| 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                                                    | 21  |
| ITEM 5. Operating and Financial Review and Prospects                                  | 52  |
| ITEM 6. Directors, Senior Management and Employees                                    | 75  |
| ITEM 7. Major Shareholders and Related Party Transactions                             | 90  |
| ITEM 8. Financial Information                                                         | 92  |
| ITEM 9. The Offer and Listing                                                         | 93  |
| ITEM 10. Additional Information                                                       | 94  |
| ITEM 11. Quantitative and Qualitative Disclosures about Market Risk                   | 105 |
| ITEM 12. Description of Securities other than Equity Securities                       | 105 |
| PART II                                                                               | 106 |
| ITEM 13. Defaults, Dividend Arrearages and Delinquencies                              | 106 |
| ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds | 106 |
| ITEM 15. Controls and Procedures                                                      | 107 |
| ITEM 16A. Audit Committee Financial Expert                                            | 109 |
| ITEM 16B. Code of Ethics                                                              | 110 |
| ITEM 16C. Principal Accountant Fees and Services                                      | 111 |
| ITEM 16D. Exemptions from the Listings Standard for Audit Committees                  | 111 |
| ITEM 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers      | 112 |
| ITEM 16F. Changes in Registrants Certifying Accountant                                | 114 |
| ITEM 16G. Corporate Governance                                                        | 114 |
| PART III                                                                              | 115 |
| ITEM 17. Financial Statements                                                         | 115 |
| ITEM 18. Financial Statements                                                         | 115 |
| ITEM 19. Exhibits                                                                     | 116 |
| SGNATURES                                                                             | 117 |

----

| ●   | 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 2011   | 1.0138 | 0.9999 | 1.0063  |
| December 2010  | 0.9996 | 0.9827 | 0.9920  |
| November 2010  | 0.9999 | 0.9766 | 0.9878  |
| October 2010   | 0.9972 | 0.9689 | 0.9818  |
| September 2010 | 0.9786 | 0.9506 | 0.9681  |
| August 2010    | 0.9848 | 0.9398 | 0.9614  |

|                             | Average |
|----------------------------------|---------|
| 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  |
| Six months ended June 30, 2006   | 0.8841  |
| Year ended December 31, 2005     | 0.7702  |

----

----

PART I

ITEM 1.  Identity of Directors, Senior Management and Advisors

ITEM 2.  Offer Statistics and Expected Timetable

ITEM 3.  Key Information

----

| Consolidated Income Statement Data (1)      |   | Year EndedAugust 31,2010(C$) |       |   | Year EndedAugust 31,2009(C$) |   |       | Year EndedAugust 31,2008(C$) |   |   | Two MonthsEndedAugust 31,2007(C$) |   |   | Year EndedJune 30,2007(C$) |      |   | Six MonthsEndedJune 30,2006(C$) |   |       | Year EndedDecember 31,2005(C$) |   |
|---------------------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|------------|------------------------------|--------|--------|-----------------------------------|--------|--------|----------------------------|-----------|--------|---------------------------------|--------|------------|--------------------------------|--------|
| Revenues                                    |   |                         | 55,954,852 |   |                         |   | 44,550,958 |                         |   |   | 31,161,279                        |   |   |                       | 1,166,769 |   |                            |   | 9,303,448  |                           |   |   | 2,930,688 |   |   |   | 5,076,907 |   |
| Direct costs                                |   |                         | 20,670,302 |   |                         |   | 16,234,348 |                         |   |   | 12,067,789                        |   |   |                       | 547,266   |   |                            |   | 4,587,634  |                           |   |   | 1,706,189 |   |   |   | 2,656,482 |   |
| Other expenses                              |   |                         | 33,669,709 |   |                         |   | 27,731,472 |                         |   |   | 22,625,691                        |   |   |                       | 1,152,735 |   |                            |   | 5,839,938  |                           |   |   | 2,058,324 |   |   |   | 4,016,190 |   |
| Income (loss) from operations               |   |                         | 1,614,841  |   |                         |   | 585,138    |                         |   |   | (3,532,201                        | )      |   |                       | (533,232  | )      |                            |   | (1,124,124 | )                              |   |   | 363,197 |   |   |   | (716,018 | ) |
| Other income (expenses)                     |   |                         | (3,027,643 | )      |                         |   | 193,213    |                         |   |   | (1,124,461                        | )      |   |                       | (148,031  | )      |                            |   | 1,729,392  |                           |   |   | 9,349 |   |   |   | 17,319 |   |
| Income (loss) before income taxes           |   |                         | (1,412,802 | )      |                         |   | 778,351    |                         |   |   | (4,589,071                        | )      |   |                       | (681,263  | )      |                            |   | 605,268    |                           |   |   | 363,197 |   |   |   | (358,771 | ) |
| Income tax recovery (provision)             |   |                         | 2,365,055  |   |                         |   | (285,241   | )                            |   |   | (351,432                          | )      |   |                       | (32,508   | )      |                            |   | (243,684   | )                              |   |   | - |   |   |   | - |   |
| Non-controlling interests                   |   |                         | (369,883   | )      |                         |   | (477,103   | )                            |   |   | (109,155                          | )      |   |                       | 65,334    |   |                            |   | (58,294    | )                              |   |   | 26,033 |   |   |   | 104,623 |   |
| Net income (loss)                           |   |                         | 582,370    |   |                         |   | 16,007     |                         |   |   | (5,049,678                        | )      |   |                       | (648,437  | )      |                            |   | 303,290    |                           |   |   | 363,197 |   |   |   | (358,771 | ) |
| Basic and diluted earnings (loss) per share |   |                         | 0.01       |   |                         |   | 0.00       |                         |   |   | (0.09                             | )      |   |                       | (0.01     | )      |                            |   | 0.01       |                           |   |   | 0.01 |   |   |   | (0.02 | ) |

| Consolidated Income Statement Data (1)      |   | Year EndedAugust 31,2010(C$) |       |   | Year EndedAugust 31,2009(C$) |   |       | Year EndedAugust 31,2008(C$) |   |   | Two MonthsEndedAugust 31,2007(C$) |   |   | Year EndedJune 30,2007(C$) |      |   | Six MonthsEndedJune 30,2006(C$) |   |       | Year EndedDecember 31,2005(C$) |   |
|---------------------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|------------|------------------------------|--------|--------|-----------------------------------|--------|--------|----------------------------|-----------|--------|---------------------------------|--------|------------|--------------------------------|--------|
| Revenues                                    |   |                         | 55,954,852 |   |                         |   | 44,550,958 |                         |   |   | 31,161,279                        |   |   |                       | 1,166,769 |   |                            |   | 9,303,448  |                           |   |   | 2,930,688 |   |   |   | 5,076,097 |   |
| Income (loss) from operations               |   |                         | 1,614,841  |   |                         |   | 585,138    |                         |   |   | (3,532,201                        | )      |   |                       | (533,232  | )      |                            |   | (1,124,124 | )                              |   |   | (833,825 | ) |   |   | (716,018 | ) |
| Net income(loss)                            |   |                         | 273,599    |   |                         |   | 16,007     |                         |   |   | (5,905,655                        | )      |   |                       | (648,437  | )      |                            |   | 158        |                           |   |   | 475,672 |   |   |   | (1,372,750 | ) |
| Basic and diluted earnings (loss) per share |   |                         | 0.01       |   |                         |   | 0.00       |                         |   |   | (0.10                             | )      |   |                       | (0.01     | )      |                            |   | (0.01      | )                              |   |   | 0.01 |   |   |   | (0.04 | ) |

----

| Consolidated Balance Sheet Data                 |   | As atAugust 31,2010(C$) |       |   | As atAugust 31,2009(C$) |   |       | As atAugust 31,2008(C$) |   |   | As atAugust 31,2007(C$) |   |   | As atJune 30,2007(C$) |       |   | As atJune 30,2006(C$) |   |       | As atDecember 31,2005(C$) |   |
|-------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|-------------------------|--------|--------|-------------------------|--------|--------|-----------------------|------------|--------|-----------------------|--------|------------|---------------------------|--------|
| Current assets                                  |   |                    | 24,523,282 |   |                    |   | 22,015,521 |                    |   |   | 18,393,197              |   |   |                  | 17,732,653 |   |                  |   | 15,232,534 |                      |   |   | 5,294,019 |   |   |   | 5,239,283 |   |
| Current liabilities                             |   |                    | 26,359,720 |   |                    |   | 21,574,878 |                    |   |   | 18,217,681              |   |   |                  | 5,058,432  |   |                  |   | 2,685,972  |                      |   |   | 2,663,570 |   |   |   | 3,819,019 |   |
| Working capital (deficit)                       |   |                    | (1,836,438 | )      |                    |   | 440,643    |                    |   |   | 175,516                 |   |   |                  | 12,674,221 |   |                  |   | 12,546,562 |                      |   |   | 2,630,449 |   |   |   | 1,420,264 |   |
| Other assets                                    |   |                    | 30,446,056 |   |                    |   | 25,506,171 |                    |   |   | 25,424,368              |   |   |                  | 6,594,395  |   |                  |   | 6,072,375  |                      |   |   | 2,505,045 |   |   |   | 1,988,312 |   |
| Total assets                                    |   |                    | 54,969,338 |   |                    |   | 47,521,692 |                    |   |   | 43,817,565              |   |   |                  | 24,327,048 |   |                  |   | 21,304,909 |                      |   |   | 7,799,064 |   |   |   | 7,227,595 |   |
| Capital lease obligations                       |   |                    | 222,810    |   |                    |   | 291,220    |                    |   |   | 176,143                 |   |   |                  | 65,370     |   |                  |   | 68,513     |                      |   |   | 88,065 |   |   |   | 11,094 |   |
| Long-term debt                                  |   |                    | 36,724     |   |                    |   | 44,327     |                    |   |   | 10,322                  |   |   |                  | 3,265,594  |   |                  |   | 3,212,756  |                      |   |   | - |   |   |   | - |   |
| Non-controlling interests                       |   |                    | 1,327,126  |   |                    |   | 1,198,606  |                    |   |   | 1,345,065               |   |   |                  | 1,043,996  |   |                  |   | 653,982    |                      |   |   | 937,413 |   |   |   | 1,006,103 |   |
| Total liabilities and non-controlling interests |   |                    | 27,946,380 |   |                    |   | 24,850,638 |                    |   |   | 21,322,758              |   |   |                  | 9,433,392  |   |                  |   | 6,621,223  |                      |   |   | 3,689,048 |   |   |   | 4,836,216 |   |
| Share capital                                   |   |                    | 47,709,836 |   |                    |   | 44,350,606 |                    |   |   | 44,350,606              |   |   |                  | 26,861,878 |   |                  |   | 26,851,807 |                      |   |   | 17,977,570 |   |   |   | 18,633,526 |   |
| Shareholders equity                             |   |                    | 27,022,958 |   |                    |   | 22,671,054 |                    |   |   | 22,494,807              |   |   |                  | 14,893,656 |   |                  |   | 14,683,686 |                      |   |   | 4,110,016 |   |   |   | 2,391,379 |   |
| Number of common shares outstanding             |   |                    | 69,226,011 |   |                    |   | 64,109,297 |                    |   |   | 44,350,606              |   |   |                  | 47,858,225 |   |                  |   | 47,840,073 |                      |   |   | 35,552,630 |   |   |   | 32,744,357 |   |

| Consolidated Balance Sheet Data                 |   | As atAugust 31,2010(C$) |       |   | As atAugust 31,2009(C$) |   |       | As atAugust 31,2008(C$) |   |   | As atAugust 31,2007(C$) |   |   | As atJune 30,2007(C$) |       |   | As atJune 30,2006(C$) |   |       | As atDecember 31,2005(C$) |   |
|-------------------------------------------------|--------|-------------------------|------------|--------|-------------------------|--------|------------|-------------------------|--------|--------|-------------------------|--------|--------|-----------------------|------------|--------|-----------------------|--------|------------|---------------------------|--------|
| Total assets                                    |   |                    | 54,690,276 |   |                    |   | 47,521,692 |                    |   |   | 43,817,565              |   |   |                  | 24,327,048 |   |                  |   | 21,511,074 |                      |   |   | 25,288,939 |   |   |   | 21,009,169 |   |
| Total liabilities and non-controlling interests |   |                    | 26,648,963 |   |                    |   | 23,652,032 |                    |   |   | 19,977,691              |   |   |                  | 9,638,785  |   |                  |   | 6,824,450  |                      |   |   | 3,738,466 |   |   |   | 5,018,665 |   |
| Share capital                                   |   |                    | 47,709,836 |   |                    |   | 44,350,606 |                    |   |   | 44,350,606              |   |   |                  | 26,861,878 |   |                  |   | 26,851,807 |                      |   |   | 17,977,570 |   |   |   | 18,633,526 |   |
| Shareholders equity                             |   |                    | 28,041,313 |   |                    |   | 23,869,660 |                    |   |   | 23,839,874              |   |   |                  | 14,688,263 |   |                  |   | 14,686,624 |                      |   |   | 21,550,473 |   |   |   | 15,990,504 |   |
| Number of common shares outstanding             |   |                    | 69,226,011 |   |                    |   | 64,109,297 |                    |   |   | 44,350,606              |   |   |                  | 47,858,225 |   |                  |   | 47,840,073 |                      |   |   | 35,552,630 |   |   |   | 32,744,357 |   |

----

----

----

| ●   | 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 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.                                                                                                                                    |

----

----

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

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

| ●   | continue building a network of new CIBT centers in additional Asian cities, and further develop our current programs, campuses and CIBT center locations; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ●   | continue to expand across China by potentially acquiring Chinese degree-granting institutions and/or other state-owned colleges in China and transform them into private business colleges; |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | expand the presence of Sprott-Shaw and KGIC in the Philippines and establish additional locations in other parts of Asia, including Thailand, South Korea, Malaysia, Vietnam and India; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | 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 in 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-Shaws 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)  | 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); |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)  | 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 |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)  | 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 andadministrative offices |   |
| CIBT            | 5                            | 5                               | 29                                               | 0                                              | 3                                      | 42     |
| Sprott-Shaw     | 18                           | 6                               | 2                                                | 0                                              | 1                                      | 27     |
| KGIC Colleges   | 8                            | 0                               | 0                                                | 6                                              | 0                                      | 14     |
| TOTAL           | 31                           | 11                              | 31                                               | 6                                              | 4                                      | 83     |

----

----

----

----

| ●   | 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) |
|----------------|-----------------------------------------------------------------------|

| ●   | Sprott-Shaw International Language College, Canada (ESL school) |
|----------------|-----------------------------------------------------------------|

| ●   | 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            | 5        | 5       | 29                    | 0                                | 3                 | 42    |

----

| Campus                                       | Location                          |
|----------------------------------------------|-----------------------------------|
| Beijing University of Technology West Campus | Beijing, China                    |
| Beijing University of Technology East 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    |
| Guangzhou CIBT Center, China  |  Guangzhou Naisi Hotel Management Co. | Guangzhou, Guangdong Province, China |

----

| Joint Program Schools                                                                                        | Location                               |
|--------------------------------------------------------------------------------------------------------------|----------------------------------------|
| CIBT AHLA-EI Joint Program at Kunming Youzi Institute                                                        | Kunming, Yunnan Province               |
| CIBT AHLA-EI Joint Program at Kunming Maisi Communications                                                   | Kunming, Yunnan Province               |
| CIBT AHLA-EI Joint Program Guizhou                                                                           | Guizhou, Guizhou Province              |
| CIBT AHLA-EI Joint Program at IHTTI Swiss Hotel Management Institute                                         | Beijing                                |
| CIBT AHLA-EI Joint Program at Beijing Hospitality Institute                                                  | Beijing                                |
| CIBT AHLA-EI Joint Program at Beijing Second Foreign Language Institute China-Swiss Hotel Management College | Beijing                                |
| CIBT AHLA-EI Joint Program at Flagship HK International Hotel Training Co.                                   | Beijing                                |
| CIBT AHLA-EI Joint Program at Beijing Kairui Hotel Management Co. Ltd                                        | Beijing                                |
| CIBT AHLA-EI Joint Program at Beijing Fengtai District Workers College                                       | Beijing                                |
| CIBT AHLA-EI Joint Program at Beijing Xiangjiang Fortune Hotel Co. Ltd                                       | Beijing                                |
| CIBT AHLA-EI Joint Program at Beijing Lijingwan Hotel                                                        | Beijing                                |
| CIBT AHLA-EI Joint Program at Chongqing Jinxiu Qiancheng Education Consulting Co. Ltd                        | Chongqing, Sichuan Province            |
| CIBT AHLA-EI Joint Program at Sichuan University-Suzhou                                                      | Suzhou, Jiangsu Province               |
| CIBT AHLA-EI Joint Program in Sichuan-Chengdu                                                                | Chengdu, Sichuan Province              |
| CIBT AHLA-EI Joint Program at Changsha Youli Education Consulting Co. Ltd                          | Changsha, Hunan Province               |
| CIBT AHLA-EI Joint Program at Shengyang                                                                      | Shenyang, Liaoning Province            |
| CIBT AHLA-EI Joint Program at Sanya Science & Engineering Vocational Institute                           | Sanya, Hainan Province                 |
| CIBT AHLA-EI Joint Program at Hainan University Sanya Institute                                              | Sanya, Hainan Province                 |
| CIBT AHLA-EI Joint Program at Les Roches Jinjiang International Hotel Management College                     | Shanghai                               |
| CIBT AHLA-EI Joint Program at Shanghai Yujing Hotel                                                          | Shanghai                               |
| CIBT AHLA-EI Joint Program at Nanning Vocational College                                                     | Nanning, Guangxi Province              |
| CIBT AHLA-EI Joint Program at Inner Mongolian Textiles Trade School                                          | Chi Feng City, Inner Mongolia Province |
| CIBT AHLA-EI Joint Program in Shenzhen                                                                       | Shenzhen, Guangdong Province           |
| CIBT AHLA-EI Joint Program at Yangtianhu Villa                                                               | Ningbo, Zhejiang Province              |
| CIBT AHLA-EI Joint Program at Zhuhai International Business Training School                                  | Zhuhai, Guangdong Province             |
| CIBT AHLA-EI Joint Program in Wuhan                                                                          | Wuhan,  Hubei Province            |
| CIBT AHLA-EI Joint Program in Zhengzhou                                                                      | Zhengzhou, Henan Province              |
| CIBT AHLA-EI Joint Program in Shenzhen Fuyou                                                                 | Shenzhen, Guangdong Province           |
| CIBT AHLA-EI Joint Program at Guangzhou CanAm Consulting                                                     | Guangzhou, Guangdong Province          |

----

| 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     | 18       | 6       | 2                     | 0                                | 1                 | 27    |

| Campus                                                 | Location                                  |
|--------------------------------------------------------|-------------------------------------------|
| Abbotsford                                             | Abbotsford, British Columbia, Canada      |
| Courtenay                                              | Courtenay, British Columbia, Canada       |
| Duncan                                                 | Duncan, 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   |
| Red Deer                                               | Red Deer, British Columbia, Canada        |
| Sprott-Shaw International Language College (Vancouver) | Vancouver, 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           |
| Browns Town SSCC Center, Jamaica    | Browns Town Community College | Browns Town, St. Ann, Jamaica |
| Seoul, SSILC Center, South Korea    | National Cambridge College    | Seoul, South Korea            |

| Joint Program Schools                           | Location       |
|-------------------------------------------------|----------------|
| Sprott-Shaw Vietnam Joint Program Hanoi College | 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                     | 6                                | 0                 | 14    |

----

| Campus                                                | Size (Square Feet) | Location                            |
|-------------------------------------------------------|--------------------|-------------------------------------|
| KGIC Vancouver Campus                                 | 21,000             | Vancouver, British Columbia, Canada |
| KGIC Vancouver Business College Campus                | 14,071             | Vancouver, British Columbia, Canada |
| KGIC & KGI Business College Victoria  Campus | 9,895              | Victoria, British Columbia, Canada  |
| KGIC Surrey Campus                                    | 9,000              | 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                                   | 4,830              | Halifax, Nova Scotia, Canada        |

| Recruiting Office                | Location            |
|----------------------------------|---------------------|
| KGIC International Office Mexico | Mexico City, Mexico |
| KGIC International Office China  | Shanghai, China     |
| 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 |
| Seneca College, Toronto                                        | University Pathway Program | KGIC |
| Centennial College, Toronto                                    | University Pathway Program | KGIC |
| Algonquin College, Ottawa                                      | University Pathway Program | KGIC |
| Sheridan College, Oakville, Toronto                            | University Pathway Program | KGIC |
| University of PEI                                              | University Pathway Program | KGIC |
| St. Mary University                                            | University Pathway Program | KGIC |
| Laurentian University                                          | University Pathway Program | KGIC |
| China                                                          | Weifang Commercial School | Business Program | CIBT |
| Jinhua Career & Technical College                          | English Training, Business Program | CIBT |
| Zhangzhou Normal University                                    | English Training, Business ProgramAHLA-EI Program | CIBT |
| Weifang Technician College                                     | English Training, Business Program | CIBT |
| Beijing University of Technology                               | 2+2 Bachelors Degree Program,1+1 Masters Degree Program | CIBT |
| Weifang University                                             | English Training, IT Programs,Automotive Training Programs,Corporate and Executive Training,Business English Training,AHLA-EI Program,Accounting Program | CIBT |
| Kunming Youzi Training Centre                                  | AHLA-EI Program | CIBT |
| Guizhou China Tourism Corp.                                    | AHLA-EI Program | CIBT |
| Beijing Hospitality Institute                                  | AHLA-EI Program | CIBT |
| Beijing Fengtai Vocational College                             | AHLA-EI Program | CIBT |
| Zhuhai International Business Training School                  | AHLA-EI Program | CIBT |
| Inner Mongolia Textile Trade School                            | AHLA-EI Program | CIBT |
| Beijing University Resources College                           | AHLA-EI Program | CIBT |
| Hainan University Sanya Institute                              | AHLA-EI Program | CIBT |
| Nanjing Vocational Technology School                           | AHLA-EI Program | CIBT |
| CCRTVU Training Center                                         | AHLA-EI Program | CIBT |
| Beijing Xiangjiang Fortune Hotel                               | AHLA-EI Program | CIBT |
| Beijing Zhong Kairui Hotel Management                          | AHLA-EI Program | CIBT |
| Hefei Management Training Company                              | AHLA-EI Program | CIBT |
| Guangzhou Naisi Hotel                                          | AHLA-EI Program | CIBT |
| Hubei Mingshang Dongfang Training                              | AHLA-EI Program | CIBT |
| IHTTS Swiss Education Group                                    | AHLA-EI Program | CIBT |
| Jilin Xingrui Information Technology Ltd.                      | AHLA-EI Program | CIBT |
| Kunming Maisi Culture                                          | AHLA-EI Program | CIBT |
| Chongqing Jinxiuqiancheng Education Consulting Company Ltd.    | AHLA-EI Program | CIBT |
| Sichuan University Suzhou Academy                              | AHLA-EI Program | CIBT |
| Changsha Liyou Education Consulting Company Ltd.               | AHLA-EI Program | CIBT |
| Shenyang Bohiu Education Training Center                       | AHLA-EI Program | CIBT |
| Sanya Tech Vocational College                                  | AHLA-EI Program | CIBT |
| Shenzhen Qijian International Hotel Training Institute         | AHLA-EI Program | CIBT |
| Wuhan Jinhe Hotel Management Company Ltd.                      | AHLA-EI Program | CIBT |
| Zhengzhou Junyue Culture Media Company Ltd.                    | AHLA-EI Program | CIBT |
| Shenzhen Fuyou International Education Investment Company Ltd. | AHLA-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 |
| 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 |
| City University                                                        | Pre-Masters Program, MBA | CIBT |
| Northeastern State University Oklahoma                                 | Pre-Masters Program | CIBT |
| Wyotech Institute                                                      | Automotive Training Programs | CIBT |
| National University, San Diego                                         | University Pathway Program | KGIC |
| Antioch University                                                     | 2+2 Business Program | Sprott-Shaw |
| Lawrence Technological University                                      | Pre-EMBA Program | Sprott-Shaw |
| AHLA-EI (American Hotel and Lodging Association Educational Institute) | Hotel and Tourism Management | Sprott-Shaw |
| Vietnam                                                                | Hanoi Tourism College | ESL | Sprott-Shaw |

----

| Name of Program                                                | Duration of Program              | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----------------------------------------------------------------|----------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Information Technology Program (IT program)                    | Three years                      | We offer IT diplomas in multimedia design, software engineering and applied service management.  Our IT program consists of 20 courses.                                                                                                                                                                                                                                                                                                                                     |
| Automotive Technical Training Programs(auto training programs) | From three months to three years | Our 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 or four 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 month to four months    | Our English program is intended to assist students to develop listening and speaking skills and recognize and practice grammatical structures and sentence patterns.  We offer 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                                        | Nine months                      | We provide 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                      | We offer 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          | Our 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. We offer general courses such as business communications and computer skills to ensure students meet industry demand regarding technical and interpersonal skills.                                                                                                                           |
| Accounting Program                                             | Three years                      | Our 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.                                                                                                                                                                                                                                 |
| Russian Program                                                | One year                         | Our Russian program is intended to assist students to develop listening and speaking skills and learn about grammatical structure and sentence patterns.                                                                                                                                                                                                                                                                                                                              |

----

| 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.                                                                                                                    |
| ESL Programs                                     | 4 to 52 weeks       | ESL programs include English as a Second Language, Teaching ESL, Business English, Medical English, Power Speaking, and Teaching English to Children.                                                                                                                                                                                                                           |

----

| 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 AHLA-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 AHLA-EI curriculum taught by AHLA-EI accredited instructors. In addition to a diploma, students receive AHLA-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 English Testing Program                                | 4 to 12 weeks       | IELTS is the world's leading English test, 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 AHLA-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.                                                                                                                                                                                                                                       |

----

----

|                   |   | Total Annual Student Starts(9/1/2009  8/31/2010) |   |   | Total StudentPopulationsAs at8/31/2010 |   |
|------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------|--------|
| CIBT                   |   |                                                            | 1,765  |   |                                   |   | 2,512 |   |
| Sprott-Shaw            |   |                                                            | 3,882  |   |                                   |   | 1,699 |   |
| Sub-Total              |   |                                                            | 5,647  |   |                                   |   | 4,211 |   |
| KGIC                   |   |                                                            | 6,322  |   |                                   |   | 1,481 |   |
| Post-Acquisition Total |   |                                                            | 11,969 |   |                                   |   | 5,692 |   |

| 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 Program                                                                             |
| English Program                                                 | Nine months                 | $50 per month                                                                                                                              |
| English Program                                                 | Nine months                 | $1,800 per year                                                                                                                            |
| Business English Program                                        | Three years                 | From $80 per course to $4,100 per year                                                                                                     |
| Accounting Program                                              | Three years                 | $1,800 per year                                                                                                                            |
| Russian Program                                                 | One year                    | $4,100 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 masters and 2+2 bachelors 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                                                                                                      |
| ESL Programs                                     | 4 to 52 weeks       | $800/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 AHLA-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                      | 4 to 8 weeks        | $1,440 for 4 weeks to $2,880 for8 weeks   |
| 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 AHLA-EI Diploma Program            | 60 weeks            | $11,460                                   |
| English as a Second Language Programs                        | 4 to 52 weeks  | $1,260 for 4 weeks to $12,850 for52 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        | 28                    | 34                    | 62                          |
| Sprott-Shaw | 73                    | 128                   | 201                         |
| KGIC        | 128                   | 0                     | 128                         |
| TOTAL       | 229                   | 162                   | 391                         |

|        | Total Instructors | Administrative and Other Employees | Total Employees |
|-------------|-------------------|------------------------------------|-----------------|
| CIBT        | 62                | 67                                 | 129             |
| Sprott-Shaw | 201               | 117                                | 318             |
| KGIC        | 128               | 57                                 | 185             |
| TOTAL       | 391               | 241                                | 632             |

----

----

| ●   | 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 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., ChinaCast Education Corp., and ChinaEdu Corp. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | For-profit post-secondary education companies offering Chinese language training and professional training programs.  This segment consists of numerous 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), and North China Auto School, Lan Xiang Career College, and DAZhong Auto School (automotive technical training programs). |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | 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. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Ministry of Education - The Ministry of Education in China is the governments national agency that is responsible for approvals of all Chinese and foreign bachelors and masters 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 masters 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 |
| Beijing University of Technology East Campus | Beijing, Capital of China  | Russian Program                                                          | Approval not required          | N/A               | N/A                    |
| 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): On November 22, 2004, the PCTIA succeeded the Private Post-Secondary Education Commission of BC (PPSEC) as the regulatory agency for private training institutions in the Province of British Columbia. The Agency 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 BCs industry training system to develop the skilled workforce needed to ensure the competitiveness and economic prosperity of our businesses and our province. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | 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. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | All vocational programs, over $1,000 and 40 hours of instruction are accredited under the PCTIA. Its Practical Nursing program is approved by the CLPNBC. The Early Childhood Education program is approved by the Ministry of Children and Families. The Trades Programs are approved by the ITA. All academic programs are approved by the DQAB and allowed under the Ministry of Advanced Education. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

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

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

----

| ●   | corporate identity development |
|----------------|--------------------------------|

| ●   | advertising campaigns |
|----------------|-----------------------|

| ●   | television commercials |
|----------------|------------------------|

| ●   | printing services |
|----------------|-------------------|

| ●   | marketing support |
|----------------|-------------------|

| ●   | website development |
|----------------|---------------------|

| ●   | web application development |
|----------------|-----------------------------|

| ●   | internet advertising |
|----------------|----------------------|

| ●   | online marketing |
|----------------|------------------|

| ●   | 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 IRIXs revenues. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| 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 5.  Operating and Financial Review and Prospects

----

| Consolidated Income Statement Data             |   | Year EndedAugust 31,2010(C$) |       |   | Year EndedAugust 31,2009(C$) |   |       | Year EndedAugust 31,2008(C$) |   |
|------------------------------------------------|--------|------------------------------|------------|--------|------------------------------|--------|------------|------------------------------|--------|
| Revenues                                       |   |                         | 55,954,852 |   |                         |   | 44,550,958 |                         |   |   | 31,161,279 |   |
| Direct costs                                   |   |                         | 20,670,302 |   |                         |   | 16,234,348 |                         |   |   | 12,067,789 |   |
| Other expenses                                 |   |                         | 33,669,709 |   |                         |   | 27,731,472 |                         |   |   | 22,625,691 |   |
| Income (loss) from operations                  |   |                         | 1,614,841  |   |                         |   | 585,138    |                         |   |   | (3,532,201 | ) |
| Other income (expenses)                        |   |                         | (3,027,643 | )      |                         |   | 193,213    |                         |   |   | (1,124,521 | ) |
| Income (loss) before income taxes              |   |                         | (1,412,802 | )      |                         |   | 778,351    |                         |   |   | (4,589,071 | ) |
| Income tax recovery (provision)                |   |                         | 2,365,055  |   |                         |   | (285,241   | )                            |   |   | (351,452 | ) |
| Non-controlling interests                      |   |                         | (369,883   | )      |                         |   | (477,103   | )                            |   |   | (109,155 | ) |
| Net income (loss)                              |   |                         | 582,370    |   |                         |   | 16,007     |                         |   |   | (5,049,678 | ) |
| Basic and diluted earnings (loss) per share(1) |   |                         | 0.01       |   |                         |   | 0.00       |                         |   |   | (0.09 | ) |

----

| ●   | 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 building a network of new CIBT center locations in additional Asian cities; |
|---------------------|--------------------------------------------------------------------------------------|

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

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

| ●   | continue our expansion across China by strategically reviewing Chinese degree-granting institutions as potential acquisition targets; |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------|

| ●   | acquire other state-owned colleges in China and transform them into private business colleges; |
|---------------------|------------------------------------------------------------------------------------------------|

| ●   | expand the presence of Sprott-Shaw and KGIC in the Philippines and establish locations in other parts of Asia, including Thailand, South Korea, Malaysia, Vietnam and India; |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | enhance our product offerings by increasing our focus on the college preparation market and introducing a new program to become a Certified General Accountant (CGA), a designation of professional accountants recognized in and with national associations in Canada, China, Hong Kong, Bermuda and the Caribbean, combined with a  Bachelors degree in Canada and Asia; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | increase the conversion rates of English language students at KGIC and all of our schools into taking longer, potentially degree-granting programs at Sprott-Shaw and the rest of the schools in our system; |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ●   | maintain  strong relationships with the 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, 2010(C$) |       |   | Percentage of Revenues |   |   | Year EndedAugust 31,2009(C$) |   |   | Percentageof Revenues |   |
|----------------------------------------------------|--------|-------------------------------|------------|--------|-----------------------------|--------|--------|------------------------------|--------|--------|-----------------------|--------|
| 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 (C$) |       |   | PercentageofRevenues |   |   | Year EndedAugust 31,2009 (C$) |   |   | PercentageofRevenues |   |
|-------------------------------------------|--------|-------------------------------|------------|--------|----------------------|--------|--------|-------------------------------|--------|--------|----------------------|--------|
| 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 |   |

----

|                                               |   | Year EndedAugust 31,2009(C$) |       |   | PercentageofRevenues |   |   | Year EndedAugust 31,2008(C$) |   |   | PercentageofRevenues |   |
|----------------------------------------------------|--------|------------------------------|------------|--------|----------------------|--------|--------|------------------------------|--------|--------|----------------------|--------|
| Revenues                                           |   |                         |       |   |                 |   |   |                         |   |   |                 |   |
|    CIBT (education)                      |   |                         | 9,576,706  |   |                 |   | 21%    |                         |   |   | 7,997,918            |   |   |   | 26% |   |
|    Sprott-Shaw (education)               |   |                         | 33,659,024 |   |                 |   | 76%    |                         |   |   | 21,070,707           |   |   |   | 68% |   |
|    IRIX (advertising)                    |   |                         | 1,314,328  |   |                 |   | 3%     |                         |   |   | 1,961,205            |   |   |   | 6% |   |
| Revenues  Consolidated                        |   |                         | 44,550,958 |   |                 |   | 100%   |                         |   |   | 31,161,279           |   |   |   | 100% |   |
| Direct costs                                       |   |                         | 16,234,348 |   |                 |   | 36%    |                         |   |   | 12,067,789           |   |   |   | 39% |   |
| Revenues net of direct costs                       |   |                         | 28,316,610 |   |                 |   | 64%    |                         |   |   | 19,093,490           |   |   |   | 61% |   |
| General and administrative expenses                |   |                         | 25,351,076 |   |                 |   | 575    |                         |   |   | 19,301,660           |   |   |   | 62% |   |
| Amortization and stock-based compensation expenses |   |                         | 2,217,859  |   |                 |   | 5%     |                         |   |   | 3,324,031            |   |   |   | 11% |   |
| Income (loss) before income taxes                  |   |                         | 778,351    |   |                 |   | 2%     |                         |   |   | (4,589,071           | )      |   |   | (15% | ) |
| Income tax provision                               |   |                         | (285,241   | )      |                 |   | (1%    | )                            |   |   | (351,452             | )      |   |   | (1% | ) |
| Non-controlling interests                          |   |                         | (477,103   | )      |                 |   | (1%    | )                            |   |   | (109,155             | )      |   |   | (2) |   |
| Net income (loss)                                  |   |                         | 16,007     |   |                 |   | (1)    |                         |   |   | (5,049,678           | )      |   |   | (16% | ) |

----

|                                      |   | Year EndedAugust 31,2009(C$) |       |   | PercentageofRevenues |   |   | Year EndedAugust 31,2008(C$) |   |   | PercentageofRevenues |   |
|-------------------------------------------|--------|------------------------------|------------|--------|----------------------|--------|--------|------------------------------|--------|--------|----------------------|--------|
| Revenues                                  |   |                         | 44,550,958 |   |                 |   | 100%   |                         |   |   | 31,161,279           |   |   |   | 100% |   |
| Advertising                               |   |                         | 5,699,158  |   |                 |   | 13%    |                         |   |   | 4,087,705            |   |   |   | 13% |   |
| Consulting and management fees            |   |                         | 1,230,128  |   |                 |   | 3%     |                         |   |   | 1,632,939            |   |   |   | 5% |   |
| Office and general                        |   |                         | 3,395,149  |   |                 |   | 8%     |                         |   |   | 2,498,784            |   |   |   | 8% |   |
| Professional fees                         |   |                         | 1,544,022  |   |                 |   | 3%     |                         |   |   | 1,466,510            |   |   |   | 5% |   |
| Rent                                      |   |                         | 3,019,407  |   |                 |   | 7%     |                         |   |   | 2,116,207            |   |   |   | 7% |   |
| Salaries and benefits                     |   |                         | 9,631,436  |   |                 |   | 22%    |                         |   |   | 6,517,877            |   |   |   | 21% |   |
| Total general and administrative expenses |   |                         | 25,351,076 |   |                 |   | 57%    |                         |   |   | 19,301,660           |   |   |   | 62% |   |

----

|                                   |   | Year EndedAugust 31,2009(C$) |      |   | Year EndedAugust 31,2008(C$) |   |
|----------------------------------------|--------|------------------------------|-----------|--------|------------------------------|--------|
| Amortization of property and equipment |   |                         | 1,076,219 |   |                         |   | 692,524 |   |
| Amortization of intangible assets      |   |                         | 560,542   |   |                         |   | 1,168,651 |   |
| TOTAL                                  |   |                         | 1,636,761 |   |                         |   | 1,861,175 |   |

----

| (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   |   |

----

|                                          |   | August 31, 2008             |        |
|-----------------------------------------------|--------|-----------------------------|-------------|
|                                          |   | As Previously Reported (C$) |        |   | As Restated (C$) |   |   | Change (C$) |   |
| CIBT                                          |   |                        |        |   |   |   |   |   |   |
| Intangible assets subject to amortization     |   |                        | 106,352     |   |   |   | 246,352 |   |   |   | 140,000 |   |
| Intangible assets not subject to amortization |   |                        | 1,725,000   |   |   |   | 3,147,000 |   |   |   | 1,422,000 |   |
| Goodwill                                      |   |                        | 2,156,705   |   |   |   | 985,205 |   |   |   | (1,171,500 | ) |
| Future income tax liability                   |   |                        | (439,500    | ) |   |   | (830,000 | ) |   |   | (390,500 | ) |
| TOTAL                                         |   |                        | 3,548,557   |   |   |   | 3,548,557 |   |   |   | - |   |
| Sprott-Shaw                                   |   |                        |        |   |   |   |   |   |   |   |   |   |
| Intangible assets subject to amortization     |   |                        | 5,158,000   |   |   |   | 3,275,000 |   |   |   | (1,883,000 | ) |
| Intangible assets not subject to amortization |   |                        | 4,369,000   |   |   |   | 5,982,,000 |   |   |   | 1,613,000 |   |
| Goodwill                                      |   |                        | 2,874,583   |   |   |   | 3,161,203 |   |   |   | 286,620 |   |
| Future income tax liability                   |   |                        | (10,160,658 | ) |   |   | (10,177,278 | ) |   |   | (16,620 | ) |
| TOTAL                                         |   |                        | 2,240,925   |   |   |   | 2,240,925 |   |   |   | - |   |

----

|   Assets and Liabilities Acquired in Tourism Training Institute Purchase |   | Fair Value of Assets Acquired (C$) |     |
|-------------------------------------------------------------------------------|--------|------------------------------------|----------|
| Accounts receivable                                                           |   |                               | 92,268   |   |
| Property and equipment                                                        |   |                               | 24,000   |   |
| Intangible assets subject to amortization                                     |   |                               | 281,247  |   |
| Deferred revenue                                                              |   |                               | (176,093 | ) |
| Net assets acquired equal to purchase price                                   |   |                               | 221,422  |   |

----

| (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 be held in escrow, payable to KGIC in two installments of $350,000 each, payable as follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (i)   | 100 days after the closing date provided KGIC delivered certain financial statements to us on or before 20 business days after March 15, 2010 (paid); and |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | after the delivery of audited financial statements of KGIC dated August 31, 2010 by KGIC to us (paid); |
|-------------|--------------------------------------------------------------------------------------------------------|

|   | KGIC has not delivered any of the above financial statements and the funds will be held in escrow until delivery occurs; and |
|--------|------------------------------------------------------------------------------------------------------------------------------|

| (c) | we will pay a maximum of $4,000,000, which is referred to as the earn out, calculated as follows: |
|-----|---------------------------------------------------------------------------------------------------|

| (i)   | for the period March 16, 2010 to February 28, 2011, a maximum of $958,904.55 if revenue net of direct costs exceeds $16,109,588 and EBITDA exceeds $1,284,930; |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | for the period March 16, 2010 to February 28, 2011, a maximum of $958,904.55 payable in shares of CIBT Education Group if revenue net of direct costs exceeds $16,109,588 and EBITDA exceeds $1,284,930; |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | for the period March 1, 2011 to February 29, 2012, a maximum of $1,000,000 if revenue net of direct costs exceeds $18,200,000 and EBITDA exceeds $2,000,000; and |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iv)   | for the period March 1, 2012 to February 28, 2013, a maximum of $1,000,000 if revenue net of direct costs exceeds $23,000,000 and EBITDA exceeds $3,450,000. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                      |   | Audited                  |       |
|---------------------------|--------|--------------------------|------------|
|   Financial Position |   | As at August 31,2010(C$) |       |   | As at August 31,2009(C$) |   |   | As at August 31,2008(C$) |   |
| Cash and cash equivalents |   |                     | 11,511,835 |   |   |   | 10,337,128 |   |   |   | 10,932,737 |   |
| Working capital (deficit) |   |                     | (1,836,438 | ) |   |   | 440,643 |   |   |   | 175,516 |   |
| Total assets              |   |                     | 54,969,338 |   |   |   | 47,521,692 |   |   |   | 43,817,565 |   |
| Long-term liabilities     |   |                     | 259,534    |   |   |   | 2,077,154 |   |   |   | 1,760,001 |   |
| Non-controlling interest  |   |                     | 1,327,126  |   |   |   | 1,198,606 |   |   |   | 1,345,067 |   |
| Shareholders equity       |   |                     | 27,022,958 |   |   |   | 22,671,054 |   |   |   | 22,494,807 |   |

----

----

----

| ●   | Level 1 - Valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities; |
|----------------|----------------------------------------------------------------------------------------------------------------|

| ●   | Level 2 - Valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie. as prices) or indirectly (ie. derived from prices); and |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Level 3 - Valuation techniques using inputs for the asset or liability that are not based on observable market data (ie. unobservable inputs). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ●   | Under Canadian GAAP marketable securities classified as available-for-sale financial instruments were accounted for differently prior to the adoption of CICA 3855 effective July 1, 2007.  The carrying value, previously recognized realized and unrealized gains and losses and impairment loss are different under Canadian and U.S. GAAP. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Under Canadian GAAP, gains and losses resulting from the dilutive effects of subsidiary share transactions and issuances are included in the determination of net income for the period. Under U.S. GAAP such gains and losses should be recorded as capital transactions when the likelihood of realization is uncertain. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | 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. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) Handbook Section 1582 Business Combinations |
|--------|-------------------------------------------------|

|   | (b) Handbook Section 1601 Consolidated Financial Statements |
|--------|-------------------------------------------------------------|

|   | (c) Handbook Section 1602 Non-Controlling interest |
|--------|----------------------------------------------------|

----

----

|                            |   | Year EndedAugust 31,2010 |    |   | Year EndedAugust 31,2009 |   |    | Year EndedAugust 31,2008 |   |
|---------------------------------|--------|--------------------------|---------|--------|--------------------------|--------|---------|--------------------------|--------|
| Foreign exchange gains (losses) |   | $                        | (96,677 | )      |                     | $      | 162,537 |                     |   | $ | 67,651 |   |

----

----

|                          |   | Payments Due by Period |       |
|-------------------------------|--------|------------------------|------------|
| Contractual Obligations       |   | Total                  |       |   | Less Than 1 Year |   |   | 1-3 Years |   |   | 3-5 Years |   |   | After 5 Years |   |
| Long-Term Debt Obligations(1) |   | $                      | 2,793,888  |   |   | $ | 2,757,164 |   |   | $ | 36,724 |   |   |   | - |   |   |   | - |   |
| Capital Lease Obligations(2)  |   | $                      | 340,908    |   |   | $ | 118,098 |   |   | $ | 222,810 |   |   |   | - |   |   |   | - |   |
| Operating Leases(3)           |   | $                      | 11,419,231 |   |   | $ | 4,423,367 |   |   | $ | 6,021,036 |   |   | $ | 974,830 |   |   |   | - |   |
| TOTAL                         |   | $                      | 14,554,029 |   |   | $ | 7,298,629 |   |   | $ | 6,280,570 |   |   | $ | 974,830 |   |   |   | - |   |

| (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                | 49            | President, Chief Executive Officer and Vice Chairman | May 11, 1994      |
| Dennis Dan Huang        | 48            | Corporate Secretary                                  | June 28, 2010     |
| Chief Financial Officer | June 28, 2010 |
| Patrick Dang(1)         | 53            | Acting President of Sprott-Shaw                      | November 17, 2010 |
| Sung Sub Lim            | 45            | President of the KGIC Colleges                       | March 7, 2010     |
| Steve Sohn              | 49            | Vice President of the KGIC Colleges                  | March 7, 2010     |

| (1)  | Mr. Dean Dupperon, President of Sprott-Shaw up to December 31, 2010 will now be acting as an Advisor for Sprott-Shaw, and the position of Acting President of Sprott-Shaw will be occupied by Patrick Dang. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                 | Age | Appointment or Election Date |
|----------------------|-----|------------------------------|
| Toby Chu (3)(4)      | 49  | May 11, 1994                 |
| Tony David (2)       | 70  | July 28, 1998                |
| Troy Rice (1)(3)     | 47  | October 28, 2005             |
| David Hsu (1)(2)(4)  | 68  | February 27, 2006            |
| David Warnock (2)(4) | 52  | December 19, 2007            |
| Shane Weir (1)(3)    | 56  | December 12, 2008            |
| David Kong (1)(3)(4) | 63  | July 1, 2010                 |

| (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                                                                                                |
|------------------|--------------------|--------------------------------------------------------------------------------------------------------|
| David Warnock    | Director           | Camden Learning Corp.New Horizons Worldwide Inc.Nobel Learning Communities Inc.Questar Assessment Inc. |
| Shane Weir       | Director           | Asia Pacific Investment Advisors Limitede-Kong Group Limited                                           |
| David Kong       | Director           | Channel Resources Ltd.Hana Mining Ltd.Tagish Lake Gold Corp.                                           |

| ●   | 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)         | 2010     |   |       | 180,000 |   |      |   | 400,000 |             |   |   | -                    |   |   |                                       | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 584,000 |   |
| Dennis Dan Huang(4) | 2010     |   |       | 81,667  |   |      |   | -       |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 81,667 |   |
| Tim Leong(5)        | 2010     |   |       | 96,000  |   |      |   | -       |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 96,000 |   |
| Dean Dupperon(6)    | 2010     |   |       | 400,000 |   |      |   | 409,509 |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 809,509 |   |
| Alvin Chu(7)        | 2010     |   |       | 180,000 |   |      |   | -       |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 180,000 |   |
| Sung Sub Lim(8)     | 2010     |   |       | 150,000 |   |      |   | -       |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 150,000 |   |
| Steve Sohn(9)       | 2010     |   |       | 102,000 |   |      |   | -       |             |   |   | -                    |   |   |                                       | -      |   |                                            |   | -      |      |   |   | - |   |   |   | 102,000 |   |

| (1)  | 2010 denotes for the fiscal year 2010 from September 1, 2009 to August 31, 2010. |
|-----------|----------------------------------------------------------------------------------|

| (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 2010, options to purchase up to 10,000 common shares of CIBT Education Group Inc. were granted to Toby Chu for Mr. Chus services as a director and are exercisable at a price of $0.80 per share until May 2, 2013. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Dennis Dan Huang was appointed as the Chief Financial Officer and Corporate Secretary of CIBT Education Group and the former Chief Financial Officer and Corporate Secretary of CIBT on June 28, 2010 and is paid annual compensation of $100,000. Compensation paid to Mr. Huang in fiscal 2010 as disclosed in the table is pursuant to his service as the Executive Vice President of Finance of CIBT Education Group until June 27, 2010, and as Chief Financial Officer for the balance of the fiscal year. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | Tim Leong resigned as the Chief Financial Officer and Corporate Secretary of CIBT Education Group and the Chief Financial Officer and Corporate Secretary of CIBT on June 28, 2010. He served as our Chief Financial Officer from July 24, 1995 and our Corporate Secretary from May 24, 1996. Mr. Leong is now the VP of Finance and Accounting of CIBT Education Group. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)  | Dean Dupperon was the President of Sprott-Shaw until December 31, 2010, and then became an advisor for Sprott-Shaw. |
|-----------|---------------------------------------------------------------------------------------------------------------------|

| (7)  | Alvin Chu is the President and Chief Executive Officer of IRIX, and is Toby Chus brother. |
|-----------|-------------------------------------------------------------------------------------------|

| (8)  | Sung Sub Lim was appointed as the 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. See Business Recent Developments and Management Employment Agreements. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)  | Steve Sohn 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. Sohn will be paid annual compensation of $102,000. See Business Recent Developments and Management Employment Agreements. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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)        | 2010    |   |       | 47,063(11) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 51,063 |   |
| Tony David(4)       | 2010    |   |       | 10,459(12) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 14,459 |   |
| David Richardson(5) | 2010    |   |       | 10,028(12) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 14,028 |   |
| David Warnock(6)    | 2010    |   |       | 10,459(12) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 14,459 |   |
| Jack Brozman(7)     | 2010    |   |       | 10,459(12) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 14,459 |   |
| Shane Weir(8)       | 2010    |   |       | 10,459(12) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 14,459 |   |
| David Hsu(9)        | 2010    |   |       | 10,459(12) |   |      |   | -      |             |   |   | -                    |   |   |                                        | 4,000  |   |                                            |   | -      |      |   |   | - |   |   |   | 14,459 |   |
| David Kong (10)     | 2010    |   |       | -(11)      |   |      |   | -      |             |   |   | -                    |   |   |                                        | 15,000 |   |                                            |   | -      |      |   |   | - |   |   |   | 15,000 |   |

| (1)  | 2010 denotes for the fiscal year 2010 from September 1, 2009 to August 31, 2010. |
|-----------|----------------------------------------------------------------------------------|

| (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 2010, options to purchase 10,000 common shares each were granted to our directors, Tony David, David Warnock, David Hsu, Shane Weir and Troy Rice, as well as our former directors Jack Brozman and David Richardson. Shane Weir's options expired unexercised on September 30, 2010. Options granted to directors expire on May 2, 2013 and are exercisable at a price of $0.80 per share.  David Kong, also a director, was granted options to purchase 16,666 common shares at an exercise price of $1.80 per common share expiring on August 8, 2013. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 Richardson was a director of CIBT Education Group until June 10, 2010. |
|-----------|------------------------------------------------------------------------------|

| (6)  | David Warnock is a director of CIBT Education Group. |
|-----------|------------------------------------------------------|

| (7)  | Jack Brozman was a director of CIBT Education Group until July 5, 2010. |
|-----------|-------------------------------------------------------------------------|

| (8)  | Shane Weir is a director of CIBT Education Group. |
|-----------|---------------------------------------------------|

| (9)  | David Hsu is a director and Chairman of CIBT Education Group and director of CIBT. |
|-----------|------------------------------------------------------------------------------------|

| (10)  | David Kong is a director of CIBT Education Group. |
|------------|---------------------------------------------------|

| (11)  | Troy Rice received compensation of US$45,082 for his services as a director in fiscal 2010 which was converted to Canadian dollars at the average rate of exchange for the period of US$1 = C$0.9579. |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)  | Directors received compensation of US$10,019 for their services as directors in fiscal 2010 which was converted to Canadian dollars at the average rate of exchange for the period of US$1 = C$0.9579. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 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 optionees 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 optionees 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 optionees 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 optionees 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 Shares ("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. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                  | Number of common shares underlying options held | Grant Date                                                                        | Exercise or base price (C$/Share) | Expiration date                                                                   |
|-----------------------|-------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------|-----------------------------------------------------------------------------------|
| Toby Chu              | 100,000100,000 (1)80,00010,000 (1)100,00010,000 | June 22, 2007June 22, 2007March 20, 2008March 20, 2008January 22, 2009May 3, 2010 | 1.531.532.002.000.510.80          | June 21, 2012June 21, 2012March 19, 2011March 19, 2011January 21, 2012May 2, 2013 |
| Dennis Dan Huang(2)   | 50,00020,000100,000                             | June 22, 2007March 20, 2008October 14, 2010                                       | 1.532.000.54                      | June 21, 2012March 19, 2011October 13, 2013                                       |
| Tim Leong(2)          | 50,00020,000                                    | June 22, 2007March 20, 2008                                                       | 1.532.00                          | June 21, 2012March 19, 2011                                                       |
| Dean Dupperon(3)      | -                                               | -                                                                                 | -                                 | -                                                                                 |
| Sung Sub Lim(4)       | -                                               | -                                                                                 | -                                 | -                                                                                 |
| Steve Sohn(4)         | -                                               | -                                                                                 | -                                 | -                                                                                 |
| Troy Rice             | 100,00010,00010,00010,000                       | June 22, 2007March 20, 2008January 22, 2009May 3, 2010                            | 1.532.000.510.80                  | June 21, 2012March 19, 2011January 21, 2012May 2, 2013                            |
| Tony David            | 20,00010,00010,00010,000                        | June 22, 2007March 20, 2008January 22, 2009May 3, 2010                            | 1.532.000.510.80                  | June 21, 2012March 19, 2011January 21, 2012May 2, 2013                            |
| David Richardson(5)   | 100,00010,00010,00010,000                       | June 22, 2007March 20, 2008January 22, 2009May 3, 2010                            | 1.532.000.510.80                  | June 21, 2012March 19, 2011January 21, 2012May 2, 2013                            |
| Prithep Sosothikul(6) | 10,00010,000                                    | June 22, 2007March 20, 2008                                                       | 1.532.00                          | June 21, 2012March 19, 2011                                                       |
| Alfred Ng(6)          | 20,00010,000                                    | June 22, 2007March 20, 2008                                                       | 1.532.00                          | June 21, 2012March 19, 2011                                                       |
| David Hsu             | 100,00010,00010,00010,000                       | June 22, 2007March 20, 2008January 22, 2009May 3, 2010                            | 1.532.000.510.80                  | June 21, 2012March 19, 2011January 21, 2012May 2, 2013                            |
| David Warnock         | 50,00010,00010,000                              | March 20, 2008January 22, 2009May 3, 2010                                         | 2.000.510.80                      | March 19, 2011January 21, 2012May 2, 2013                                         |
| Jack Brozman(7)       | -                                               | -                                                                                 | -                                 | -                                                                                 |
| Shane Weir            | 50,00010,000                                    | January 22, 2009May 3, 2010                                                       | 0.510.80                          | January 21, 2012May 2, 2013                                                       |
| David Kong            | 50,000                                          | August 9, 2010                                                                    | 0.60                              | August 9, 2013                                                                    |

| (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. Mr. Leong resigned from these positions on the same date and became the VP of Finance and Accounting of CIBT Education Group effective June 28, 2010. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Mr. Dupperon was the President of Sprott-Shaw until December 31, 2010, and then became an advisor for Sprott-Shaw. He held 50,000 options which expired unexercised on December 30, 2010. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)  | Mr. Lim and Mr. Sohn became executive officers of each of the KGIC Colleges on March 7, 2010. |
|-----------|-----------------------------------------------------------------------------------------------|

| (5)  | Mr. Richardson resigned as a director effective June 10, 2010. |
|-----------|----------------------------------------------------------------|

| (6)  | Mr. Ng and Mr. Sosothikul ceased to be directors on December 12, 2008. |
|-----------|------------------------------------------------------------------------|

| (7)  | Mr. Brozman resigned as a director effective July 5, 2010. He held 70,000 options which expired unexercised on September 30, 2010. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------|

----

| ●   | 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 managements 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) |
| David Kong | 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          | 2              | 6           | 3             | 17    |
| Administrative | 3                              | 23         |           | 42          | 24            | 92    |
| Management     | 3                              | 15         | 1              | 24          | 9             | 52    |
| Operations     |                           | 26         | 8              | 45          | 21            | 100   |
| Instructors    |                           | 62         |           | 201         | 128           | 391   |
| TOTAL          | 9                              | 129        | 11             | 318         | 185           | 652   |

----

| Name of Beneficial Owner              | Amount and Nature ofBeneficial Ownership of Shares | Percent of Class |
|---------------------------------------|----------------------------------------------------|------------------|
| Jack Brozman                          | 100,000 (1)                                        | *                |
| Toby Chu                              | 3,767,247 (2)                                      | 5.4%             |
| Dennis Huang                          | -(3)                                               | -                |
| Tony David                            | 864,842 (4)                                        | 1.2%             |
| David Hsu                             | 3,907,753 (5)                                      | 5.6%             |
| Tim Leong                             | 688,863 (6)                                        | *                |
| Troy Rice                             | 430,200 (7)                                        | *                |
| David Richardson                      | 2,681,938 (8)                                      | 3.9%             |
| David Warnock                         | - (9)(10)                                          | -                |
| David Kong                            | 29,500 (11)                                        | *                |
| Shane Weir                            | - (12)                                             | -                |
| Patrick Dang                          | 100,000 (13)                                       | *                |
| All Officers and Directors as a Group | 12,570,343                                         | 18.2%            |

| (1)  | Jack Brozman was a director of CIBT Education Group until July 5, 2010. His security holdings include 100,000 common shares of CIBT Education Group. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | 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) 80,000 common shares at an exercise price of C$2.00 per share until March 19, 2011; (ii) 100,000 common shares at an exercise price of C$1.53 per share until June 21, 2012; (iii) 100,000 common shares at $0.51 per common share until January 21, 2012; and (iv) 10,000 common shares at $0.80 per share until May 2, 2013. The grant dates of these options were (a) June 22, 2007; (b) March 20, 2008; (c) January 22, 2009; and (d) May 3, 2010. Toby Chu also has voting and investment control over Concordia Financial Management Corp., a company that holds 3,381,847 common shares of CIBT Education Group and options to purchase: 10,000 common shares at C$2.00 per share until March 19, 2011; and 100,000 common shares at C$1.53 per share until June 21, 2012. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | 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 50,000 common shares of CIBT Education Group at an exercise price of C$1.53 per share until June 21, 2012; options to purchase 20,000 common shares of CIBT Education Group at an exercise price of C$2.00 per share until March 19, 2011; and options to purchase 100,000 common shares of CIBT Education Group at an exercise price of C$0.54 until October 13, 2013. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (4)  | Tony David is President of Sprott-Shaw.  His shareholdings include 130,000 common shares in his name and options to purchase common shares of CIBT Education Group as follows: (a) 10,000 common shares at an exercise price of C$2.00 per share until March 19, 2011; (b) 20,000 common shares until June 21, 2012 at an exercise price of C$1.53 per share; (c) 10,000 common shares at an exercise price of C$0.51 until January 21, 2012; and (d) 10,000 common shares at $0.80 per common share until May 2, 2013. Tony David also has voting and investment control over H Tony David Holdings Ltd., a company that holds  794,842 common shares of CIBT Education Group. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)  | David Hsu is a director and Chairman of CIBT Education Group and CIBT. His shareholdings include 847,600 common shares in his own name; and (a) options to purchase 10,000 common shares at C$2.00 per share until March 19, 2011; (b) options to purchase 100,000 common shares at C$1.53 per share until June 21, 2012; (c) options to purchase 10,000 common shares at C$0.51 per share until January 21, 2012; and (d) 10,000 common shares at $0.80 per common share until May 2, 2013. 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 2,489,713 common shares. An additional 370,440 common shares are held by Grande Dame Nevada LLC, a company controlled by David Hsu. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)  | Tim Leong was the Chief Financial Officer, Senior Vice President and Corporate Secretary of us and the Chief Financial Officer and Corporate Secretary of CIBT until his resignation on June 28, 2010. He was appointed as the VP of Finance and Accounting effective June 28, 2010. His shareholdings include 688,863 common shares and options to purchase: (a) 20,000 common shares at C$2.00 per share until March 19, 2011; and (b) options to purchase 50,000 common shares at C$1.53 per share until June 21, 2012. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)  | 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) 10,000 common shares at C$2.00 per share until March 19, 2011; (b) 100,000 common shares at C$1.53 per share until June 21, 2012; (c) 10,000 common shares at C$0.51 per share until January 21, 2012; and (d) 10,000 common shares at $0.80 per common share until May 2, 2013. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)  | David Richardson was a director of CIBT Education Group until his resignation on June 10, 2010. His security holdings include options to purchase: (a) 10,000 common shares at C$2.00 per share until March 19, 2011; (b) 10,000 common shares at C$0.51 per share until January 21, 2010; (c) 100,000 common shares at C$1.53 per share until June 21, 2012; and (d) 10,000 common shares at $0.80 per common share until May 2, 2013. David Richardson also had voting and investment control over Countryman Investments Ltd., which holds 2,681,938 common shares as of the date he ceased to be a director of us. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)  | David Warnock is a director of CIBT Education Group. He holds options to purchase: (a) 50,000 common shares of CIBT Education Group, exercisable at C$2.00 per share until March 19, 2011; (b) options to purchase 10,000 common shares of CIBT Education Group, exercisable at C$0.51 per share until January 21, 2012; and (c) 10,000 common shares at $0.80 per common share until May 2, 2013.  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 appointed as a director on July 1, 2010. His holdings include 29,500 common shares and options to purchase 50,000 common shares at $0.60 per common share until August 8, 2013. |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)  | Shane Weir was elected a director of CIBT Education Group on December 12, 2008. He holds options to purchase: (a) 50,000 common shares of CIBT Education Group, exercisable at C$0.51 per share until January 21, 2012; and (b) 10,000 common shares at $0.80 per common share until May 2, 2013. |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)  | Patrick Dang has been the Acting President of Sprott-Shaw since November 17, 2010. He holds 100,000 common shares of CIBT Education Group. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------|

----

| As of February 24, 2011                                                                   |                                                             |
|-------------------------------------------------------------------------------------------|------------------------------------------------------------------|
| 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 |
| 2,490,000                                                                                 | $1.17                                                            | 4,432,601 |

----

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                        | 3,767,247 (1)                             | 5.4%                 |
| Common shares  | David Hsu                       | 3,907,753 (2)                             | 5.6%                 |
| Common shares  | MacKenzie Financial Corporation | 4,770,900 (3)                             | 6.9%                 |
| Common shares  | Shane Corp.                     | 10,794,558 (4) (5)                        | 15.6%                |

| (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. Chus direct holdings equal 385,400 common shares and options to purchase: (i) 80,000 common shares at an exercise price of C$2.00 per share until March 19, 2011; (ii) 100,000 common shares at an exercise price of C$1.53 per share until June 21, 2012; (iii) 100,000 common shares at $0.51 per common share until January 21, 2012; and (iv) 10,000 common shares at $0.80 per share until May 2, 2013. The grant dates of these options were (a) June 22, 2007; (b) March 20, 2008; (c) January 22, 2009; and (d) May 3, 2010. Toby Chu also has voting and investment control over Concordia Financial Management Corp., a company that holds 3,381,847 common shares of CIBT Education Group and options to purchase: 10,000 common shares at C$2.00 per share until March 19, 2011; and 100,000 common shares at C$1.53 per share until June 21, 2012. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | David Hsu is a director and Chairman of CIBT Education Group and CIBT. His shareholdings include 847,600 common shares in his own name; and (a) options to purchase 10,000 common shares at C$2.00 per share until March 19, 2011; (b) options to purchase 100,000 common shares at C$1.53 per share until June 21, 2012; (c) options to purchase 10,000 common shares at C$0.51 per share until January 21, 2012; and (d) 10,000 common shares at $0.80 per common share until May 2, 2013. 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 2,489,713 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 CIBTs 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 GPs 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 prospectus, 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 Chus ownership interest was 7.2% as of December 24, 2007, 5% as of March 13, 2009 and 5.4% as of February 24, 2011. |
|----------------|--------------------------------------------------------------------------------------------------------------------------|

| ●   | David Hsus ownership interest was 9.4% as of December 24, 2007, 6% as of March 13, 2009 and 5.6% as of February 24, 2011. |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| ●   | MacKenzie Financial Corporations ownership interest decreased from 12.4% as of December 3, 2007 to 8.8% as of February 25, 2010 and 6.9% as of December 31, 2010. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ●   | The ownership interest of David Richardson, our former director who resigned on June 10, 2010, decreased from 6.6% as of December 3, 2007, to 5% as of March 13, 2009 and to less than 5% as of June 10, 2010. As such, Mr. Richardson is no longer a Major Shareholder and his shareholdings are not disclosed in the Table of Major Shareholders above. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

ITEM 8.  Financial Information

----

ITEM 9.  The Offer and Listing

|                                       |   | TSX and TSX-V |   |   | Amex    |   |
|--------------------------------------------|--------|---------------|--------|--------|---------|--------|
| Annual Market Prices for fiscal year ended |   | High(C$)      |   |   | Low(C$) |   |   | High(US$) |   |   | Low(US$) |   |
| 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 |   |
| December 31, 2006                          |   |          | 1.09   |   |    |   | 0.55 |   |   |   | N/A |   |   |   | N/A |   |
| December 31, 2005                          |   |          | 0.84   |   |    |   | 0.50 |   |   |   | N/A |   |   |   | N/A |   |
|                                       |   |          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Quarterly Market Prices for quarter ended  |   |          |   |   |    |   |   |   |   |   |   |   |   |
| 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 |   |
| August 31, 2009                            |   |          | 0.70   |   |    |   | 0.52 |   |   |   | 0.65 |   |   |   | 0.46 |   |
| May 31, 2009                               |   |          | 0.65   |   |    |   | 0.44 |   |   |   | 0.85 |   |   |   | 0.35 |   |
| February 28, 2009                          |   |          | 0.70   |   |    |   | 0.36 |   |   |   | 0.57 |   |   |   | 0.28 |   |
| November 30, 2008                          |   |          | 1.61   |   |    |   | 0.35 |   |   |   | 1.45 |   |   |   | 0.28 |   |
|                                       |   |          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| Monthly Market Prices                      |   |          |   |   |    |   |   |   |   |   |   |   |   |   |   |   |
| January 2011                               |   |          | 0.51   |   |    |   | 0.35 |   |   |   | 053 |   |   |   | 0.36 |   |
| December 2010                              |   |          | 0.49   |   |    |   | 0.38 |   |   |   | 0.58 |   |   |   | 0.38 |   |
| November 2010                              |   |          | 0.53   |   |    |   | 0.43 |   |   |   | 0.53 |   |   |   | 0.41 |   |
| October 2010                               |   |          | 0.57   |   |    |   | 0.48 |   |   |   | 0.58 |   |   |   | 0.44 |   |
| September 2010                             |   |          | 0.64   |   |    |   | 0.50 |   |   |   | 0.60 |   |   |   | 0.41 |   |
| August 2010                                |   |          | 0.62   |   |    |   | 0.52 |   |   |   | 0.61 |   |   |   | 0.48 |   |

----

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. Chus 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 provided 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Campus Agreement with Beijing University of Technology           | In July 2007, CIBT signed an agreement furthering its relationship with Beijing University of Technology, which resulted in the expansion to a fourth campus in Beijing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 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 Managements 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 Managements 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. Dupperons 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. Dupperons 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 Managements Discussion and Analysis of Financial Condition and Results of Operations for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| AHLA-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 AHLA-EI to use and market certain AHLA-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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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| Agreement(s)                                                                                                           | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Material Distribution and Teaching Rights Agreement between Tourism Training Institute and AHLA-EI                     | In June 2008 Tourism Training Institute renewed an exclusive license agreement with AHLA-EI for sole marketing, material distribution and teaching rights of certain AHLA-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 Managements 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-Shaws campus in Kelowna, British Columbia, Canada, online self-directed learning and industry practicums in Vancouver, British Columbia, Canada.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Memorandum of Understanding withBrowns 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 Browns Town College of Jamaica and the Jamaican Ministry of Labour and Social Security to offer the curriculum for Sprott-Shaws resident care attendant and practical nursing training programs to students attending Browns 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 CIBTs 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 CIBTs operations in China, Sprott-Shaws operations, and programs offered by AHLA-EI into China Central Radio and Television Universitys 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-Shaws 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 Sung Sub Lim                                                                                 | Mr. Lim entered into an employment agreement with the KGIC Colleges to act as President of each for an indefinite period commencing on March 7, 2010. Mr. Lim will receive annual compensation of $150,000 and a bonus provided that a target level of revenues and EBITDA of the KGIC Colleges is met at the end of the second year of operations of the KGIC Colleges. The amount of the bonus will be determined by negotiation between the parties and is payable at the start of the third year of operation of the KGIC Colleges. The KGIC Colleges may terminate the agreement for cause at any time as set out in the agreement, or without cause any time after March 1, 2013 by providing Mr. Lim with two months prior written notice or salary in lieu thereof at the discretion of the KGIC Colleges. 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. |
| 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 weeks prior written notice. The KGIC Colleges may terminate the agreement any time without cause by providing eight weeks 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 OUCs education system in China, including the AHLA-EI program.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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| ●   | acquisition of our common shares by a person in the ordinary course of that persons 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. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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

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PART II

ITEM 13. Defaults, Dividend Arrearages and Delinquencies

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

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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. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ●   | Ineffective controls at the entity level - As evidenced by the material weaknesses described below, the Company determined that entity-level controls related to the control environment, risk assessment, monitoring function and dissemination of information and communication activities did not operate effectively, resulting in material weaknesses in each of these respective COSO Internal Control Integrated Framework components. The deficiency in each of these individual COSO components represents a separate material weakness.  These material weaknesses contributed to the other material weaknesses and an environment where there is a reasonable possibility that a material misstatement of the interim and annual financial statements could occur and not be prevented or detected. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Ineffective Controls over the Financial Close and Reporting Process - our design of controls with respect to the process of preparing and reviewing the annual and interim financial statements are ineffective. The material weakness includes failures in the design effectiveness of controls which would ensure (i) documentation of corporate and accounting policies, related timelines and requirements including revenue recognition; (ii) adequate disclosure review processes and procedures; (iii) review and approval of journal entries including the reasonability of accruals; reconciliation of general ledger accounts and related schedules; and (iv) retention of evidence in support of control effectiveness. These control deficiencies could result in a material misstatement of the financial statements due to the significance of the financial closing and reporting process to the preparation of reliable financial statements and the potential pervasiveness of the deficiencies to the significant account balances and disclosures. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Inadequate controls related to the treasury cycle - The internal controls were not adequately designed in a manner to effectively support the requirements of the treasury cycle. This material weakness is the result of aggregate deficiencies in the internal control activities. The material weakness includes failures in the design effectiveness of controls pertaining to (i) cash balances held in personal bank accounts owned by employees of CIBT rather than CIBT corporate bank accounts; (ii) cash receipts not reconciled to receipt journals; and (iii) the accuracy of equity calculation schedules through evidenced review procedures. These control deficiencies could result in a material misstatement of cash, revenue, stock based compensation, and related accounts that would not be prevented or detected. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Inadequate controls related to the inventory cycle - The internal controls were not adequately designed in a manner to effectively support the requirements of the inventory cycle. This material weakness is the result of aggregate deficiencies in internal control activities. The material weakness includes the design effectiveness of controls which would ensure completeness, existence, valuation and accuracy of inventory through appropriate tracking and review of inventory balances, and related accruals, for reasonability. These control deficiencies could result in a material misstatement of inventory, operating expenses, accounts payable and accrued liabilities that would not be prevented or detected. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Inadequate controls related to the revenue cycle - The internal controls were not adequately designed in a manner to effectively support the requirements of the tuition revenue cycle. This material weakness is the result of aggregate deficiencies in internal control activities. The material weakness includes the design and operating effectiveness of controls which would ensure accuracy and completeness of tuition revenue including (i) matching of deposits to supporting documentation; (ii) proper segregation of cash handling, record keeping and bank reconciliations; (iii) accurate realization of student service and government contract revenue; and (iv) reconciliation and review of contracts, student accounts and receipts. These control deficiencies could result in a material misstatement of revenues, deferred revenues and receivables that would not be prevented or detected. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Inadequate controls related to the payroll cycle - The internal controls were not adequately designed in a manner to effectively support the requirements of the payroll cycle. This material weakness is the result of aggregate deficiencies in internal control activities. The material weakness includes failures in the design effectiveness of controls which would ensure the accuracy of payroll expenditure reports in addition to the completion of related review and approval processes. These control deficiencies could result in a material misstatement of payroll and related expenses, and accrued compensation and benefits within accounts payable and accrued liabilities that would not be prevented or detected |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Inadequate controls related to the expenditure cycle - The internal controls were not adequately designed in a manner to effectively support the requirements of the expenditure cycle. This material weakness is the result of aggregate deficiencies in internal control activities. The material weakness includes the design effectiveness of controls which would ensure (i) validity, accuracy and completeness of procured goods and services including approval processes, reconciliations, and segregation of duties; and (ii) accuracy and validity of management fees charged through timely, appropriately authorized contracts. These control deficiencies could result in a material misstatement of operating expenses, employee loans, accounts payable and accrued liabilities that would not be prevented or detected. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | Ineffective controls over the reporting of intangible assets and goodwill The value of purchased intangible assets and goodwill relating to the August 31, 2008 year end were restated prospectively during the year ended August 31, 2009 as a result of purchase price allocations not having been completed in a timely manner by a third party which CIBT relied upon to complete contracted services as agreed.  The material weakness is the result of aggregate deficiencies in internal control activities that would ensure the timely valuation and allocation of purchased intangible assets and goodwill.  These control deficiencies could result in a material misstatement of intangible assets, goodwill and related amortization expense. Management remediated this control weakness by identifying additional resources that would be available for future transactions to ensure that the valuation and accounting for purchased intangible assets and goodwill will be completed on a timely basis. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ●   | We will 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 16A.  Audit Committee Financial Expert

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ITEM 16B.  Code of Ethics

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ITEM 16C.  Principal Accountant Fees and Services

|                   |   | For the year endedAugust 31, 2010(C$) |    |   | For the year endedAugust 31, 2009(C$) |   |
|------------------------|--------|---------------------------------------|---------|--------|---------------------------------------|--------|
| Audit Fees (1)         |   |                                  | 516,406 |   |                                  |   | 385,845 |   |
| Audit-Related Fees (2) |   |                                  | 261,660 |   |                                  |   | 9,000 |   |
| Tax Fees (3)           |   |                                  | 97,868  |   |                                  |   | 22,691 |   |
| All Other Fees (4)     |   |                                  | 106,839 |   |                                  |   | 47,500 |   |
| Total                  |   |                                  | 982,773 |   |                                  |   | 465,036 |   |

| (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. |
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| (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. |
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| (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. |
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| (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

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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                                                                                                                 |

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| (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. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 16F.  Changes in Registrants Certifying Accountant

ITEM 16G.  Corporate Governance

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PART III

ITEM 17.  Financial Statements

ITEM 18.  Financial Statements

| Independent Auditors Report of Deloitte & Touche LLP, Independent Registered Chartered Accountants dated February 25, 2011 | F-2 |
|--------------------------------------------------------------------------------------------------------------------------------|-----|
| Independent Auditors Report of Ernst & Young LLP, Independent Registered Chartered Accountants dated November 14, 2008     | F-3 |
| Consolidated balance sheets as of August 31, 2010 and 2009                                                                     | F-4 |
| Consolidated Statements of Income and Comprehensive Income (Loss) for the year ended August 31, 2010, 2009 and 2008            | F-5 |
| Consolidated Statements of Accumulated Other Comprehensive Loss for the year ended August 31, 2010, 2009 and 2008              | F-6 |
| Consolidated Statements of Deficit for the year ended August 31, 2010, 2009 and 2008                                           | F-7 |
| Consolidated Statements of Cash Flows for the year ended August 31, 2010, 2009 and 2008                                        | F-8 |
| Notes to Consolidated Financial Statements                                                                                     | F-9 |

----

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|   | Deloitte & Touche LLP2800 - 1055 Dunsmuir Street4 Bentall CentreP.O. Box 49279Vancouver, BC V7X 1P4Canada Tel: 604-669-4466Fax: 604-685-0395www.deloitte.ca |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Ernst & Young LLPChartered AccountantsPacific Centre700 West Georgia StreetP.O. Box 10101Vancouver, British Columbia V7Y 1C7 Tel: 604 891 8200Fax: 604 643 5422ey.com/ca |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Vancouver, CanadaNovember 14, 2008 | (Signed) Ernst & Young LLPChartered Accountants |
|------------------------------------|-----------------------------------------------------|

----

|                                               |   | August 31,2010 |        |   | August 31,2009 |   |
|----------------------------------------------------|--------|----------------|-------------|--------|----------------|--------|
|                                               |   |           |        |   |           |   |
| ASSETS                                             |   |
|                                               |   |           |        |   |           |   |
| CURRENT                                            |   |           |        |   |           |   |
| Cash and cash equivalents                          |   | $              | 11,511,835  |   |           | $      | 10,337,128 |   |
| Accounts receivable (Note 4)                       |   |           | 11,223,894  |   |           |   | 8,788,973 |   |
| Marketable securities (Note 5)                     |   |           | 60,000      |   |           |   | 147,655 |   |
| Prepaid expenses and other assets (Note 6)         |   |           | 1,197,086   |   |           |   | 2,263,787 |   |
| Inventory                                          |   |           | 530,467     |   |           |   | 477,978 |   |
|                                               |   |           |        |   |           |   |   |   |
|                                               |   |           | 24,523,282  |   |           |   | 22,015,521 |   |
| DUE FROM RELATED PARTIES (Note 23)                 |   |           | 143,721     |   |           |   | 143,741 |   |
| PROPERTYAND EQUIPMENT, net (Note 7)                |   |           | 3,418,853   |   |           |   | 3,738,812 |   |
| INTANGIBLE ASSETS (Note 8)                         |   |           | 14,825,117  |   |           |   | 14,410,019 |   |
| GOODWILL (Note 8)                                  |   |           | 10,999,696  |   |           |   | 7,010,875 |   |
| DEFERRED OFFERING COSTS (Note 9)                   |   |           | 400,252     |   |           |   | - |   |
| FUTURE INCOME TAX ASSETS (Note 17)                 |   |           | 658,417     |   |           |   | - |   |
| CURRICULUM DEVELOPMENT COSTS AND OTHER ASSETS      |   |           | -           |   |           |   | 202,724 |   |
|                                               |   |           |        |   |           |   |   |   |
|                                               |   | $              | 54,969,338  |   |           | $      | 47,521,692 |   |
|                                               |   |           |        |   |           |   |   |   |
| LIABILITIES                                        |   |
|                                               |   |           |        |   |           |   |   |   |
| CURRENT                                            |   |           |        |   |           |   |   |   |
| Accounts payable and accrued liabilities (Note 10) |   | $              | 5,007,187   |   |           | $      | 5,384,767 |   |
| Income taxes payable                               |   |           | 522,921     |   |           |   | 481,352 |   |
| Deferred educational revenue                       |   |           | 17,836,047  |   |           |   | 15,010,112 |   |
| Capital lease obligations current portion (Note 7) |   |           | 118,098     |   |           |   | 98,231 |   |
| Current portion of long-term debt (Note 11)        |   |           | 2,757,164   |   |           |   | 182,112 |   |
| Due to related parties (Note 23)                   |   |           | 118,303     |   |           |   | 418,304 |   |
|                                               |   |           |        |   |           |   |   |   |
|                                               |   |           | 26,359,720  |   |           |   | 21,574,878 |   |
|                                               |   |           |        |   |           |   |   |   |
| FUTURE INCOME TAX LIABILITIES (Note 17)            |   |           | -           |   |           |   | 1,741,607 |   |
|                                               |   |           |        |   |           |   |   |   |
| CAPITAL LEASE OBLIGATIONS (Note 7)                 |   |           | 222,810     |   |           |   | 291,220 |   |
|                                               |   |           |        |   |           |   |   |   |
| LONG-TERM DEBT (Note 11)                           |   |           | 36,724      |   |           |   | 44,327 |   |
|                                               |   |           |        |   |           |   |   |   |
|                                               |   |           | 26,619,254  |   |           |   | 23,652,032 |   |
|                                               |   |           |        |   |           |   |   |   |
| NON-CONTROLLING INTERESTS                          |   |           | 1,327,126   |   |           |   | 1,198,606 |   |
|                                               |   |           |        |   |           |   |   |   |
| SHAREHOLDERS EQUITY                                |   |
|                                               |   |           |        |   |           |   |   |   |
| SHARE CAPITAL (Note 12)                            |   |           | 47,709,836  |   |           |   | 44,350,606 |   |
|                                               |   |           |        |   |           |   |   |   |
| CONTRIBUTED SURPLUS (Note 13)                      |   |           | 5,200,036   |   |           |   | 4,944,877 |   |
|                                               |   |           |        |   |           |   |   |   |
| WARRANTS (Note 12)                                 |   |           | 63,000      |   |           |   | 648,600 |   |
|                                               |   |           |        |   |           |   |   |   |
| TREASURY SHARES HELD (Note 14)                     |   |           | (3,273,790  | )      |           |   | (4,325,491 | ) |
|                                               |   |           |        |   |           |   |   |   |
| ACCUMULATED OTHER COMPREHENSIVE LOSS               |   |           | (471,573    | )      |           |   | (440,725 | ) |
|                                               |   |           |        |   |           |   |   |   |
| DEFICIT                                            |   |           | (22,204,551 | )      |           |   | (22,506,813 | ) |
|                                               |   |           |        |   |           |   |   |   |
|                                               |   |           | 27,022,958  |   |           |   | 22,671,054 |   |
|                                               |   |           |        |   |           |   |   |   |
|                                               |   | $              | 54,969,338  |   |           | $      | 47,521,692 |   |

----

|                                                          |   | Year EndedAugust 31,2010 |       |   | Year EndedAugust 31,2009 |   |       | Year EndedAugust 31,2008 |   |
|---------------------------------------------------------------|--------|--------------------------|------------|--------|--------------------------|--------|------------|--------------------------|--------|
|                                                          |   |                     |       |   |                     |   |       |                     |   |
| REVENUES                                                      |   |                     |       |   |                     |   |       |                     |   |
| Educational                                                   |   | $                        | 54,388,128 |   |                     | $      | 43,236,630 |                     |   | $ | 29,068,625 |   |
| Design and advertising                                        |   |                     | 1,566,724  |   |                     |   | 1,314,328  |                     |   |   | 1,961,205 |   |
| Consulting                                                    |   |                     | -          |   |                     |   | -          |                     |   |   | 131,449 |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
|                                                          |   |                     | 55,954,852 |   |                     |   | 44,550,958 |                     |   |   | 31,161,279 |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| DIRECT COSTS                                                  |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| Educational                                                   |   |                     | 19,967,244 |   |                     |   | 15,595,946 |                     |   |   | 10,943,776 |   |
| Design and advertising                                        |   |                     | 703,058    |   |                     |   | 638,402    |                     |   |   | 1,124,013 |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
|                                                          |   |                     | 20,670,302 |   |                     |   | 16,234,348 |                     |   |   | 12,067,789 |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| OTHER EXPENSES                                                |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| General and administrative (Note 21)                          |   |                     | 31,899,806 |   |                     |   | 25,513,613 |                     |   |   | 19,301,660 |   |
| Amortization of property, equipment and intangible assets     |   |                     | 1,537,277  |   |                     |   | 1,636,761  |                     |   |   | 1,861,175 |   |
| Stock-based compensation                                      |   |                     | 232,626    |   |                     |   | 581,098    |                     |   |   | 1,462,856 |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
|                                                          |   |                     | 33,669,709 |   |                     |   | 27,731,472 |                     |   |   | 22,625,691 |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
|                                                          |   |                     | 1,614,841  |   |                     |   | 585,138    |                     |   |   | (3,532,201 | )  |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| INTEREST AND OTHER INCOME                                     |   |                     | 207,625    |   |                     |   | 72,255     |                     |   |   | 206,048 |   |
| FOREIGN EXCHANGE (LOSS) GAIN                                  |   |                     | (96,677    | )      |                     |   | 162,537    |                     |   |   | 67,651 |   |
| LOSS ON DISPOSAL OF ASSETS                                    |   |                     | (174,516   | )      |                     |   | -          |                     |   |   | (5,599 | ) |
| GAIN (LOSS) ON MARKETABLE SECURITIES                          |   |                     | -          |   |                     |   | -          |                     |   |   | (11,906 | ) |
| INTEREST ON LONG-TERM DEBT                                    |   |                     | (92,346    | )      |                     |   | (41,579    | )                        |   |   | (172,460 | ) |
| INTEREST COSTS ON LONG-TERM DEBT (Note 11)                    |   |                     | -          |   |                     |   | -          |                     |   |   | (1,968,882 | ) |
| IMPAIRMENT IN VALUE OF MARKETABLE SECURITIES (Note 5)         |   |                     | (127,229   | )      |                     |   | -          |                     |   |   | (1,364,246 | ) |
| IMPAIRMENT IN VALUE OF INTANGIBLE ASSETS (Note 8)             |   |                     | (2,000,000 | )      |                     |   | -          |                     |   |   | - |   |
| DILUTION GAIN ON SUBSIDIARY SHARE ISSUANCES (Note 3(e))       |   |                     | -          |   |                     |   | -          |                     |   |   | 2,192,524 |   |
| WRITE-OFF OF DEFERRED OFFERING COSTS (Note 9)                 |   |                     | (200,000   | )      |                     |   | -          |                     |   |   | - |   |
| RESTRUCTURING AND INTEGRATION COSTS (Note 16)                 |   |                     | (544,500   | )      |                     |   | -          |                     |   |   | - |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| INCOME (LOSS) BEFORE INCOME TAXES                             |   |                     | (1,412,802 | )      |                     |   | 778,351    |                     |   |   | (4,589,071 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| INCOME TAX RECOVERY (PROVISION) (Note 17)                     |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| Current income tax provision                                  |   |                     | (34,969    | )      |                     |   | (116,415   | )                        |   |   | (321,705 | ) |
| Future income tax recovery (provision)                        |   |                     | 2,400,024  |   |                     |   | (168,826   | )                        |   |   | (29,747 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
|                                                          |   |                     | 2,365,055  |   |                     |   | (285,241   | )                        |   |   | (351,452 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| INCOME (LOSS) AFTER INCOME TAXES                              |   |                     | 952,253    |   |                     |   | 493,110    |                     |   |   | (4,940,523 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| NON-CONTROLLING INTERESTS                                     |   |                     | (369,883   | )      |                     |   | (477,103   | )                        |   |   | (109,155 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| NET INCOME (LOSS)                                             |   | $                        | 582,370    |   |                     | $      | 16,007     |                     |   | $ | (5,049,678 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE            |   | $                        | 0.01       |   |                     | $      | 0.00       |                     |   | $ | (0.09 | )  |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                                   |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| Net income (loss)                                             |   | $                        | 582,370    |   |                     | $      | 16,007     |                     |   | $ | (5,049,678 | ) |
| Other comprehensive loss                                      |   |                     |       |   |                     |   |       |                     |   |   |   |   |
|    Realized, unrealized and market adjustments |   |                     | (70,422    | )      |                     |   | (43,827    | )                        |   |   | 59,765 |   |
|    Reclassification of losses to earnings      |   |                     | 39,574     |   |                     |   | -          |                     |   |   | - |   |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| Comprehensive income (loss)                                   |   | $                        | 551,522    |   |                     | $      | (27,820    | )                        |   | $ | (4,989,913 | ) |
|                                                          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING          |   |                     |       |   |                     |   |       |                     |   |   |   |   |
| Basic                                                         |   |                     | 65,676,811 |   |                     |   | 61,258,923 |                     |   |   | 57,673,648 |   |
| Diluted                                                       |   |                     | 66,017,145 |   |                     |   | 61,292,967 |                     |   |   | 57,673,648 |   |

----

|                                                                    |   | Year EndedAugust 31,2010 |     |   | Year EndedAugust 31,2009 |   |     | Year EndedAugust 31,2008 |   |
|-------------------------------------------------------------------------|--------|--------------------------|----------|--------|--------------------------|--------|----------|--------------------------|--------|
|                                                                    |   |                     |     |   |                     |   |     |                     |   |
| ACCUMULATED OTHER COMPREHENSIVE LOSS                                    |   |                     |     |   |                     |   |     |                     |   |
|                                                                    |   |                     |     |   |                     |   |     |                     |   |
| Balance, beginning of year                                              |   | $                        | (440,725 | )      |                     | $      | (396,898 | )                        |   | $ | (250,497 | ) |
| Amounts realized in connection with dilution gain                       |   |                     | -        |   |                     |   | -        |                     |   |   | (80,075 | ) |
| Unrealized translation adjustments                                      |   |                     | (70,422  | )      |                     |   | (4,253   | )                        |   |   | 170,185 |   |
| Decrease in fair value of available-for-sale financial assets           |   |                     | -        |   |                     |   | (39,574  | )                        |   |   | - |   |
| Decrease in fair value of marketable securities                         |   |                     | -        |   |                     |   | -        |                     |   |   | (236,511 | ) |
| Reclassification of losses on available-for-sale financial assets       |   |                     |     |   |                     |   |     |                     |   |   |   |   |
| to earnings                                                             |   |                     | 39,574   |   |                     |   | -        |                     |   |   | - |   |
|                                                                    |   |                     |     |   |                     |   |     |                     |   |   |   |   |
| Balance, end of year                                                    |   | $                        | (471,573 | )      |                     | $      | (440,725 | )                        |   | $ | (396,898 | ) |
|                                                                    |   |                     |     |   |                     |   |     |                     |   |   |   |   |
|                                                                    |   |                     |     |   |                     |   |     |                     |   |   |   |   |
| ENDING BALANCE OF ACCUMULATED OTHER COMPREHENSIVE LOSS IS COMPRISED OF: |   |                     |     |   |                     |   |     |                     |   |   |   |   |
|                                                                    |   |                     |     |   |                     |   |     |                     |   |   |   |   |
| Unrealized translation adjustments                                      |   | $                        | (471,573 | )      |                     | $      | (401,151 | )                        |   | $ | (396,898 | ) |
| Unrealized marketable securities gains                                  |   |                     | -        |   |                     |   | -        |                     |   |   | - |   |
| Change in fair value of available-for-sale financial assets             |   |                     | -        |   |                     |   | (39,574  | )                        |   |   | - |   |
|                                                                    |   |                     |     |   |                     |   |     |                     |   |   |   |   |
| Balance, end of year                                                    |   | $                        | (471,573 | )      |                     | $      | (440,725 | )                        |   | $ | (396,898 | ) |

----

|                                                                            |   | Year EndedAugust 31,2010 |        |   | Year EndedAugust 31,2009 |   |        | Year EndedAugust 31,2008 |   |
|---------------------------------------------------------------------------------|--------|--------------------------|-------------|--------|--------------------------|--------|-------------|--------------------------|--------|
|                                                                            |   |                     |        |   |                     |   |        |                     |   |
| DEFICIT, BEGINNING OF YEAR                                                      |   | $                        | (22,506,813 | )      |                     | $      | (21,874,220 | )                        |   | $ | (16,824,542 | ) |
|                                                                            |   |                     |        |   |                     |   |        |                     |   |   |   |   |
| NET INCOME (LOSS)                                                               |   |                     | 582,370     |   |                     |   | 16,007      |                     |   |   | (5,049,678 | )  |
|                                                                            |   |                     |        |   |                     |   |        |                     |   |   |   |   |
| EXCESS OF COST OF REDEMPTION OVER PROCEEDS ON SALE OF TREASURY SHARES (Note 14) |   |                     | (280,108    | )      |                     |   | -           |                     |   |   | - |   |
|                                                                            |   |                     |        |   |                     |   |        |                     |   |   |   |   |
| CHARGES ON SHARE PURCHASE WARRANT EXTENSION                                     |   |                     |        |   |                     |   |        |                     |   |   |   |   |
| (Note 12)                                                                  |   |                     | -           |   |                     |   | (648,600    | )                        |   |   | - |   |
|                                                                            |   |                     |        |   |                     |   |        |                     |   |   |   |   |
| DEFICIT, END OF YEAR                                                            |   | $                        | (22,204,551 | )      |                     | $      | (22,506,813 | )                        |   | $ | (21,874,220 | ) |

----

|                                                                       |   | Year EndedAugust 31,2010 |       |    | Year EndedAugust 31,2009 |   |       | Year EndedAugust 31,2008 |   |
|----------------------------------------------------------------------------|--------|--------------------------|------------|---------|--------------------------|--------|------------|--------------------------|--------|
|                                                                       |   |                     |       |    |                     |   |       |                     |   |
| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES                             |   |                     |       |    |                     |   |       |                     |   |
| Net income (loss)                                                          |   | $                        | 582,370    |    |                     | $      | 16,007     |                     |   | $ | (5,049,678 | )  |
| Adjusted for items not involving cash:                                     |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| - loss from sale of marketable securities                                  |   |                     | -          |    |                     |   | -          |                     |   |   | 11,906 |   |
| - amortization of deferred consulting revenue                              |   |                     | -          |    |                     |   | -          |                     |   |   | (131,449 | )  |
| - amortization of property, equipment and intangible assets                |   |                     | 1,537,277  |    |                     |   | 1,636,761  |                     |   |   | 1,861,175 |   |
| - accrued and unearned interest                                            |   |                     | -          |    |                     |   | -          |                     |   |   | (52,511 | )  |
| - stock-based compensation                                                 |   |                     | 232,626    |    |                     |   | 581,098    |                     |   |   | 1,462,856 |   |
| - interest costs on debt settlement                                        |   |                     | -          |    |                     |   | -          |                     |   |   | 1,968,882 |   |
| - unrealized foreign exchange loss                                         |   |                     | -          |    |                     |   | -          |                     |   |   | (147,465 | ) |
| - amortization of deferred curriculum costs                                |   |                     | 295,903    |    |                     |   | 41,816     |                     |   |   | (5,194 | ) |
| - dilution gain on subsidiary share issuances                              |   |                     | -          |    |                     |   | -          |                     |   |   | (2,192,524 | ) |
| - future income tax provision (recovery)                                   |   |                     | (2,400,024 | )       |                     |   | 168,826    |                     |   |   | 29,747 |   |
| - loss on disposal of assets                                               |   |                     | 174,516    |    |                     |   | -          |                     |   |   | - |   |
| - impairment of marketable securities                                      |   |                     | 127,229    |    |                     |   | -          |                     |   |   | 1,364,246 |   |
| - impairment of intangible assets                                          |   |                     | 2,000,000  |    |                     |   | -          |                     |   |   | - |   |
| - write-off of deferred offering costs                                     |   |                     | 200,000    |    |                     |   | -          |                     |   |   | - |   |
| - non-controlling interests                                                |   |                     | 369,883    |    |                     |   | 477,103    |                     |   |   | 109,155 |   |
| Net changes in non-cash working capital items (Note 22)                    |   |                     | (1,091,831 | )       |                     |   | (591,716   | )                        |   |   | (717,687 | ) |
| NET CASH FROM OPERATING ACTIVITIES                                         |   |                     | 2,027,949  |    |                     |   | 2,329,895  |                     |   |   | (1,488,541 | ) |
|                                                                       |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES                             |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| Purchases of property and equipment                                        |   |                     | (672,645   | )       |                     |   | (753,097   | )                        |   |   | (763,650 | ) |
| Acquisition of net assets of business entities, net of cash acquired       |   |                     | (4,973,148 | )       |                     |   | (675,434   | )                        |   |   | (7,786,154 | ) |
| Curriculum development costs                                               |   |                     | (106,454   | )  |                     |   | (138,543   | )                        |   |   | (4,679 | ) |
| Disposal of controlling interest in AIMI, net of cash received (Note 3(b)) |   |                     | -          |    |                     |   | (401,980   | )                        |   |   | - |   |
| Net cash from (used in) marketable securities transactions                 |   |                     | -          |    |                     |   | -          |                     |   |   | 15,369 |   |
| Acquisition of CIBT shares from NCI                                        |   |                     | -          |    |                     |   | -          |                     |   |   | - |   |
| Funds from promissory note payment                                         |   |                     | -          |    |                     |   | -          |                     |   |   | - |   |
| NET CASH FROM USED IN INVESTING ACTIVITIES                                 |   |                     | (5,752,247 | )       |                     |   | (1,969,054 | )                        |   |   | (8,539,114 | ) |
|                                                                       |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES                             |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| Proceeds from issuance of shares, net of issue costs                       |   |                     | 3,297,430  |    |                     |   | -          |                     |   |   | 8,641,943 |   |
| Proceeds from shares issued to non-controlling interests in AIMI           |   |                     | -          |    |                     |   | -          |                     |   |   | 122,207 |   |
| Treasury share transactions                                                |   |                     | (29,674    | )       |                     |   | (377,031   | )                        |   |   | (2,751,369 | ) |
| Advances to related parties                                                |   |                     | 19         |    |                     |   | (82,919    | )                        |   |   | 283,699 |   |
| Non-controlling interest draws                                             |   |                     | (217,434   | )       |                     |   | (60,000    | )                        |   |   | (60,000 | ) |
| Lease obligation repayments                                                |   |                     | (85,190    | )       |                     |   | (56,939    | )                        |   |   | (92,236 | ) |
| Loan principal repayments                                                  |   |                     | (432,551   | )       |                     |   | (366,990   | )                        |   |   | (181,571 | ) |
| Loan proceeds received by CIBT                                             |   |                     | -          |    |                     |   | -          |                     |   |   | - |   |
| Loan principal advances                                                    |   |                     | 3,000,000  |    |                     |   | -          |                     |   |   | - |   |
| Deferred finance fees                                                      |   |                     | -          |    |                     |   | -          |                     |   |   | - |   |
| Deferred offering costs                                                    |   |                     | (538,891   | )       |                     |   | -          |                     |   |   | - |   |
| NET CASH FROM (USED IN) FINANCING ACTIVITIES                               |   |                     | 4,993,709  |    |                     |   | (943,879   | )                        |   |   | 5,962,673 |   |
|                                                                       |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| FOREIGN EXCHANGE EFFECTS ON CASH                                           |   |                     | (94,704    | )       |                     |   | (12,571    | )                        |   |   | 430,726 |   |
| NET INCREASE (DECREASE) IN CASH                                            |   |                     | 1,174,707  |    |                     |   | (595,609   | )                        |   |   | (3,634,256 | ) |
|                                                                       |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR                               |   |                     | 10,337,128 |    |                     |   | 10,932,737 |                     |   |   | 14,566,993 |   |
|                                                                       |   |                     |       |    |                     |   |       |                     |   |   |   |   |
| CASH AND CASH EQUIVALENTS, END OF YEAR                                     |   | $                        | 11,511,835 |    |                     | $      | 10,337,128 |                     |   | $ | 10,932,737 |   |
| CASH AND CASH EQUIVALENTS:                                                 |   |                     |       |    |                     |   |       |                     |   |   |   |   |
|      Cash in bank                                 |   | $                        | 10,893,807 |    |                     | $      | 9,587,586  |                     |   | $ | 10,932,737 |   |
|      Term deposits                                |   |                     | 618,028    |    |                     |   | 749,542    |                     |   |   | - |   |
|                                                                       |   | $                        | 11,511,835 |    |                     | $      | 10,337,128 |                     |   | $ | 10,932,737 |   |
| SUPPLEMENTAL CASH FLOW INFORMATION:                                        |   |                     |       |    |                     |   |       |                     |   |   |   |   |
|      Interest paid                                |   | $                        | 71,937     |    |                     | $      | 49,237     |                     |   | $ | 221,180 |   |
|      Income taxes paid                            |   | $                        | 8,139      |    |                     | $      | 31,198     |                     |   | $ | 183,214 |   |

----

----

----

----

----

----

----

----

----

----

----

----

----

| Balance sheet item                       | Classification        | Measurement basis |
|------------------------------------------|-----------------------|-------------------|
|                                     |                  |              |
| Cash and cash equivalents                | Held-for-trading      | Fair value        |
| Marketable securities                    | Available-for-sale    | Fair value        |
| Accounts receivable                      | 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 charge to operations. |
|---------|---------------------------------------------------------------------------------------------------------------------------------|

| ● | For all other financial assets or liabilities, all transactions costs are added to the carrying amount on initial classification. Subsequently, amounts are subject to either effective interest amortization or fair market value adjustments. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

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

----

----

----

| ● | Level 1 - Valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities; |
|---------|----------------------------------------------------------------------------------------------------------------|

| ● | Level 2 - Valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie. as prices) or indirectly (ie. derived from prices); and |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Level 3 - Valuation techniques using inputs for the asset or liability that are not based on observable market data (ie. unobservable inputs). |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (a) | Handbook Section 1582 Business Combinations |
|-----|---------------------------------------------|

| (b) | Handbook Section 1601 Consolidated Financial Statements |
|-----|---------------------------------------------------------|

| (c) | Handbook Section 1602 Non-Controlling interest |
|-----|------------------------------------------------|

----

----

----

| (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 $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 Companys 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                      |   |                         |       |   |
|      Curriculum                       |   |                         | 860,000    |   |
|      Software                         |   |                         | 370,000    |   |
| Intangible assets not subject to amortization                  |   |                         |       |   |
|      Accreditations and registrations |   |                         | 200,000    |   |
|      Brand and trade names            |   |                         | 1,410,000  |   |
| 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  |   |

| Purchase price comprised of:                    |   |   |      |
|-------------------------------------------------|--------|--------|-----------|
|      Cash              |   | $      | 3,817,497 |   |
|      Acquisition costs |   |   | 279,062   |   |
|                                            |   |   |      |   |
| Total purchase price                            |   | $      | 4,096,559 |   |

----

----

----

| (a)  | the settlement of advances from the Company to CIBT totalling US$1,555,786 in exchange for 1,668,321 common shares of CIBT at approximately US$0.93 per share; |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | the acquisition of 1,548,678 common shares from treasury of CIBT at approximately US$0.93 per share for total cash consideration of US$1,444,214; and |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)  | the purchase of 3,813,935 previously issued common shares of CIBT from non-controlling shareholders of CIBT in exchange for the issuance of 4,853,113 common shares of the Company at a price of $1.00 per share. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                        |   | Proportionate Share Acquired |      |
|-----------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                        |   |                         |      |   |
|      Cash and cash equivalents                     |   | $                            | 1,009,236 |   |
|      Accounts receivable                           |   |                         | 294,736   |   |
|      Prepaids and other current assets             |   |                         | 226,022   |   |
|      Property and equipment                        |   |                         | 247,481   |   |
|      Deferred costs and other                      |   |                         | 88,661    |   |
|      Intangible assets subject to amortization     |   |                         | 161,856   |   |
|      Intangible assets not subject to amortization |   |                         | 3,572,000 |   |
|      Goodwill                                      |   |                         | 1,664,644 |   |
|      Accounts payable                              |   |                         | (357,783  | ) |
|      Deferred revenue                              |   |                         | (497,302  | ) |
|      Due to related parties                        |   |                         | (471,676  | ) |
|      Future income tax liabilities                 |   |                         | (910,500  | ) |
|      Non-controlling interest                      |   |                         | (167,470  | ) |
| Net assets acquired equal to purchase price                                 |   | $                            | 4,859,905 |   |

| Purchase price comprised of:                                                                              |   |   |      |
|-----------------------------------------------------------------------------------------------------------|--------|--------|-----------|
|    4,853,113 shares issued at $1.00 per share                                              |   | $      | 4,853,113 |   |
|    Non-controlling interest share of the Company equity contributions in (a) and (b) above |   |   | 6,792     |   |
|                                                                                                      |   |   |      |   |
| Total purchase price                                                                                      |   | $      | 4,859,905 |   |

| (a)  | CIBT issued 5,361,667 of its common shares on the exercise of 5,361,667 warrants for total proceeds of US$5,000,000.  The decrease in the Companys ownership percentage resulted in a gain on dilution of $2,192,524 being recorded during the three month period ended December 31, 2007; |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)  | The Company acquired these newly issued CIBT shares in exchange for 10,000,000 of the Companys common shares, which were measured at $5,443,800 being the fair value of the net assets acquired.  The fair value of the net assets acquired was determined to be more reliably measurable than the fair value of the shares issued. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                                                        |   | Proportionate Share Acquired |      |
|-----------------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                                        |   |                         |      |
|      Cash and cash equivalents                     |   | $                            | 1,322,162 |   |
|      Accounts receivable                           |   |                         | 84,313    |   |
|      Prepaids and other current assets             |   |                         | 363,889   |   |
|      Property and equipment                        |   |                         | 270,608   |   |
|      Deferred costs and other                      |   |                         | 100,119   |   |
|      Due from related parties                      |   |                         | 949,797   |   |
|      Intangible assets subject to amortization     |   |                         | 246,352   |   |
|      Intangible assets not subject to amortization |   |                         | 3,147,000 |   |
|      Goodwill                                      |   |                         | 985,205   |   |
|      Accounts payable                              |   |                         | (451,922  | ) |
|      Deferred revenue                              |   |                         | (617,923  | ) |
|      Future income tax liability                   |   |                         | (830,000  | ) |
|      Non-controlling interest                      |   |                         | (125,800  | ) |
|                                                                        |   |                         |      |   |
| Net assets acquired equal to purchase price                                 |   | $                            | 5,443,800 |   |

| Purchase price comprised of:                                                              |   |   |      |
|-------------------------------------------------------------------------------------------|--------|--------|-----------|
|    10,000,000 shares issued, measured at fair value of net assets acquired |   | $      | 5,443,800 |   |
|                                                                                      |   |   |      |   |
| Total purchase price                                                                      |   | $      | 5,443,800 |   |

----

----

----

|                                      |   | August 31,2010 |       |   | August 31,2009 |   |
|-------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                      |   |           |       |   |           |   |
| Trade receivables                         |   | $              | 10,759,227 |   |           | $      | 8,973,565 |   |
| Less: allowance for bad debts             |   |           | (451,691   | )      |           |   | (428,835 | ) |
| KGIC purchase price adjustment receivable |   |           | 700,000    |   |           |   | - |   |
| Other                                     |   |           | 216,358    |   |           |   | 244,243 |   |
|                                      |   |           |       |   |           |   |   |   |
|                                      |   | $              | 11,223,894 |   |           | $      | 8,788,973 |   |

----

|                          |   | August 31, 2010   |      |   | August 31, 2009   |   |
|-------------------------------|--------|-------------------|-----------|--------|-------------------|--------|
|                          |   |              |      |   |              |   |   |   |   |   |   |   |
|                          |   | Number of Shares  |      |   | Carrying Value    |   |   | Number of Shares |   |   | Carrying Value |   |
|                          |   |              |      |   |              |   |   |   |   |   |   |   |
| Available-for-sale securities |   |              | 5,862,824 |   |              | $      | 60,000 |   |   |   | 5,862,824 |   |   | $ | 147,655 |   |
|                          |   |              |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                          |   |              | 5,862,824 |   |              | $      | 60,000 |   |   |   | 5,862,824 |   |   | $ | 147,655 |   |
|                          |   |              |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Market price                  |   | US$0.01 per share |      |   | US$0.02 per share |   |

----

|                                        |   | August 31,2010 |      |   | August 31,2009 |   |
|---------------------------------------------|--------|----------------|-----------|--------|----------------|--------|
|                                        |   |           |      |   |           |   |
| Prepaid expenses and deposits               |   | $              | 1,087,743 |   |           | $      | 1,875,936 |   |
| Tuition fees held by Far Eastern University |   |           | 109,343   |   |           |   | 159,851 |   |
| Cash held in trust by lawyer                |   |           | -         |   |           |   | 228,000 |   |
|                                        |   |           |      |   |           |   |   |   |
|                                        |   | $              | 1,197,086 |   |           | $      | 2,263,787 |   |

----

----

----

|                                                     |   | August 31,2010 |       |   | August 31,2009 |   |
|----------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|
|                                                     |   |           |       |   |           |   |
| Furniture and equipment                                  |   | $              | 3,725,295  |   |           | $      | 3,753,930 |   |
| Leasehold improvements                                   |   |           | 2,805,483  |   |           |   | 2,593,965 |   |
| Equipment under capital lease                            |   |           | 524,524    |   |           |   | 548,287 |   |
|                                                     |   |           |       |   |           |   |   |   |
|                                                     |   |           | 7,055,302  |   |           |   | 6,896,182 |   |
|                                                     |   |           |       |   |           |   |   |   |
| Accumulated amortization - furniture and equipment       |   |           | (1,795,625 | )      |           |   | (1,858,534 | ) |
| Accumulated amortization - leasehold improvements        |   |           | (1,634,967 | )      |           |   | (1,132,401 | ) |
| Accumulated amortization - equipment under capital lease |   |           | (205,857   | )      |           |   | (166,435 | ) |
|                                                     |   |           |       |   |           |   |   |   |
|                                                     |   |           | (3,636,449 | )      |           |   | (3,157,370 | ) |
|                                                     |   |           |       |   |           |   |   |   |
|                                                     |   | $              | 3,418,853  |   |           | $      | 3,738,812 |   |

| For the years ending August 31,    | 2011   |   | $      | 147,257  |   |
|------------------------------------|--------|--------|--------|----------|--------|
|                               | 2012   |   |   | 108,924  |   |
|                               | 2013   |   |   | 79,391   |   |
|                               | 2014   |   |   | 74,126   |   |
|                               |   |   |   |     |   |
|                               |   |   |   | 409,698  |   |
| Less: amount representing interest |   |   |   | (68,790  | )      |
|                               |   |   |   |     |   |
|                               |   |   |   | 340,908  |   |
| Less: current portion              |   |   |   | (118,098 | )      |
|                               |   |   |   |     |   |
|                               |   |   | $      | 222,810  |   |

----

----

----

|                                                                    |   | August 31, 2010 |      |
|-------------------------------------------------------------------------|--------|-----------------|-----------|
|                                                                    |   |            |      |   | Accumulated |   |   | Carrying |   |
| Amounts                                                                 |   | Cost            |      |   | Amortization |   |   | Value |   |
|                                                                    |   |            |      |   |   |   |   |   |   |
| Intangible assets subject to amortization                               |   |            |      |   |   |   |   |   |   |
|                                                                    |   |            |      |   |   |   |   |   |   |
|    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 not subject to amortization                           |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                                    |   |            |      |   |   |   |   |   |   |   |   |   |
|    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 |   |
|                                                                    |   |            |      |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                                    |   |            |      |   |   |   |   |   |   |   |   |   |
|    Beginning balance                                     |   |            |      |   |   |   |   |   |   | $ | 7,010,875 |   |
|                                                                    |   |            |      |   |   |   |   |   |   |   |   |   |
|       Additions during the current year   |   |            |      |   |   |   |   |   |   |   | 3,988,821 |   |
|                                                                    |   |            |      |   |   |   |   |   |   |   |   |   |
|    Ending balance                                        |   |            |      |   |   |   |   |   |   | $ | 10,999,696 |   |
|                                                                    |   |            |      |   |   |   |   |   |   |   |   |   |

|                                                                  |   |  August 31, 2009 |      |
|-----------------------------------------------------------------------|--------|-----------------------|-----------|
|                                                                  |   |                  |      |   | Accumulated |   |   | Carrying |   |
| Amounts                                                               |   | Cost                  |      |   | Amortization |   |   | Value |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |
| Intangible assets subject to amortization                             |   |                  |      |   |   |   |   |   |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |
|    Beginning balance                                   |   | $                     | 4,264,064 |   |   | $ | (1,221,027 | ) |   | $ | 3,043,037 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|       Additions during the current year |   |                  | -         |   |   |   | (560,542 | ) |   |   | (560,542 | ) |
|       Foreign exchange adjustments      |   |                  | 59,524    |   |   |   | (56,340 | ) |   |   | 3,184 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|    Ending balance                                      |   | $                     | 4,323,588 |   |   | $ | (1,837,909 | ) |   | $ | 2,485,679 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
| Intangible assets not subject to amortization                         |   |                  |      |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|    Beginning balance                                   |   |                  |      |   |   |   |   |   |   | $ | 11,924,340 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|       Additions during the current year |   |                  |      |   |   |   |   |   |   |   | - |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|    Ending balance                                      |   |                  |      |   |   |   |   |   |   | $ | 11,924,340 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
| Total intangible assets                                               |   |                  |      |   |   |   |   |   |   | $ | 14,410,019 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
| Goodwill                                                              |   |                  |      |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|    Beginning balance                                   |   |                  |      |   |   |   |   |   |   | $ | 6,335,441 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|       Additions during the current year |   |                  |      |   |   |   |   |   |   |   | 675,434 |   |
|                                                                  |   |                  |      |   |   |   |   |   |   |   |   |   |
|    Ending balance                                      |   |                  |      |   |   |   |   |   |   | $ | 7,010,875 |   |

----

----

----

|                                                                   |   | August 31, 2010 |      |
|------------------------------------------------------------------------|--------|-----------------|-----------|
|                                                                   |   |            |      |   | Accumulated |   |   | Carrying |   |
| Amounts                                                                |   | Cost            |      |   | Amortization |   |   | Value |   |
|                                                                   |   |            |      |   |   |   |   |   |   |
| Intangible assets subject to amortization                              |   |            |      |   |   |   |   |   |   |
|                                                                   |   |            |      |   |   |   |   |   |   |
|    Agreements and contracts curriculum access           |   | $               | 348,333   |   |   | $ | (203,813 | ) |   | $ | 144,520 |   |
|    Internally developed curriculum acquired             |   |            | 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 not subject to amortization                          |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                                   |   |            |      |   |   |   |   |   |   |   |   |   |
|    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, 2009 |      |
|------------------------------------------------------------------------|--------|-----------------|-----------|
|                                                                   |   |            |      |   | Accumulated |   |   | Carrying |   |
| Amounts                                                                |   | Cost            |      |   | Amortization |   |   | Value |   |
|                                                                   |   |            |      |   |   |   |   |   |   |
| Intangible assets subject to amortization                              |   |            |      |   |   |   |   |   |   |
|                                                                   |   |            |      |   |   |   |   |   |   |
|    Agreements and contracts curriculum access           |   | $               | 348,333   |   |   | $ | (126,338 | ) |   | $ | 221,995 |   |
|    Internally developed curriculum acquired             |   |            | 2,052,000 |   |   |   | (228,000 | ) |   |   | 1,824,000 |   |
|    Foreign university cooperative agreements and others |   |            | 1,923,255 |   |   |   | (1,483,571 | ) |   |   | 439,684 |   |
|                                                                   |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                                   |   | $               | 4,323,588 |   |   | $ | (1,837,909 | ) |   | $ | 2,485,679 |   |
|                                                                   |   |            |      |   |   |   |   |   |   |   |   |   |
| Intangible assets not subject to amortization                          |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                                   |   |            |      |   |   |   |   |   |   |   |   |   |
|    Accreditations and registrations                     |   |            |      |   |   |   |   |   |   | $ | 2,506,000 |   |
|    Brand and trade names                                |   |            |      |   |   |   |   |   |   |   | 3,476,000 |   |
|    Chinese university agreements and contracts          |   |            |      |   |   |   |   |   |   |   | 5,942,340 |   |
|                                                                   |   |            |      |   |   |   |   |   |   |   |   |   |
|                                                                   |   |            |      |   |   |   |   |   |   | $ | 11,924,340 |   |
|                                                                   |   |            |      |   |   |   |   |   |   |   |   |   |
| Total intangible assets                                                |   |            |      |   |   |   |   |   |   | $ | 14,410,019 |   |

----

----

----

----

|                            |   | August 31,2010 |      |   | August 31,2009 |   |
|---------------------------------|--------|----------------|-----------|--------|----------------|--------|
|                            |   |           |      |   |           |   |
| Trade accounts payable          |   | $              | 2,704,039 |   |           | $      | 2,346,716 |   |
| Payroll and related liabilities |   |           | 1,579,398 |   |           |   | 1,164,802 |   |
| Purchase price payable          |   |           | 436,333   |   |           |   | 886,333 |   |
| Tuition fees and grants payable |   |           | 74,017    |   |           |   | 804,380 |   |
| Others                          |   |           | 213,400   |   |           |   | 182,536 |   |
|                            |   |           |      |   |           |   |   |   |
|                            |   | $              | 5,007,187 |   |           | $      | 5,384,767 |   |

----

| Amount allocated to:                                                       |   | Contributed Surplus |      |   | Debt   |   |      | Total  |   |
|----------------------------------------------------------------------------|--------|---------------------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                       |   |                |      |   |   |   |      |   |   |
|      Proceeds received                            |   | US$                 | 1,300,146 |   |   | US$    | 3,699,854 |   |   | US$ | 5,000,000 |   |
|      Finance fees paid (including agent warrants) |   |                | (216,342  | )      |   |   | (829,258  | )      |   |   | (1,045,600 | ) |
|                                                                       |   |                |      |   |   |   |      |   |   |   |   |   |
| Carrying value at issuance                                                 |   | US$                 | 1,083,804 |   |   | US$    | 2,870,596 |   |   | US$ | 3,954,400 |   |

----

----

----

| Carrying value at issuance                                 |   | US$    | 2,870,596  |   |
|------------------------------------------------------------|--------|--------|------------|--------|
| Accretion of fair value interest and accrued finance costs |   |   | 162,309    |   |
|                                                       |   |   |       |   |
| Balance at June 30, 2007                                   |   |   | 3,032,905  |   |
| Accretion of fair value interest and accrued finance costs |   |   | 437,212    |   |
| Interest payments                                          |   |   | (280,096   | )      |
|                                                       |   |   |       |   |
| Balance at December 10, 2007 before repayment              |   |   | 3,190,021  |   |
| Interest costs on debt settlement                          |   |   | 1,809,979  |   |
|                                                       |   |   |       |   |
|                                                       |   |   | 5,000,000  |   |
| Less:  repayment                                 |   |   | (5,000,000 | )      |
|                                                       |   |   |       |   |
| Balance at August 31, 2008 and 2009                        |   | US$    | -          |   |

| Demand term instalment loan, payable in monthly instalments of $50,000 plus interest at the 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     |   |

| ●   | 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, | 2011   |   | $      | 557,164   |   |
|---------------------------------|--------|--------|--------|-----------|--------|
|                            | 2012   |   |   | 602,492   |   |
|                            | 2013   |   |   | 602,712   |   |
|                            | 2014   |   |   | 631,520   |   |
|                            | 2015   |   |   | 400,000   |   |
|                            |   |   |   |      |   |
|                            |   |   | $      | 2,793,888 |   |

----

|                                                           |   | Number |       |   | Value  |   |
|----------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Issued and outstanding                                         |   |   |       |   |   |   |
|                                                           |   |   |       |   |   |   |
| Balance at August 31, 2007                                     |   |   | 47,852,255 |   |   | $      | 30,216,538 |   |
|                                                           |   |   |       |   |   |   |   |   |
| - for cash by exercise of options at $0.30 per share           |   |   | 330,000    |   |   |   | 99,000 |   |
| - for cash by exercise of options at $0.50 per share           |   |   | 145,000    |   |   |   | 72,500 |   |
| - for cash by exercise of options at $0.58 per share           |   |   | 100,000    |   |   |   | 58,000 |   |
| - for cash by exercise of options at $1.53 per share           |   |   | 50,000     |   |   |   | 76,500 |   |
| - for cash by exercise of warrants at $.58 per share           |   |   | 1,559,092  |   |   |   | 904,273 |   |
| - for cash by exercise of warrants at $.75 per share           |   |   | 25,100     |   |   |   | 18,825 |   |
| - for cash by exercise of warrants at $.80 per share           |   |   | 33,333     |   |   |   | 26,666 |   |
| - for private placement at $1.90 per share                     |   |   | 4,008,489  |   |   |   | 7,616,129 |   |
| - fees and commissions for private placement                   |   |   | -          |   |   |   | (229,950 | ) |
| - for acquisition of CIBT common shares (Note 3(e))            |   |   | 10,000,000 |   |   |   | 5,443,800 |   |
| - fair value of agents warrants for private placement          |   |   | -          |   |   |   | (153,675 | ) |
| - contributed surplus reallocated on exercise of stock options |   |   | -          |   |   |   | 202,000 |   |
| - trustee shares for un-exchanged shares                       |   |   | 28         |   |   |   | - |   |
|                                                           |   |   |       |   |   |   |   |   |
| Balance at August 31, 2008 and 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 agents 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 |   |

----

----

----

|                                               |  Number of Warrants |  Weighted Average Exercise Price ($) | Weighted Average Remaining Life |
|----------------------------------------------------|--------------------------|-------------------------------------------|---------------------------------|
|                                               |                     |                                      |                            |
| Balance, August 31, 2007                           | 4,774,322           | 0.73                                      | 1.34 years                      |
|                                               |                     |                                      |                            |
|      - warrants issued    | 2,263,587           | 2.21                                      |                            |
|      - warrants exercised | (1,617,524)              | 0.59                                      |                            |
|                                               |                     |                                      |                            |
| Balance, August 31, 2008                           | 5,420,385           | 1.39                                      | 0.80 years                      |
|                                               |                     |                                      |                            |
|      - warrants expired   | (208,466)                | 0.75                                      |                            |
|                                               |                     |                                      |                            |
| Balance, August 31, 2009                           | 5,211,919           | 1.43                                      | 0.38 years                      |
|                                               |                     |                                      |                            |
|      - warrants issued    | 210,000             | 0.70                                      |                            |
|      - warrants expired   | (5,211,919)              | 1.62                                      |                            |
|                                               |                     |                                      |                            |
| Balance, August 31, 2010                           | 210,000             | 0.70                                      | 0.18 years                      |

| Number of Warrants | Exercise Price                                                      | Expiry Date      | RemainingContractual Life |
|--------------------|---------------------------------------------------------------------|------------------|---------------------------|
|               |                                                                |             |                      |
| 210,000       | $0.70                                                               | November 3, 2010 | 0.18 years                |
|               |                                                                |             |                      |
| 210,000       |                                                                |             |                      |
|               | The share purchase warrants expired unexercised on November 3, 2010 |

----

----

----

| ●   | 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 Companys 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 then 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, 2007                              | 4,190,000    | 0.91                               | 3.40 years                      |
|                                                  |              |                               |                            |
|    - options granted during the year   | 970,000      | 1.92                               |                            |
|    - options expired during the year   | (625,000)         | 0.49                               |                            |
|                                                  |              |                               |                            |
| 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                      |

----

----

----

| Number of Options | Exercise Price            | Expiry Date       | RemainingContractual Life |
|-------------------|---------------------------|-------------------|---------------------------|
|              |                      |              |                      |
| 1,325,000    | $0.58                     | February 19, 2011 | 0.47 years                |
| 100,000      | $1.70                     | March 19, 2011    | 0.55 years                |
| 750,000      | $2.00                     | March 19, 2011    | 0.55 years                |
| 210,000      | $0.51                     | January 21, 2012  | 1.39 years                |
| 1,450,000    | $1.53                     | June 21, 2012     | 1.81 years                |
| 80,000       | $0.80                     | May 2, 2013       | 2.67 years                |
| 50,000       | $0.60                     | August 8, 2013    | 2.94 years                |
| 3,965,000         |  $1.22 Average Price |              |                      |

|                    |   | Year EndedAugust 31,2010 |    |   | Year EndedAugust 31,2009 |   |    | Year EndedAugust 31,2008 |   |
|-------------------------|--------|--------------------------|---------|--------|--------------------------|--------|---------|--------------------------|--------|
|                    |   |                     |    |   |                     |   |    |                     |   |
| 2006 stock option grant |   | $                        | 51,397  |   |                     | $      | 63,989  |                     |   | $ | 264,801 |   |
| 2007 stock option grant |   |                     | -       |   |                     |   | 221,666 |                     |   |   | 959,727 |   |
| 2008 stock option grant |   |                     | 134,229 |   |                     |   | 242,943 |                     |   |   | 238,328 |   |
| 2009 stock option grant |   |                     | -       |   |                     |   | 52,500  |                     |   |   | - |   |
| 2010 stock option grant |   |                     | 47,000  |   |                     |   | -       |                     |   |   | - |   |
|                    |   | $                        | 232,626 |   |                     | $      | 581,098 |                     |   | $ | 1,462,856 |   |

----

----

----

| Balance, August 31, 2007                                                                          |   | $      | 2,949,248 |   |
|---------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|
|                                                                                              |   |   |      |   |
|      Stock based compensation on vesting of stock options                |   |   | 1,462,856 |   |
|      Fair value of agents warrants for private placement                 |   |   | 153,675   |   |
|      Allocated to share capital on exercise of options                   |   |   | (202,000  | )      |
|                                                                                              |   |   |      |   |
| Balance, August 31, 2008                                                                          |   |   | 4,363,779 |   |
|                                                                                              |   |   |      |   |
|      Stock compensation on vesting of stock options                      |   |   | 581,098   |   |
|                                                                                              |   |   |      |   |
| Balance, August 31, 2009                                                                          |   |   | 4,944,877 |   |
|                                                                                              |   |   |      |   |
|      Reverse fair value of agents warrants for private placement expired |   |   | 648,600   |   |
|      Stock compensation on vesting of stock options                      |   |   | 232,626   |   |
|      Allocated to share capital on exercise of options                   |   |   | (124,800  | )      |
|      Deficit from sale of treasury shares (Note 14)                      |   |   | (501,267  | )      |
|                                                                                              |   |   |      |   |
| Balance, August 31, 2010                                                                          |   | $      | 5,200,036 |   |

----

|                                                                                 |   | Number |      |   | Value  |   |
|--------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                                                                 |   |   |      |   |   |   |
| Balance, August 31, 2007                                                             |   |   | 962,496   |   |   | $      | 1,197,091 |   |
|                                                                                 |   |   |      |   |   |   |   |   |
|      Purchase of treasury shares                            |   |   | 1,488,200 |   |   |   | 2,751,369 |   |
|                                                                                 |   |   |      |   |   |   |   |   |
| Balance, August 31, 2008                                                             |   |   | 2,450,696 |   |   | $      | 3,948,460 |   |
|                                                                                 |   |   |      |   |   |   |   |   |
|      Purchase of treasury shares                            |   |   | 695,800   |   |   |   | 377,031 |   |
|                                                                                 |   |   |      |   |   |   |   |   |
| 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 |   |

----

----

----

----

----

|                                                                   |   | Year Ended |       |   | Year Ended |   |     | Year Ended |   |
|------------------------------------------------------------------------|--------|------------|------------|--------|------------|--------|----------|------------|--------|
|                                                                   |   | August 31, |       |   | August 31, |   |     | August 31, |   |
|                                                                   |   | 2010       |       |   | 2009       |   |     | 2008       |   |
|                                                                   |   |       |       |   |       |   |     |       |   |
| Income (loss) before taxes                                             |   | $          | (1,412,802 | )      |       | $      | 778,351  |       |   | $ | (4,589,071 | ) |
| Statutory Canadian income tax rate                                     |   |       | 29.00      | %      |       |   | 30.17    | %          |   |   | 32.37 | % |
|                                                                   |   |       |       |   |       |   |     |       |   |   |   |   |
| Income tax (recovery) expense at statutory rate                        |   |       | (409,713   | )      |       |   | 234,828  |       |   |   | (1,485,482 | ) |
| Effect of differences in foreign tax rates                             |   |       | -          |   |       |   | (37,166  | )          |   |   | (184,187 | ) |
| Expired non-capital loss carry-forwards                                |   |       | 297,968    |   |       |   | 927,069  |       |   |   | 428,410 |   |
| Non-deductible expenses, net                                           |   |       | (47,622    | )      |       |   | 49,954   |       |   |   | 569,465 |   |
| Differences between current year rate and rates used to measure future |   |       |       |   |       |   |     |       |   |   |   |   |
| income taxes                                                           |   |       | (164,393   | )      |       |   | 9,644    |       |   |   | 276,212 |   |
| Changes in corporate tax rates                                         |   |       | -          |   |       |   | 170,313  |       |   |   | 216,159 |   |
| Tax effect of dilution gain included in dilution gain                  |   |       | -          |   |       |   | -        |       |   |   | 196,702 |   |
| Differences in prior period tax returns as filed                       |   |       | 169,563    |   |       |   | (213,282 | )          |   |   | 237 |   |
| Other taxes                                                            |   |       | -          |   |       |   | 19,263   |       |   |   | 17,780 |   |
| Change in valuation allowance                                          |   |       | (2,256,328 | )      |       |   | (871,472 | )          |   |   | 325,010 |   |
| Other                                                                  |   |       | 45,470     |   |       |   | (3,910   | )          |   |   | (8.853 | ) |
| Income tax provision (recovery)                                        |   | $          | (2,365,055 | )      |       | $      | 285,241  |       |   | $ | 351,452 |   |

----

----

----

|                                                                |   | Year EndedAugust 31, 2010 |       |   | Year EndedAugust 31, 2009 |   |
|---------------------------------------------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|
|                                                                |   |                      |       |   |                      |   |
| Future income tax assets                                            |   |                      |       |   |                      |   |
|    Canada                                            |   |                      |       |   |                      |   |
|       Non-capital loss carry-forwards |   | $                         | 2,638,203  |   |                      | $      | 2,406,007 |   |
|       Share issuance costs            |   |                      | 107,329    |   |                      |   | 122,738 |   |
|       Investments                     |   |                      | 390,979    |   |                      |   | 440,826 |   |
|       Property and equipment          |   |                      | 82,422     |   |                      |   | 10,044 |   |
|       Intangible assets               |   |                      | 14,207     |   |                      |   | - |   |
|       Deferred revenues               |   |                      | 227,746    |   |                      |   | - |   |
|    China                                             |   |                      |       |   |                      |   |   |   |
|       Non-capital loss carry-forwards |   |                      | -          |   |                      |   | 133,856 |   |
|       Property and equipment          |   |                      | -          |   |                      |   | 23,204 |   |
|                                                                |   |                      |       |   |                      |   |   |   |
| Total future income tax assets before valuation allowance           |   |                      | 3,460,886  |   |                      |   | 3,136,675 |   |
| Less: valuation allowance                                           |   |                      | (375,777   | )      |                      |   | (2,632,105 | ) |
|                                                                |   |                      |       |   |                      |   |   |   |
|                                                                |   |                      | 3,085,109  |   |                      |   | 504,570 |   |
|                                                                |   |                      |       |   |                      |   |   |   |
| Future income tax liabilities                                       |   |                      |       |   |                      |   |   |   |
|    Canada                                            |   |                      |       |   |                      |   |   |   |
|       Property and equipment          |   |                      | (238,873   | )      |                      |   | (19,376 | ) |
|       Intangible assets               |   |                      | (1,382,377 | )      |                      |   | (627,974 | ) |
|    China                                             |   |                      |       |   |                      |   |   |   |
|       Property and equipment          |   |                      | 181,780    |   |                      |   | (104,322 | ) |
|       Intangible assets               |   |                      | (987,222   | )      |                      |   | (1,494,505 | ) |
|                                                                |   |                      |       |   |                      |   |   |   |
|                                                                |   |                      | (2,426,692 | )      |                      |   | (2,246,177 | ) |
|                                                                |   |                      |       |   |                      |   |   |   |
| Net future income tax assets (liabilities)                          |   | $                         | 658,417    |   |                      | $      | (1,741,607 | ) |

|                                                                                       |   | Year EndedAugust 31,2010 |       |   | Year EndedAugust 31,2009 |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|--------------------------|--------|
|                                                                                       |   |                     |       |   |                     |   |
| Beginning balance                                                                          |   | $                        | 2,632,105  |   |                     | $      | 3,503,577 |   |
|                                                                                       |   |                     |       |   |                     |   |   |   |
|    Current period tax losses and temporary differences                      |   |                     | 498,812    |   |                     |   | 98,240 |   |
|       Expired tax losses during the period                   |   |                     | (297,968   | )      |                     |   | (927,069 | ) |
|       Impact of change in statutory rates on opening balance |   |                     | -          |   |                     |   | (170,313 | ) |
|       Differences in prior period tax returns as filed       |   |                     | 169,563    |   |                     |   | 118,747 |   |
|       Tax benefit of non-capital losses recognized           |   |                     | (2,626,735 | )      |                     |   | 8,923 |   |
|                                                                                       |   |                     |       |   |                     |   |   |   |
|                                                                                       |   |                     | (2,256,328 | )      |                     |   | (871,472 | ) |
|                                                                                       |   |                     |       |   |                     |   |   |   |
| Ending balance                                                                             |   | $                        | 375,777    |   |                     | $      | 2,632,105 |   |

----

----

----

| Year of Expiry |   | China  |    |   | Canada |   |      | Total  |   |
|----------------|--------|--------|---------|--------|--------|--------|-----------|--------|--------|
|           |   |   |    |   |   |   |      |   |   |
| 2012           |   | $      | 36,032  |   |   | $      | -         |   |   | $ | 36,032 |   |
| 2013           |   |   | 140,310 |   |   |   | 1,396,407 |   |   |   | 1,536,717 |   |
| 2014           |   |   | 359,083 |   |   |   | 928,481   |   |   |   | 1,287,564 |   |
| 2025           |   |   | -       |   |   |   | 587,698   |   |   |   | 587,698 |   |
| 2026           |   |   | -       |   |   |   | 856,335   |   |   |   | 856,335 |   |
| 2027           |   |   | -       |   |   |   | 2,043,607 |   |   |   | 2,043,607 |   |
| 2028           |   |   | -       |   |   |   | 2,033,359 |   |   |   | 2,033,359 |   |
| 2029           |   |   | -       |   |   |   | 474,435   |   |   |   | 474,435 |   |
| 2030           |   |   | -       |   |   |   | 1,361,207 |   |   |   | 1,361,207 |   |
|           |   |   |    |   |   |   |      |   |   |   |   |   |
|           |   | $      | 535,425 |   |   | $      | 9,681,529 |   |   | $ | 10,216,954 |   |

----

| For the years ending August 31, | 2011   |   | $      | 88,150  |   |
|---------------------------------|--------|--------|--------|---------|--------|
|                            | 2012   |   |   | 88,150  |   |
|                            | 2013   |   |   | 91,088  |   |
|                            | 2014   |   |   | 91,676  |   |
|                            | 2015   |   |   | 15,279  |   |
|                            |   |   |   |    |   |
|                            |   |   | $      | 374,343 |   |

| For the years ending August 31, | 2011   |   | $      | 139,142 |   |
|---------------------------------|--------|--------|--------|---------|--------|
|                            |   |   |   |    |   |
|                            |   |   | $      | 139,142 |   |

| For the years ending August 31, | 2011   |   | $      | 1,461,585 |   |
|---------------------------------|--------|--------|--------|-----------|--------|
|                            | 2012   |   |   | 1,195,932 |   |
|                            | 2013   |   |   | 444,959   |   |
|                            | 2014   |   |   | 278,485   |   |
|                            | 2015   |   |   | 100,191   |   |
|                            |   |   |   |      |   |
|                            |   |   | $      | 3,481,152 |   |

----

----

----

| For the years ending August 31, | 2011   |   | $      | 2,734,490 |   |
|---------------------------------|--------|--------|--------|-----------|--------|
|                            | 2012   |   |   | 1,821,250 |   |
|                            | 2013   |   |   | 1,126,412 |   |
|                            | 2014   |   |   | 883,083   |   |
|                            | 2015   |   |   | 859,359   |   |
|                            |   |   |   |      |   |
|                            |   |   | $      | 7,424,594 |   |

----

----

----

----

|                                     |   | 2010                  |       |   | 2009             |   |
|------------------------------------------|--------|-----------------------|------------|--------|------------------|--------|
|                                     |   |  Less than1 year |       |   |  1- 3 years |   |   |  4- 5 years |   |   | Greater than5 years |   |   |  Total |   |   |  Total |   |
|                                     |   |                  |       |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities |   | $                     | 5,007,187  |   |             | $      | - |   |   | $ | - |   |   | $ | - |   |   | $ | 5,007,187 |   |   | $ | 5,384,767 |   |
| Income taxes payable                     |   |                  | 522,921    |   |             |   | - |   |   |   | - |   |   |   | - |   |   |   | 522,921 |   |   |   | 481,352 |   |
| Capital leases                           |   |                  | 118,098    |   |             |   | 222,810 |   |   |   | - |   |   |   | - |   |   |   | 340,908 |   |   |   | 389,451 |   |
| Long-term debt                           |   |                  | 2,757,164  |   |             |   | 36,724 |   |   |   | - |   |   |   | - |   |   |   | 2,793,888 |   |   |   | 226,439 |   |
| Operating leases                         |   |                  | 4,423,367  |   |             |   | 6,021,036 |   |   |   | 974,830 |   |   |   | - |   |   |   | 11,419,233 |   |   |   | 4,462,954 |   |
|                                     |   |                  |       |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                     | 12,828,737 |   |             | $      | 6,280,570 |   |   | $ | 974,830 |   |   | $ | - |   |   | $ | 20,084,137 |   |   | $ | 10,944,963 |   |

----

----

|                           |   | Year Ended |       |   | Year Ended |   |       | Year Ended |   |
|--------------------------------|--------|------------|------------|--------|------------|--------|------------|------------|--------|
|                           |   | August 31, |       |   | August 31, |   |       | August 31  |   |
|                           |   | 2010       |       |   | 2009       |   |       | 2008,      |   |
|                           |   |       |       |   |       |   |       |       |   |
| Advertising                    |   | $          | 8,700,663  |   |       | $      | 5,699,158  |       |   | $ | 4,087,705 |   |
| Bank charges and interest      |   |       | 347,265    |   |       |   | 198,838    |       |   |   | 158,625 |   |
| Consulting and management fees |   |       | 1,380,305  |   |       |   | 1,230,128  |       |   |   | 1,632,939 |   |
| Directors insurance            |   |       | 79,889     |   |       |   | 79,074     |       |   |   | 58,927 |   |
| Investor relations             |   |       | 95,187     |   |       |   | 49,892     |       |   |   | 120,998 |   |
| Office and general             |   |       | 4,055,573  |   |       |   | 3,557,686  |       |   |   | 2,498,784 |   |
| Professional fees              |   |       | 1,940,634  |   |       |   | 1,544,022  |       |   |   | 1,466,510 |   |
| Regulatory fees                |   |       | 240,688    |   |       |   | 58,149     |       |   |   | 165,082 |   |
| Rent                           |   |       | 4,108,635  |   |       |   | 3,019,407  |       |   |   | 2,116,207 |   |
| Salaries and benefits          |   |       | 10,645,586 |   |       |   | 9,631,436  |       |   |   | 6,517,877 |   |
| Travel and promotion           |   |       | 305,381    |   |       |   | 445,823    |       |   |   | 478,006 |   |
|                           |   |       |       |   |       |   |       |       |   |   |   |   |
|                           |   | $          | 31,899,806 |   |       | $      | 25,513,613 |       |   | $ | 19,301,660 |   |

----

----

----

|                                     |   | Year Ended |       |   | Year Ended |   |       | Year Ended |   |
|------------------------------------------|--------|------------|------------|--------|------------|--------|------------|------------|--------|
|                                     |   | August 31, |       |   | August 31, |   |       | August 31, |   |
|                                     |   | 2010       |       |   | 2009       |   |       | 2008       |   |
|                                     |   |       |       |   |       |   |       |       |   |
| Accounts receivable                      |   | $          | (2,846,521 | )      |       | $      | (4,162,671 | )          |   | $ | 1,403,791 |   |
| Prepaid expenses                         |   |       | 2,470,624  |   |       |   | (150,779   | )          |   |   | (687,680 | ) |
| Inventory                                |   |       | 58,131     |   |       |   | 119,894    |       |   |   | 105,658 |   |
| Accounts payable and accrued liabilities |   |       | (255,373   | )      |       |   | 666,307    |       |   |   | 536,520 |   |
| Income taxes payable                     |   |       | 65,186     |   |       |   | 30,669     |       |   |   | 3,499 |   |
| Deferred revenues and fees               |   |       | (583,878   | )      |       |   | 2,875,843  |       |   |   | (2,026,794 | )  |
| Other assets                             |   |       | -          |   |       |   | 29,021     |       |   |   | (52,681 | ) |
|                                     |   |       |       |   |       |   |       |       |   |   |   |   |
|                                     |   | $          | (1,091,831 | )      |       | $      | (591,716   | )          |   | $ | (717,687 | ) |

----

----

----

----

| 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:                        |   |                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Amortization                         |   |                       | (491,813   | ) |   |   | (829,453 | ) |   |   | (127,923 | ) |   |   | (26,496 | ) |   |   | (61,592 | ) |   |   | (1,537,277 | ) |
|   General and administrative           |   |                       | (3,230,571 | ) |   |   | (18,325,086 | ) |   |   | (5,277,510 | ) |   |   | (802,856 | ) |   |   | (4,263,783 | ) |   |   | (31,899,806 | ) |
|   Stock-based compensation             |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (232,626 | ) |   |   | (232,626 | ) |
|   Interest on long-term debt           |   |                       | -          |   |   |   | (92,346 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (92,346 | ) |
|   Foreign exchange gain (loss)         |   |                       | (86,729    | ) |   |   | - |   |   |   | - |   |   |   | (2,714 | ) |   |   | (7,234 | ) |   |   | (96,677 | ) |
|   Loss on disposal of assets           |   |                       | (56,412    | ) |   |   | (118,104 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (174,516 | ) |
|   Impairment of marketable securities  |   |                       | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (127,229 | ) |   |   | (127,229 | ) |
|   Impairment of intangible assets      |   |                       | (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 | ) |
|   Non-controlling interests            |   |                       | 136,056    |   |   |   | (505,939 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (369,883 | ) |
|   Other income                         |   |                       | 204,815    |   |   |   | - |   |   |   | - |   |   |   | 2,203 |   |   |   | 607 |   |   |   | 207,625 |   |
|   Income tax recovery (provision), net |   |                       | 606,441    |   |   |   | (844,002 | ) |   |   | (6,392 | ) |   |   | (13,396 | ) |   |   | 2,622,404 |   |   |   | 2,365,055 |   |
|   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 |   |

----

----

----

| Industry and Geographic Segments                  | Year Ended August 31, 2008 |
|---------------------------------------------------|----------------------------|
|                                              |                       |  CIBT(China) |   |   | SSDC(Canada) |   |   | IRIX(Canada) |   |   | Corporate(Canada) |   |   |  Consolidated |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                          |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Educational CIBT                                  |                       | $ | 7,997,918 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 7,997,918 |   |
| Educational SSDC                                  |                       |   | - |   |   |   | 21,070,707 |   |   |   | - |   |   |   | - |   |   |   | 21,070,707 |   |
| Design and advertising                            |                       |   | - |   |   |   | - |   |   |   | 1,961,205 |   |   |   | - |   |   |   | 1,961,205 |   |
| Consulting income                                 |                       |   | - |   |   |   | - |   |   |   | - |   |   |   | 131,449 |   |   |   | 131,449 |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                              |                       |   | 7,997,918 |   |   |   | 21,070,707 |   |   |   | 1,961,205 |   |   |   | 131,449 |   |   |   | 31,161,279 |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues, net of direct costs                     |                       | $ | 4,255,096 |   |   | $ | 13,869,753 |   |   | $ | 837,192 |   |   | $ | 131,449 |   |   | $ | 19,093,490 |   |
| Other expenses and items:                         |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Amortization                          |                       |   | (384,744 | ) |   |   | (1,422,150 | ) |   |   | (32,029 | ) |   |   | (22,252 | ) |   |   | (1,861,175 | ) |
|   General and administrative            |                       |   | (3,131,016 | ) |   |   | (11,629,666 | ) |   |   | (931,420 | ) |   |   | (3,609,558 | ) |   |   | (19,301,660 | ) |
|   Stock-based compensation              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,462,856 | ) |   |   | (1,462,856 | ) |
|   Interest on long-term debt            |                       |   | (113,799 | ) |   |   | (44,395 | ) |   |   | - |   |   |   | (14,266 | ) |   |   | (172,460 | ) |
|   Foreign exchange (loss) gain          |                       |   | 121,407 |   |   |   | - |   |   |   | 361 |   |   |   | (54,117 | )  |   |   | 67,651 |   |
|   Interest costs on debt settlement     |                       |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,968,882 | ) |   |   | (1,968,882 | ) |
|   Gain on subsidiary share transactions |                       |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,192,524 |   |   |   | 2,192,524 |   |
|   Gain (loss) on marketable securities  |                       |   | - |   |   |   | - |   |   |   | - |   |   |   | (11,906 | ) |   |   | (11,906 | ) |
|   Impairment of marketable securities   |                       |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,364,246 | ) |   |   | (1,364,246 | ) |
|   Loss on disposal of assets            |                       |   | (5,599 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,599 | ) |
|   Non-controlling interests             |                       |   | (93,874 | ) |   |   | (94,935 | ) |   |   | - |   |   |   | 79,654 |   |   |   | (109,155 | ) |
|   Other income                          |                       |   | 105,922 |   |   |   | 143 |   |   |   | (385 | ) |   |   | 100,368 |   |   |   | 206,048 |   |
|   Income tax recovery (provision), net  |                       |   | (351,452 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (351,452 | ) |
|   Inter-segment transactions            |                       |   | (235,921 | ) |   |   | (924,932 | ) |   |   | 65,334 |   |   |   | 1,095,520 |   |   |   | - |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                 |                       | $ | 166,020 |   |   | $ | (246,182 | ) |   | $ | (60,947 | ) |   | $ | (4,908,569 | ) |   | $ | (5,049,678 | ) |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                                      |                       | $ | 18,071,965 |   |   | $ | 23,106,186 |   |   | $ | 400,316 |   |   | $ | 2,239,098 |   |   | $ | 43,817,565 |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property and equipment                            |                       | $ | 1,393,275 |   |   | $ | 2,275,272 |   |   | $ | 125,862 |   |   | $ | 8,297 |   |   | $ | 3,802,706 |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible assetsAs Restated (Note 8)             |                       | $ | 6,515,885 |   |   | $ | 8,190,333 |   |   | $ | - |   |   | $ | 261,159 |   |   | $ | 14,967,377 |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| GoodwillAs Restated (Note 8)                      |                       | $ | 2,287,905 |   |   | $ | 4,047,536 |   |   | $ | - |   |   | $ | - |   |   | $ | 6,335,441 |   |
|                                              |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                              |                       | $ | 581,475 |   |   | $ | 170,095 |   |   | $ | 12,080 |   |   | $ | - |   |   | $ | 763,650 |   |

----

----

----

----

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

| Consolidated Balance Sheets                                     |   | August 31,2010 |       |   | August 31,2009 |   |
|-----------------------------------------------------------------|--------|----------------|------------|--------|---------------------|--------|
|                                                            |   |           |       |   |                |   |
| Total assets under Canadian GAAP                                |   | $              | 54,969,338 |   |                | $      | 47,521,692 |   |
| (c) Acquisition costs                                           |   |           | (279,062   | )      |                |   | - |   |
| Total assets under US GAAP                                      |   | $              | 54,690,276 |   |                | $      | 47,521,692 |   |
|                                                            |   |           |       |   |                |   |   |   |
| Total liabilities under Canadian GAAP                           |   | $              | 26,619,254 |   |                | $      | 23,652,032 |   |
| (b) Income tax uncertainties unrecognized tax benefits          |   |           | (10,960    | )      |                |   | - |   |
| (b) Income tax uncertainties accrual for interest and penalties |   |           | 40,669     |   |                |   | - |   |
| Total liabilities under US GAAP                                 |   | $              | 26,648,963 |   |                | $      | 23,652,032 |   |
|                                                            |   |           |       |   |                |   |   |   |
| Non-controlling interest under Canadian GAAP                    |   | $              | 1,327,126  |   |                |   | 1,198,606 |   |
| (d) Non-controlling interest in subsidiaries                    |   |           | (1,327,126 | )      |                |   | (1,198,606 | ) |
| Non-controlling interest under US GAAP                          |   | $              | -          |   |                | $      | - |   |
|                                                            |   |           |       |   |                |   |   |   |
| Total shareholders' equity under Canadian GAAP                  |   | $              | 27,022,958 |   |                | $      | 22,671,054 |   |
| (b) Income tax uncertainties unrecognized tax benefits          |   |           | 10,960     |   |                |   | - |   |
| (b) Income tax uncertainties accrual for interest and penalties |   |           | (40,669    | )      |                |   | - |   |
| (c) Acquisition costs                                           |   |           | (279,062   | )      |                |   | - |   |
| (d) Non-controlling interest in subsidiaries                    |   |           | 1,327,126  |   |                |   | 1,198,606 |   |
| Total shareholders equity under US GAAP                         |   | $              | 28,041,313 |   |                | $      | 23,869,660 |   |
|                                                            |   |           |       |   |                |   |   |   |
| Total liabilities and shareholders' equity                      |   | $              | 54,690,276 |   |                | $      | 47,521,692 |   |

----

----

----

| Consolidated Statements of Income (Loss)                        |   | Year Ended August 31, 2010 |     |   | Year Ended August 31, 2009 |   |   | Year Ended August 31, 2008 |   |
|-----------------------------------------------------------------|--------|----------------------------|----------|--------|----------------------------|--------|--------|----------------------------|--------|
|                                                            |   |                       |     |   |                       |   |   |                       |   |
| Net income (loss) under Canadian GAAP                           |   | $                          | 582,370  |   |                       | $      | 16,007 |                       |   | $ | (5,049,678 | ) |
|                                                            |   |                       |     |   |                       |   |   |                       |   |   |   |   |
| (b) Income tax uncertainties unrecognized tax benefits          |   |                       | 10,960   |   |                       |   | -      |                       |   |   | - |   |
| (b) Income tax uncertainties accrual for interest and penalties |   |                       | (40,669  | )      |                       |   | -      |                       |   |   | - |   |
| (g)Marketable securities - impairment in value                  |   |                       | -        |   |                       |   | -      |                       |   |   | 1,336,547 |   |
| (h)Changes in ownership of subsidiary company                   |   |                       | -        |   |                       |   | -      |                       |   |   | (2,192,524 | ) |
| (c) Acquisition costs                                           |   |                       | (279,062 | )      |                       |   | -      |                       |   |   | - |   |
|                                                            |   |                       |     |   |                       |   |   |                       |   |   |   |   |
| Net income (loss) under US GAAP                                 |   | $                          | 273,599  |   |                       | $      | 16,007 |                       |   | $ | (5,905,655 | ) |
| Basic and diluted income (loss) per share under US GAAP         |   |                       | 0.00     |   |                       |   | 0.00   |                       |   |   | (0.10 | )  |

| Consolidated Statements of Cash Flows                                                  |   | Year Ended August 31, 2010 |       |   | Year Ended August 31, 2009 |   |       | Year Ended August 31, 2008 |   |
|----------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|------------|---------------------------------|--------|
| Net cash provided by (used in) operating activities under Canadian and US GAAP         |   | $                          | 2,027,949  |   |                       | $      | 2,329,895  |                            |   | $ | (1,488,541 | ) |
| Net cash used in investing activities under Canadian GAAP                              |   | $                          | (5,752,247 | )      |                       | $      | (1,969,054 | )                               |   | $ | (8,539,114 | ) |
| (d) Disposal of controlling interest in variable interest entity, net of cash received |   |                       | -          |   |                       |   | 401,980    |                            |   |   | - |   |
| Net cash used in investing activities under US GAAP                                    |   | $                          | (5,752,247 | )      |                       | $      | (1,567,074 | )                               |   | $ | (8,539,114 | ) |
| Net cash provided by (used in) financing activities under Canadian GAAP                |   | $                          | 4,993,709  |   |                       | $      | (943,879   | )                               |   | $ | 5,962,673 |   |
| (d) Disposal of controlling interest in variable interest entity, net of cash received |   |                       | -          |   |                       |   | (401,980   | )                               |   |   | - |   |
| Net cash provided by (used in) financing activities under US GAAP                      |   | $                          | 4,993,709  |   |                       | $      | (1,345,859 | )                               |   | $ | 5,962,673 |   |
| Effect of exchange rate changes under Canadian and US GAAP                             |   | $                          | (94,704    | )      |                       | $      | (12,571    | )                               |   | $ | 430,726 |   |

----

----

----

| Consolidated Statement of Shareholders Equity                    |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |
|------------------------------------------------------------------|--------|---------|------------|--------|----------|--------|--------|-------------|--------|--------|------------|--------|--------|---------------------------------|------------|--------|---------|--------|------------|------------------|--------|--------|
|                                                             |   | Share   |       |   |     |   |   | Contributed |   |   | Treasury   |   |   | Accumulated Other Comprehensive |       |   |    |   |       | (c) Attributable |   |   | (c) Attributable |   |   | Total |   |
|                                                             |   | Capital |       |   | Warrants |   |   | Surplus     |   |   | Stock      |   |   | Income                          |       |   | Deficit |   |       | to Parent        |   |   | to NCI |   |   | Equity |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |
| Balance, August 31, 2007                                         |   | $       | 30,216,538 |   |     | $      | -      |        |   | $      | 12,430,393 |   |   | $                               | (1,197,091 | )      |    | $      | 479,496    |             |   | $      | (27,035,680 | ) |   | $ | 14,893,656 |   |   | $ | 1,043,996 |   |   | $ | 15,937,652 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) for the year                                       |   |    | -          |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | (5,905,655 | ) |   |   | (5,905,655 | ) |   |   | 109,155 |   |   |   | (5,796,500 | ) |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translations adjustments under Canadian GAAP    |   |    | -          |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | 170,185    |             |   |   | - |   |   |   | 170,185 |   |   |   | 68,303 |   |   |   | 238,488 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (g) Marketable securities - realized holdings gains and losses   |   |    | -          |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | (1,573,058 | )                |   |   | - |   |   |   | (1,573,058 | ) |   |   | - |   |   |   | (1,573,058 | ) |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                      |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   | (7,308,528 | ) |   |   | 177,458 |   |   |   | (7,131,070 | ) |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation (Note 13)                               |   |    | -          |   |     |   | -      |        |   |   | 1,462,856  |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | 1,462,856 |   |   |   | - |   |   |   | 1,462,856 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash by exercise of options (Note 12)          |   |    | 306,000    |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | 306,000 |   |   |   | - |   |   |   | 306,000 |   |
| Shares issued for cash by exercise of warrants (Note 12)         |   |    | 949,764    |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | 949,764 |   |   |   | - |   |   |   | 949,764 |   |
| Shares issued for private placement, net (Note 12)               |   |    | 7,386,179  |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | 7,386,179 |   |   |   | - |   |   |   | 7,386,179 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of treasury shares (Note 14)                            |   |    | -          |   |     |   | -      |        |   |   | -          |   |   |                            | (2,751,369 | )      |    |   | -          |             |   |   | - |   |   |   | (2,751,369 | ) |   |   | - |   |   |   | (2,751,369 | ) |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed surplus reallocated on exercise of options (Note 12) |   |    | 202,000    |   |     |   | -      |        |   |   | (202,000   | )      |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CIBT warrants extended(Note 3(e))                                |   |    | -          |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | - |   |   |   | 5,034,500 |   |   |   | 5,034,500 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for CIBT warrants (Note 3(e))                      |   |    | 5,443,800  |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | 5,443,800 |   |   |   | (5,033,094 | ) |   |   | 410,706 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain on dilution of subsidiary holdings (Note 3(e))              |   |    | -          |   |     |   | -      |        |   |   | 2,192,524  |   |   |                            | -          |   |    |   | (80,075    | )                |   |   | - |   |   |   | 2,112,449 |   |   |   | - |   |   |   | 2,112,449 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of agents warrants for private placement (Note 13)    |   |    | (153,675   | )      |     |   | -      |        |   |   | 153,675    |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NCI in Asia Media Interactive Inc. (Note 3(b))                   |   |    | -          |   |     |   | -      |        |   |   | -          |   |   |                            | -          |   |    |   | -          |             |   |   | - |   |   |   | - |   |   |   | 122,207 |   |   |   | 122,207 |   |
|                                                             |   |    |       |   |     |   |   |        |   |   |       |   |   |                            |       |   |    |   |       |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2008                                         |   |    | 44,350,606 |   |     |   | -      |        |   |   | 16,037,448 |   |   |                            | (3,948,460 | )      |    |   | (1,003,452 | )                |   |   | (32,941,335 | ) |   |   | 22,494,807 |   |   |   | 1,345,067 |   |   |   | 23,839,874 |   |

----

----

----

| Consolidated Statement of Shareholders Equity (cont'd)        |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |
|---------------------------------------------------------------|--------|---------|------------|--------|----------|--------|---------|-------------|--------|--------|------------|--------|--------|-------------------------------|------------|--------|---------|--------|------------|
|                                                          |   | Share   |       |   |     |   |    | Contributed |   |   | Treasury   |   |   | AccumulatedOtherComprehensive |       |   |    |   |       | (c) Attributable |   |   | (c) Attributable |   |   | Total |   |
|                                                          |   | Capital |       |   | Warrants |   |    | Surplus     |   |   | Stock      |   |   | Income                        |       |   | Deficit |   |       | to Parent |   |   | to NCI |   |   | Equity |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |
| Balance,August 31, 2008(carried forward)                      |   | $       | 44,350,606 |   |     | $      | -       |        |   | $      | 16,037,448 |   |   | $                             | (3,948,460 | )      |    | $      | (1,003,452 | ) |   | $ | (32,941,335 | ) |   | $ | 22,494,807 |   |   | $ | 1,345,067 |   |   | $ | 23,839,874 |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income for the year                                           |   |    | -          |   |     |   | -       |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | 16,007 |   |   |   | 16,007 |   |   |   | 477,103 |   |   |   | 493,110 |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translations adjustments under Canadian GAAP |   |    | -          |   |     |   | -       |        |   |   | -          |   |   |                          | -          |   |    |   | (4,253     | ) |   |   | - |   |   |   | (4,253 | ) |   |   | 18,544 |   |   |   | 14,291 |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (g) Marketable securities - unrealized holding loss           |   |    | -          |   |     |   | -       |        |   |   | -          |   |   |                          | -          |   |    |   | (39,574    | ) |   |   | - |   |   |   | (39,574 | ) |   |   | - |   |   |   | (39,574 | ) |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                   |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   | (27,820 | ) |   |   | 495,647 |   |   |   | 467,827 |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation (Note 13)                            |   |    | -          |   |     |   | -       |        |   |   | 581,098    |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | 581,098 |   |   |   | - |   |   |   | 581,098 |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Charges on share purchase warrant extension (Note 12)         |   |    | -          |   |     |   | 648,600 |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | (648,600 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of treasury shares (Note 14)                         |   |    | -          |   |     |   | -       |        |   |   | -          |   |   |                          | (377,031   | )      |    |   | -          |   |   |   | - |   |   |   | (377,031 | ) |   |   | - |   |   |   | (377,031 | ) |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NCI equity contributions / repayments                         |   |    | -          |   |     |   | -       |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | (120,000 | ) |   |   | (120,000 | ) |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NCI in Asia Media Interactive Inc. (Note 3(b))                |   |    | -          |   |     |   | -       |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | (522,108 | ) |   |   | (522,108 | ) |
|                                                          |   |    |       |   |     |   |    |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2009                                      |   |    | 44,350,606 |   |     |   | 648,600 |        |   |   | 16,618,546 |   |   |                          | (4,325,491 | )      |    |   | (1,047,279 | ) |   |   | (33,573,928 | ) |   |   | 22,671,054 |   |   |   | 1,198,606 |   |   |   | 23,869,660 |   |

----

----

----

| Consolidated Statement of Shareholders Equity (cont'd)               |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |
|----------------------------------------------------------------------|--------|---------|------------|--------|----------|--------|----------|-------------|--------|--------|------------|--------|--------|-------------------------------|------------|--------|---------|--------|------------|
|                                                                 |   | Share   |       |   |     |   |     | Contributed |   |   | Treasury   |   |   | AccumulatedOtherComprehensive |       |   |    |   |       | (c) Attributable |   |   | (c) Attributable |   |   | Total |   |
|                                                                 |   | Capital |       |   | Warrants |   |     | Surplus     |   |   | Stock      |   |   | Income                        |       |   | Deficit |   |       | to Parent |   |   | to NCI |   |   | Equity |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |
| Balance, August 31, 2009 (carried forward)                           |   | $       | 44,350,606 |   |     | $      | 648,600  |        |   | $      | 16,618,546 |   |   | $                             | (4,325,491 | )      |    | $      | (1,047,279 | ) |   | $ | (33,573,928 | ) |   | $ | 22,671,054 |   |   | $ | 1,198,606 |   |   | $ | 23,869,660 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income for the year                                                  |   |    | -          |   |     |   | -        |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | 273,599 |   |   |   | 273,599 |   |   |   | 369,883 |   |   |   | 643,482 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translations adjustments under Canadian GAAP        |   |    | -          |   |     |   | -        |        |   |   | -          |   |   |                          | -          |   |    |   | (70,422    | ) |   |   | - |   |   |   | (70,422 | ) |   |   | (23,929 | ) |   |   | (94,351 | ) |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (g) Marketable securities - realized holding gain                    |   |    | -          |   |     |   | -        |        |   |   | -          |   |   |                          | -          |   |    |   | 39,574     |   |   |   | - |   |   |   | 39,574 |   |   |   | - |   |   |   | 39,574 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   | 242,751 |   |   |   | 345,954 |   |   |   | 588,705 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation (Note 13)                                   |   |    | -          |   |     |   | -        |        |   |   | 232,626    |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | 232,626 |   |   |   | - |   |   |   | 232,626 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of agents warrants                                  |   |    | -          |   |     |   | 153,675  |        |   |   | (153,675   | )      |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase of treasury shares (Note 14)                                |   |    | -          |   |     |   | -        |        |   |   | -          |   |   |                          | (29,674    | )      |    |   | -          |   |   |   | - |   |   |   | (29,674 | ) |   |   | - |   |   |   | (29,674 | ) |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Treasury shares sold during the year (Note 13 and 14)                |   |    | -          |   |     |   | -        |        |   |   | (501,267   | )      |   |                          | 1,081,375  |   |    |   | -          |   |   |   | (280,108 | ) |   |   | 300,000 |   |   |   | - |   |   |   | 300,000 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for private placement, net (Note 12)                   |   |    | 3,102,430  |   |     |   | -        |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | 3,102,430 |   |   |   | - |   |   |   | 3,102,430 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of agents warrants related to private placement (Note 12) |   |    | (63,000    | )      |     |   | 63,000   |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for cash by exercise of options (Note 12)              |   |    | 195,000    |   |     |   | -        |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | 195,000 |   |   |   | - |   |   |   | 195,000 |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributed surplus reallocated on exercise of options (Note 12)     |   |    | 124,800    |   |     |   | -        |        |   |   | (124,800   | )      |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Warrants reclassified on expiry                                      |   |    | -          |   |     |   | (802,275 | )           |   |   | 802,275    |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NCI equity contributions / repayments                                |   |    | -          |   |     |   | -        |        |   |   | -          |   |   |                          | -          |   |    |   | -          |   |   |   | - |   |   |   | - |   |   |   | (217,434 | ) |   |   | (217,434 | ) |
|                                                                 |   |    |       |   |     |   |     |        |   |   |       |   |   |                          |       |   |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, August 31, 2010                                             |   | $       | 47,709,836 |   |     | $      | 63,000   |        |   | $      | 16,873,705 |   |   | $                             | (3,273,790 | )      |    | $      | (1,078,127 | ) |   | $ | (33,580,437 | ) |   | $ | 26,714,187 |   |   | $ | 1,327,126 |   |   | $ | 28,041,313 |   |

----

----

----

|                                  |   | Year Ended August 31, 2010 |       |   | Year Ended August 31, 2009 |   |       | Year Ended August 31, 2008 |   |
|---------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|------------|----------------------------|--------|
|                                  |   |                       |       |   |                       |   |       |                       |   |
| Direct costs Canadian  GAAP |   | $                          | 20,670,302 |   |                       | $      | 16,234,348 |                       |   | $ | 12,067,789 |   |
| Amortization for the year             |   |                       | 1,537,277  |   |                       |   | 1,636,761  |                       |   |   | 1,861,175 |   |
|                                  |   |                       |       |   |                       |   |       |                       |   |   |   |   |
| Direct costs US GAAP                  |   | $                          | 22,207,579 |   |                       | $      | 17,871,109 |                       |   | $ | 13,928,964 |   |

|                                                          |   | Year Ended August 31, 2010 |    |   | Year Ended August 31, 2009 |   |    | Year Ended August 31, 2008 |   |
|---------------------------------------------------------------|--------|----------------------------|---------|--------|----------------------------|--------|---------|----------------------------|--------|
| Balance, beginning of  period                       |   | $                          | 409,356 |   |                       | $      | 293,181 |                       |   | $ | 165,528 |   |
| Additions based on tax positions related to thecurrent period |   |                       | -       |   |                       |   | 214,925 |                       |   |   | 99,541 |   |
| Additions for tax positions of prior periods                  |   |                       |    |   |                       |   | -       |                       |   |   | - |   |
| Reductions for tax positions of prior periods                 |   |                       | -       |   |                       |   | (98,463 | )                          |   |   | - |   |
| Settlements                                                   |   |                       | -       |   |                       |   | -       |                       |   |   | - |   |
| Effect of foreign currency movements                          |   |                       | (10,960 | )      |                       |   | (287    | )                          |   |   | 28,112 |   |
| Balance, end of period                                        |   | $                          | 398,396 |   |                       | $      | 409,356 |                       |   | $ | 293,181 |   |

|                                                     |   | Year Ended August 31, 2010 |    |   | Year Ended August 31, 2009 |   |    | Year Ended August 31, 2008 |   |
|----------------------------------------------------------|--------|----------------------------|---------|--------|----------------------------|--------|---------|----------------------------|--------|
| Balance, beginning of period                             |   | $                          | 116,237 |   |                       | $      | 52,214  |                       |   | $ | - |   |
| Accrual for interest and penalties duringthe period |   |                       | 79,674  |   |                       |   | 67,279  |                       |   |   | 47,073 |   |
| Effect of foreign currency movements                     |   |                       | (39,005 | )      |                       |   | (3,256  | )                          |   |   | 5,141 |   |
| Balance, end of period                                   |   | $                          | 156,906 |   |                       | $      | 116,237 |                       |   | $ | 52,214 |   |

----

----

----

|                                 |   | Year Ended August 31, 2010 |       |    | Year Ended August 31, 2009 |   |
|--------------------------------------|--------|----------------------------|------------|---------|----------------------------|--------|
| 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 August 31, 2010 |    |   | Year Ended August 31, 2009 |   |   | Year Ended August 31, 2008 |   |
|----------------------------------------------------------|--------|---------------------------------|---------|--------|----------------------------|--------|--------|----------------------------|--------|
| Net income (loss) attributed to the owners of the parent |   | $                               | 252,559 |   |                       | $      | 40,890 |                       |   | $ | (5,875,791 | ) |
|                                                     |   |                            |    |   |                       |   |   |                       |   |   |   |   |
| Income (loss) per share                                  |   | $                               | 0.00    |   |                       | $      | 0.00   |                       |   | $ | (0.10 | ) |

|                                                                |   | Year Ended August 31, 2010 |       |   | Year Ended August 31, 2009 |   |       | Year Ended August 31, 2008 |   |
|---------------------------------------------------------------------|--------|----------------------------|------------|--------|----------------------------|--------|------------|----------------------------|--------|
| Net income (loss) attributable to common stockholders               |   | $                          | 273,599    |   |                       | $      | 16,007     |                       |   | $ | (5,905,655 | ) |
|                                                                |   |                       |       |   |                       |   |       |                       |   |   |   |   |
| Fully diluted net income (loss) attributable to common stockholders |   | $                          | 273,599    |   |                       | $      | 16,007     |                       |   | $ | (5,905,655 | ) |
|                                                                |   |                       |       |   |                       |   |       |                       |   |   |   |   |
| Weighted average common shares basic                                |   |                       | 65,676,811 |   |                       |   | 61,258,923 |                       |   |   | 57,673,648 |   |
| Effect of dilutive stock options and warrants                       |   |                       | 340,334    |   |                       |   | 34,044     |                       |   |   | - |   |
|                                                                |   |                       |       |   |                       |   |       |                       |   |   |   |   |
| Weighted average common shares diluted                              |   |                       | 66,017,145 |   |                       |   | 61,292,967 |                       |   |   | 57,673,648 |   |
|                                                                |   |                       |       |   |                       |   |       |                       |   |   |   |   |
| Basic and diluted income (loss) per common share                    |   | $                          | 0.00       |   |                       | $      | 0.00       |                       |   | $ | (0.10 | ) |

----

----

----

----

----

----

| ● | Equity securities are subject to an initial classification between securities that are held to maturity (no intention to be sold prior to maturity), securities held for trading (bought with the intent to sell in the near future with the intent of realizing trading gains), and available-for-sale securities (those securities not classified as either held to maturity or held for trading). |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Notwithstanding the above classification, securities that are subject to restrictions (regulatory or contractual) that are not expected to be removed within one year, are not subject to the accounting provisions of ASC 320.  These securities are carried at cost (subject to write-down for other than temporary impairments in value) until released from the restrictions and thus subject to ASC 320. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Trading securities are carried at fair market value with all trading gains and losses and unrealized holding gains and losses included in the determination of net income for the period. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Available-for-sale securities are carried at fair market value with all realized gains and losses included in the determination of net income (loss) for the period.  Unrealized holding gains and losses are included in accumulated other comprehensive income, a separate component of shareholders equity, and are included in the determination of comprehensive income (loss) for the period. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Securities reclassified from restricted to available-for-sale give rise to unrealized holding gains or losses on reclassification and securities reclassified from available-for-sale to trading give rise to realized holding gains or losses on reclassification. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                                       |   | Year Ended August 31, 2010 |    |   | Year Ended August 31, 2009 |   |   | Year Ended August 31, 2008 |   |
|--------------------------------------------|--------|----------------------------|---------|--------|----------------------------|--------|--------|---------------------------------|--------|
| Stock option aggregate intrinsic value     |   | $                          | 8,400   |   |                       | $      | 67,400 |                            |   | $ | 1,959,950 |   |
|                                       |   |                       |    |   |                       |   |   |                            |   |   |   |   |
| Weighted average grant-date fair value of  |   |                       |    |   |                       |   |   |                            |   |   |   |   |
| options granted                            |   | $                          | 47,000  |   |                       | $      | 52,500 |                            |   | $ | 624,500 |   |
|                                       |   |                       |    |   |                       |   |   |                            |   |   |   |   |
| Total intrinsic value of options exercised |   | $                          | 89,700  |   |                       | $      | -      |                            |   | $ | 1,007,800 |   |
|                                       |   |                       |    |   |                       |   |   |                            |   |   |   |   |
| Total cash received from options           |   |                       |    |   |                       |   |   |                            |   |   |   |   |
| exercised                                  |   | $                          | 195,000 |   |                       | $      | -      |                            |   | $ | 306,000 |   |

----

----

----

| Nonvested Stock Options      |   | Options |       |   | Weighted Average Grant Date Fair Value per Option ($) |   |
|------------------------------|--------|---------|------------|--------|------------------------------------------------------------|--------|
|                         |   |    |       |   |                                                       |   |
| Nonvested at August 31, 2007 |   |    | 2,568,750  |   |                                                       |   | 0.92 |   |
| Granted                      |   |    | 970,000    |   |                                                       |   | 0.64 |   |
| Vested                       |   |    | (1,661,250 | )      |                                                       |   | 0.83 |   |
|                         |   |    |       |   |                                                       |   |   |   |
|                         |   |    |       |   |                                                       |   |   |   |
| 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 |   |    | -          |   |                                                       |   | - |   |

| For the years ending August 31, | 2011   |   | $      | 467,407   |   |
|---------------------------------|--------|--------|--------|-----------|--------|
|                            | 2012   |   |   | 441,372   |   |
|                            | 2013   |   |   | 348,875   |   |
|                            | 2014   |   |   | 257,496   |   |
|                            | 2015   |   |   | 257,496   |   |
|                            |   |   | $      | 1,772,646 |   |

----

----

----

|                          |   | CIBT China |       |   | SSDC Can |   |      | KGIC Can |   |   | Total     |   |
|-------------------------------|--------|------------|------------|--------|----------|--------|-----------|----------|--------|--------|-----------|--------|
|                          |   |       |       |   |     |   |      |     |   |   |      |   |
| Balance as at August 31, 2007 |   | $          | 4,396,144  |   |     | $      | -         |     |   | $      | -         |   |   | $ | 4,396,144 |   |
| Additions / Reclassifications |   |       | (1,746,295 | )      |     |   | 4,047,536 |     |   |   | -         |   |   |   | 2,301,241 |   |
| Disposals                     |   |       | (361,944   | )      |     |   | -         |     |   |   | -         |   |   |   | (361,944 | ) |
|                          |   |       |       |   |     |   |      |     |   |   |      |   |   |   |   |   |
| Balance as at August 31, 2008 |   |       | 2,287,905  |   |     |   | 4,047,536 |     |   |   | -         |   |   |   | 6,335,441 |   |
| Additions / Reclassifications |   |       | -          |   |     |   | 675,434   |     |   |   | -         |   |   |   | 675,434 |   |
| Disposals                     |   |       | -          |   |     |   | -         |     |   |   | -         |   |   |   | - |   |
|                          |   |       |       |   |     |   |      |     |   |   |      |   |   |   |   |   |
| Balance as at August 31, 2009 |   |       | 2,287,905  |   |     |   | 4,722,970 |     |   |   | -         |   |   |   | 7,010,875 |   |
| Additions / Reclassifications |   |       | -          |   |     |   | 446,333   |     |   |   | 3,542,488 |   |   |   | 3,988,821 |   |
| Disposals                     |   |       | -          |   |     |   | -         |     |   |   | -         |   |   |   | - |   |
|                          |   |       |       |   |     |   |      |     |   |   |      |   |   |   |   |   |
| Balance as at August 31, 2010 |   | $          | 2,287,905  |   |     | $      | 5,169,303 |     |   | $      | 3,542,488 |   |   | $ | 10,999,696 |   |

----

----

----

----

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            | Dean Dupperon Employment Agreement(3)                                                                                             |
| 4.3            | Employment Agreement with Sung Sub Lim(3)                                                                                         |
| 4.4            | Employment Agreement with Steve Sohn(3)                                                                                           |
| 4.5            | Acquisition Agreement for Concordia Career College(4)                                                                             |
| 4.6            | Memorandum of Understanding with Thompson River University and Vancouver Career College(4)                                        |
| 4.7            | Form of Cooperative Joint Program Agreements with Institutions for Hotel and Tourism Division(4)                                  |
| 4.8            | Acquisition Agreement for Pan Pacific English College(4)                                                                          |
| 4.9            | Memorandum of Understanding between Sprott-Shaw and the Ministry of Labour and Social Security of Jamaica(4)                      |
| 4.10           | Memorandum of Understanding between Sprott-Shaw, Browns Town College and the Ministry of Labour and Social Security of Jamaica(4) |
| 4.11           | Education Program Cooperation Agreement with Far Eastern University(4)                                                            |
| 4.12           | Agreement between CIBT and Zhuzhou Technical College(4)                                                                           |
| 4.13           | Agreement between CIBT and Jinhua Career & Technical College(4)                                                               |
| 4.14           | Agreement with Zhangzhou Normal University(4)                                                                                     |
| 4.15           | Education Program Cooperation Agreement between CIBT and National Cambridge College(4)                                            |
| 4.16           | Memorandum of Understanding between Sprott-Shaw and Thang Long University(4)                                                      |
| 4.17           | Cooperation Agreement with China Central Radio and Television University(4)                                                       |
| 4.18           | Memorandum of Understanding between Sprott-Shaw and Hanoi Tourism College(4)                                                      |
| 4.19           | License granted by AHLA-EI(4)                                                                                                     |
| 4.20           | Assignment of License to CIBT Education Group(4)                                                                                  |
| 4.21           | Agreement with Weifang University regarding CIBT Beihai Center(4)                                                                 |
| 4.22           | Agreement with Wyotech(1)                                                                                                         |
| 4.23           | Agreement with Beijing University of Technology(1)                                                                                |
| 4.24           | Agreement with ITT Educational Services, Inc. and Weifang University(1)                                                           |
| 4.25           | Acquisition Agreement of Sprott-Shaw(5)                                                                                           |
| 4.26           | Acquisition Agreement of Tourism Training Institute(5)                                                                            |
| 4.27           | Acquisition Agreement of the KGIC Education Group of Companies(6)                                                                 |
| 4.28           | Securities Purchase Agreement with Shane Corp.(1)                                                                                 |
| 4.29           | Agreement and Plan of Reorganization with Shane Corp.(3)                                                                          |
| 4.30           | Memorandum of Understanding with Meridian International Business and Arts College(3)                                              |
| 4.31           | Stock Option Plan                                                                                                                 |
| 4.32           | Agreement with Open University of China                                                                                           |
| 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 |
|-----------|-------------------------------------------------------------|

----

SIGNATURES

| SIGNATURES       |   | TITLE                                       |   | DATE              |
|------------------|--------|---------------------------------------------|--------|-------------------|
|             |   |                                        |   |              |
| /s/ Toby Chu     |   | Director, President,Chief Executive Officer |   | February 28, 2011 |
| Toby Chu         |
|             |   |                                        |   |              |
| /s/ Dennis Huang |   | Chief Financial Officer                     |   | February 28, 2011 |
| Dennis Huang     |   |