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|   | þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|--------|---|------------------------------------------------------------------------------------------|

| Delaware                        |   | 20-0178991                              |
|---------------------------------|--------|-----------------------------------------|
| (State or Other Jurisdiction of |   | (I.R.S. Employer Identification Number) |
| Incorporation or Organization)  |   |                                    |

| Large accelerated filer   ̈ |   | Accelerated filer þ |   | Non-accelerated filer    ̈(Do not check if a smaller reportingcompany) |   | Smaller reportingcompany  ̈ |
|------------------------------------------------|--------|--------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------|

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|                                                                                                     |   | Page |
|----------------------------------------------------------------------------------------------------------|--------|------|
| PART I — FINANCIAL INFORMATION                                                                     |   | 3    |
| Item 1. Financial Statements                                                                        |   | 3    |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 27   |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk                                  |   | 33   |
| Item 4. Controls and Procedures                                                                     |   | 34   |
| PART II — OTHER INFORMATION                                                                        |   | 35   |
| Item 1. Legal Proceedings                                                                           |   | 35   |
| Item 1A. Risk Factors                                                                               |   | 35   |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds                                 |   | 35   |
| Item 3. Defaults Upon Senior Securities                                                             |   | 35   |
| Item 4. (Removed and Reserved)                                                                      |   | 35   |
| Item 5. Other Information                                                                           |   | 35   |
| Item 6. Exhibits                                                                                    |   | 35   |
| SIGNATURES                                                                                               |   | 36   |
| EXHIBIT INDEX                                                                                            |   | 37   |

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|                                                         |   |                           |    |   | As of        |   |
|--------------------------------------------------------------|--------|--------------------------------|---------|--------|-------------------|--------|
|                                                         |   | As of March 31, |    |   | December 31, |   |
|                                                         |   | 2011                           |    |   | 2011              |   |   | 2010 |   |
|                                                         |   | US$                            |    |   | RMB               |   |   | RMB |   |
|                                                         |   | (Note 1)                  |    |   |              |   |   |   | (Note 1) |   |
| Assets                                                       |   |                           |    |   |              |   |   |   |   |   |   |   |
| Current assets:                                              |   |                           |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                    |   |                           | 48,856  |   |              |   | 317,563 |   |   |   | 244,403 |   |
| Term deposits                                                |   |                           | 92,308  |   |              |   | 600,000 |   |   |   | 704,000 |   |
| Accounts receivable                                          |   |                           | 8,083   |   |              |   | 52,537 |   |   |   | 59,420 |   |
| Inventory                                                    |   |                           | 150     |   |              |   | 973 |   |   |   | 993 |   |
| Prepaid expenses and other current assets                    |   |                           | 6,326   |   |              |   | 41,122 |   |   |   | 48,221 |   |
| Amounts due from related parties                             |   |                           | 529     |   |              |   | 3,438 |   |   |   | 3,438 |   |
| Deferred tax assets                                          |   |                           | 335     |   |              |   | 2,178 |   |   |   | 2,972 |   |
| Current portion of prepaid lease payments for land use right |   |                           | 613     |   |              |   | 3,986 |   |   |   | 3,986 |   |
| Total current assets                                         |   |                           | 157,200 |   |              |   | 1,021,797 |   |   |   | 1,067,433 |   |
| Non-current deposits                                         |   |                           | 1,189   |   |              |   | 7,729 |   |   |   | 7,388 |   |
| Prepaid for construction projects                            |   |                           | 1,668   |   |              |   | 10,840 |   |   |   | - |   |
| Property and equipment, net                                  |   |                           | 116,473 |   |              |   | 757,075 |   |   |   | 763,926 |   |
| Prepaid lease payments for land use rights - non-current     |   |                           | 27,157  |   |              |   | 176,520 |   |   |   | 177,544 |   |
| Acquired intangible assets, net                              |   |                           | 13,608  |   |              |   | 88,449 |   |   |   | 100,816 |   |
| Long-term investments                                        |   |                           | 462     |   |              |   | 3,000 |   |   |   | 3,000 |   |
| Goodwill                                                     |   |                           | 119,088 |   |              |   | 774,072 |   |   |   | 774,083 |   |
| Total assets                                                 |   |                           | 436,845 |   |              |   | 2,839,482 |   |   |   | 2,894,190 |   |

----

|                                                                                                                                                                                                                                                                                |   |                           |    |   | As of        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                |   | As of March 31, |    |   | December 31, |   |
|                                                                                                                                                                                                                                                                                |   | 2011                           |    |   | 2011              |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                |   | US$                            |    |   | RMB               |   |   | RMB |   |
|                                                                                                                                                                                                                                                                                |   | (Note 1)                  |    |   |              |   |   |   | (Note 1) |   |
| Liabilities and equity                                                                                                                                                                                                                                                              |   |                           |    |   |              |   |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                |   |                           |    |   |              |   |   |   |   |   |   |   |
|  Accounts payable (including accounts payable of the consolidated VIE without recourse to ChinaCast Education Corporation of RMB1,563 and RMB1,635 as of March 31, 2011 and December 31, 2010, respectively)                                                                   |   |                           | 3,227   |   |              |   | 20,974 |   |   |   | 48,602 |   |
|    Accrued expenses and other current liabilities (including accrued expenses and other liabilities of the consolidated VIE without recourse to ChinaCast Education Corporation of RMB15,118 and RMB17,502 as of March 31, 2011 and December 31, 2010, respectively) |   |                           | 39,853  |   |              |   | 259,049 |   |   |   | 279,973 |   |
|    Deferred revenues                                                                                                                                                                                                                                                 |   |                           | 25,822  |   |              |   | 167,841 |   |   |   | 262,824 |   |
|    Income taxes payable (including income taxes payable of the consolidated VIE without recourse to ChinaCast Education Corporation of RMB3,209 and RMB4,844 as of March 31, 2011 and December 31, 2010, respectively)                                               |   |                           | 16,074  |   |              |   | 104,479 |   |   |   | 99,461 |   |
|    Current portion of long-term bank borrowings (including current portion of long-term bank borrowings of the consolidated VIE without recourse to ChinaCast Education Corporation of nil as of March 31, 2011 and December 31, 2010)                               |   |                           | 26,154  |   |              |   | 170,000 |   |   |   | 170,000 |   |
|    Other borrowings (including other borrowings of the consolidated VIE without recourse to ChinaCast Education Corporation of nil as of March 31, 2011 and December 31, 2010)                                                                                       |   |                           | 5,231   |   |              |   | 34,000 |   |   |   | 1,500 |   |
| Total current liabilities                                                                                                                                                                                                                                                           |   |                           | 116,361 |   |              |   | 756,343 |   |   |   | 862,360 |   |
| Non-current liabilities:                                                                                                                                                                                                                                                            |   |                           |    |   |              |   |   |   |   |   |   |   |
|  Long-term bank borrowings (including long-term bank Borrowings of the consolidated VIE without recourse to ChinaCast Education Corporation of nil as of March 31, 2011 and December 31, 2010)                                                                                 |   |                           | 13,846  |   |              |   | 90,000 |   |   |   | 90,000 |   |
|    Deferred tax liabilities – non-current (including deferred tax liabilities – non-current of the consolidated VIE without recourse to ChinaCast Education Corporation of nil as of March 31, 2011 and December 31, 2010)                               |   |                           | 8,017   |   |              |   | 52,111 |   |   |   | 51,503 |   |
|    Unrecognized tax benefits – non-current (including unrecognized tax benefits of the consolidated VIE without recourse to ChinaCast Education Corporation of RMB5,799 and RMB5,799 as of March 31, 2011 and December 31, 2010, respectively)                 |   |                           | 18,746  |   |              |   | 121,846 |   |   |   | 109,933 |   |
| Total non-current liabilities                                                                                                                                                                                                                                                       |   |                           | 40,609  |   |              |   | 263,957 |   |   |   | 251,436 |   |
|                                                                                                                                                                                                                                                                                |   |                           |    |   |              |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                   |   |                           | 156,970 |   |              |   | 1,020,300 |   |   |   | 1,113,796 |   |
| Commitments and contingencies                                                                                                                                                                                                                                                       |   |                           |    |   |              |   |   |   |   |   |   |   |
| Equity:                                                                                                                                                                                                                                                                             |   |                           |    |   |              |   |   |   |   |   |   |   |
| Ordinary shares (US$0.0001 par value; 100,000,000 shares authorized; 49,778,952  and 49,778,952 shares issued and outstanding in 2011 and 2010, respectively)                                                                                                             |   |                           | 6       |   |              |   | 36 |   |   |   | 36 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                          |   |                           | 232,591 |   |              |   | 1,511,842 |   |   |   | 1,510,527 |   |
| Statutory reserve                                                                                                                                                                                                                                                                   |   |                           | 7,334   |   |              |   | 47,671 |   |   |   | 47,671 |   |
| Accumulated other comprehensive loss                                                                                                                                                                                                                                                |   |                           | (459    | )      |              |   | (2,984 | ) |   |   | (3,194 | ) |
| Retained earnings                                                                                                                                                                                                                                                                   |   |                           | 36,441  |   |              |   | 236,865 |   |   |   | 199,862 |   |
|                                                                                                                                                                                                                                                                                |   |                           |    |   |              |   |   |   |   |
| Total ChinaCast Education Corporation shareholders’ equity                                                                                                                                                                                                                    |   |                           | 275,913 |   |              |   | 1,793,430 |   |   |   | 1,754,902 |   |
| Noncontrolling interest                                                                                                                                                                                                                                                             |   |                           | 3,962   |   |              |   | 25,752 |   |   |   | 25,492 |   |
|                                                                                                                                                                                                                                                                                |   |                           |    |   |              |   |   |   |   |
| Total equity                                                                                                                                                                                                                                                                        |   |                           | 279,875 |   |              |   | 1,819,182 |   |   |   | 1,780,394 |   |
|                                                                                                                                                                                                                                                                                |   |                           |    |   |              |   |   |   |   |
| Total liabilities and equity                                                                                                                                                                                                                                                        |   |                           | 436,845 |   |              |   | 2,839,482 |   |   |   | 2,894,190 |   |

----

|                                                                                                                                                                       |   | For the three months ended March 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                                                                                       |   | 2011                                                               |   |   | 2011 |   |   | 2010 |   |
|                                                                                                                                                                       |   | US$                                                                |   |   | RMB |   |   | RMB |   |
|                                                                                                                                                                       |   | (Note 1)                                                      |   |   |   |   |   |   | (Note 1) |   |
| Revenues:                                                                                                                                                                  |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Service                                                                                                                                                                    |   |                                                               | 22,761 |   |   |   | 147,948 |   |   |   | 108,330 |   |
| Equipment                                                                                                                                                                  |   |                                                               | -      |   |   |   | - |   |   |   | 31 |   |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                       |   |                                                               | 22,761 |   |   |   | 147,948 |   |   |   | 108,361 |   |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |
| Cost of revenues:                                                                                                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Service                                                                                                                                                                    |   |                                                               | (9,646 | ) |   |   | (62,704 | ) |   |   | (48,219 | ) |
| Equipment                                                                                                                                                                  |   |                                                               | -      |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                       |   |                                                               | (9,646 | ) |   |   | (62,704 | ) |   |   | (48,219 | ) |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                                                                                                               |   |                                                               | 13,115 |   |   |   | 85,244 |   |   |   | 60,142 |   |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |
| Operating (expenses) income:                                                                                                                                          |   |                                                               |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Selling and marketing expenses (including share-based compensation of RMBnil and RMB410 for the three months ended March 31 for 2011 and 2010, respectively)          |   |                                                               | (67    | ) |   |   | (432 | ) |   |   | (805 | ) |
| General and administrative expenses (including share-based compensation of RMB1,315 and RMB2,480 for the three months ended March 31 for 2011 and 2010, respectively) |   |                                                               | (4,240 | ) |   |   | (27,560 | ) |   |   | (17,627 | ) |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange gain (loss)                                                                                                                                               |   |                                                               | (32    | ) |   |   | (207 | ) |   |   | (303 | )  |
| Other operating income                                                                                                                                                     |   |                                                               | 54     |   |   |   | 350 |   |   |   | 7 |   |
|                                                                                                                                                                       |   |                                                               |   |   |   |   |   |   |   |
| Total operating expenses, net                                                                                                                                              |   |                                                               | (4,285 | ) |   |   | (27,849 | ) |   |   | (18,728 | ) |

----

|                                                                               |   | For the three months ended March 31, |       |
|------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|
|                                                                               |   | 2011                                                               |       |   | 2011 |   |   | 2010 |   |
|                                                                               |   | US$                                                                |       |   | RMB |   |   | RMB |   |
|                                                                               |   | (Note 1)                                                      |       |   |   |   |   |   | (Note 1) |   |
| Income from operations                                                             |   |                                                               | 8,830      |   |   |   | 57,395 |   |   |   | 41,414 |   |
| Interest income                                                                    |   |                                                               | 647        |   |   |   | 4,197 |   |   |   | 2,954 |   |
| Interest expense                                                                   |   |                                                               | (554       | ) |   |   | (3,601 | ) |   |   | (2,971 | ) |
| Income before provision for income taxes and earnings in equity method investments |   |                                                               | 8,923      |   |   |   | 57,991 |   |   |   | 41,397 |   |
| Provision for income taxes                                                         |   |                                                               | (3,196     | ) |   |   | (20,776 | ) |   |   | (9,811 | ) |
| Net income before earnings in equity investments                                   |   |                                                               | 5,727      |   |   |   | 37,215 |   |   |   | 31,586 |   |
| Loss in equity investments                                                    |   |                                                               | -          |   |   |   | - |   |   |   | (30 | )  |
| Net income                                                                         |   |                                                               | 5,727      |   |   |   | 37,215 |   |   |   | 31,556 |   |
| Less: Net income attributable to noncontrolling interest                           |   |                                                               | (33        | ) |   |   | (212 | ) |   |   | (434 | ) |
| Net income attributable to ChinaCast Education Corporation                         |   |                                                               | 5,694      |   |   |   | 37,003 |   |   |   | 31,122 |   |
|  Net income                                                                   |   | 5,727                                                              |       |   | 37,215 |   |   | 31,556 |   |
| Foreign currency translation adjustments                                           |   |                                                               | 40         |   |   |   | 258 |   |   |   | 214 |   |
| Comprehensive income                                                               |   |                                                               | 5,767      |   |   |   | 37,473 |   |   |   | 31,770 |   |
| Comprehensive income attributable to noncontrolling interest                       |   |                                                               | (40)       |   |   |   | (260 | ) |   |   | (420 | ) |
|  Comprehensive income attributable to ChinaCast Education Corporation         |   | 5,727                                                              |       |   | 37,213 |   |   | 31,350 |   |
|                                                                               |   |                                                               |       |   |   |   |   |   |   |
| Net income per share                                                               |   |                                                               |       |   |   |   |   |   |   |   |   |   |
| Net income attributable to ChinaCast Education Corporation per share:              |   |                                                               |       |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |                                                               | 0.11       |   |   |   | 0.74 |   |   |   | 0.68 |   |
|                                                                               |   |                                                               |       |   |   |   |   |   |   |
| Diluted                                                                            |   |                                                               | 0.11       |   |   |   | 0.74 |   |   |   | 0.67 |   |
|                                                                               |   |                                                               |       |   |   |   |   |   |   |
| Weighted average shares used in computation:                                       |   |                                                               |       |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |                                                               | 49,778,952 |   |   |   | 49,778,952 |   |   |   | 45,968,134 |   |
|                                                                               |   |                                                               |       |   |   |   |   |   |   |
| Diluted                                                                            |   |                                                               | 50,180,468 |   |   |   | 50,180,468 |   |   |   | 46,312,165 |   |

----

|                                |   | ChinaCast Education Corporation Shareholders |       |    |   |       |   |
|------------------------------------------|--------|-------------------------------------------------------------|------------|---------|--------|------------|--------|
|                                     |   |                                                        |       |    |   |       |   |   |   |   |   | Accumulated |   |   |   |   |   |
|                                     |   |                                                        |       |    |   | Additional |   |   |   |   |   | other |   |   |   |   |   |
|                                     |   | Ordinary                                                    |       | paid-in |   | Statutory  |   | Retained |   | comprehensive |   | Noncontrolling |   | Total |   |
|                                     |   |                                                        |       | Amount  |   | capital    |   | Reserve |   | earnings |   | loss |   | interest |   | Equity |   |
|                                     |   | Shares                                                      |       | RMB     |   | RMB        |   | RMB |   | RMB |   | RMB |   | RMB |   | RMB |   |
| Balance at January 1, 2010          |   |                                                        | 45,170,698 |    |   | 33         |   |   | 1,290,651 |   |   | 39,139 |   |   | 136,583 |   |   | (6,055 | )  |   | 23,167 |   |   |  1,483,518 |   |
| Issuance of shares of common stock       |   |                                                        | 692,520    |    |   | 1          |   |   | 34,127 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 34,128 |   |
| Share-based compensation                 |   |                                                        | —    |    |   | —    |   |   | 2,890 |   |   | — |   |   | - |   |   | — |   |   | - |   |   | 2,890 |   |
| Issuance of vested shares                |   |                                                        | 180,000    |    |   | —    |   |   | — |   |   | — |   |   | - |   |   | — |   |   |   |   |   | - |   |
| Net income                               |   |                                                        | —    |    |   | —    |   |   | — |   |   | — |   |   | 31,122 |   |   | — |   |   | 434 |   |   | 31,556 |   |
| Foreign currency translation adjustments |   |                                                        | —    |    |   | —    |   |   | — |   |   | — |   |   | — |   |   | 228 |   |   | (14) |   |   | 214 |   |
|                                     |   |                                                        |       |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2010           |   |                                                        | 46,043,218 |    |   | 34         |   |   | 1,327,668 |   |   | 39,139 |   |   | 167,705 |   |   | (5,827 | ) |   | 23,587 |   |   | 1,552,306 |   |
|                                     |   |                                                        |       |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                        |       |    | US$    | 5          |   | US$ | 195,245 |   | US$ | 5,756 |   | US$ | 24,663 |   | US$ | (857 | ) | US$ | 3,468 |   | US$ | 228,280 |   |

|                                |   | ChinaCast Education Corporation Shareholders |       |    |   |       |   |
|------------------------------------------|--------|-------------------------------------------------------------|------------|---------|--------|------------|--------|
|                                     |   |                                                        |       |    |   |       |   |   |   |   |   | Accumulated |   |   |   |   |   |
|                                     |   |                                                        |       |    |   | Additional |   |   |   |   |   | other |   |   |   |   |   |
|                                     |   | Ordinary                                                    |       | paid-in |   | Statutory  |   | Retained |   | comprehensive |   | Noncontrolling |   | Total |   |
|                                     |   |                                                        |       | Amount  |   | capital    |   | Reserve |   | earnings |   | loss |   | interest |   | Equity |   |
|                                     |   | Shares                                                      |       | RMB     |   | RMB        |   | RMB |   | RMB |   | RMB |   | RMB |   | RMB |   |
| Balance at January 1, 2011          |   |                                                        | 49,778,952 |    |   | 36         |   |   | 1,510,527 |   |   | 47,671 |   |   | 199,862 |   |   | (3,194 | ) |   | 25,492 |   |   | 1,780,394 |   |
| Share-based compensation                 |   |                                                        | —    |    |   | —    |   |   | 1,315 |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 1,315 |   |
| Net income                               |   |                                                        | —    |    |   | —    |   |   | — |   |   | — |   |   | 37,003 |   |   | — |   |   | 212 |   |   | 37,215 |   |
| Foreign currency translation adjustments |   |                                                        | —    |    |   | —    |   |   | — |   |   | — |   |   | — |   |   | 210 |   |   | 48 |   |   | 258 |   |
|                                     |   |                                                        |       |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011           |   |                                                        | 49,778,952 |    |   | 36         |   |   | 1,511,842 |   |   | 47,671 |   |   | 236,865 |   |   | (2,984 | ) |   | 25,752 |   |   | 1,819,182 |   |
|                                     |   |                                                        |       |    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   |                                                        |       |    | US$    | 6          |   | US$ | 232,591 |   | US$ | 7,334 |   | US$ | 36,441 |   | US$ | (459 | ) | US$ | 3,962 |   | US$ | 279,875 |   |

----

|                                                                              |   | For the three months ended March 31, |    |
|-----------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                                                              |   | 2011                                                               |    |   | 2011 |   |   | 2010 |   |
|                                                                              |   | US$                                                                |    |   | RMB |   |   | RMB |   |
|                                                                              |   | (Note 1)                                                      |    |   |   |   |   |   | (Note 1) |   |
| Cash flows from operating activities:                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Net income                                                                        |   |                                                               | 5,725   |   |   |   | 37,215 |   |   |   | 31,556 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                      |   |                                                               | 2,193   |   |   |   | 14,257 |   |   |   | 10,950 |   |
| Amortization of acquired intangible assets                                        |   |                                                               | 1,903   |   |   |   | 12,367 |   |   |   | 8,618 |   |
| Amortization of land use rights                                                   |   |                                                               | 158     |   |   |   | 1,024 |   |   |   | 816 |   |
| Share-based compensation                                                          |   |                                                               | 202     |   |   |   | 1,315 |   |   |   | 2,890 |   |
| Loss on disposal of property, plant and equipment                                 |   |                                                               | (88)    |   |   |   | (570) |   |   |   | 1 |   |
| Loss in equity investments                                                        |   |                                                               | -       |   |   |   | - |   |   |   | 30 |   |
| Changes in assets and liabilities:                                                |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Accounts receivable                                                               |   |                                                               | 1,042   |   |   |   | 6,776 |   |   |   | 1,297 |   |
| Inventory                                                                         |   |                                                               | 3       |   |   |   | 21 |   |   |   | (63 | ) |
| Prepaid expenses and other current assets                                         |   |                                                               | 1,091   |   |   |   | 7,090 |   |   |   | 601 |   |
| Non-current deposits                                                              |   |                                                               | 26      |   |   |   | 169 |   |   |   | (5,939 | ) |
| Amounts due from related parties                                                  |   |                                                               | -       |   |   |   | - |   |   |   | 2,950 |   |
| Accounts payable                                                                  |   |                                                               | (4,250  | )  |   |   | (27,628 | )  |   |   | 4,560 |   |
| Accrued expenses and other current liabilities                                    |   |                                                               | (2,106  | ) |   |   | (13,686 | ) |   |   | (3,116 | ) |
| Deferred revenues                                                                 |   |                                                               | (14,613 | )  |   |   | (94,983 | )  |   |   | (57,389 | )  |
| Income taxes payable                                                              |   |                                                               | 772     |   |   |   | 5,018 |   |   |   | 6,284 |   |
| Deferrred tax assets                                                              |   |                                                               | 122     |   |   |   | 794 |   |   |   | 489 |   |
| Deferred tax liabilities                                                          |   |                                                               | 94      |   |   |   | 608 |   |   |   | (1,357 | ) |
| Unrecognized tax benefits                                                         |   |                                                               | 1,833   |   |   |   | 11,913 |   |   |   | 4,034 |   |
| Net cash (used in) provided by operating activities                               |   |                                                               | (5,893  | )  |   |   | (38,300 | )  |   |   | 7,212 |   |
| Cash flows from investing activities:                                             |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Repayment from related party                                                      |   |                                                               | -       |   |   |   | - |   |   |   | 3 |   |
| Purchase of property and equipment                                                |   |                                                               | (2,165  | ) |   |   | (14,074 | ) |   |   | (23,345 | ) |
| Purchase of term deposit                                                          |   |                                                               | -       |   |   |   | - |   |   |   | (43,000 | )  |
| Proceeds from maturity of term deposits                                           |   |                                                               | 16,000  |   |   |   | 104,000 |   |   |   |   |   |
| Deposits for investments                                                          |   |                                                               | (78)    |   |   |   | (510) |   |   |   | (3,000 | ) |
| Prepayment for construction projects                                              |   |                                                               | (1,668) |   |   |   | (10,840) |   |   |   | - |   |
| Net cash provided by (used in) investing activities                               |   |                                                               | 12,089  |   |   |   | 78,576 |   |   |   | (69,342 | ) |

----

|                                          |   | For the three months ended March 31, |    |
|---------------------------------------------------------|--------|--------------------------------------------------------------------|---------|
|                                          |   | 2011                                                               |    |   | 2011 |   |   | 2010 |   |
|                                          |   | US$                                                                |    |   | RMB |   |   | RMB |   |
|                                          |   | (Note 1)                                                      |    |   |   |   |   | (Note 1) |   |
| Cash flows from financing activities:                   |   |                                                               |    |   |   |   |   |   |   |
| Other borrowings raised                                 |   |                                                               | 5,231   |   |   |   | 34,000 |   |   |   | 69,000 |   |
| Repayment of other borrowings                           |   |                                                               | (231)   |   |   |   | (1,500) |   |   |   | (200 | )  |
| Bank borrowings raised                                  |   |                                                               | 6,923   |   |   |   | 45,000 |   |   |   | 42,000 |   |
| Bank borrowings repaid                                  |   |                                                               | (6,923) |   |   |   | (45,000) |   |   |   | (58,400 | )  |
| Proceeds from issuance of shares, net of issuance costs |   |                                                               | -       |   |   |   | - |   |   |   | 34,128 |   |
| Net cash provided by financing activities               |   |                                                               | 5,000   |   |   |   | 32,500 |   |   |   | 86,528 |   |
| Effect of foreign exchange rate changes                 |   |                                                               | 60      |   |   |   | 384 |   |   |   | 1 |   |
| Net increase(decrease) in cash and cash equivalents     |   |                                                               | 11,196  |   |   |   | 72,776 |   |   |   | 24,399 |   |
| Cash and cash equivalents at beginning of the period    |   |                                                               | 37,600  |   |   |   | 244,403 |   |   |   | 327,628 |   |
|                                                    |   |                                                               |    |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of the period          |   |                                                               | 48,856  |   |   |   | 317,563 |   |   |   | 352,028 |   |

----

| 1. | BASIS OF PREPARATION |
|----|----------------------|

----

|   | · | Agreements that transfer economic benefits to CCT Shanghai |
|--------|--------|------------------------------------------------------------|

|   | · | Agreements that provide CCT Shanghai effective control over CCLX |
|--------|--------|------------------------------------------------------------------|

----

|               |   |                           |   |   | As of        |   |
|--------------------|--------|--------------------------------|--------|--------|-------------------|--------|
|               |   | As of March 31, |   |   | December 31, |   |
|               |   | 2011                           |   |   | 2011              |   |   | 2010 |   |
|               |   | US$                            |   |   | RMB               |   |   | RMB |   |
| Current assets     |   |                           | 13,041 |   |              |   | 84,765 |   |   |   | 87,023 |   |
| Non-current assets |   |                           | 379    |   |              |   | 2,460 |   |   |   | 3,101 |   |
| Total assets       |   |                           | 13,420 |   |              |   | 87,225 |   |   |   | 90,124 |   |

|                    |   |                           |   |   | As of        |   |
|-------------------------|--------|--------------------------------|--------|--------|-------------------|--------|
|                    |   | As of March 31, |   |   | December 31, |   |
|                    |   | 2011                           |   |   | 2011              |   |   | 2010 |   |
|                    |   | US$                            |   |   | RMB               |   |   | RMB |   |
| Current liabilities     |   |                           | 3,060  |   |              |   | 19,890 |   |   |   | 23,981 |   |
| Non-current liabilities |   |                           | 892    |   |              |   | 5,799 |   |   |   | 58,708 |   |
| Total liabilities       |   |                           | 3,952  |   |              |   | 25,689 |   |   |   | 82,689 |   |

|              |   | For the three months ended March 31, |   |
|-------------------|--------|--------------------------------------------------------------------|--------|
|              |   | 2011                                                               |   | 2011 |   | 2010 |   |
|              |   | US$                                                                |   | RMB |   | RMB |   |
| Revenues          |   |                                                               | 4,767  |   |   |   | 30,985 |   |   |   | 30,391 |   |
| Net income (loss) |   |                                                               | 3,669  |   |   |   | 23,849 |   |   |   | 24,419 |   |

|                                                 |   | For the three months ended March 31, |   |
|------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                 |   | 2011                                                               |   |   | 2011 |   |   | 2010 |   |
|                                                 |   | US$                                                                |   |   | RMB |   |   | RMB |   |
| Net cash provided by /(used in) operating activities |   |                                                               | 2,972  |   |   |   | 19,315 |   |   |   | 23,989 |   |
| Net cash provided by /(used in) investing activities |   |                                                               | (1     | ) |   |   | (9 | ) |   |   | 1,113 |   |
| Net cash provided by/(used in) financing activities  |   |                                                               | -      |   |   |   | - |   |   |   | - |   |

----

| 2. | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED |
|----|-----------------------------------------------------------|

----

| 3. | ACQUISITION |
|----|-------------|

| The fair value of total consideration of RMB325,482 as of the acquisition date was consist of: |   |   |    |
|------------------------------------------------------------------------------------------------|--------|--------|---------|
| Consideration paid in cash                                                                     |   |   | 295,000 |   |
| Fair value of deferred contingent consideration                                                |   |   | 30,482  |   |
| Total                                                                                          |   |   | 325,482 |   |

|                                       |   |   |          |   | Amortization                              |
|--------------------------------------------|--------|--------|---------------|--------|-------------------------------------------|
|                                       |   | RMB    |          | period |
| Cash                                       |   |   | 73,113        |   |                                      |
| Other current assets                       |   |   | 2,408         |   |                                      |
| Non-current deposits                       |   |   | 6,374         |   |                                      |
| Property and equipment                     |   |   | 261,543       |   | 3-20 years                                |
| Prepaid lease payments for land use rights |   |   |   28,920 |   | Over the remaining lease term of 48 years |
| Intangible assets:                         |   |   |          |   |                                      |
| Customer relationship                      |   |   | 51,000        |   | Up to 47 months                           |
| Affiliation Agreement                      |   |   | 14,000        |   | 59 months                                 |
| Goodwill                                   |   |   | 192,440       |   |                                      |
| Other current liabilities                  |   |   | (105,424      | )      |                                      |
| Deferred revenues                          |   |   | (89,114       | )      |                                      |
| Deferred tax liabilities                   |   |   | (12,616       | )      |                                      |
| Long-term bank borrowings                  |   |   | (90,000       | )      |                                      |
| Unrecognized tax benefits                  |   |   | (7,162        | )      |                                      |
| Total                                      |   |   | 325,482       |   |                                      |

----

| Consideration paid in cash                      |   |   | 360,000 |   |
|-------------------------------------------------|--------|--------|---------|--------|
| Fair value of deferred contingent consideration |   |   | 78,721  |   |
| Total                                           |   |   | 438,721 |   |

|                                       |   |   |    | Amortization |
|--------------------------------------------|--------|--------|---------|--------------|
|                                       |   | RMB    |    | period       |
|                                       |   |   |    |         |
| Cash                                       |   |   | 19,942  |         |   |
| Other current assets                       |   |   | 7,771   |         |   |
| Property and equipment                     |   |   | 218,720 |         | 3 years-remaining |
|                                       |   |   |    |         | lease term |
| Prepaid lease payments for land use rights |   |   | 37,000  |         | Over the remaining |
|                                       |   |   |    |         | lease term |
| Intangible assets:                         |   |   |    |         |   |
| Customer relationship                      |   |   | 38,000  |         | up to 48 months |
| Affiliation Agreement                      |   |   | 31,000  |         | 3 years |
| Goodwill                                   |   |   | 270,308 |         |   |
| Bank borrowing                             |   |   | (54,000 | )            |   |
| Other current liabilities                  |   |   | (70,621 | )            |   |
| Deferred revenues                          |   |   | (2,753  | )            |   |
| Deferred tax liabilities                   |   |   | (29,003 | )            |   |
| Unrecognized tax benefits                  |   |   | (27,643 | )            |   |
| Total                                      |   |   | 438,721 |         |   |

----

| 4. | NON-CURRENT DEPOSITS |
|----|----------------------|

|                                                |   | As of March31, 2011 |   |   | As ofDecember 31,2010 |   |
|-----------------------------------------------------|--------|------------------------------------|--------|--------|---------------------------------|--------|
|                                      |   | RMB                                |   |   | RMB                             |   |
|                                           |   |                               |   |   |                            |   |
| Rental deposits                                |   |                               | 245    |   |                            |   | 415 |   |
| Utilities deposits                             |   |                               | 454    |   |                            |   | 208 |   |
| Guarantee deposit for borrowings               |   |                               | 4,000  |   |                            |   | 4,000 |   |
| Guarantee deposits for construction projects   |   |                               | 2,520  |   |                            |   | 2,765 |   |
| Deposit for investment project                 |   |                               | 510    |   |                            |   | - |   |
| Total                                          |   |                               | 7,729  |   |                            |   | 7,388 |   |

----

| 5. | ACQUIRED INTANGIBLE ASSETS, NET |
|----|---------------------------------|

|                         |   | As of March31, |    |   | As ofDecember 31, |   |
|----------------------------------------|--------|--------------------------|---------|--------|-----------------------------|--------|
|                         |   | 2011                     |    |   | 2010                        |   |
|                         |   | RMB                      |    |   | RMB                         |   |
| Customer relationships                 |   |                     |    |   |                        |   |
| Cost                              |   |                     | 129,329 |   |                        |   | 129,329 |   |
| Less: Accumulated amortization    |   |                     | (75,581 | )      |                        |   | (66,509 | ) |
|                                   |   |                     |    |   |                        |   |   |   |
|                              |   |                     | 53,748  |   |                        |   | 62,820 |   |
|                              |   |                     |    |   |                        |   |   |   |
| Affiliation agreement             |   |                     |    |   |                        |   |   |   |
| Cost                              |   |                     | 45,000  |   |                        |   | 45,000 |   |
| Less: Accumulated amortization    |   |                     | (10,299 | )      |                        |   | (7,004 | ) |
|                              |   |                     |    |   |                        |   |   |   |
|                              |   |                     | 34,701  |   |                        |   | 37,996 |   |
|                              |   |                     |    |   |                        |   |   |   |
| Acquired intangible assets, net   |   |                     | 88,449  |   |                        |   | 100,816 |   |

----

| 6. | BORROWINGS |
|----|------------|

| 7. | STOCK COMPENSATION PLAN |
|----|-------------------------|

|                                        |   | Number ofshares |    |   | Fair values ofshares |   |   | Intrinsic value |   |
|---------------------------------------------|--------|----------------------|---------|--------|--------------------------------|--------|--------|----------------------|--------|
|                                        |   |                 |    |   | US$                            |   |   | US$                  |   |
| Nonvested share unvested at January 1, 2011 |   |                 | 297,504 |   |                           |   | 6.07   |                 |   |   | 1,806 |   |
| Granted                                     |   |                 | -       |   |                           |   | -      |                 |   |   | - |   |
| Vested                                      |   |                 | (33,056 | )      |                           |   | 6.07   |                 |   |   | (201 | ) |
| Fortified                                   |   |                 | -       |   |                           |   | -      |                 |   |   | - |   |
| Nonvested share unvested at March 31, 2011  |   |                 | 264,448 |   |                           |   | 6.07   |                 |   |   | 1,605 |   |

----

|                                          |   |            |      |   | Weighted |   |
|-----------------------------------------------|--------|-----------------|-----------|--------|----------|--------|
|                                          |   |            |      |   | Average  |   |
|                                          |   |            |      |   | Exercise |   |
|                                          |   | Number          |      |   | Price    |   |
|                                          |   | of options |      |   | US$      |   |
|                                          |   |            |      |   |     |   |
| Options outstanding at December 31, 2010 |   |            | 1,200,000 |   |     |   | 6.30 |   |
|                                          |   |            |      |   |     |   |   |   |
| Granted                                       |   |            | —   |   |     |   | — |   |
| Exercised                                     |   |            | —   |   |     |   | — |   |
| Cancelled                                     |   |            | —   |   |     |   | — |   |

----

|                                       |   |            |      |   | Weighted |   |
|--------------------------------------------|--------|-----------------|-----------|--------|----------|--------|
|                                       |   |            |      |   | Average  |   |
|                                       |   |            |      |   | Exercise |   |
|                                       |   | Number          |      |   | Price    |   |
|                                       |   | of options |      |   | US$      |   |
| Options outstanding at March 31, 2011 |   |            | 1,200,000 |   |     |   | 6.30 |   |
|                                       |   |            |      |   |     |   |   |   |
| Options exercisable at March 31, 2011 |   |            | 1,200,000 |   |     |   | 6.30 |   |

----

| 9. | GOODWILL |
|----|----------|

|                       |   | As of March31, |          |    | As ofDecember31, |   |
|----------------------------|--------|---------------------|---------------|---------|-----------------------|--------|
|                       |   | 2011                |          |    | 2010                  |   |
|                       |   | RMB                 |          |    | RMB                   |   |
| Beginning balance          |   | 774,083             |          |    | 503,771               |   |
| Addition from acquisitions |   |                |   - |    |                  |   | 270,371 |   |
| Exchange rate impact       |   |                | (11           | )  |                  |   | (59 | )  |
| Ending balances            |   |                | 774,072       |    |                  |   | 774,083 |   |

----

| 10. | NET INCOME PER SHARE |
|-----|----------------------|

|                                                                                                                                     |   | For the three months ended March 31, |       |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|------------|
|                                                                                                                                     |   | 2011                                                               |       |   | 2010 |   |
| Numerator used in basic and diluted net income per share:                                                                                |   |                                                               |       |   |   |   |
| Net income attributable to ChinaCast Education Corporation                                                                               |   | RMB                                                                | 37,003     |   |   | RMB | 31,122 |   |
|                                                                                                                                     |   |                                                               |       |   |   |   |
| Shares (denominator):                                                                                                                    |   |                                                               |       |   |   |   |
| Weighted average ordinary shares outstanding used in computing basic net income per share                                                |   |                                                               | 49,778,952 |   |   |   | 45,968,134 |   |
|                                                                                                                                     |   |                                                               |       |   |   |   |   |   |
| Plus:                                                                                                                                    |   |                                                               |       |   |   |   |   |   |
| Incremental ordinary shares from assumed conversions of stock options, vesting of restricted stock and exercises of Underwriter Warrants |   |                                                               | 401,516    |   |   |   | 344,031 |   |
|                                                                                                                                     |   |                                                               |       |   |   |   |   |   |
| Weighted average ordinary shares outstanding used in computing diluted net income per share                                              |   |                                                               | 50,180,468 |   |   |   | 46,312,165 |   |
|                                                                                                                                     |   |                                                               |       |   |   |   |   |   |
| Net income per share – basic:                                                                                                      |   |                                                               |       |   |   |   |   |   |
| Net income attributable to ChinaCast Education Corporation                                                                               |   | RMB                                                                | 0.74       |   |   | RMB | 0.68 |   |
|                                                                                                                                     |   |                                                               |       |   |   |   |   |   |
| Net income per share – diluted:                                                                                                    |   |                                                               |       |   |   |   |   |   |
| Net income attributable to ChinaCast Education Corporation per share —diluted:                                                     |   | RMB                                                                | 0.74       |   |   | RMB | 0.67 |   |

----

|                                                                        |   | For the three months ended March31, |    |
|-----------------------------------------------------------------------------|--------|--------------------------------------------------------------|---------|
|                                                                        |   | 2011                                                         |    |   | 2010 |   |
|                                                                        |   | RMB                                                          |    |   | RMB |   |
| Revenues from external customers:                                           |   |                                                         |    |   |   |   |
| ELG                                                                         |   |                                                         | 47,620  |   |   |   | 46,399 |   |
| TUG                                                                         |   |                                                         | 100,328 |   |   |   | 61,962 |   |
|                                                                        |   |                                                         | 147,948 |   |   |   | 108,361 |   |
|                                                                        |   |                                                         |    |   |   |   |   |   |
| Additional analysis of revenues from ELG by product or service:             |   |                                                         |    |   |   |   |   |   |
| Service                                                                     |   |                                                         | 47,620  |   |   |   | 46,368 |   |
| Equipment                                                                   |   |                                                         | -       |   |   |   | 31 |   |
|                                                                        |   |                                                         | 47,620  |   |   |   | 46,399 |   |
|                                                                        |   |                                                         |    |   |   |   |   |   |
| Additional analysis of revenues from ELG by business lines:                 |   |                                                         |    |   |   |   |   |   |
| Post secondary education distance learning                                  |   |                                                         | 29,850  |   |   |   | 28,054 |   |
| K-12 and content delivery                                                   |   |                                                         | 15,782  |   |   |   | 16,006 |   |
| Vocational training, enterprise/government training and networking services |   |                                                         | 1,988   |   |   |   | 2,339 |   |
|                                                                        |   |                                                         | 47,620  |   |   |   | 46,399 |   |
| Income from operations:                                                     |   |                                                         |    |   |   |   |   |   |
| ELG                                                                         |   |                                                         | 24,482  |   |   |   | 25,440 |   |
| TUG                                                                         |   |                                                         | 32,913  |   |   |   | 15,974 |   |
|                                                                        |   |                                                         | 57,395  |   |   |   | 41,414 |   |

|            |   | As of March |      |   | As ofDecember |   |
|-----------------|--------|-----------------------|-----------|--------|--------------------|--------|
|            |   | 31, 2011         |      |   | 31, 2010      |   |
|            |   | RMB                   |      |   | RMB                |   |
| Segment assets: |   |                  |      |   |               |   |   |   |
| ELG             |   |                  | 689,109   |   |               |   | 656,795 |   |
| TUG             |   |                  | 2,150,373 |   |               |   | 2,237,395 |   |
|            |   |                  |      |   |               |   |   |   |
|            |   |                  | 2,839,482 |   |               |   | 2,894,190 |   |

----

| 12. | WARRANTS AND UNIT PURCHASE OPTIONS |
|-----|------------------------------------|

----

| 13. | CONTINGENCIES |
|-----|---------------|

|   | a) | On March 21, 2006, after obtaining the approval of its shareholders, the Company amended its certificate of incorporation, the effect of which was, among other things, to eliminate the provision of the certificate of incorporation that purported to prohibit the amendment of the “business combination” provisions contained therein and to extend the date before which the Company must complete a business combination, to avoid being required to liquidate, from March 23, 2006 to December 31, 2006. Because extending the period during which the Company could consummate a business combination was not contemplated by the initial public offering (“IPO”) prospectus, shareholders may have securities law claims against the Company for rescission (under which a successful claimant would have the right to receive the total amount paid for his or her shares, plus interest and less any income earned on the shares, in exchange for surrender of the shares) or damages (compensation for loss on an investment caused by alleged material misrepresentations or omissions in the sale of the security). Such claims might entitle shareholders asserting them to up to US$6.00 per share of common stock, based on the initial offering price of the public units comprised of stock and warrants, less any amount received from sale of the original warrants purchased with them and plus interest from the date of the IPO. A successful claimant for damages under federal or state law could be awarded an amount to compensate for the decrease in value of his or her shares caused by the alleged violation (including, possibly, punitive damages), together with interest, while retaining the shares. The Company believes the shareholder claims for rescission or damages are remote. As such, the Company has not recorded a liability for such possible rescission. However, the Company cannot definitively predict whether shareholders will bring such claims, how many might bring them or the extent to which they might be successful. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | b) | The Company may be subject to claims for rescission or other securities law claims resulting from the failure to disclose that the charter provision purporting to prohibit certain amendments was possibly inconsistent with Delaware’s General Corporation Law. The Company may also be subject to such claims as a result of inaccuracies in other disclosures, as follows: It may be argued that the IPO prospectus misstated the vote required by its charter to approve a business combination by providing that “[w]e will proceed with a business combination only if the public shareholders who own at least a majority of the shares of common stock sold in [that] offering vote in favor [of it] ...,” and that the Exchange Act reports have been inaccurate in describing ChinaCast as a leading provider of e-learning content (as opposed to being primarily a content carrier). On November 13, 2006, the Company filed a Current Report on Form 8-K with the SEC regarding this last item. The Company is unable to predict the likelihood that claims might be made with regard to the foregoing or estimate any amounts for which it might be liable if any such claim was made. As such, the Company has not recorded a liability for such possible rescission. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On August 23, 2010, CEH, the Company's subsidiary in British Virgin Islands, consummated the acquisition of the entire interest in Wintown from the former sole owner of Wintown. Wintown holds the entire interest in Rubao. Rubao holds the entire interest in Jiyang which in turns holds the entire interest in HIUBC. HIUBC is a private college affiliated with Hubei Industrial University. The total consideration for the acquisition is up to RMB450,000, of which RMB360,000 was paid during 2010. The remaining amount of the consideration is to be calculated based on the net profit of HIUBC. For the academic year of 2010 (i.e. from September 1, 2010 to August 31, 2011), if the net profit as determined under the relevant sale and purchase agreement of HIUBC is less than RMB50,000, CEH is entitled to deduct an amount equal to 9 times of the difference between the net profit and RMB50,000 from the remaining amount of consideration. The contingent consideration was recorded as a liability at fair value of RMB78,721 and the change of its fair value was recorded in earnings at each reporting date. As a result, the expected total consideration was RMB438,721 as of the date of acquisition. There was no change in the fair value of the remaining consideration up to March 31, 2011. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | CCTSH injected RMB6 million, RMB6 million and RMB18 million into QPU as capital contribution in February, August and September of 2010 respectively.  Subsequently, YPSH borrowed RMB18 million from QPU. The PRC law and regulations restricts capital withdrawal from established companies. It may be argued that the borrowing from QPU could potentially be assessed as a capital withdrawal and may be subject to penalty ranging from 2-10% of the withdrawn amount. The Company has recorded a RMB1.8 million provision for such possible penalty. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14. | SUBSEQUENT EVENT |
|-----|------------------|

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|                                                                 |   | Three Months ended |   |
|----------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                 |   | March 31, 2011     |   |   | March 31, 2010 |   |
|                                                                 |   | (millions)                   |   |   | (millions) |   |
|                                                                 |   | US$                          |   |   | RMB |   |   | RMB |   |
| Post secondary education distance learning                           |   |                         | 4.6    |   |   |   | 29.8 |   |   |   | 28.1 |   |
| K-12 and content delivery                                            |   |                         | 2.4    |   |   |   | 15.8 |   |   |   | 16.0 |   |
| Vocational training, enterprise / government training and networking |   |                         | 0.3    |   |   |   | 2.0 |   |   |   | 2.3 |   |
| Total ELG revenue                                                    |   |                         | 7.3    |   |   |   | 47.6 |   |   |   | 46.4 |   |

----

----

----

|                                      |   |                     |    |   | As of        |   |
|-------------------------------------------|--------|--------------------------|---------|--------|-------------------|--------|
|                                      |   | As of               |    |   | December 31, |   |
|                                      |   | March 31, 2011 |    |   | 2010              |   |
|                                      |   | (millions)               |    |   | (millions)        |   |
|                                      |   | RMB                      |    |   | US$               |   |   | RMB |   |
| Cash and cash equivalents                 |   |                     | 317.6   |   |              |   | 48.9 |   |   |   | 244.4 |   |
| Term deposits                             |   |                     | 600.0   |   |              |   | 92.3 |   |   |   | 704.0 |   |
| Subtotal                                  |   |                     | 917.6   |   |              |   | 141.2 |   |   |   | 948.4 |   |
| Accounts receivable                       |   |                     | 52.5    |   |              |   | 8.1 |   |   |   | 59.4 |   |
| Inventory                                 |   |                     | 1.0     |   |              |   | 0.2 |   |   |   | 1.0 |   |
| Prepaid expenses and other current assets |   |                     | 41.1    |   |              |   | 6.3 |   |   |   | 48.2 |   |
| Total current assets                      |   |                     | 1,021.8 |   |              |   | 157.2 |   |   |   | 1,067.4 |   |
| Total assets                              |   |                     | 2,839.5 |   |              |   | 436.8 |   |   |   | 2,894.2 |   |

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| 31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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|                    |   | CHINACAST EDUCATION CORPORATION                        |                        |
|-------------------------|--------|--------------------------------------------------------|-----------------------------|
|                    |   | (Registrant)                                           |                        |
|                    |   |                                                   |                        |   |
| Date: May 10, 2011 |   | By:                                                    | /s/ Ron Chan Tze Ngon       |   |
|                    |   | Name:                                                  | Ron Chan Tze Ngon           |   |
|                    |   | Title:                                                 | Chairman of the Board,      |   |
|                    |   | Chief Executive Officer (Principal Executive Officer)  |
|                    |   |                                                   |                        |   |
|                    |   | By:                                                    | /s/ Antonio Sena            |   |
|                    |   | Name:                                                  | Antonio Sena                |   |
|                    |   | Title:                                                 | Chief Financial Officer and |   |
|                    |   | Secretary (Principal Accounting and Financial Officer) |

----

| ExhibitNo. |   | Description                                                                                                                                                                                      |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                             |
| 31.1       |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|       |   |                                                                                                                                                                                             |
| 31.2       |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|       |   |                                                                                                                                                                                             |
| 32.1       |   | Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                  |
|       |   |                                                                                                                                                                                             |
| 32.2       |   | Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                  |

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