155,000                                                                                     | 2,845,000 (7)                                                                                                           |
| November 1 to November 30, 2011        | 33,500                                      | 0.26                                       | 188,500                                                                                     | 2,811,500 (7)                                                                                                           |
| December 1 to December 31, 2012        | 80,000                                      | 0.24                                       | 268,500                                                                                     | 2,731,500 (7)                                                                                                           |
| January 1 to January 31, 2012          | 100,000                                     | 0.28                                       | 368,500                                                                                     | 2,631,500 (7) (8)                                                                                                       |

----

| (1)   | On October 5, 2005, we filed a Notice of Intention to Make a Normal Course Issuer Bid with the TSX Venture Exchange advising of our intention to purchase up to 1,000,000 of our common shares at market price through the facilities of the TSX Venture Exchange. This normal course issuer bid is being conducted through Peter N. Phipps at Wellington West Capital Inc. in Halifax, Nova Scotia and expired on October 6, 2006. We totally purchased 349,500 of our common shares pursuant to this normal course issuer bid conducted from October 5, 2005 to October 2006. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | On October 16, 2006, we filed a Notice of Intention to Make a Normal Course Issuer Bid with the TSX Venture Exchange advising of our intention to purchase up to 1,000,000 of our common shares at market price through the facilities of the TSX Venture Exchange. This normal course issuer bid was conducted through Research Capital Corporation, of Vancouver, British Columbia, and was terminated in February 2007. Under this normal course issuer bid, we purchased a total of 688,896 of our common shares. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | On May 18, 2007, we filed a Notice of Intention to Make a Normal Course Issuer Bid with the TSX Venture Exchange advising of our intention to purchase up to 1,000,000 of our common shares at market price through the facilities of the TSX Venture Exchange. This normal course issuer bid, which was conducted through Research Capital Corporation, of Vancouver, British Columbia, has been completely filled as of December 3, 2007. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | On July 12, 2007, we sold 800,000 treasury shares acquired through the provisions of our normal course issuer bid to certain directors at C$1.61 per share (market price) for total proceeds of C$1,288,000. The average cost to us of the treasury shares was C$1.21 per share. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | On March 24, 2008, we renewed our TSX normal course issuer bid allowing us to repurchase a total of 1.5 million of our common shares through the facilities of the TSX Venture Exchange. This normal course issuer bid, which was conducted through Canaccord Capital Corporation, was completely filled as of September 11, 2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | On October 9, 2008, we renewed our TSX normal course issuer bid allowing for the repurchase of up to 1 million of our common shares at market price through the facilities of the TSX Venture Exchange. This TSX normal course issuer bid, which was conducted through Union Securities Ltd., expired on October 8, 2009. Under this normal course issuer bid, we purchased a total of 694,000 of our common shares. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | On February 1, 2011, we obtained approval from the Toronto Stock Exchange to conduct a normal course issuer bid allowing for the repurchase of up to 3 million of our common shares at market price through the facilities of the Toronto Stock Exchange. This normal course issuer bid expired on February 3, 2012. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | On February 16, 2012, we obtained approval from the Toronto Stock Exchange to conduct a normal course issuer bid allowing for the repurchase of up to 3,578,592 of our common shares at market price through the facilities of the Toronto Stock Exchange. This normal course issuer bid commenced on February 21, 2012 and will expire on February 20, 2013. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 16F. Changes in Registrant’s Certifying Accountant

----

ITEM 16G. Corporate Governance

----

PART III

ITEM 17.  Financial Statements

ITEM 18.  Financial Statements

| Independent Auditors’ Report of Deloitte & Touche LLP, Independent Registered Chartered Accountants dated February 29, 2012 | F-1 |
|---------------------------------------------------------------------------------------------------------------------------------------|-----|
| Consolidated balance sheets as of August 31, 2011 and 2010                                                                            | F-2 |
| Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the year ended August 31, 2011, 2010 and 2009            | F-3 |
| Consolidated Statements of Accumulated Other Comprehensive Loss for the year ended August 31, 2011, 2010 and 2009                     | F-4 |
| Consolidated Statements of Shareholders’ Equity for the year ended August 31, 2011, 2010 and 2009                               | F-5 |
| Consolidated Statements of Cash Flows for the year ended August 31, 2011, 2010 and 2009                                               | F-6 |
| Notes to Consolidated Financial Statements                                                                                            | F-7 |

----

----

----

|                                                                        |   | August 31, 2011 |        |   | August 31, 2010 |   |
|-----------------------------------------------------------------------------|--------|-----------------|-------------|--------|-----------------|--------|
|                                                                        |   |            |        |   |            |   |
| ASSETS                                                                      |   |
|                                                                        |   |            |        |   |            |   |
| CURRENT                                                                     |   |            |        |   |            |   |
| Cash and cash equivalents                                                   |   | $               | 6,456,568   |   |            | $      | 11,511,835 |   |
| Restricted cash                                                             |   |            | 250,000     |   |            |   | - |   |
| Accounts receivable (Note 4)                                                |   |            | 8,513,553   |   |            |   | 11,223,894 |   |
| Marketable securities (Note 5)                                              |   |            | -           |   |            |   | 60,000 |   |
| Prepaid expenses and other assets (Note 6)                                  |   |            | 763,469     |   |            |   | 1,197,086 |   |
| Inventory                                                                   |   |            | 593,838     |   |            |   | 530,467 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| TOTAL CURRENT ASSETS                                                        |   |            | 16,577,428  |   |            |   | 24,523,282 |   |
| DUE FROM RELATED PARTIES (Note 23)                                          |   |            | 100,000     |   |            |   | 143,721 |   |
| PROPERTYAND EQUIPMENT (Note 7)                                              |   |            | 2,631,818   |   |            |   | 3,418,853 |   |
| INTANGIBLE ASSETS (Note 8)                                                  |   |            | 10,939,198  |   |            |   | 14,825,117 |   |
| GOODWILL (Note 9)                                                           |   |            | 8,711,791   |   |            |   | 10,999,696 |   |
| DEFERRED OFFERING COSTS (Note 10)                                           |   |            | -           |   |            |   | 400,252 |   |
| FUTURE INCOME TAX ASSETS (Note 17)                                          |   |            | 2,200,199   |   |            |   | 658,417 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| TOTAL ASSETS                                                                |   | $               | 41,160,434  |   |            | $      | 54,969,338 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| LIABILITIES                                                                 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| CURRENT                                                                     |   |            |        |   |            |   |   |   |
| Accounts payable and accrued liabilities (Note 11)                          |   | $               | 4,484,536   |   |            | $      | 5,007,187 |   |
| Income taxes payable                                                        |   |            | 499,905     |   |            |   | 522,921 |   |
| Deferred educational revenue                                                |   |            | 13,881,145  |   |            |   | 17,836,047 |   |
| Capital lease obligations – current portion (Note 12)                 |   |            | 101,765     |   |            |   | 118,098 |   |
| Current portion of long-term debt (Note 12)                                 |   |            | 2,152,492   |   |            |   | 2,757,164 |   |
| Due to related parties (Note 23)                                            |   |            | 59,484      |   |            |   | 118,303 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| TOTAL CURRENT LIABILITIES                                                   |   |            | 21,179,327  |   |            |   | 26,359,720 |   |
|                                                                        |   |            |        |   |            |   |   |   |
|                                                                        |   |            |        |   |            |   |   |   |
| FUTURE INCOME TAX LIABILITIES (Note 17)                                     |   |            | 662,102     |   |            |   | - |   |
|                                                                        |   |            |        |   |            |   |   |   |
| CAPITAL LEASE OBLIGATIONS (Note 12)                                         |   |            | 249,132     |   |            |   | 222,810 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| LONG-TERM DEBT (Note 12)                                                    |   |            | 34,232      |   |            |   | 36,724 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| TOTAL LIABILITIES                                                           |   |            | 22,124,793  |   |            |   | 26,619,254 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| NON-CONTROLLING INTERESTS                                                   |   |            | 1,238,271   |   |            |   | 1,327,126 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| SHAREHOLDERS’ EQUITY                                                  |   |
|                                                                        |   |            |        |   |            |   |   |   |
| SHARE CAPITAL (Note 13)                                                     |   |            | 48,182,766  |   |            |   | 47,709,836 |   |
| CONTRIBUTED SURPLUS                                                         |   |            | 5,354,158   |   |            |   | 5,200,036 |   |
| WARRANTS (Note 13)                                                          |   |            | 334,020     |   |            |   | 63,000 |   |
| TREASURY SHARES HELD (Note 14)                                              |   |            | (3,304,055  | )      |            |   | (3,273,790 | ) |
| ACCUMULATED OTHER COMPREHENSIVE LOSS                                        |   |            | (473,904    | )      |            |   | (471,573 | ) |
| DEFICIT                                                                     |   |            | (32,295,615 | )      |            |   | (22,204,551 | ) |
|                                                                        |   |            |        |   |            |   |   |   |
| RETAINED EARNINGS AND ACCUMULATED OTHER COMPREHENSIVE INCOME                |   |            | (32,769,519 | )      |            |   | (22,676,124 | ) |
| TOTAL SHAREHOLDERS’ EQUITY                                            |   |            | 17,797,370  |   |            |   | 27,022,958 |   |
|                                                                        |   |            |        |   |            |   |   |   |
| TOTAL LIABILITIES, NON-CONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY |   | $               | 41,160,434  |   |            | $      | 54,969,338 |   |

| “Toby Chu”                          |   | “Troy Rice” |
|-------------------------------------------------|--------|-------------------------|
| Toby Chu, Chief Executive Officer &Director |   | Troy Rice, Director     |

----

|                                                                                |   | Year EndedAugust 31, 2011 |        |   | Year EndedAugust 31, 2010 |   |       | Year EndedAugust 31, 2009 |   |
|-------------------------------------------------------------------------------------|--------|---------------------------|-------------|--------|---------------------------|--------|------------|---------------------------|--------|
|                                                                                |   |                      |        |   |                      |   |       |                      |   |
| REVENUES                                                                            |   |                      |        |   |                      |   |       |                      |   |
| Educational                                                                         |   | $                         | 56,665,246  |   |                      | $      | 54,388,128 |                      |   | $ | 43,236,630 |   |
| Design and advertising                                                              |   |                      | 1,909,880   |   |                      |   | 1,566,724  |                      |   |   | 1,314,328 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
|                                                                                |   |                      | 58,575,126  |   |                      |   | 55,954,852 |                      |   |   | 44,550,958 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| DIRECT COSTS                                                                        |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| Educational                                                                         |   |                      | 20,434,332  |   |                      |   | 19,967,244 |                      |   |   | 15,595,946 |   |
| Design and advertising                                                              |   |                      | 996,459     |   |                      |   | 703,058    |                      |   |   | 638,402 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
|                                                                                |   |                      | 21,430,791  |   |                      |   | 20,670,302 |                      |   |   | 16,234,348 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| OTHER EXPENSES                                                                      |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| General and administrative (Note 21)                                                |   |                      | 39,237,013  |   |                      |   | 31,899,806 |                      |   |   | 25,513,613 |   |
| Amortization of property, equipment and intangible assets                           |   |                      | 1,657,575   |   |                      |   | 1,537,277  |                      |   |   | 1,636,761 |   |
| Stock-based compensation                                                            |   |                      | 91,122      |   |                      |   | 232,626    |                      |   |   | 581,098 |   |
| Business development costs                                                          |   |                      | 230,362     |   |                      |   | -          |                      |   |   | - |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
|                                                                                |   |                      | 41,216,072  |   |                      |   | 33,669,709 |                      |   |   | 27,731,472 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
|                                                                                |   |                      | (4,071,737  | )      |                      |   | 1,614,841  |                      |   |   | 585,138 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| INTEREST AND OTHER INCOME                                                           |   |                      | 180,645     |   |                      |   | 207,625    |                      |   |   | 72,255 |   |
| FOREIGN EXCHANGE GAIN (LOSS), NET                                                   |   |                      | 10,771      |   |                      |   | (96,677    | )                         |   |   | 162,537 |   |
| LOSS ON DISPOSAL OF ASSETS                                                          |   |                      | (39,656     | )      |                      |   | (174,516   | )                         |   |   | - |   |
| INTEREST ON LONG-TERM DEBT                                                          |   |                      | (153,656    | )      |                      |   | (92,346    | )                         |   |   | (41,579 | ) |
| IMPAIRMENT OF MARKETABLE SECURITIES (Note 5)                                        |   |                      | (60,000     | )      |                      |   | (127,229   | )                         |   |   | - |   |
| IMPAIRMENT OF LONG-LIVED ASSETS AND GOODWILL                                        |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| (Notes 7, 8 & 9)                                                                |   |                      | (5,897,778  | )      |                      |   | (2,000,000 | )                         |   |   | - |   |
| WRITE-OFF OF DEFERRED OFFERING COSTS (Note 10)                                      |   |                      | (510,711    | )      |                      |   | (200,000   | )                         |   |   | - |   |
| RESTRUCTURING AND INTEGRATION COSTS (Note 16)                                       |   |                      | -           |   |                      |   | (544,500   | )                         |   |   | - |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| LOSS BEFORE INCOME TAXES                                                            |   |                      | (10,542,122 | )      |                      |   | (1,412,802 | )                         |   |   | 778,351 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| INCOME TAX RECOVERY (PROVISION) (Note 17)                                           |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| Current income tax recovery (provision)                                             |   |                      | 14,943      |   |                      |   | (34,969    | )                         |   |   | (116,415 | ) |
| Future income tax recovery                                                          |   |                      | 879,680     |   |                      |   | 2,400,024  |                      |   |   | (168,826 | ) |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
|                                                                                |   |                      | 894,623     |   |                      |   | 2,365,055  |                      |   |   | (285,241 | ) |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| (LOSS) INCOME AFTER INCOME TAXES                                                    |   |                      | (9,647,499  | )      |                      |   | 952,253    |                      |   |   | 493,110 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| NON-CONTROLLING INTERESTS                                                           |   |                      | (443,565    | )      |                      |   | (369,883   | )                         |   |   | (477,103 | ) |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| NET (LOSS) INCOME                                                                   |   | $                         | (10,091,064 | )      |                      | $      | 582,370    |                      |   | $ | 16,007 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| BASIC AND DILUTED (LOSS) EARNINGS PER COMMON SHARE                                  |   | $                         | (0.15       | )      |                      | $      | 0.01       |                      |   | $ | 0.00 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| Basic                                                                               |   |                      | 67,229,127  |   |                      |   | 65,676,811 |                      |   |   | 61,258,923 |   |
| Diluted                                                                             |   |                      | 67,229,127  |   |                      |   | 66,017,145 |                      |   |   | 61,292,967 |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| COMPREHENSIVE (LOSS) INCOME                                                         |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| Net (loss) income                                                                   |   | $                         | (10,091,064 | )      |                      | $      | 582,370    |                      |   | $ | 16,007 |   |
| Other comprehensive (loss) income                                                   |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| Unrealized foreign exchange translation adjustments                                 |   |                      | (2,331      | )      |                      |   | (70,422    | )                         |   |   | (43,827 | ) |
| Reclassification of losses on available-for-sale financial assetsincluded in income |   |                      | -           |   |                      |   | 39,574     |                      |   |   | - |   |
|                                                                                |   |                      |        |   |                      |   |       |                      |   |   |   |   |
| Comprehensive (loss) income                                                         |   | $                         | (10,093,395 | )      |                      | $      | 551,522    |                      |   | $ | (27,820 | ) |

----

|                                                                    |   | Year EndedAugust 31, 2011 |     |   | Year EndedAugust 31, 2010 |   |     | Year EndedAugust 31, 2009 |   |
|-------------------------------------------------------------------------|--------|---------------------------|----------|--------|---------------------------|--------|----------|---------------------------|--------|
|                                                                    |   |                      |     |   |                      |   |     |                      |   |
| ACCUMULATED OTHER COMPREHENSIVE LOSS                                    |   |                      |     |   |                      |   |     |                      |   |
|                                                                    |   |                      |     |   |                      |   |     |                      |   |
| Balance, beginning of year                                              |   | $                         | (471,573 | )      |                      | $      | (440,725 | )                         |   | $ | (396,898 | ) |
| Unrealized translation adjustments                                      |   |                      | (2,331   | )      |                      |   | (70,422  | )                         |   |   | (4,253 | ) |
| Decrease in fair value of available-for-sale financial assets           |   |                      | -        |   |                      |   | -        |                      |   |   | (39,574 | ) |
| Reclassification of losses on available-for-sale financial assets       |   |                      |     |   |                      |   |     |                      |   |   |   |   |
|    to earnings                                                |   |                      | -        |   |                      |   | 39,574   |                      |   |   | - |   |
|                                                                    |   |                      |     |   |                      |   |     |                      |   |   |   |   |
| Balance, end of year                                                    |   | $                         | (473,904 | )      |                      | $      | (471,573 | )                         |   | $ | (440,725 | ) |
|                                                                    |   |                      |     |   |                      |   |     |                      |   |   |   |   |
|                                                                    |   |                      |     |   |                      |   |     |                      |   |   |   |   |
| ENDING BALANCE OF ACCUMULATED OTHER COMPREHENSIVE LOSS IS COMPRISED OF: |   |                      |     |   |                      |   |     |                      |   |   |   |   |
|                                                                    |   |                      |     |   |                      |   |     |                      |   |   |   |   |
| Unrealized translation adjustments                                      |   | $                         | (473,904 | )      |                      | $      | (471,573 | )                         |   | $ | (401,151 | ) |
| Change in fair value of available-for-sale financial assets             |   |                      | -        |   |                      |   | -        |                      |   |   | (39,574 | ) |
|                                                                    |   |                      |     |   |                      |   |     |                      |   |   |   |   |
| Balance, end of year                                                    |   | $                         | (473,904 | )      |                      | $      | (471,573 | )                         |   | $ | (440,725 | ) |

----

|                                                                            |   | Share Capital |       |   |   |   |       |     |   |   |        |   |   | Accumulated |      |   |          |   |       |    |   |
|---------------------------------------------------------------------------------|--------|---------------|------------|--------|--------|--------|------------|----------|--------|--------|-------------|--------|--------|-------------|-----------|--------|---------------|--------|------------|---------|--------|
|                                                                            |   | Number of     |       |   |   |   |       |     |   |   |        |   |   |        |      |   | Other         |   |       |    |   |   |   |   |
|                                                                            |   | Common        |       |   | Dollar |   |       |     |   |   | Surplus     |   |   | Shares      |      |   | Comprehensive |   |       |    |   |   | Total |   |
|                                                                            |   | Shares        |       |   | Amount |   |       | Warrants |   |   | Contributed |   |   | Treasury    |      |   | Income (loss) |   |       | Deficit |   |   | Equity |   |
| Balance, August 31, 2008                                                        |   |          | 64,109,297 |   |   | $      | 44,350,606 |     |   | $      | -           |   |   | $           | 4,363,779 |   |          | $      | (3,948,460 | )       |   | $ | (396,898 | ) |   | $ | (21,874,220 | ) |   | $ | 22,494,807 |   |
| Stock-based compensation                                                        |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | 581,098   |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | 581,098 |   |
| Purchase of treasury shares                                                     |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | (377,031   | )       |   |   | - |   |   |   | - |   |   |   | (377,031 | ) |
| Unrealized translation adjustments                                              |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | (4,253 | ) |   |   | - |   |   |   | (4,253 | ) |
| Change in fair value of available-for-sale financial assets                     |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | (39,574 | ) |   |   | - |   |   |   | (39,574 | ) |
| Charges on share purchase warrant extension                                     |   |          | -          |   |   |   | -          |     |   |   | 648,600     |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | (648,600 | ) |   |   | - |   |
| Net income for the year                                                         |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | 16,007 |   |   |   | 16,007 |   |
|                                                                            |   |          |       |   |   |   |       |     |   |   |        |   |   |        |      |   |          |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2009                                                        |   |          | 64,109,297 |   |   |   | 44,350,606 |     |   |   | 648,600     |   |   |        | 4,944,877 |   |          |   | (4,325,491 | )       |   |   | (440,725 | ) |   |   | (22,506,813 | ) |   |   | 22,671,054 |   |
| Stock-based compensation                                                        |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | 232,626   |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | 232,626 |   |
| Reclassification of agent’s warrants                                      |   |          | -          |   |   |   | -          |     |   |   | 153,675     |   |   |        | (153,675  | )      |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase of treasury shares                                                     |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | (29,674    | )       |   |   | - |   |   |   | - |   |   |   | (29,674 | ) |
| Treasury shares sold during the year                                            |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | (501,267  | )      |          |   | 1,081,375  |    |   |   | - |   |   |   | (280,108 | ) |   |   | 300,000 |   |
| Shares issued for private placement, net of issue costs of $206,270             |   |          | 4,726,714  |   |   |   | 3,039,430  |     |   |   | 63,000      |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | 3,102,430 |   |
| Shares issued for cash by exercise of options                                   |   |          | 390,000    |   |   |   | 319,800    |     |   |   | -           |   |   |        | (124,800  | )      |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | 195,000 |   |
| Warrants reclassified on expiry                                                 |   |          | -          |   |   |   | -          |     |   |   | (802,275    | )      |   |        | 802,275   |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | - |   |
| Unrealized translation adjustments                                              |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | (70,422 | ) |   |   | - |   |   |   | (70,422 | ) |
| Reclassification of losses on available-for-sale financial assets to earnings   |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | 39,574 |   |   |   | - |   |   |   | 39,574 |   |
| Net income for the year                                                         |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | 582,370 |   |   |   | 582,370 |   |
|                                                                            |   |          |       |   |   |   |       |     |   |   |        |   |   |        |      |   |          |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2010                                                        |   |          | 69,226,011 |   |   |   | 47,709,836 |     |   |   | 63,000      |   |   |        | 5,200,036 |   |          |   | (3,273,790 | )       |   |   | (471,573 | ) |   |   | (22,204,551 | ) |   |   | 27,022,958 |   |
| Stock-based compensation                                                        |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | 91,122    |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | 91,122 |   |
| Warrants reclassified on expiry                                                 |   |          | -          |   |   |   | -          |     |   |   | (63,000     | )      |   |        | 63,000    |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase of treasury shares                                                     |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | (30,265    | )       |   |   | - |   |   |   | - |   |   |   | (30,265 | ) |
| Unrealized translation adjustments                                              |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | (2,331 | ) |   |   | - |   |   |   | (2,331 | ) |
| Shares and warrants issued for private placement, net of issue costs of $10,050 |   |          | 2,723,333  |   |   |   | 476,950    |     |   |   | 330,000     |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | 806,950 |   |
|                                                                            |   |          |       |   |   |   |       |     |   |   |        |   |   |        |      |   |          |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of agent’s warrants for private placement                      |   |          | -          |   |   |   | (4,020     | )        |   |   | 4,020       |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | - |   |   |   | - |   |
| Net loss for the year                                                           |   |          | -          |   |   |   | -          |     |   |   | -           |   |   |        | -         |   |          |   | -          |    |   |   | - |   |   |   | (10,091,064 | ) |   |   | (10,091,064 | ) |
|                                                                            |   |          |       |   |   |   |       |     |   |   |        |   |   |        |      |   |          |   |       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2011                                                        |   |          | 71,949,344 |   |   | $      | 48,182,766 |     |   | $      | 334,020     |   |   | $           | 5,354,158 |   |          | $      | (3,304,055 | )       |   | $ | (473,904 | ) |   | $ | (32,295,615 | ) |   | $ | 17,797,370 |   |

----

|                                                                          |   | Year EndedAugust 31, 2011 |        |    | Year EndedAugust 31, 2010 |   |       | Year EndedAugust 31, 2009 |   |
|-------------------------------------------------------------------------------|--------|---------------------------|-------------|---------|---------------------------|--------|------------|---------------------------|--------|
|                                                                          |   |                      |        |    |                      |   |       |                      |   |
| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES                                |   |                      |        |    |                      |   |       |                      |   |
| Net (loss) income                                                             |   | $                         | (10,091,064 | )       |                      | $      | 582,370    |                      |   | $ | 16,007 |   |
| Adjusted for items not involving cash:                                        |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| - amortization of property, equipment and intangible assets                   |   |                      | 1,657,575   |    |                      |   | 1,537,277  |                      |   |   | 1,636,761 |   |
| - stock-based compensation                                                    |   |                      | 91,122      |    |                      |   | 232,626    |                      |   |   | 581,098 |   |
| - amortization of deferred curriculum costs                                   |   |                      | -           |    |                      |   | 295,903    |                      |   |   | 41,816 |   |
| - future income tax recovery                                                  |   |                      | (879,680    | )       |                      |   | (2,400,024 | )                         |   |   | 168,826 |   |
| - loss on disposal of assets, net                                             |   |                      | 39,656      |    |                      |   | 174,516    |                      |   |   | - |   |
| - impairment of marketable securities                                         |   |                      | 60,000      |    |                      |   | 127,229    |                      |   |   | - |   |
| - impairment of long-lived assets and goodwill                                |   |                      | 5,897,778   |    |                      |   | 2,000,000  |                      |   |   | - |   |
| - write-off of deferred offering costs                                        |   |                      | 510,711     |    |                      |   | 200,000    |                      |   |   | - |   |
| - non-controlling interests                                                   |   |                      | 443,565     |    |                      |   | 369,883    |                      |   |   | 477,103 |   |
|       - Advances from related parties           |   |                      | (58,819     | )  |                      |   | -          |                      |   |   | - |   |
| Net changes in non-cash working capital items (Note 22)                       |   |                      | (1,251,979  | )       |                      |   | (1,091,831 | )                         |   |   | (591,716 | ) |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| NET CASH FROM (USED IN) OPERATING ACTIVITIES                                  |   |                      | (3,581,135  | )       |                      |   | 2,027,949  |                      |   |   | 2,329,895 |   |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES                                |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| Purchases of property and equipment                                           |   |                      | (488,247    | )       |                      |   | (672,645   | )                         |   |   | (753,097 | ) |
| Acquisition of net assets of business entities, net of cash acquired (Note 3) |   |                      | (50,000     | )       |                      |   | (4,973,148 | )                         |   |   | (675,434 | ) |
| Curriculum development costs                                                  |   |                      | (65,041     | )       |                      |   | (106,454   | )                         |   |   | (138,543 | ) |
| Restricted cash                                                               |   |                      | (250,000    | )       |                      |   | -          |                      |   |   | - |   |
| Disposal of controlling interest in AIMI, net of cash received (Note 3(b))    |   |                      | -           |    |                      |   | -          |                      |   |   | (401,980 | ) |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                         |   |                      | (853,288    | )       |                      |   | (5,752,247 | )                         |   |   | (1,969,054 | ) |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES                                |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| Proceeds from issuance of shares and warrants, net of issue costs             |   |                      | 806,950     |    |                      |   | 3,297,430  |                      |   |   | - |   |
| Purchase of treasury shares                                                   |   |                      | (30,265     | )       |                      |   | (29,674    | )                         |   |   | (377,031 | ) |
| Advances to related parties                                                   |   |                      | 43,721      |    |                      |   | 19         |                      |   |   | (82,919 | ) |
| Non-controlling interest draws                                                |   |                      | (505,934    | )       |                      |   | (217,434   | )                         |   |   | (60,000 | ) |
| Capital Lease obligation repayments                                           |   |                      | (105,753    | )       |                      |   | (85,190    | )                         |   |   | (56,939 | ) |
| Loan principal repayments                                                     |   |                      | (607,164    | )       |                      |   | (432,551   | )                         |   |   | (366,990 | ) |
| Loan principal advances                                                       |   |                      | -           |    |                      |   | 3,000,000  |                      |   |   | - |   |
| Deferred offering costs                                                       |   |                      | (171,820    | )       |                      |   | (538,891   | )                         |   |   | - |   |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| NET CASH FROM (USED IN) FINANCING ACTIVITIES                                  |   |                      | (570,265    | )       |                      |   | 4,993,709  |                      |   |   | (943,879 | )  |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS                  |   |                      | (50,579     | )       |                      |   | (94,704    | )                         |   |   | (12,571 | ) |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| NET (DECREASE) INCREASE IN CASH                                               |   |                      | (5,055,267  | )       |                      |   | 1,174,707  |                      |   |   | (595,609 | )  |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                                  |   |                      | 11,511,835  |    |                      |   | 10,337,128 |                      |   |   | 10,932,737 |   |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| CASH AND CASH EQUIVALENTS, END OF YEAR                                        |   | $                         | 6,456,568   |    |                      | $      | 11,511,835 |                      |   | $ | 10,337,128 |   |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| CASH AND CASH EQUIVALENTS:                                                    |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| Cash in bank                                                                  |   | $                         | 5,381,795   |    |                      | $      | 10,893,807 |                      |   | $ | 9,587,586 |   |
| Term deposits                                                                 |   |                      | 1,074,773   |    |                      |   | 618,028    |                      |   |   | 749,542 |   |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
|                                                                          |   | $                         | 6,456,568   |    |                      | $      | 11,511,835 |                      |   | $ | 10,337,128 |   |
|                                                                          |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                           |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| Interest paid                                                                 |   | $                         | 164,896     |    |                      | $      | 71,937     |                      |   | $ | 49,237 |   |
| Income taxes paid                                                             |   | $                         | 14,549      |    |                      | $      | 8,139      |                      |   | $ | 31,198 |   |

----

----

----

----

----

----

----

| ● | Leasehold improvements – straight-line over the lesser of five years and remaining lease term; |
|---------|------------------------------------------------------------------------------------------------------|

| ● | Furniture and equipment – 20% declining balance; |
|---------|--------------------------------------------------------|

| ● | Computer equipment – 20% - 30% declining balance. |
|---------|---------------------------------------------------------|

----

----

----

| (a)  | Educational programs and services |
|-----------|-----------------------------------|

|   | The educational programs and services consist of tuition fee (net of discounts) on course offerings by CIBT, SSDC and KGIC. Tuition is generally paid in advance and is initially recorded as deferred revenue. Tuition revenue for educational programs and services is recognized proportionately as the instructions are delivered, and is reported net of scholarships, business taxes and related surcharges, and tuition refunds. Students are entitled to a short term course trial period which commences on the date the course begins. Tuition refunds are provided to students if they decide within the trial period that they no longer want to take the course. Tuition refunds have been insignificant in fiscal years. After the trial period, if a student withdraws from a class, usually no refunds will be provided and any collected but unearned portion of the fee is recognized at that time. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | Revenue sharing arrangement with education service providers |
|-----------|--------------------------------------------------------------|

|   | One of the Company’s subsidiaries, CIBT, has entered into numerous educational delivery agreements with various educational service providers whereby a portion of the tuition fees, net of discounts, are paid to these educational service providers for the provision of facilities and/or teaching staff. For the majority of these revenue sharing arrangements, CIBT is considered the primary obligor and accordingly records the tuition fee revenues on a gross basis and the portion paid to the educational service providers is included in direct educational costs. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Balance sheet item                       | Classification        | Measurement basis |
|------------------------------------------|-----------------------|-------------------|
|                                     |                  |              |
| Cash and cash equivalents                | Held-for-trading      | Fair value        |
| Restricted cash                          | Held-for-trading      | Fair value        |
| Marketable securities                    | Available-for-sale    | Fair value        |
| Accounts receivable                      | Loans and receivables | Amortized cost    |
| Due from related parties                 | Loans and receivables | Amortized cost    |
| Accounts payable and accrued liabilities | Other liabilities     | Amortized cost    |
| Long-term debt                           | Other liabilities     | Amortized cost    |
| Due to related parties                   | Other liabilities     | Amortized cost    |

| ● | For financial assets or liabilities classified as held for trading, all transaction costs are immediately charged to operations. |
|---------|----------------------------------------------------------------------------------------------------------------------------------|

| ● | For all other financial assets or liabilities, all transactions costs are added to the carrying amount on initial classification. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Subsidiary / division                                  |   | Non-controlling interest % |   |
|--------------------------------------------------------|--------|----------------------------|--------|
|                                                   |   |                       |   |
| Beihai College                                         |   |                       | 40.00  | % |
| Sprott-Shaw Degree College Corp. – Surrey Campus |   |                       | 33.33  | % |
| Irix Design Group Inc.                                 |   |                       | 49.00  | % |
|                                                   |   |                       |   |   |

----

| a)  | KGIC Language College Corp. |
|----------|-----------------------------|

----

----

----

| a)  | KGIC Language College Corp. (cont’d) |
|----------|--------------------------------------------|

| (a)   | up to $958,905 in cash if the net revenue of the KGIC Business exceeds $16,109,588 and the EBITDA of the KGIC Business exceeds $1,284,930 for the period March 16, 2010 to February 28, 2011, such amount to be calculated according to a formula which is based upon the excess; |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | up to $958,905 in value of the Company’s shares if the net revenue of the KGIC Business exceeds $16,109,588 and the EBITDA of the KGIC Business exceeds $1,284,930 for the period March 16, 2010 to February 28, 2011, such amount to be calculated according to a formula which is based upon the excess; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | up to $1,000,000 in cash if the net revenue of the KGIC Business exceeds $18,200,000 and the EBITDA of the KGIC Business exceeds $2,000,000 for the period March 1, 2011 to February 29, 2012, such amount to be calculated according to a formula which is based upon the excess; and |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | up to $1,000,000 in cash if the net revenue of the KGIC Business exceeds $23,000,000 and the EBITDA of the KGIC Business exceeds $3,450,000 for the period March 1, 2012 to February 28, 2013, such amount to be calculated according to a formula which is based upon the excess. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                          |   | Fair Value ofAssets Acquired |       |
|-----------------------------------------------|--------|------------------------------|------------|
|                                          |   |                         |       |
| Cash                                          |   | $                            | 19,744     |   |
| Accounts receivable                           |   |                         | 809,750    |   |
| Inventory                                     |   |                         | 110,620    |   |
| Prepaids and other current assets             |   |                         | 258,872    |   |
| Property and equipment                        |   |                         | 352,089    |   |
| Intangible assets subject to amortization     |   |                         | 1,610,000  |   |
| Intangible assets not subject to amortization |   |                         | 1,230,000  |   |
| Goodwill                                      |   |                         | 3,542,488  |   |
| Accounts payable and accrued liabilities      |   |                         | (361,562   | ) |
| Deferred revenue                              |   |                         | (3,475,442 | ) |
|                                          |   |                         |       |   |
| Net assets acquired equal to purchase price   |   | $                            | 4,096,559  |   |

| Consideration comprised of: |   |   |      |
|-----------------------------|--------|--------|-----------|
| Cash                        |   | $      | 3,817,497 |   |
| Acquisition costs           |   |   | 279,062   |   |
|                        |   |   |      |   |
| Total consideration         |   | $      | 4,096,559 |   |

| b)  | Asia Interactive Media Inc. |
|----------|-----------------------------|

----

----

----

| c)  | Sprott-Shaw Degree College Corp. |
|----------|----------------------------------|

| d)  | Concordia Career College / Modus International Language Institute |
|----------|-------------------------------------------------------------------|

----

|                                      |   | August 31, 2011 |      |   | August 31, 2010 |   |
|-------------------------------------------|--------|-----------------|-----------|--------|-----------------|--------|
|                                      |   |            |      |   |            |   |
| Trade receivables                         |   | $               | 9,427,911 |   |            | $      | 10,759,227 |   |
| Less: allowance for bad debts             |   |            | (914,358  | )      |            |   | (451,691 | ) |
| KGIC purchase price adjustment receivable |   |            | -         |   |            |   | 700,000 |   |
| Other                                     |   |            | -         |   |            |   | 216,358 |   |
|                                      |   |            |      |   |            |   |   |   |
|                                      |   | $               | 8,513,553 |   |            | $      | 11,223,894 |   |

|                        |   | August 31, 2011 |       |   | August 31, 2010 |   |
|-----------------------------|--------|-----------------|------------|--------|-----------------|--------|
|                        |   |            |       |   |            |   |
| Beginning balance           |   | $               | (451,691   | )      |            | $      | (371,430 | ) |
| Charge during the year      |   |            | (1,243,943 | )      |            |   | (778,569 | ) |
| Written-off during the year |   |            | 781,276    |   |            |   | 698,308 |   |
|                        |   |            |       |   |            |   |   |   |
| Ending balance              |   | $               | (914,358   | )      |            | $      | (451,691 | ) |

----

----

----

|                          |   | August 31, 2011    |      |   | August 31, 2010   |   |
|-------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                          |   |               |      |   |              |   |   |   |   |   |   |   |
|                          |   | Number of Shares   |      |   | Carrying Value    |   |   | Number of Shares |   |   | Carrying Value |   |
|                          |   |               |      |   |              |   |   |   |   |   |   |   |
| Available-for-sale securities |   |               | 5,862,824 |   |              | $      | - |   |   |   | 5,862,824 |   |   | $ | 60,000 |   |
|                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |               | 5,862,824 |   |              | $      | - |   |   |   | 5,862,824 |   |   | $ | 60,000 |   |
|                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Market price                  |   | US$0.00 per share* |      |   | US$0.01 per share |   |

----

|                                        |   | August 31, 2011 |    |   | August 31, 2010 |   |
|---------------------------------------------|--------|-----------------|---------|--------|-----------------|--------|
|                                        |   |            |    |   |            |   |
| Prepaid expenses and deposits               |   | $               | 739,231 |   |            | $      | 1,087,743 |   |
| Tuition fees held by Far Eastern University |   |            | 24,238  |   |            |   | 109,343 |   |
|                                        |   |            |    |   |            |   |   |   |
|                                        |   | $               | 763,469 |   |            | $      | 1,197,086 |   |

----

|                                                     |   | August 31, 2011 |       |   | August 31, 2010 |   |
|----------------------------------------------------------|--------|-----------------|------------|--------|-----------------|--------|
|                                                     |   |            |       |   |            |   |
| Furniture and equipment                                  |   | $               | 3,463,814  |   |            | $      | 3,725,295 |   |
| Leasehold improvements                                   |   |            | 1,827,167  |   |            |   | 2,805,483 |   |
| Equipment under capital lease                            |   |            | 562,096    |   |            |   | 524,524 |   |
|                                                     |   |            |       |   |            |   |   |   |
|                                                     |   |            | 5,853,077  |   |            |   | 7,055,302 |   |
|                                                     |   |            |       |   |            |   |   |   |
| Accumulated amortization - furniture and equipment       |   |            | (1,846,620 | )      |            |   | (1,795,625 | ) |
| Accumulated amortization - leasehold improvements        |   |            | (1,150,592 | )      |            |   | (1,634,967 | ) |
| Accumulated amortization - equipment under capital lease |   |            | (224,047   | )      |            |   | (205,857 | ) |
|                                                     |   |            |       |   |            |   |   |   |
|                                                     |   |            | (3,221,259 | )      |            |   | (3,636,449 | ) |
|                                                     |   |            |       |   |            |   |   |   |
|                                                     |   | $               | 2,631,818  |   |            | $      | 3,418,853 |   |

----

----

----

|     |   | Straight-line Basis |   |   | Declining Balance Basis |                   |
|----------|--------|---------------------|--------|--------|-------------------------|------------------------|
|     |   |                |   |   |                    |                   |
|     |   | Amortization        |   | Length |                    | Residual Buyout Amount |   |   |  Amortization |   |   | Declining Rate |   |   | Residual Buyout Amount |   |
|     |   |                |   |   |                    |                   |   |   |   |   |   |   |   |   |   |   |
| IRIX (a) |   | $                   | 88,213 |   | 60 months               |                   | $ | 44,341 |   |   | $ | 21,300 |   |   |   | 20 | % |   | $ | 2 |   |
| SSDC (b) |   |                |   |   |                    |                   |   |   |   |   | $ | 408,243 |   |   |   | 20 | % |   | $ | 1,500 |   |

| a)   | Included in accumulated amortization as at August 31, 2011 is $24,717 (2010:  $78,599; 2009:  $60,353) relating to equipment under capital leases. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | Included in amortization expense for the current period is $60,075 (2010:  $72,540; 2009:  $58,131) relating to equipment under capital leases and included in accumulated amortization as at August 31, 2011 is $199,330 (2010:  $127,258; 2009:  $106,082) relating to equipment under capital leases. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                   |   |   |      | August 31, 2011 |         |   |       |
|----------------------------------------|--------|--------|-----------|-----------------|--------------|--------|------------|
| Amounts                                |   |   |      |            | Accumulated  |   |       | Carrying |   |
|                                   |   | Cost   |      |            | Amortization |   |       | Value |   |
|                                   |   |   |      |            |         |   |       |   |   |
| Intangible assets with finite life     |   |   |      |            |         |   |       |   |   |
|                                   |   |   |      |            |         |   |       |   |   |
| Beginning balance                      |   | $      | 5,529,047 |            |         | $      | (2,238,270 | ) |   | $ | 3,290,777 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Additions during the current year      |   |   | 65,041    |            |         |   | (467,178   | ) |   |   | (402,137 | ) |
| Foreign exchange adjustments           |   |   | (3,226    | )               |         |   | 791        |   |   |   | (2,435 | ) |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Ending balance                         |   | $      | 5,590,862 |            |         | $      | (2,704,657 | ) |   |   | 2,886,205 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Intangible assets with indefinite life |   |   |      |            |         |   |       |   |   |   |   |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Beginning balance                      |   |   |      |            |         |   |       |   |   |   | 11,534,340 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Impairments during the current year    |   |   |      |            |         |   |       |   |   |   | (3,481,347 | ) |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Ending balance                         |   |   |      |            |         |   |       |   |   |   | 8,052,993 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Total intangible assets                |   |   |      |            |         |   |       |   |   | $ | 10,939,198 |   |

|                                   |   |   |      | August 31, 2010 |         |   |       |
|----------------------------------------|--------|--------|-----------|-----------------|--------------|--------|------------|
| Amounts                                |   |   |      |            | Accumulated  |   |       | Carrying |   |
|                                   |   | Cost   |      |            | Amortization |   |       | Value |   |
|                                   |   |   |      |            |         |   |       |   |   |
| Intangible assets with finite life     |   |   |      |            |         |   |       |   |   |
|                                   |   |   |      |            |         |   |       |   |   |
| Beginning balance                      |   | $      | 4,323,588 |            |         | $      | (1,837,909 | ) |   | $ | 2,485,679 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Additions during the current year      |   |   | 1,230,000 |            |         |   | (406,022   | ) |   |   | 823,978 |   |
| Foreign exchange adjustments           |   |   | (24,541   | )               |         |   | 5,661      |   |   |   | (18,880 | ) |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Ending balance                         |   | $      | 5,529,047 |            |         | $      | (2,238,270 | ) |   |   | 3,290,777 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Intangible assets with indefinite life |   |   |      |            |         |   |       |   |   |   |   |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Beginning balance                      |   |   |      |            |         |   |       |   |   |   | 11,924,340 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Additions during the current year      |   |   |      |            |         |   |       |   |   |   | 1,610,000 |   |
| Impairments during the current year    |   |   |      |            |         |   |       |   |   |   | (2,000,000 | ) |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Ending balance                         |   |   |      |            |         |   |       |   |   |   | 11,534,340 |   |
|                                   |   |   |      |            |         |   |       |   |   |   |   |   |
| Total intangible assets                |   |   |      |            |         |   |       |   |   | $ | 14,825,117 |   |

----

----

----

|                                                 |   | August 31, 2011 |      |
|------------------------------------------------------|--------|-----------------|-----------|
| Amounts                                              |   |            |      |   | Accumulated |   |   | Carrying |   |
|                                                 |   | Cost            |      |   | Amortization |   |   | Value |   |
|                                                 |   |            |      |   |   |   |   |   |   |
| Intangible assets with finite life                   |   |            |      |   |   |   |   |   |   |
|                                                 |   |            |      |   |   |   |   |   |   |
| Agreements and contracts – curriculum access   |   | $               | 348,333   |   |   | $ | (267,966 | ) |   | $ | 80,367 |   |
| Acquired curriculum                                  |   |            | 2,912,000 |   |   |   | (624,000 | ) |   |   | 2,288,000 |   |
| Internally developed curriculum                      |   |            | 65,041    |   |   |   | (550 | ) |   |   | 64,491 |   |
| Foreign university cooperative agreements and others |   |            | 2,265,488 |   |   |   | (1,812,141 | ) |   |   | 453,347 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                 |   | $               | 5,590,862 |   |   | $ | (2,704,657 | ) |   | $ | 2,886,205 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
| Intangible assets with indefinite life               |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
| Accreditations and registrations                     |   |            |      |   |   |   |   |   |   | $ | 2,706,000 |   |
| Brand and trade names                                |   |            |      |   |   |   |   |   |   |   | 4,886,000 |   |
| Chinese university agreements and contracts          |   |            |      |   |   |   |   |   |   |   | 460,993 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                 |   |            |      |   |   |   |   |   |   | $ | 8,052,993 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
| Total intangible assets                              |   |            |      |   |   |   |   |   |   | $ | 10,939,198 |   |

|                                                 |   | August 31, 2010 |      |
|------------------------------------------------------|--------|-----------------|-----------|
| Amounts                                              |   |            |      |   | Accumulated |   |   | Carrying |   |
|                                                 |   | Cost            |      |   | Amortization |   |   | Value |   |
|                                                 |   |            |      |   |   |   |   |   |   |
| Intangible assets subject with finite life           |   |            |      |   |   |   |   |   |   |
|                                                 |   |            |      |   |   |   |   |   |   |
| Agreements and contracts – curriculum access   |   | $               | 348,333   |   |   | $ | (203,813 | ) |   | $ | 144,520 |   |
| Internally developed curriculum                      |   |            | 2,912,000 |   |   |   | (400,800 | ) |   |   | 2,511,200 |   |
| Foreign university cooperative agreements and others |   |            | 2,268,714 |   |   |   | (1,633,657 | ) |   |   | 635,057 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                 |   | $               | 5,529,047 |   |   | $ | (2,238,270 | ) |   | $ | 3,290,777 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
| Intangible assets with indefinite life               |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
| Accreditations and registrations                     |   |            |      |   |   |   |   |   |   | $ | 2,706,000 |   |
| Brand and trade names                                |   |            |      |   |   |   |   |   |   |   | 4,886,000 |   |
| Chinese university agreements and contracts          |   |            |      |   |   |   |   |   |   |   | 3,942,340 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                 |   |            |      |   |   |   |   |   |   | $ | 11,534,340 |   |
|                                                 |   |            |      |   |   |   |   |   |   |   |   |   |
| Total intangible assets                              |   |            |      |   |   |   |   |   |   | $ | 14,825,117 |   |

----

----

----

----

|                        |   | August 31, 2011 |       |   | August 31, 2010 |   |
|-----------------------------|--------|-----------------|------------|--------|-----------------|--------|
|                        |   |            |       |   |            |   |
| Beginning balance           |   | $               | 10,999,696 |   |            | $      | 7,010,875 |   |
| Additions during the year   |   |            | -          |   |            |   | 3,988,821 |   |
| Impairments during the year |   |            | (2,287,905 | )      |            |   | - |   |
|                        |   |            |       |   |            |   |   |   |
| Ending balance              |   | $               | 8,711,791  |   |            | $      | 10,999,696 |   |

----

|                      |   | August 31, 2011 |     |   | August 31, 2010 |   |
|---------------------------|--------|-----------------|----------|--------|-----------------|--------|
|                      |   |            |     |   |            |   |
| Beginning balance         |   | $               | 400,252  |   |            | $      | - |   |
| Additions during the year |   |            | 110,459  |   |            |   | 600,252 |   |
| Expensed during the year  |   |            | (510,711 | )      |            |   | (200,000 | ) |
|                      |   |            |     |   |            |   |   |   |
| Ending balance            |   | $               | -        |   |            | $      | 400,252 |   |

----

----

----

|                            |   | August 31, 2011 |      |   | August 31, 2010 |   |
|---------------------------------|--------|-----------------|-----------|--------|-----------------|--------|
|                            |   |            |      |   |            |   |
| Trade accounts payable          |   | $               | 2,554,757 |   |            | $      | 2,704,039 |   |
| Payroll and related liabilities |   |            | 1,509,262 |   |            |   | 1,579,398 |   |
| Purchase price payable          |   |            | -         |   |            |   | 436,333 |   |
| Tuition fees and grants payable |   |            | 215,518   |   |            |   | 74,017 |   |
| Others                          |   |            | 204,999   |   |            |   | 213,400 |   |
|                            |   |            |      |   |            |   |   |   |
|                            |   | $               | 4,484,536 |   |            | $      | 5,007,187 |   |

----

| Demand term instalment loan, payable in monthly instalments of $50,000 plus interest atthe prime rate plus 2% |   | $      | 2,750,000  |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
| Promissory note payable at $460 per month including interest at 8.5% per annum,unsecured, due October 2013    |   |   | 39,013     |   |
| Promissory note payable at $505 per month including interest at 8% per annum, unsecured,due June 2011         |   |   | 4,875      |   |
|                                                                                                          |   |   | 2,793,888  |   |
| Less: current portion                                                                                         |   |   | (2,757,164 | )      |
|                                                                                                          |   |   |       |   |
| Balance at August 31, 2010                                                                                    |   | $      | 36,724     |   |
|                                                                                                          |   |   |       |   |
| Demand term instalment loan, payable in monthly instalments of $50,000 plus interest atthe prime rate plus 2% |   | $      | 2,150,000  |   |
|                                                                                                          |   |   |       |   |
| Promissory note payable at $460 per month including interest at 8.5% per annum,unsecured, due October 2013    |   |   | 36,724     |   |
|                                                                                                          |   |   |       |   |
|                                                                                                          |   |   | 2,186,724  |   |
| Less: current portion                                                                                         |   |   | (2,152,492 | )      |
|                                                                                                          |   |   |       |   |
| Balance at August 31, 2011                                                                                    |   | $      | 34,232     |   |

| ●   | first priority security interest in the assets of SSDC |
|---------------------|--------------------------------------------------------|

| ●   | assignment of fire and perils insurance on the property of SSDC |
|---------------------|-----------------------------------------------------------------|

| ●   | guarantee from KGIC on the bank indebtedness of SSDC |
|---------------------|------------------------------------------------------|

| ●   | postponement of claims from the Company on advances to SSDC |
|---------------------|-------------------------------------------------------------|

| ●   | the senior debt to earnings before interest, taxes, depreciation and amortization not to exceed 1.75 to 1.0 at any time |
|---------------------|-------------------------------------------------------------------------------------------------------------------------|

| ●   | the adjusted current ratio is not less than 1.75 to 1.0 at any time |
|---------------------|---------------------------------------------------------------------|

| ●   | the adjusted fixed charge coverage ratio is not less than 1.2 to 1.0 at any time |
|---------------------|----------------------------------------------------------------------------------|

----

----

----

| For the years ending August 31, | 2012   |   | $      | 552,492   |   |
|---------------------------------|--------|--------|--------|-----------|--------|
|                            | 2013   |   |   | 602,712   |   |
|                            | 2014   |   |   | 631,520   |   |
|                            | 2015   |   |   | 400,000   |   |
|                            | 2016   |   |   | -         |   |
|                            |   |   |   |      |   |
|                            |   |   | $      | 2,186,724 |   |

| For the years ending August 31,    | 2012   |   | $      | 133,068  |   |
|------------------------------------|--------|--------|--------|----------|--------|
|                               | 2013   |   |   | 107,227  |   |
|                               | 2014   |   |   | 101,963  |   |
|                               | 2015   |   |   | 27,836   |   |
|                               | 2016   |   |   | 52,819   |   |
|                               |   |   |   |     |   |
|                               |   |   |   | 422,913  |   |
| Less: amount representing interest |   |   |   | (72,016  | )      |
|                               |   |   |   |     |   |
|                               |   |   |   | 350,897  |   |
| Less: current portion              |   |   |   | (101,765 | )      |
|                               |   |   |   |     |   |
|                               |   |   | $      | 249,132  |   |

----

|                                                           |   | Number |       |   | Value  |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Issued and outstanding                                         |   |   |       |   |   |   |
|                                                           |   |   |       |   |   |   |
| Balance at August 31, 2009                                     |   |   | 64,109,297 |   |   | $      | 44,350,606 |   |
|                                                           |   |   |       |   |   |   |   |   |
| - for private placement at $0.70 per share                     |   |   | 4,726,714  |   |   |   | 3,308,700 |   |
| - fees and commissions for private placement                   |   |   | -          |   |   |   | (206,270 | ) |
| - fair value of agent’s warrants for private placement   |   |   | -          |   |   |   | (63,000 | ) |
| - for cash by exercise of options at $0.50 per share           |   |   | 390,000    |   |   |   | 195,000 |   |
| - contributed surplus reallocated on exercise of stock options |   |   | -          |   |   |   | 124,800 |   |
|                                                           |   |   |       |   |   |   |   |   |
| Balance at August 31, 2010                                     |   |   | 69,226,011 |   |   |   | 47,709,836 |   |
|                                                           |   |   |       |   |   |   |   |   |
| - for private placement at $0.30 per share                     |   |   | 2,723,333  |   |   |   | 817,000 |   |
| - fees and commissions for private placement                   |   |   | -          |   |   |   | (10,050 | ) |
| - fair value of warrants for private placement                 |   |   | -          |   |   |   | (330,000 | ) |
| - fair value of agent’s warrants for private placement   |   |   | -          |   |   |   | (4,020 | ) |
|                                                           |   |   |       |   |   |   |   |   |
| Balance at August 31, 2011                                     |   |   | 71,949,344 |   |   | $      | 48,182,766 |   |

----

----

----

|                     | Number of Warrants | Weighted Average Exercise Price ($) | Weighted Average Remaining Life |
|--------------------------|--------------------|-------------------------------------|---------------------------------|
|                     |               |                                |                            |
| Balance, August 31, 2009 | 5,211,919     | 1.43                                | 0.38 years                      |
|                     |               |                                |                            |
| - warrants issued        | 210,000       | 0.70                                |                            |
| - warrants expired       | (5,211,919)        | 1.43                                |                            |
|                     |               |                                |                            |
| Balance, August 31, 2010 | 210,000       | 0.70                                | 0.18 years                      |
|                     |               |                                |                            |
| - warrants issued        | 2,756,833     | 0.35                                |                            |
| - warrants expired       | (210,000)          | 0.70                                |                            |
|                     |               |                                |                            |
| Balance, August 31, 2011 | 2,756,833     | 0.35                                | 2.84 years                      |

----

----

----

|  Number of Warrants |  Exercise Price |  Expiry Date | RemainingContractual Life |
|--------------------------|----------------------|-------------------|---------------------------|
|                     |                 |              |                      |
| 1,723,500                | $0.35                | June 29, 2014     | 2.83 years                |
| 1,033,333                | $0.35                | July 11, 2014     | 2.86 years                |
|                     |                 |              |                      |
| 2,756,833                |                 |              |                      |

|                    | August 31, 2011 | August 31, 2010 | August 31, 2009 |
|-------------------------|-----------------|-----------------|-----------------|
|                    |            |            |            |
| Exercise price          | $0.35           | $0.70           | $1.43           |
| Expected dividend yield | 0.00%           | 0.00%           | 0.00%           |
| Expected volatility     | 79.6%           | 82.9%           | 42.8%           |
| Risk-free interest rate | 1.86%           | 0.57%           | 3.64%           |
| Expected life           | 3 years         | 1 year          | 2 years         |

| ●   | The term of any options granted under the Plan is fixed by the board of directors at the time the options are granted, to a maximum term of five years. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | The exercise price of any options granted under the Plan is determined by the board of directors, but shall not be less than the last closing price on the TSX Exchange of the Company’s common shares preceding the grant of such options, less any permitted discount. |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Unless otherwise imposed by the board of directors, no vesting requirement applies to options granted under the Plan but a four month hold period, commencing from the date of grant of an option, applies to all shares issued upon exercise of an option. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | All options granted under the Plan are non-assignable and non-transferable. |
|---------------------|-----------------------------------------------------------------------------|

| ●   | If an option holder ceases to hold a position with the Company in which the option holder would be eligible to be granted an option (other than by reason of death), then the option granted shall expire on the 30th day following the date that the option holder ceases to hold any such position. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                | Number of Options | Weighted Average Exercise Price ($) | Weighted Average Remaining Life |
|-------------------------------------|-------------------|-------------------------------------|---------------------------------|
| Balance, August 31,2008             | 4,535,000         | 1.18                                | 2.57 years                      |
| - options granted during the year   | 210,000           | 0.51                                |                            |
| - options expired during the year   | (495,000)         | 1.00                                |                            |
|                                |              |                                |                            |
| Balance, August 31, 2009            | 4,250,000    | 1.17                                | 1.87 years                      |
|                                |              |                                |                            |
| - options granted during the year   | 130,000      | 0.72                                |                            |
| - options expired during the year   | (25,000)          | 0.50                                |                            |
| - options exercised during the year | (390,000)         | 0.50                                |                            |
|                                |              |                                |                            |
| Balance, August 31, 2010            | 3,965,000    | 1.22                                | 1.10 years                      |
|                                |              |                                |                            |
| - options granted during the year   | 1,365,000    | 0.43                                |                            |
| - options expired during the year   | (2,465,000)       | 1.16                                |                            |
|                                |              |                                |                            |
| Balance, August 31, 2011            | 2,865,000    | 0.91                                | 2.49 years                      |

|  Number of Options |  Exercise Price |  Expiry Date | RemainingContractual Life |
|-------------------------|----------------------|-------------------|---------------------------|
|                    |                 |              |                      |
| 190,000                 | $0.51                | January 21, 2012  | 0.39 years                |
| 1,200,000               | $1.53                | June 21, 2012     | 0.81 years                |
| 60,000                  | $0.80                | May 2, 2013       | 1.67 years                |
| 50,000                  | $0.60                | August 8, 2013    | 1.94 years                |
| 100,000                 | $0.54                | October 13, 2013  | 2.12 years                |
| 1,265,000               | $0.42                | March 1, 2016     | 4.50 years                |
|                    |                 |              |                      |
| 2,865,000               | $0.91 Average Price  |              |                      |

|             | Shares Granted | Per Share Price | Fair Value | Vesting Period                                                  |
|------------------|----------------|-----------------|------------|-----------------------------------------------------------------|
|             |           |            |       |                                                            |
| May 3, 2010      | 80,000         | $0.80           | $32,000    | Vesting on grant date                                           |
|             |           |            |       |                                                            |
| August 9, 2011   | 50,000         | $0.60           | $15,000    | Vesting on grant date                                           |
|             |           |            |       |                                                            |
| October 14, 2010 | 100,000        | $0.54           | $26,000    | 20% vesting on grant and 20% at end of 12, 24, 36 and 48 months |
|             |           |            |       |                                                            |
| March 1, 2011    | 1,265,000      | $0.42           | $278,300   | 20% vesting on grant and 20% at end of 12, 24, 36 and 48 months |

| Black-Scholes Weighted Average Assumptions | August 31, 2011 | August 31, 2010 | August 31, 2009 |
|--------------------------------------------|-----------------|-----------------|-----------------|
|                                       |            |            |            |
| Expected life                              | 4.85 years      | 3.00 years      | 3,00 years      |
| Risk-free interest rate                    | 2.52%           | 2.11%           | 1.385           |
| Expected dividend yield                    | 0.00%           | 0.00%           | 0.00%           |
| Expected volatility                        | 66.99%          | 75.33%          | 75.00%          |

----

----

----

|                                                   |   | Number |      |   | Value  |   |
|--------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                   |   |   |      |   |   |   |
| Balance, August 31, 2009                               |   |   | 3,146,496 |   |   | $      | 4,325,491 |   |
|                                                   |   |   |      |   |   |   |   |   |
| Purchases of treasury shares                           |   |   | 42,000    |   |   |   | 29,674 |   |
| Carrying value of treasury shares sold during the year |   |   | (789,472  | )      |   |   | (1,081,375 | ) |
|                                                   |   |   |      |   |   |   |   |   |
| Balance, August 31, 2010                               |   |   | 2,399,024 |   |   |   | 3,273,790 |   |
|                                                   |   |   |      |   |   |   |   |   |
| Purchases of treasury shares                           |   |   | 101,000   |   |   |   | 30,265 |   |
|                                                   |   |   |      |   |   |   |   |   |
| Balance, August 31, 2011                               |   |   | 2,500,024 |   |   | $      | 3,304,055 |   |

----

----

----

----

|                                        |   | Total  |      |   | Level 1 |   |      | Level 2 |   |   | Level 3 |   |
|---------------------------------------------|--------|--------|-----------|--------|---------|--------|-----------|---------|--------|--------|---------|--------|
|                                        |   |   |      |   |    |   |      |    |   |   |    |   |
| Assets:                                     |   |   |      |   |    |   |      |    |   |   |    |   |
|    Cash and cash equivalents |   | $      | 6,456,568 |   |    | $      | 6,456,568 |    |   | $      | -       |   |   | $ | - |   |
|    Restricted cash           |   |   | 250,000   |   |    |   | 250,000   |    |   |   | -       |   |   |   | - |   |

|                                        |   | Fair Value at August 31, 2010 |       |
|---------------------------------------------|--------|-------------------------------|------------|
|                                        |   |                          |       |
|                                        |   | Total                         |       |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
|                                        |   |                          |       |   |   |   |   |   |   |   |   |   |
| Assets:                                     |   |                          |       |   |   |   |   |   |   |   |   |   |
|    Cash and cash equivalents |   | $                             | 11,511,835 |   |   | $ | 11,511,835 |   |   | $ | - |   |   | $ | - |   |
|    Marketable securities     |   |                          | 60,000     |   |   |   | 60,000 |   |   |   | - |   |   |   | - |   |

----

----

----

----

|                                                                               |   | Year EndedAugust 31, 2011 |        |    | Year EndedAugust 31, 2010 |   |       | Year EndedAugust 31, 2009 |   |
|------------------------------------------------------------------------------------|--------|---------------------------|-------------|---------|---------------------------|--------|------------|---------------------------|--------|
|                                                                               |   |                      |        |    |                      |   |       |                      |   |
| Loss before taxes                                                                  |   | $                         | (10,542,122 | )       |                      | $      | (1,412,802 | )                         |   | $ | 778,351 |   |
| Statutory Canadian income tax rate                                                 |   |                      | 27.17       | %       |                      |   | 29.00      | %                         |   |   | 30.17 | % |
|                                                                               |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| Income tax recovery at statutory rate                                              |   |                      | (2,863,943  | )       |                      |   | (409,713   | )                         |   |   | 234,828 |   |
| Effect of differences in foreign tax rates                                         |   |                      | 23,908      |    |                      |   | -          |                      |   |   | (37,166 | ) |
| Expired non-capital loss carry-forwards                                            |   |                      | -           |    |                      |   | 297,968    |                      |   |   | 927,069 |   |
| Write-off of long-lived assets                                                     |   |                      | 697,119     |    |                      |   | -          |                      |   |   | - |   |
| Non-deductible expenses, net                                                       |   |                      | (33,200     | )  |                      |   | (47,622    | )                         |   |   | 49,954 |   |
| Differences between current year rate and rates used to measurefuture income taxes |   |                      | 119,439     |    |                      |   | (164,393   | )                         |   |   | 9,644 |   |
| Changes in corporate tax rates                                                     |   |                      | -           |    |                      |   | -          |                      |   |   | 170,313 |   |
| Differences in prior period tax returns as filed                                   |   |                      | (12,407     | )       |                      |   | 169,563    |                      |   |   | (213,282 | ) |
| Other taxes                                                                        |   |                      | -           |    |                      |   | -          |                      |   |   | 19,263 |   |
| Change in valuation allowance                                                      |   |                      | 1,338,628   |    |                      |   | (2,256,328 | )                         |   |   | (871,472 | ) |
| Other                                                                              |   |                      | (164,167    | )       |                      |   | 45,470     |                      |   |   | (3,910 | ) |
|                                                                               |   |                      |        |    |                      |   |       |                      |   |   |   |   |
| Income tax recovery                                                                |   | $                         | (894,623    | )       |                      | $      | (2,365,055 | )                         |   | $ | 285,241 |   |

----

----

----

|                                                      |   | Year EndedAugust 31, 2011 |       |   | Year EndedAugust 31, 2010 |   |
|-----------------------------------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|
|                                                      |   |                      |       |   |                      |   |
| Future income tax assets                                  |   |                      |       |   |                      |   |
| Canada                                                    |   |                      |       |   |                      |   |
| Non-capital loss carry-forwards                           |   | $                         | 3,542,938  |   |                      | $      | 2,638,203 |   |
| Share issuance costs                                      |   |                      | 117,181    |   |                      |   | 107,329 |   |
| Investments                                               |   |                      | 398,479    |   |                      |   | 390,979 |   |
| Property and equipment                                    |   |                      | 19,073     |   |                      |   | 82,422 |   |
| Intangible assets                                         |   |                      | 4,867      |   |                      |   | 14,207 |   |
| Deferred revenues                                         |   |                      | -          |   |                      |   | 227,746 |   |
| Others                                                    |   |                      | 6,146      |   |                      |   | - |   |
| China                                                     |   |                      |       |   |                      |   |   |   |
| Non-capital loss carry-forwards                           |   |                      | 372,809    |   |                      |   | 262,898 |   |
| Property and equipment                                    |   |                      | 43,111     |   |                      |   | 23,205 |   |
|                                                      |   |                      |       |   |                      |   |   |   |
| Total future income tax assets before valuation allowance |   |                      | 4,504,606  |   |                      |   | 3,746,989 |   |
| Less: valuation allowance                                 |   |                      | (1,714,406 | )      |                      |   | (375,777 | ) |
|                                                      |   |                      |       |   |                      |   |   |   |
|                                                      |   |                      | 2,790,200  |   |                      |   | 3,371,212 |   |
|                                                      |   |                      |       |   |                      |   |   |   |
| Future income tax liabilities                             |   |                      |       |   |                      |   |   |   |
| Canada                                                    |   |                      |       |   |                      |   |   |   |
| Property and equipment                                    |   |                      | (24,116    | )      |                      |   | (238,873 | ) |
| Intangible assets                                         |   |                      | (1,107,488 | )      |                      |   | (2,369,600 | ) |
| China                                                     |   |                      |       |   |                      |   |   |   |
| Property and equipment                                    |   |                      | (5,249     | )      |                      |   | (104,322 | )  |
| Intangible assets                                         |   |                      | (115,246   | )      |                      |   | - |   |
|                                                      |   |                      |       |   |                      |   |   |   |
|                                                      |   |                      | (1,252,098 | )      |                      |   | (2,712,795 | ) |
|                                                      |   |                      |       |   |                      |   |   |   |
| Classified as:                                            |   |                      |       |   |                      |   |   |   |
| Future income tax asset, net                              |   |                      | 2,200,199  |   |                      |   | 658,417 |   |
| Future income tax liabilities, net                        |   |                      | (662,102   | )      |                      |   | - |   |
|                                                      |   |                      |       |   |                      |   |   |   |
|                                                      |   | $                         | 1,538,097  |   |                      | $      | 658,417 |   |

----

----

----

|                                                                                        |   | Year EndedAugust 31, 2011 |      |   | Year EndedAugust 31, 2010 |   |
|---------------------------------------------------------------------------------------------|--------|---------------------------|-----------|--------|---------------------------|--------|
|                                                                                        |   |                      |      |   |                      |   |
| Beginning balance                                                                           |   | $                         | 375,777   |   |                      | $      | 2,632,105 |   |
|                                                                                        |   |                      |      |   |                      |   |   |   |
|    Current period tax losses and temporary differences                       |   |                      | 1,014,646 |   |                      |   | 498,812 |   |
|       Expired tax losses during the period                    |   |                      | -         |   |                      |   | (297,968 | ) |
|       Impact of change in statutory rates on opening balance  |   |                      | -         |   |                      |   | - |   |
|       Differences in prior period tax returns as filed        |   |                      | (122,051  | )      |                      |   | 169,563 |   |
|       Tax benefit of non-capital losses (recognized) provided |   |                      | 446,033   |   |                      |   | (2,626,735 | ) |
|                                                                                        |   |                      |      |   |                      |   |   |   |
|                                                                                        |   |                      | 1,338,628 |   |                      |   | (2,256,328 | ) |
|                                                                                        |   |                      |      |   |                      |   |   |   |
| Ending balance                                                                              |   | $                         | 1,714,405 |   |                      | $      | 375,777 |   |

| Year of Expiry |   | China  |      |   | Canada |   |       | Total  |   |
|----------------|--------|--------|-----------|--------|--------|--------|------------|--------|--------|
|           |   |   |      |   |   |   |       |   |   |
| 2014           |   | $      | 179,009   |   |   | $      | 1,396,407  |   |   | $ | 1,575,416 |   |
| 2015           |   |   | 462,390   |   |   |   | 928,481    |   |   |   | 1,390,871 |   |
| 2016           |   |   | 849,838   |   |   |   | -          |   |   |   | 849,838 |   |
| 2026           |   |   | -         |   |   |   | 587,698    |   |   |   | 587,698 |   |
| 2027           |   |   | -         |   |   |   | 860,134    |   |   |   | 860,134 |   |
| 2028           |   |   | -         |   |   |   | 2,043,607  |   |   |   | 2,043,607 |   |
| 2029           |   |   | -         |   |   |   | 2,211,918  |   |   |   | 2,211,918 |   |
| 2030           |   |   | -         |   |   |   | 1,864,392  |   |   |   | 1,864,392 |   |
| 2031           |   |   | -         |   |   |   | 4,244,463  |   |   |   | 4,244,463 |   |
|           |   |   |      |   |   |   |       |   |   |   |   |   |
|           |   | $      | 1,491,237 |   |   | $      | 14,137,101 |   |   | $ | 15,628,338 |   |

----

| For the years ending August 31, |   | Corporate (Canada) |    |   | CIBT (China) |   |    | SSDC   |   |   | KGIC      |   |   | Total  |      |
|---------------------------------|--------|--------------------|---------|--------|--------------|--------|---------|--------|--------|--------|-----------|--------|--------|--------|-----------|
|                            |   |               |    |   |         |   |    |   |   |   |      |   |   |   |      |
| 2012                       |   | $                  | 88,150  |   |         | $      | 110,686 |   |   | $      | 1,220,376 |   |   | $      | 1,891,981 |   |   | $ | 3,311,193 |   |
| 2013                       |   |               | 91,088  |   |         |   | 114,021 |   |   |   | 667,271   |   |   |   | 1,971,133 |   |   |   | 2,843,513 |   |
| 2014                       |   |               | 91,676  |   |         |   | 133,538 |   |   |   | 392,102   |   |   |   | 1,624,050 |   |   |   | 2,241,366 |   |
| 2015                       |   |               | 15,279  |   |         |   | -       |   |   |   | 192,351   |   |   |   | 1,542,548 |   |   |   | 1,750,178 |   |
| 2016                       |   |               | -       |   |         |   | -       |   |   |   | 143,594   |   |   |   | 700,145   |   |   |   | 843,739 |   |
|                            |   |               |    |   |         |   |    |   |   |   |      |   |   |   |      |   |   |   |   |   |
|                            |   | $                  | 286,193 |   |         | $      | 358,245 |   |   | $      | 2,615,694 |   |   | $      | 7,729,855 |   |   | $ | 10,989,989 |   |

----

----

----

|                                     |   | Less than 1 year |       |   |  1 – 3 years |   |      |  4- 5 years |   |   | Greater than 5 years |   |   |  Total |   |
|------------------------------------------|--------|------------------|------------|--------|-------------------------|--------|-----------|------------------|--------|--------|----------------------|--------|--------|-------------|--------|
|                                     |   |             |       |   |                    |   |      |             |   |   |                 |   |   |        |   |
| Accounts payable and accrued liabilities |   | $                | 4,484,536  |   |                    | $      | -         |             |   | $      | -                    |   |   | $           | -      |   |   | $ | 4,484,536 |   |
| Income taxes payable                     |   |             | 499,905    |   |                    |   | -         |             |   |   | -                    |   |   |        | -      |   |   |   | 499,905 |   |
| Capital leases *                         |   |             | 101,765    |   |                    |   | 199,352   |             |   |   | 49,780               |   |   |        | -      |   |   |   | 350,897 |   |
| Long-term debt *                         |   |             | 2,152,492  |   |                    |   | 34,232    |             |   |   | -                    |   |   |        | -      |   |   |   | 2,186,724 |   |
| Operating leases                         |   |             | 3,311,193  |   |                    |   | 6,835,059 |             |   |   | 843,737              |   |   |        | -      |   |   |   | 10,989,989 |   |
|                                     |   |             |       |   |                    |   |      |             |   |   |                 |   |   |        |   |   |   |   |   |   |
|                                     |   | $                | 10,549,891 |   |                    | $      | 7,068,643 |             |   | $      | 893,517              |   |   | $           | -      |   |   | $ | 18,512,051 |   |

----

----

----

----

|                           |   | Year EndedAugust 31, 2011 |       |   | Year EndedAugust 31, 2010 |   |       | Year EndedAugust 31, 2009 |   |
|--------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|------------|---------------------------|--------|
|                           |   |                      |       |   |                      |   |       |                      |   |
| Advertising & agency fees  |   | $                         | 12,190,564 |   |                      | $      | 8,700,663  |                      |   | $ | 5,699,158 |   |
| Bank charges and interest      |   |                      | 395,050    |   |                      |   | 347,265    |                      |   |   | 198,838 |   |
| Consulting and management fees |   |                      | 1,964,726  |   |                      |   | 1,380,305  |                      |   |   | 1,230,128 |   |
| Directors insurance            |   |                      | 45,439     |   |                      |   | 79,889     |                      |   |   | 79,074 |   |
| Investor relations             |   |                      | 99,062     |   |                      |   | 95,187     |                      |   |   | 49,892 |   |
| Office and general             |   |                      | 4,538,292  |   |                      |   | 4,055,573  |                      |   |   | 3,557,686 |   |
| Professional fees              |   |                      | 1,369,960  |   |                      |   | 1,940,634  |                      |   |   | 1,544,022 |   |
| Regulatory fees                |   |                      | 134,665    |   |                      |   | 240,688    |                      |   |   | 58,149 |   |
| Rent                           |   |                      | 6,092,868  |   |                      |   | 4,108,635  |                      |   |   | 3,019,407 |   |
| Salaries and benefits          |   |                      | 12,031,267 |   |                      |   | 10,645,586 |                      |   |   | 9,631,436 |   |
| Travel and promotion           |   |                      | 375,120    |   |                      |   | 305,381    |                      |   |   | 445,823 |   |
|                           |   |                      |       |   |                      |   |       |                      |   |   |   |   |
|                           |   | $                         | 39,237,013 |   |                      | $      | 31,899,806 |                      |   | $ | 25,513,613 |   |

----

----

----

|                                     |   | Year EndedAugust 31, 2011 |       |   | Year EndedAugust 31, 2010 |   |       | Year EndedAugust 31, 2009 |   |
|------------------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|------------|---------------------------|--------|
|                                     |   |                      |       |   |                      |   |       |                      |   |
| Accounts receivable                      |   | $                         | 2,733,063  |   |                      | $      | (2,846,521 | )                         |   | $ | (4,162,671 | ) |
| Prepaid expenses and other assets        |   |                      | 423,206    |   |                      |   | 2,470,624  |                      |   |   | (150,779 | ) |
| Inventory                                |   |                      | (63,371    | )      |                      |   | 58,131     |                      |   |   | 119,894 |   |
| Accounts payable and accrued liabilities |   |                      | (407,931   | )      |                      |   | (255,373   | )                         |   |   | 666,307 |   |
| Income taxes payable                     |   |                      | (19,172    | )      |                      |   | 65,186     |                      |   |   | 30,669 |   |
| Deferred educational revenues            |   |                      | (3,917,774 | )      |                      |   | (583,878   | )                         |   |   | 2,875,843 |   |
| Other asset                              |   |                      | -          |   |                      |   | -          |                      |   |   | 29,021 |   |
|                                     |   |                      |       |   |                      |   |       |                      |   |   |   |   |
|                                     |   | $                         | (1,251,979 | )      |                      | $      | (1,091,831 | )                         |   | $ | (591,716 | ) |

----

|                                           |   | Year EndedAugust 31, 2011 |      |   | Year EndedAugust 31, 2010 |   |      | Year Ended August 31, 2009 |   |
|------------------------------------------------|--------|---------------------------|-----------|--------|---------------------------|--------|-----------|----------------------------|--------|
|                                           |   |                      |      |   |                      |   |      |                       |   |
| Accounts receivable - Weifang University (1)   |   | $                         | 2,592,660 |   |                      | $      | 1,547,344 |                       |   | $ | 2,008,503 |   |
| Accounts payable - Weifang University (1)      |   | $                         | 1,103,538 |   |                      | $      | 135,814   |                       |   | $ | 790,564 |   |
| Due to officers, employees and directors (2)   |   | $                         | 59,484    |   |                      | $      | 118,303   |                       |   | $ | 418,304 |   |
| Due from officers, employees and directors (3) |   | $                         | 100,000   |   |                      | $      | 143,721   |                       |   | $ | 143,741 |   |
| Management fees, salaries and bonuses          |   | $                         | 1,091,249 |   |                      | $      | 1,772,472 |                       |   | $ | 1,538,411 |   |

| 1)   | In 2004, CIBT established a business venture with Weifang University and received a 60% interest in Beihai College from Weifang in consideration for funding Beihai College in the amount of $714,286 (5,000,000 RMB). Beihai College is a PRC government approved college which has been in operation since 2002. In consideration for retaining a 40% interest in Beihai College, Weifang has transferred finite life intangible assets consisting of its existing programs and student enrolments to the newly named CIBT Beihai International Management School and has also agreed to provide exclusive use of the Beihai College facilities at no cost for a period of seven years (subsequently amended to 15 years). Effective July 1, 2007, the Chinese Government implemented a new cash management policy affecting Beihai College. The tuition fees of Beihai College are required to be directly remitted to the local Chinese Government when tuition fees are received, and the funds are held by the Chinese Government under the account of Weifang. Beihai College can receive funds for its operations from Weifang on an as-needed basis up to the amount of the tuition fees collected. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2)   | As of August 31, 2011, the amount due to officers, employees and directors is comprised of $13,222 (August 31, 2010:   $38,014) due to officers of the Company and $46,262 (August 31, 2010:   $80,289) due to the President of IRIX. These amounts are non-interest bearing and have no fixed terms of repayment. Transactions with related party are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties. Such amounts are included as part of the cash flows from operating activities in the Consolidated Statements of Cash Flow. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | As at August 31, 2011, a balance of $100,000 was due from a director of the Company. The amount is included as part of the cash flows from financing activities in the Consolidated Statements of Cash Flow. The August 31, 2010, amount of $143,721 was due from the President of SSDC, which was fully repaid during the three month period ended February 28, 2011. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Industry and Geographic Segments                         |   | Year Ended August 31, 2011 |       |
|----------------------------------------------------------|--------|----------------------------|------------|
|                                                     |   | CIBT(China)                |       |   | SSDC(Canada) |   |   | KGIC(Canada) |   |   | IRIX(Canada) |   |   | Corporate(Canada) |   |   |  Consolidated |   |
| Revenues                                                 |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Educational                                              |   | $                          | 4,206,757  |   |   | $ | 30,619,935 |   |   | $ | 21,838,554 |   |   | $ | - |   |   | $ | - |   |   | $ | 56,665,246 |   |
| Design and advertising                                   |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | 1,909,880 |   |   |   | - |   |   |   | 1,909,880 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | $                          | 4,206,757  |   |   | $ | 30,619,935 |   |   | $ | 21,838,554 |   |   | $ | 1,909,880 |   |   | $ | - |   |   | $ | 58,575,126 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues, net of direct costs                            |   | $                          | 2,036,548  |   |   | $ | 19,929,317 |   |   | $ | 14,265,049 |   |   | $ | 913,421 |   |   | $ | - |   |   | $ | 37,144,335 |   |
|  Other expenses and items:                          |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   General and administrative                   |   |                       | (2,428,574 | ) |   |   | (18,096,580 | ) |   |   | (13,930,101 | ) |   |   | (837,163 | ) |   |   | (3,944,595 | ) |   |   | (39,237,013 | ) |
|   Amortization                                 |   |                       | (466,800   | ) |   |   | (800,404 | ) |   |   | (289,174 | ) |   |   | (29,106 | ) |   |   | (72,091 | ) |   |   | (1,657,575 | ) |
|   Stock-based compensation                     |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (91,122 | ) |   |   | (91,122 | ) |
|   Business development costs                   |   |                       | (230,362   | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (230,362 | ) |
|   Interest and other income                    |   |                       | 176,775    |   |   |   | - |   |   |   | - |   |   |   | 3,870 |   |   |   | - |   |   |   | 180,645 |   |
|   Foreign exchange gain (loss), net            |   |                       | 21,648     |   |   |   | - |   |   |   | - |   |   |   | (5,968 | ) |   |   | (4,909 | ) |   |   | 10,771 |   |
|   Gain (loss) on disposal of assets            |   |                       | 21,344     |   |   |   | (60,505 | ) |   |   | - |   |   |   | (495 | ) |   |   | - |   |   |   | (39,656 | ) |
|   Interest on long-term debt                   |   |                       | -          |   |   |   | (153,656 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (153,656 | ) |
|   Impairment of marketable securities          |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (60,000 | ) |   |   | (60,000 | ) |
|   Impairment of long-lived assets and goodwill |   |                       | (5,897,778 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,897,778 | ) |
|   Write-off of deferred finance fees           |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (510,711 | ) |   |   | (510,711 | ) |
|   Restructuring and integration costs          |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Income tax recovery (provision), net         |   |                       | 698,430    |   |   |   | 483,361 |   |   |   | 48,872 |   |   |   | 28,532 |   |   |   | (364,572 | ) |   |   | 894,623 |   |
|   Non-controlling interests                    |   |                       | (54,553    | ) |   |   | (389,012 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (443,565 | ) |
|   Inter-segment transactions                   |   |                       | -          |   |   |   | (1,058,554 | ) |   |   | (543,173 | ) |   |   | (6,000 | ) |   |   | 1,607,727 |   |   |   | - |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                        |   | $                          | (6,123,322 | ) |   | $ | (146,033 | ) |   | $ | (448,527 | ) |   | $ | 67,091 |   |   | $ | (3,440,273 | ) |   | $ | (10,091,064 | ) |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                             |   | $                          | 5,136,756  |   |   | $ | 22,118,314 |   |   | $ | 11,195,200 |   |   | $ | 449,368 |   |   | $ | 2,260,796 |   |   | $ | 41,160,434 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property and equipment                                   |   | $                          | 439,753    |   |   | $ | 1,672,908 |   |   | $ | 315,968 |   |   | $ | 164,323 |   |   | $ | 38,866 |   |   | $ | 2,631,818 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assets                                        |   | $                          | 719,440    |   |   | $ | 7,596,891 |   |   | $ | 2,542,500 |   |   | $ | - |   |   | $ | 80,367 |   |   | $ | 10,939,198 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                 |   | $                          | -          |   |   | $ | 5,169,303 |   |   | $ | 3,542,488 |   |   | $ | - |   |   | $ | - |   |   | $ | 8,711,791 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-controlling interests                                |   | $                          | 616,945    |   |   | $ | 621,326 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 1,238,271 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                     |   | $                          | 163,147    |   |   | $ | 191,863 |   |   | $ | 65,393 |   |   | $ | 22,461 |   |   | $ | 45,383 |   |   | $ | 488,247 |   |

----

----

----

| Industry and Geographic Segments                         |   | Year Ended August 31, 2010 |       |
|----------------------------------------------------------|--------|----------------------------|------------|
|                                                     |   | CIBT(China)                |       |   | SSDC(Canada) |   |   | KGIC(Canada) *** |   |   | IRIX(Canada) |   |   | Corporate(Canada) |   |   |  Consolidated |   |
| Revenues                                                 |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Educational                                              |   | $                          | 7,166,099  |   |   | $ | 36,919,922 |   |   | $ | 10,302,107 |   |   | $ | - |   |   | $ | - |   |   | $ | 54,388,128 |   |
| Design and advertising                                   |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | 1,566,724 |   |   |   | - |   |   |   | 1,566,724 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   | $                          | 7,166,099  |   |   | $ | 36,919,922 |   |   | $ | 10,302,107 |   |   | $ | 1,566,724 |   |   | $ | - |   |   | $ | 55,954,852 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues, net of direct costs                            |   | $                          | 3,388,780  |   |   | $ | 25,168,370 |   |   | $ | 5,863,734 |   |   | $ | 863,666 |   |   | $ | - |   |   | $ | 35,284,550 |   |
|  Other expenses and items:                          |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   General and administrative                   |   |                       | (3,230,571 | ) |   |   | (18,325,086 | ) |   |   | (5,277,510 | ) |   |   | (802,856 | ) |   |   | (4,263,783 | ) |   |   | (31,899,806 | ) |
|   Amortization                                 |   |                       | (491,813   | ) |   |   | (829,453 | ) |   |   | (127,923 | ) |   |   | (26,496 | ) |   |   | (61,592 | ) |   |   | (1,537,277 | ) |
|   Stock-based compensation                     |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (232,626 | ) |   |   | (232,626 | ) |
|   Business development costs                   |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Interest and other income                    |   |                       | 204,815    |   |   |   | - |   |   |   | - |   |   |   | 2,203 |   |   |   | 607 |   |   |   | 207,625 |   |
|   Foreign exchange gain (loss), net            |   |                       | (86,729    | ) |   |   | - |   |   |   | - |   |   |   | (2,714 | ) |   |   | (7,234 | ) |   |   | (96,677 | ) |
|   Gain (loss) on disposal of assets            |   |                       | (56,412    | ) |   |   | (118,104 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (174,516 | ) |
|   Interest on long-term debt                   |   |                       | -          |   |   |   | (92,346 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (92,346 | ) |
|   Impairment of marketable securities          |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (127,229 | ) |   |   | (127,229 | ) |
|   Impairment of long-lived assets and goodwill |   |                       | (2,000,000 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,000,000 | ) |
|   Write-off of deferred finance fees           |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (200,000 | ) |   |   | (200,000 | ) |
|   Restructuring and integration costs          |   |                       | -          |   |   |   | (297,000 | ) |   |   | (100,000 | ) |   |   | - |   |   |   | (147,500 | ) |   |   | (544,500 | ) |
|   Income tax recovery (provision), net         |   |                       | 606,441    |   |   |   | (844,002 | ) |   |   | (6,392 | ) |   |   | (13,396 | ) |   |   | 2,622,404 |   |   |   | 2,365,055 |   |
|   Non-controlling interests                    |   |                       | 136,056    |   |   |   | (505,939 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (369,883 | ) |
|   Inter-segment transactions                   |   |                       | -          |   |   |   | (3,149,040 | ) |   |   | (267,361 | ) |   |   | 22,531 |   |   |   | 3,393,870 |   |   |   | - |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                        |   | $                          | (1,529,433 | ) |   | $ | 1,007,400 |   |   | $ | 84,548 |   |   | $ | 42,938 |   |   | $ | 976,917 |   |   | $ | 582,370 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                             |   | $                          | 13,360,396 |   |   | $ | 28,981,989 |   |   | $ | 10,043,093 |   |   | $ | 298,819 |   |   | $ | 2,285,041 |   |   | $ | 54,969,338 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property and equipment                                   |   | $                          | 816,903    |   |   | $ | 2,185,124 |   |   | $ | 329,749 |   |   | $ | 81,767 |   |   | $ | 5,310 |   |   | $ | 3,418,853 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assets                                        |   | $                          | 4,243,306  |   |   | $ | 7,688,680 |   |   | $ | 2,752,500 |   |   | $ | - |   |   | $ | 140,631 |   |   | $ | 14,825,117 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                 |   | $                          | 2,287,905  |   |   | $ | 5,169,303 |   |   | $ | 3,542,488 |   |   | $ | - |   |   | $ | - |   |   | $ | 10,999,696 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-controlling interests                                |   | $                          | 588,878    |   |   | $ | 738,248 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 1,327,126 |   |
|                                                     |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                     |   | $                          | 90,482     |   |   | $ | 556,992 |   |   | $ | 18,083 |   |   | $ | 7,088 |   |   | $ | - |   |   | $ | 672,645 |   |

----

----

----

| Industry and Geographic Segments                 |   | Year Ended August 31, 2009 |       |
|--------------------------------------------------|--------|----------------------------|------------|
|                                             |   | CIBT(China)                |       |   | SSDC(Canada) |   |   | IRIX(Canada) |   |   | Corporate(Canada) |   |   |  Consolidated |   |
| Revenues                                         |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Educational                                      |   | $                          | 9,576,706  |   |   | $ | 33,659,924 |   |   | $ | - |   |   | $ | - |   |   | $ | 43,236,630 |   |
| Design and advertising                           |   |                       | -          |   |   |   | - |   |   |   | 1,314,328 |   |   |   | - |   |   |   | 1,314,328 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | $                          | 9,576,706  |   |   | $ | 33,659,924 |   |   | $ | 1,314,328 |   |   | $ | - |   |   | $ | 44,550,958 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues, net of direct costs                    |   | $                          | 5,201,160  |   |   | $ | 22,439,524 |   |   | $ | 675,926 |   |   | $ | - |   |   | $ | 28,316,610 |   |
|  Other expenses and items:                  |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Amortization                         |   |                       | (651,813   | ) |   |   | (893,541 | ) |   |   | (29,484 | ) |   |   | (61,923 | ) |   |   | (1,636,761 | ) |
|   General and administrative           |   |                       | (4,156,649 | ) |   |   | (17,333,591 | ) |   |   | (790,260 | ) |   |   | (3,233,113 | ) |   |   | (25,513,613 | ) |
|   Stock-based compensation             |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | (581,098 | ) |   |   | (581,098 | ) |
|   Interest on long-term debt           |   |                       | -          |   |   |   | (41,579 | ) |   |   | - |   |   |   | - |   |   |   | (41,579 | ) |
|   Foreign exchange gain (loss)         |   |                       | 119,462    |   |   |   | - |   |   |   | 19,608 |   |   |   | 23,467 |   |   |   | 162,537 |   |
|   Loss on disposal of assets           |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Impairment of marketable securities  |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Impairment of intangible assets      |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Write-off of deferred finance fees   |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Restructuring and integration costs  |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|   Non-controlling interests            |   |                       | (2,295     | ) |   |   | (474,808 | ) |   |   | - |   |   |   | - |   |   |   | (477,103 | ) |
|   Other income                         |   |                       | 45,831     |   |   |   | - |   |   |   | 9 |   |   |   | 26,415 |   |   |   | 72,255 |   |
|   Income tax recovery (provision), net |   |                       | 4,115      |   |   |   | (289,356 | ) |   |   | - |   |   |   | - |   |   |   | (285,241 | ) |
|   Inter-segment transactions           |   |                       | -          |   |   |   | (2,342,337 | ) |   |   | 73,420 |   |   |   | 2,268,917 |   |   |   | - |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                |   | $                          | 559,811    |   |   | $ | 1,064,312 |   |   | $ | (50,781 | ) |   | $ | (1,557,335 | ) |   | $ | 16,007 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                     |   | $                          | 16,643,989 |   |   | $ | 29,861,938 |   |   | $ | 217,610 |   |   | $ | 798,155 |   |   | $ | 47,521,692 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property and equipment                           |   | $                          | 1,287,078  |   |   | $ | 2,343,921 |   |   | $ | 101,175 |   |   | $ | 6,638 |   |   | $ | 3,738,812 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assets                                |   | $                          | 6,325,324  |   |   | $ | 7,883,800 |   |   | $ | - |   |   | $ | 200,895 |   |   | $ | 14,410,019 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                         |   | $                          | 2,287,905  |   |   | $ | 4,722,970 |   |   | $ | - |   |   | $ | - |   |   | $ | 7,010,875 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-controlling interests                        |   | $                          | 748,863    |   |   | $ | 449,743 |   |   | $ | - |   |   | $ | - |   |   | $ | 1,198,606 |   |
|                                             |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                             |   | $                          | 304,347    |   |   | $ | 443,953 |   |   | $ | 4,797 |   |   | $ | - |   |   | $ | 753,097 |   |

----

----

----

----

| (a) | The effect of the differences between Canadian GAAP and US GAAP on the significant captions on the Company’s consolidated balance sheets, statement of (loss) income and comprehensive (loss) income and cash flows is summarized as follows: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Consolidated Balance Sheets                                             |   | August 31, 2011 |       |   | August 31, 2010 |   |
|-------------------------------------------------------------------------|--------|----------------------|------------|--------|----------------------|--------|
|                                                                    |   |                 |       |   |                 |   |
| Total assets under Canadian GAAP                                        |   | $                    | 41,160,434 |   |                 | $      | 54,969,338 |   |
| (c) Acquisition costs                                                   |   |                 | (279,062   | )      |                 |   | (279,062 | ) |
| Total assets under US GAAP                                              |   | $                    | 40,881,372 |   |                 | $      | 54,690,276 |   |
|                                                                    |   |                 |       |   |                 |   |   |   |
| Total liabilities under Canadian GAAP                                   |   | $                    | 22,124,793 |   |                 | $      | 26,619,254 |   |
| (b) Income tax uncertainties – unrecognized tax benefits          |   |                 | (18,352    | )      |                 |   | (10,960 | ) |
| (b) Income tax uncertainties – accrual for interest and penalties |   |                 | 168,766    |   |                 |   | 40,669 |   |
| Total liabilities under US GAAP                                         |   |                 | 22,275,207 |   |                 |   | 26,648,963 |   |
|                                                                    |   |                 |       |   |                 |   |   |   |
| Non-controlling interest under Canadian GAAP                            |   |                 | 1,238,271  |   |                 |   | 1,327,126 |   |
| (d) Non-controlling interest in subsidiaries                            |   |                 | (1,238,271 | )      |                 |   | (1,327,126 | ) |
| Non-controlling interest under US GAAP                                  |   |                 | -          |   |                 |   | - |   |
|                                                                    |   |                 |       |   |                 |   |   |   |
| Total shareholders' equity under Canadian GAAP                          |   |                 | 17,797,370 |   |                 |   | 27,022,958 |   |
| (b) Income tax uncertainties – unrecognized tax benefits          |   |                 | 18,352     |   |                 |   | 10,960 |   |
| (b) Income tax uncertainties – accrual for interest and penalties |   |                 | (168,766   | )      |                 |   | (40,669 | ) |
| (c) Acquisition costs                                                   |   |                 | (279,062   | )      |                 |   | (279,062 | ) |
| (d) Non-controlling interest in subsidiaries                            |   |                 | 1,238,271  |   |                 |   | 1,327,126 |   |
| Total shareholder’s equity under US GAAP                          |   |                 | 18,606,165 |   |                 |   | 28,041,313 |   |
|                                                                    |   |                 |       |   |                 |   |   |   |
| Total liabilities and shareholders' equity under US GAAP                |   | $                    | 40,881,372 |   |                 | $      | 54,690,276 |   |

----

----

----

| Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income |   | Year Ended August 31, 2011 |        |   | Year Ended August 31, 2010 |   |     | Year Ended August 31, 2009 |   |
|--------------------------------------------------------------------------|--------|---------------------------------|-------------|--------|----------------------------|--------|----------|----------------------------|--------|
|                                                                     |   |                            |        |   |                       |   |     |                       |   |
| Net (loss) income under Canadian GAAP                                    |   | $                               | (10,091,064 | )      |                       | $      | 582,370  |                       |   | $ | 16,007 |   |
|                                                                     |   |                            |        |   |                       |   |     |                       |   |   |   |   |
| (b) Income tax uncertainties – unrecognized tax benefits           |   |                            | 7,392       |   |                       |   | 10,960   |                       |   |   | - |   |
| (b) Income tax uncertainties – accrual for interest and penalties  |   |                            | (128,097    | )      |                       |   | (40,669  | )                          |   |   | - |   |
|                                                                     |   |                            |        |   |                       |   |     |                       |   |   |   |   |
| (c) Acquisition costs                                                    |   |                            | -           |   |                       |   | (279,062 | )                          |   |   | - |   |
|                                                                     |   |                            |        |   |                       |   |     |                       |   |   |   |   |
| Net (loss) income under US GAAP                                          |   | $                               | (10,211,769 | )      |                       | $      | 273,599  |                       |   | $ | 16,007 |   |
| Basic and diluted (loss) income per share under US GAAP                  |   | $                               | (0.15       | )      |                       | $      | 0.00     |                       |   | $ | 0.00 |   |

| Consolidated Statements of Cash Flows                                                 |   | Year Ended August 31, 2011 |       |   | Year Ended August 31, 2010 |   |       | Year Ended August 31, 2009 |   |
|---------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|------------|----------------------------|--------|
| Net cash provided by (used in) operating activities under Canadian and US GAAP        |   | $                          | (3,581,135 | )      |                       | $      | 2,027,949  |                       |   | $ | 2,329,895 |   |
| Net cash used in investing activities under Canadian GAAP                             |   |                       | (853,288   | )      |                       | $      | (5,752,247 | )                          |   | $ | (1,969,054 | ) |
| (d) Disposal of controlling interest in variable interestentity, net of cash received |   |                       | -          |   |                       |   | -          |                       |   |   | 401,980 |   |
| Net cash used in investing activities under US GAAP                                   |   | $                          | (853,288   | )      |                       | $      | (5,752,247 | )                          |   | $ | (1,567,074 | ) |
| Net cash provided by (used in) financing activities under Canadian GAAP               |   | $                          | (570,265   | )      |                       | $      | 4,993,709  |                       |   | $ | (943,879 | ) |
| (d) Disposal of controlling interest in variable interestentity, net of cash received |   |                       | -          |   |                       |   | -          |                       |   |   | (401,980 | ) |
| Net cash provided by (used in) financing activities under US GAAP                     |   | $                          | (570,265   | )      |                       | $      | 4,993,709  |                       |   | $ | (1,345,859 | ) |
| Effect of exchange rate changes under Canadian and US GAAP                            |   | $                          | (50,579    | )      |                       | $      | (94,704    | )                          |   | $ | (12,571 | ) |

----

----

----

| Presentation differences between Canadian to US GAAP are: |   | Year Ended August 31, 2011 |       |   | Year Ended August 31, 2010 |   |       | Year Ended August 31, 2009 |   |
|-----------------------------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|------------|----------------------------|--------|
|                                                      |   |                       |       |   |                       |   |       |                       |   |
| Direct costs – Canadian  GAAP             |   | $                          | 21,430,791 |   |                       | $      | 20,670,302 |                       |   | $ | 16,234,348 |   |
| Amortization for the year                                 |   |                       | 1,657,575  |   |                       |   | 1,537,277  |                       |   |   | 1,636,761 |   |
|                                                      |   |                       |       |   |                       |   |       |                       |   |   |   |   |
| Direct costs – US GAAP                              |   | $                          | 23,088,366 |   |                       | $      | 22,207,579 |                       |   | $ | 17,871,109 |   |

----

----

----

|                                                          |   | Year Ended August 31, 2011 |    |   | Year Ended August 31, 2010 |   |    | Year Ended August 31, 2009 |   |
|---------------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|---------|---------------------------------|--------|
|                                                          |   |                            |    |   |                            |   |    |                            |   |
| Balance, beginning of  period                       |   | $                               | 398,396 |   |                            | $      | 409,356 |                            |   | $ | 293,181 |   |
| Additions based on tax positions related to thecurrent period |   |                            | -       |   |                            |   | -       |                            |   |   | 214,925 |   |
| Additions for tax positions of prior periods                  |   |                            |    |   |                            |   |    |                            |   |   | - |   |
| Reductions for tax positions of prior periods                 |   |                            | -       |   |                            |   | -       |                            |   |   | (98,463 | ) |
| Settlements                                                   |   |                            | -       |   |                            |   | -       |                            |   |   | - |   |
| Effect of foreign currency movements                          |   |                            | (7,392  | )      |                            |   | (10,960 | )                               |   |   | (287 | ) |
| Balance, end of period                                        |   | $                               | 391,004 |   |                            | $      | 398,396 |                            |   | $ | 409,356 |   |

|                                                 |   | Year Ended August 31, 2011 |    |   | Year Ended August 31, 2010 |   |    | Year Ended August 31, 2009 |   |
|------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|---------|---------------------------------|--------|
|                                                 |   |                            |    |   |                            |   |    |                            |   |
| Balance, beginning of period                         |   | $                               | 156,906 |   |                            | $      | 116,237 |                            |   | $ | 52,214 |   |
| Accrual for interest and penalties during the period |   |                            | 130,025 |   |                            |   | 79,674  |                            |   |   | 67,279 |   |
| Effect of foreign currency movements                 |   |                            | (1,928  | )      |                            |   | (39,005 | )                               |   |   | (3,256 | ) |
| Balance, end of period                               |   | $                               | 285,003 |   |                            | $      | 156,906 |                            |   | $ | 116,237 |   |

----

----

----

|                                 |   | Year Ended                      |       |    | Year Ended                 |   |
|--------------------------------------|--------|---------------------------------|------------|---------|----------------------------|--------|
|                                 |   | August 31, 2010(unaudited) |       |    | August 31, 2009(unaudited) |   |
|                                 |   |                            |       |    |                       |   |
| Revenues                             |   | $                               | 61,090,584 |    |                       | $      | 59,429,104 |   |
|                                 |   |                            |       |    |                       |   |   |   |
| Net earnings                         |   | $                               | (1,269,760 | )  |                       | $      | (1,155,238 | ) |
|                                 |   |                            |       |    |                       |   |   |   |
| Pro forma basic earnings per share   |   | $                               | (0.02      | )       |                       | $      | (0.02 | ) |
|                                 |   |                            |       |    |                       |   |   |   |
| Pro forma diluted earnings per share |   | $                               | (0.02      | )       |                       | $      | (0.02 | ) |

----

----

----

|                                                                                                                        |   | Year Ended      |        |    | Year Ended      |   |    | Year Ended      |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|-----------------|-------------|---------|-----------------|--------|---------|-----------------|--------|
|                                                                                                                        |   | August 31, 2011 |        |    | August 31, 2010 |   |    | August 31, 2009 |   |
|                                                                                                                        |   |            |        |    |            |   |    |            |   |
| Net income (loss) under US GAAP attributed to the owners of the parent and non-controlling interest                         |   | $               | (10,655,334 | )       |            | $      | 252,559 |            |   | $ | 40,890 |   |
|                                                                                                                        |   |            |        |    |            |   |    |            |   |   |   |   |
| Basic and diluted income (loss) per share under US GAAP attributed to the owners of the parent and non-controlling interest |   | $               | (0.15       | )  |            | $      | 0.00    |            |   | $ | 0.00 |   |

|                                             |   | Year Ended      |        |   | Year Ended      |   |       | Year Ended      |   |
|--------------------------------------------------|--------|-----------------|-------------|--------|-----------------|--------|------------|-----------------|--------|
|                                             |   | August 31, 2011 |        |   | August 31, 2010 |   |       | August 31, 2009 |   |
|                                             |   |            |        |   |            |   |       |            |   |
| Net (loss) income under US GAAP                  |   | $               | (10,211,769 | )      |            | $      | 273,599    |            |   | $ | 16,007 |   |
|                                             |   |            |        |   |            |   |       |            |   |   |   |   |
| Weighted average common shares basic             |   |            | 67,229,127  |   |            |   | 65,676,811 |            |   |   | 61,258,923 |   |
| Effect of dilutive stock options and warrants    |   |            | -           |   |            |   | 340,334    |            |   |   | 34,044 |   |
|                                             |   |            |        |   |            |   |       |            |   |   |   |   |
| Weighted average common shares diluted           |   |            | 67,229,127  |   |            |   | 66,017,145 |            |   |   | 61,292,967 |   |
|                                             |   |            |        |   |            |   |       |            |   |   |   |   |
| Basic and diluted income (loss) per common share |   | $               | (0.15       | )      |            | $      | 0.00       |            |   | $ | 0.00 |   |

----

----

----

----

----

----

|                                                      |   | Year Ended      |    |   | Year Ended      |   |    | Year Ended      |   |
|-----------------------------------------------------------|--------|-----------------|---------|--------|-----------------|--------|---------|-----------------|--------|
|                                                      |   | August 31, 2011 |    |   | August 31, 2010 |   |    | August 31, 2009 |   |
|                                                      |   |            |    |   |            |   |    |            |   |
| Stock option aggregate intrinsic value                    |   | $               | -       |   |            | $      | 8,400   |            |   | $ | 67,400 |   |
|                                                      |   |            |    |   |            |   |    |            |   |   |   |   |
| Weighted average grant-date fair value of options granted |   | $               | 304,300 |   |            | $      | 47,000  |            |   | $ | 52,500 |   |
|                                                      |   |            |    |   |            |   |    |            |   |   |   |   |
| Total intrinsic value of options exercised                |   | $               | -       |   |            | $      | 89,700  |            |   | $ | - |   |
|                                                      |   |            |    |   |            |   |    |            |   |   |   |   |
| Total cash received from options                          |   |            |    |   |            |   |    |            |   |   |   |   |
| exercised                                                 |   | $               | -       |   |            | $      | 195,000 |            |   | $ | - |   |

| Nonvested Stock Options                           |   | Options |       |   | Weighted Average Grant Date Fair Value per Option ($) |   |
|---------------------------------------------------|--------|---------|------------|--------|-------------------------------------------------------|--------|
|                                              |   |    |       |   |                                                  |   |
| Nonvested at August 31, 2008                      |   |    | 1,877,500  |   |                                                  |   | 0.64 |   |
| Granted                                           |   |    | 210,000    |   |                                                  |   | 0.25 |   |
| Vested                                            |   |    | (1,306,250 | )      |                                                  |   | 0.59 |   |
|                                              |   |    |       |   |                                                  |   |   |   |
|                                              |   |    |       |   |                                                  |   |   |   |
| Nonvested at August 31, 2009                      |   |    | 781,250    |   |                                                  |   | 0.25 |   |
| Granted                                           |   |    | 130,000    |   |                                                  |   | 0.36 |   |
| Vested                                            |   |    | (911,250   | )      |                                                  |   | 0.49 |   |
|                                              |   |    |       |   |                                                  |   |   |   |
| Nonvested at August 31, 2010                      |   |    | -          |   |                                                  |   | - |   |
| Granted                                           |   |    | 1,365,000  |   |                                                  |   | 0.22 |   |
| Vested                                            |   |    | (253,000   | )      |                                                  |   | 0.22 |   |
|                                              |   |    |       |   |                                                  |   |   |   |
| Nonvested and expected to vest at August 31, 2011 |   |    | 1,112,000  |   |                                                  |   | 0.22 |   |

----

----

----

| For the years ending August 31 | 2011   |   | $      | 447,660   |   |
|--------------------------------|--------|--------|--------|-----------|--------|
|                           | 2012   |   |   | 355,175   |   |
|                           | 2013   |   |   | 263,784   |   |
|                           | 2014   |   |   | 263,784   |   |
|                           | 2015   |   |   | 263,784   |   |
|                           |   |   | $      | 1,594,187 |   |

----

----

----

----

----

----

----

ITEM 19.  Exhibits

| Exhibit Number | Description                                                                                                                              |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1            | Certificate of Incorporation(1)                                                                                                          |
| 1.2            | Articles of Incorporation(1)                                                                                                             |
| 1.3            | Certificate of change of name as filed with British Columbia, Canada on November 14, 2007(2)                                             |
| 1.4            | Notice of Articles(3)                                                                                                                    |
| 4.1            | Toby Chu Employment Agreement(2)                                                                                                         |
| 4.2            | Employment Agreement with Sung Sub Lim(3)                                                                                                |
| 4.3            | Employment Agreement with Steve Sohn(3)                                                                                                  |
| 4.4            | Acquisition Agreement for Concordia Career College(4)                                                                                    |
| 4.5            | Memorandum of Understanding with Thompson River University and Vancouver Career College(4)                                               |
| 4.6            | Form of Cooperative Joint Program Agreements with Institutions for Hotel and Tourism Division(4)                                         |
| 4.7            | Acquisition Agreement for Pan Pacific English College(4)                                                                                 |
| 4.8            | Memorandum of Understanding between Sprott-Shaw and the Ministry of Labour and Social Security of Jamaica(4)                             |
| 4.9            | Memorandum of Understanding between Sprott-Shaw, Brown’s Town College and the Ministry of Labour and Social Security of Jamaica(4) |
| 4.10           | Education Program Cooperation Agreement with Far Eastern University(4)                                                                   |
| 4.11           | Agreement between CIBT and Zhuzhou Technical College(4)                                                                                  |
| 4.12           | Agreement between CIBT and Jinhua Career & Technical College(4)                                                                      |
| 4.13           | Agreement with Zhangzhou Normal University(4)                                                                                            |
| 4.14           | Education Program Cooperation Agreement between CIBT and National Cambridge College(4)                                                   |
| 4.15           | Memorandum of Understanding between Sprott-Shaw and Thang Long University(4)                                                             |
| 4.16           | Cooperation Agreement with China Central Radio and Television University(4)                                                              |
| 4.17           | Memorandum of Understanding between Sprott-Shaw and Hanoi Tourism College(4)                                                             |
| 4.18           | License granted by AHL-EI(4)                                                                                                             |
| 4.19           | Assignment of License to CIBT Education Group(4)                                                                                         |
| 4.20           | Agreement with Weifang University regarding CIBT Beihai Center(4)                                                                        |
| 4.21           | Agreement with Wyotech(1)                                                                                                                |
| 4.22           | Agreement with Beijing University of Technology(1)                                                                                       |
| 4.23           | Agreement with ITT Educational Services, Inc. and Weifang University(1)                                                                  |
| 4.24           | Acquisition Agreement of Sprott-Shaw(5)                                                                                                  |
| 4.25           | Acquisition Agreement of Tourism Training Institute(5)                                                                                   |
| 4.26           | Acquisition Agreement of the KGIC Education Group of Companies(6)                                                                        |
| 4.27           | Securities Purchase Agreement with Shane Corp.(1)                                                                                        |
| 4.28           | Agreement and Plan of Reorganization with Shane Corp.(3)                                                                                 |
| 4.29           | Memorandum of Understanding with Meridian International Business and Arts College(3)                                                     |
| 4.30           | Stock Option Plan                                                                                                                        |
| 4.31           | Agreement with Open University of China                                                                                                  |
| 4.32           | Global Recruitment Agreement with Southpointe Academy                                                                                    |
| 4.33           | Memorandum of Understanding with China Yunnan Radio and TV University                                                                    |
| 4.34           | Cooperation Agreement with CIBT and Yunnan International Exchange Centre                                                                 |
| 4.35           | Cooperation Agreement with University of Zhejiang Continuing Studies and CIBT                                                            |
| 4.36           | Cooperation Agreement with Guangzhou University and CIBT                                                                                 |
| 4.37           | Cooperation Agreement with Zhaoqing University and CIBT                                                                                  |
| 4.38           | Agreement between CIBT and Hebei Normal University Foreign Language College                                                              |
| 4.39           | Cooperation Agreement between CIBT and Henan Radio and Television University                                                             |
| 4.40           | Agreement between CIBT and Hunan Radio and Television University                                                                         |
| 4.41           | Agreement with Open University of China re: hospitality management                                                                       |
| 4.42           | Agreement with Hainan Human Resources Training Center                                                                                    |
| 4.43           | Employment Agreement with Patrick Dang                                                                                                   |
| 4.44           | Employment Agreement with Dennis Huang                                                                                                   |
| 4.45           | Earn Out Agreement with KGIC Vendors                                                                                                     |
| 4.46           | Agreement with the Canadian Institute of Education                                                                                       |
| 4.47           | Agreement with Beijing Language and Culture University                                                                                   |
| 8.1            | List of Subsidiaries(3)                                                                                                                  |
| 11.1           | Code of Ethical Conduct(2)                                                                                                               |
| 11.2           | Insider Trading Policy(4)                                                                                                                |
| 12.1           | CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                              |
| 12.2           | CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                              |
| 13.1           | CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                              |
| 13.2           | CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                              |

| (1)   | Included as exhibits to our Form 20-FR filed May 10, 2007 |
|-----------------|-----------------------------------------------------------|

| (2)   | Included as exhibits to our Form 20-F filed January 2, 2008 |
|-----------------|-------------------------------------------------------------|

| (3)   | Included as an exhibit to our Form F-1 filed July 15, 2010 |
|-----------------|------------------------------------------------------------|

| (4)   | Included as an exhibit to our Form 20-F filed March 1, 2010 |
|-----------------|-------------------------------------------------------------|

| (5)   | Included as exhibits to our Form 20-F filed March 17, 2009 |
|-----------------|------------------------------------------------------------|

| (6)   | Included as an exhibit to our Form 6-K filed March 19, 2010 |
|-----------------|-------------------------------------------------------------|

| (7)   | Included as exhibits to our Form 20-F filed March 1, 2011 |
|-----------------|-----------------------------------------------------------|

----

SIGNATURES

| SIGNATURES       |   | TITLE                                       |   | DATE              |
|------------------|--------|---------------------------------------------|--------|-------------------|
|             |   |                                        |   |              |
| /s/ Toby Chu     |   | Director, President,Chief Executive Officer |   | February 29, 2012 |
| Toby Chu         |
|             |   |                                        |   |              |
| /s/ Dennis Huang |   | Chief Financial Officer                     |   | February 29, 2012 |
| Dennis Huang     |   |