|THE CASH STORE FINANCIAL SERVICES INC.                        
|--------------------------------------------------------------
|                                                              
|CONSOLIDATED FINANCIAL STATEMENTS                             
|                                                              
|For the twelve and fifteen months ended September 30, 2011 and
|September 30, 2010                                            
|(Restated)                                                    















MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL STATEMENTS



The accompanying consolidated financial
statements and management’s discussion and analysis (MD&A) are the responsibility of management and have been approved
by the Board of Directors. The consolidated financial statements and MD&A have been prepared by management in accordance with
Canadian generally accepted accounting principles and include some amounts based on management’s best estimates and informed
judgments. When alternative accounting methods exist, management has chosen those it considers most appropriate in the circumstances.



The Cash Store Financial Services Inc.
maintains a system of internal controls to provide reasonable assurance that transactions are properly authorized, financial records
are accurate and reliable and the Company’s assets are properly accounted for and adequately safeguarded.



The Board of Directors is responsible for
ensuring that management fulfills its responsibility for financial reporting and is ultimately responsible for reviewing and approving
the financial statements. The Board of Directors carries out its responsibility for the financial statements through its Audit
Committee. This Committee meets periodically with management and the independent external auditors to review the financial statements
and the MD&A and to discuss audit, financial and internal control matters. The Company’s independent external auditors
have full and free access to the Audit Committee. The Audit Committee is responsible for approving the remuneration and terms of
engagement of the Company’s independent external auditors. The consolidated financial statements have been subject to an
audit by the Company’s internal auditors and the Company’s external auditors, KPMG LLP, in accordance with generally
accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) on behalf of the
shareholders.



The consolidated financial statements and
MD&A have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework
of the significant accounting policies summarized in note 1 of the notes to the consolidated financial statements.



|Signed "Gordon J. Reykdal” |  | Signed "Craig Warnock” 
|-------------------------- |  | -----------------------
|Gordon J. Reykdal          |  | Craig Warnock, CMA     
|Chairman and               |  | Chief Financial Officer
|Chief Executive Officer    |  |                        



May 24, 2013

Edmonton, Alberta, Canada





Page 2







| |                       |           |               
| | --------------------- | --------- | --------------
| | KPMG LLP              | Telephone | (780) 429-7300
| | Chartered Accountants | Fax       | (780) 429-7379
| | 10125 – 102 Street    | Internet  | www.kpmg.ca   
| | Edmonton AB  T5J 3V8  |           |               
| | Canada                |           |               





REPORT OF
Independent REGISTERED PUBLIC ACCOUNTING FIRM



To the Shareholders and Board of Directors
of The Cash Store Financial Services Inc.



We have audited The Cash Store Financial
Services Inc.’s internal control over financial reporting as of September 30, 2011, based on the criteria established in
Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
The Cash Store Financial Services Inc.'s management is responsible for maintaining effective internal control over financial reporting
and for its assessment of the effectiveness of internal control over financial reporting (“ICFR”) included in Management’s
Report on Internal Control over Financial Reporting included in Form 40-F for the year ended September 30, 2011. Our responsibility
is to express an opinion on The Cash Store Financial Services Inc.'s internal control over financial reporting based on our audit.



We conducted our audit in accordance with
the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
an audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk
that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.



A company's internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal
control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.



Page 3











Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.



In
our report dated November 16, 2011, we expressed an unqualified opinion that The Cash Store Financial Services Inc. maintained,
in all material respects, effective internal control over financial reporting as of September 30, 2011, based on the criteria
established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission. As described in the following paragraph, material weaknesses
were subsequently identified as a result of the restatement of the previously issued financial statements. As a result, management
has revised its assessment, as presented in the accompanying Management's Report on Internal Control Over Financial Reporting,
to conclude that The Cash Store Financial Services Inc.’s internal control over financial reporting was not effective as
of September 30, 2011. Accordingly, our present opinion on the effectiveness of The Cash Store Financial Services Inc. internal
control over financial reporting as of September 30, 2011 as expressed herein, is different from that expressed in our previous
report.



A material weakness is a deficiency, or
a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a
material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely
basis. Management has identified two material weaknesses: 1) management
did not design and implement effective ICFR related to the identification, assessment and disclosure or related parties and related
party disclosures, and 2) management determined that the Company did not design and implement effective ICFR related to the review
and interpretation of complex legal agreements. We also have audited, in accordance with Canadian generally accepted auditing
standards, the consolidated balance sheets of The Cash Store Financial Services Inc. as of September 30, 2011 and 2010, and the
related consolidated statements of operations and comprehensive income, retained earnings, and cash flows for the year ended September
30, 2011 and the fifteen months ended September 30, 2010. With respect to the consolidated financial statements for the year ended
September 30, 2011, we also conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board
(United States). These material weaknesses were considered in determining the nature, timing, and extent of audit tests applied
in our audit of the 2011 consolidated financial statements, and this report does not affect our report dated November 16, 2011,
except for the restatement of previously reported results discussed in
Note 3 to the consolidated financial statements, which is as of May 24, 2013, in which we expressed an unqualified opinion
on those consolidated financial statements.



Page 4











In our opinion, because of the effect of
the aforementioned material weaknesses on the achievement of the objectives of the control criteria, The Cash Store Financial Services
Inc. has not maintained, in all material respects, effective internal control over financial reporting as of September 30, 2011,
based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission.



Signed “KPMG LLP”



Chartered Accountants

Edmonton, Canada

November 16, 2011, except for the effect of the material weaknesses
described in Management’s

Report on Internal Control Over Financial Reporting, which is
as of May 24, 2013



Page 5















| |                       |           |               
| | --------------------- | --------- | --------------
| | KPMG LLP              | Telephone | (780) 429-7300
| | Chartered Accountants | Fax       | (780) 429-7379
| | 10125 – 102 Street    | Internet  | www.kpmg.ca   
| | Edmonton AB  T5J 3V8  |           |               
| | Canada                |           |               





Independent
auditors’ report of registered public accounting firm



To the Shareholders and Board of Directors
of The Cash Store Financial Services Inc.



We have audited the accompanying consolidated
financial statements of The Cash Store Financial Services Inc., which comprise the consolidated balance sheets as at September
30, 2011 and 2010, the consolidated statements of operations and comprehensive income, retained earnings, and cash flows for the
year ended September 30, 2011 and the fifteen months ended September 30, 2010, and notes, comprising a summary of significant accounting
policies and other explanatory information.



Management's Responsibility for the Consolidated Financial
Statements



Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with Canadian generally accepted accounting principles,
and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.



Auditors’ Responsibility



Our responsibility is to express an opinion
on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted
auditing standards. With respect to the consolidated financial statements for the year ended September 30, 2011, we also conducted
our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we comply with ethical requirements and plan and perform an audit to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.



An audit involves performing procedures
to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether
due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and
fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.



| | KPMG LLP, is a Canadian limited liability partnership and a member firm of the KPMG
| | -----------------------------------------------------------------------------------
| | network of independent member firms affiliated with KPMG International Cooperative 
| | (“KPMG LLP”), a Swiss entity.                                                      
| | KPMG Canada provides services to KPMG LLP.                                         



Page 6











We believe that the audit evidence we have
obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.



Opinion



In our opinion, the consolidated financial
statements present fairly, in all material respects, the financial position of The Cash Store Financial Services Inc. as of September
30, 2011 and 2010, and its consolidated results of operations and its consolidated cash flows for the year ended September 30,
2011 and the fifteen months ended September 30, 2010, in accordance with Canadian generally accepted accounting principles.



Restatement of the previously reported
results



Without modifying our opinion, we draw attention
to Note 3 to the consolidated financial statements as at and for the year ended September 30, 2011 which indicates that these consolidated
financial statements and the September 30, 2010 comparative information have been restated from those on which we originally reported
on November 16, 2011 and more extensively discusses the reason for the restatement.



Other Matter



We also have audited, in accordance with
the standards of the Public Company Accounting Oversight Board (United States), The Cash Store Financial Services Inc.’s
internal control over financial reporting as of September 30, 2011, based on the criteria established in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated
November 16, 2011, except for the effects of the material weaknesses described in the sixth paragraph of our report which is as
of May 24, 2013,expressed an adverse opinion thereon.



Signed “KPMG LLP”



Chartered Accountants

Edmonton, Canada

November 16, 2011, except for the restatement discussed in Note
3, which is as of May 24, 2013





Page 7











|CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
|--------------------------------------------------------------
|(in thousands, except share and per share amounts)            



|                                                               |  | Year ended        |            |  | Fifteen months ended |  
|-------------------------------------------------------------- |  | ----------------- | ---------- |  | -------------------- | -
|                                                               |  | September 30 2011 |            |  | September 30 2010    |  
|                                                               |  | Restated          |            |  | Restated             |  
|                                                               |  | Note 3            |            |  | Note 3               |  
|REVENUE                                                        |  |                   |            |  |                      |  
|Loan fees                                                      |  | $                 | 136,623    |  |                      | $
|Other income - Note 6                                          |  |                   | 53,276     |  |                      |  
|                                                               |  |                   | 189,899    |  |                      |  
|                                                               |  |                   |            |  |                      |  
|EXPENSES                                                       |  |                   |            |  |                      |  
|Salaries and benefits                                          |  |                   | 77,136     |  |                      |  
|Selling, general and administrative                            |  |                   | 31,691     |  |                      |  
|Interest expense                                               |  |                   | 616        |  |                      |  
|Retention payments                                             |  |                   | 26,786     |  |                      |  
|Rent                                                           |  |                   | 19,074     |  |                      |  
|Advertising and promotion                                      |  |                   | 5,865      |  |                      |  
|Provision for loan losses - Note 24                            |  |                   | 2,559      |  |                      |  
|Depreciation of property and equipment                         |  |                   | 7,950      |  |                      |  
|Amortization of intangible assets                              |  |                   | 965        |  |                      |  
|Class action settlements - Note 14                             |  |                   | 368        |  |                      |  
|                                                               |  |                   | 173,010    |  |                      |  
|                                                               |  |                   |            |  |                      |  
|INCOME BEFORE INCOME TAXES                                     |  |                   | 16,889     |  |                      |  
|                                                               |  |                   |            |  |                      |  
|PROVISION FOR INCOME TAXES - NOTE 12                           |  |                   |            |  |                      |  
|Current                                                        |  |                   | 6,157      |  |                      |  
|Future (recovery)                                              |  |                   | 153        |  |                      |  
|                                                               |  |                   | 6,310      |  |                      |  
|                                                               |  |                   |            |  |                      |  
|NET INCOME AND COMPREHENSIVE INCOME                            |  | $                 | 10,579     |  |                      | $
|                                                               |  |                   |            |  |                      |  
|WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - Note 18 |  |                   |            |  |                      |  
|Basic                                                          |  |                   | 17,259,196 |  |                      |  
|Diluted                                                        |  |                   | 17,663,380 |  |                      |  
|                                                               |  |                   |            |  |                      |  
|BASIC EARNINGS PER SHARE                                       |  |                   |            |  |                      |  
|Net income and comprehensive income                            |  | $                 | 0.61       |  |                      | $
|                                                               |  |                   |            |  |                      |  
|DILUTED EARNINGS PER SHARE                                     |  |                   |            |  |                      |  
|Net income and comprehensive income                            |  | $                 | 0.60       |  |                      | $



See accompanying notes to the consolidated financial statements



Page 8







|CONSOLIDATED BALANCE SHEETS
|---------------------------
|(in thousands)             



|                                                              |  | September 30 |         |  | September 30 |  
|------------------------------------------------------------- |  | ------------ | ------- |  | ------------ | -
|                                                              |  | 2011         |         |  | 2010         |  
|                                                              |  | Restated     |         |  | Restated     |  
|                                                              |  | Note 3       |         |  | Note 3       |  
|ASSETS                                                        |  |              |         |  |              |  
|Cash - Note 5                                                 |  | $            | 19,291  |  |              | $
|Other receivables - Note 6                                    |  |              | 12,575  |  |              |  
|Consumer loans receivable, net - Note 7                       |  |              | 4,781   |  |              |  
|Prepaid expenses and other assets                             |  |              | 4,370   |  |              |  
|Current future income taxes                                   |  |              | 3,000   |  |              |  
|                                                              |  |              | 44,017  |  |              |  
|                                                              |  |              |         |  |              |  
|Long-term receivable - Note 6                                 |  |              | 681     |  |              |  
|Deposits and other assets                                     |  |              | 857     |  |              |  
|Future income taxes - Note 12                                 |  |              | 2,468   |  |              |  
|Property and equipment - Note 9                               |  |              | 25,589  |  |              |  
|Intangible assets - Note 10                                   |  |              | 10,578  |  |              |  
|Goodwill - Note 11                                            |  |              | 39,133  |  |              |  
|                                                              |  | $            | 123,323 |  |              | $
|                                                              |  |              |         |  |              |  
|LIABILITIES                                                   |  |              |         |  |              |  
|Accounts payable and accrued liabilities - Note 13            |  | $            | 29,537  |  |              | $
|Income taxes payable                                          |  |              | 138     |  |              |  
|Current portion of deferred revenue - Note 15                 |  |              | 1,135   |  |              |  
|Current portion of deferred lease inducements                 |  |              | 490     |  |              |  
|Current portion of obligations under capital leases - Note 16 |  |              | 659     |  |              |  
|                                                              |  |              | 31,959  |  |              |  
|                                                              |  |              |         |  |              |  
|Deferred revenue - Note 15                                    |  |              | 4,976   |  |              |  
|Deferred lease inducements                                    |  |              | 1,082   |  |              |  
|Obligations under capital leases - Note 16                    |  |              | 636     |  |              |  
|Future income taxes - Note 12                                 |  |              | 2,388   |  |              |  
|                                                              |  |              | 41,041  |  |              |  
|                                                              |  |              |         |  |              |  
|SHAREHOLDERS' EQUITY                                          |  |              |         |  |              |  
|Share capital - Note 17                                       |  |              | 46,149  |  |              |  
|Contributed surplus - Note 19                                 |  |              | 4,178   |  |              |  
|Retained earnings                                             |  |              | 31,955  |  |              |  
|                                                              |  |              | 82,282  |  |              |  
|                                                              |  | $            | 123,323 |  |              | $



|Commitments - Note 21      |                          
|-------------------------- | -------------------------
|Contingencies - Note 22    |                          
|Subsequent event - Note 26 |                          
|                           |                          
|                           |                          
|Approved by the Board:     |                          
|                           |                          
|Signed "Gordon J. Reykdal" | Signed "J. Albert Mondor"
|Director                   | Director                 



See accompanying notes to the consolidated financial statements



Page 9











|CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
|--------------------------------------------
|(in thousands)                              



|                                                   |  | Year ended        |        |   | Fifteen months ended |  
|-------------------------------------------------- |  | ----------------- | ------ | - | -------------------- | -
|                                                   |  | September 30 2011 |        |   | September 30 2010    |  
|                                                   |  | Restated          |        |   | Restated             |  
|                                                   |  | Note 3            |        |   | Note 3               |  
|                                                   |  |                   |        |   |                      |  
|RETAINED EARNINGS, BEGINNING OF PERIOD             |  | $                 | 29,305 |   |                      | $
|Dividends on common shares - Note 20               |  |                   | (7,929 | ) |                      |  
|Shares repurchased - Note 17 (a)                   |  |                   | -      |   |                      |  
|Net income and comprehensive income for the period |  |                   | 10,579 |   |                      |  
|RETAINED EARNINGS, END OF PERIOD                   |  | $                 | 31,955 |   |                      | $



See accompanying notes to the consolidated financial statements



Page 10











|CONSOLIDATED STATEMENTS OF CASH FLOWS
|-------------------------------------
|(in thousands)                       



|                                              |  | Year ended        |         |   | Fifteen months ended |  
|--------------------------------------------- |  | ----------------- | ------- | - | -------------------- | -
|                                              |  | September 30 2011 |         |   | September 30 2010    |  
|                                              |  | Restated          |         |   | Restated             |  
|                                              |  | Note 3            |         |   | Note 3               |  
|Cash provided by (used in):                   |  |                   |         |   |                      |  
|                                              |  |                   |         |   |                      |  
|OPERATING ACTIVITIES                          |  |                   |         |   |                      |  
|Net income                                    |  | $                 | 10,579  |   |                      | $
|Items not affecting cash:                     |  |                   |         |   |                      |  
|Depreciation of property and equipment        |  |                   | 7,950   |   |                      |  
|Amortization of intangible assets             |  |                   | 965     |   |                      |  
|Provision for loan losses - Note 24           |  |                   | 2,559   |   |                      |  
|Equity loss on investments - Note 8           |  |                   | -       |   |                      |  
|Stock-based compensation - Note 19            |  |                   | 786     |   |                      |  
|Future income taxes (recovery)                |  |                   | 153     |   |                      |  
|                                              |  |                   | 22,992  |   |                      |  
|Change in non-cash operating items:           |  |                   |         |   |                      |  
|Other receivables and long-term receivables   |  |                   | (3,666  | ) |                      |  
|Prepaid expenses, deposits and other assets   |  |                   | (2,408  | ) |                      |  
|Income taxes receivable                       |  |                   | -       |   |                      |  
|Accounts payable and accrued liabilities      |  |                   | 5,195   |   |                      |  
|Income taxes payable                          |  |                   | (1,978  | ) |                      |  
|Deferred revenue                              |  |                   | (1,082  | ) |                      |  
|Deferred lease inducements                    |  |                   | 106     |   |                      |  
|Cash generated by operating activities        |  |                   | 19,159  |   |                      |  
|                                              |  |                   |         |   |                      |  
|INVESTING ACTIVITIES                          |  |                   |         |   |                      |  
|Consumer loans receivable, net                |  |                   | (2,881  | ) |                      |  
|Business acquisitions - Note 4                |  |                   | (25     | ) |                      |  
|Cash restricted - Note 5                      |  |                   | -       |   |                      |  
|Purchase of intangible assets                 |  |                   | (895    | ) |                      |  
|Purchase of property and equipment            |  |                   | (9,091  | ) |                      |  
|Purchase of long-term investments             |  |                   | -       |   |                      |  
|Cash used in investing activities             |  |                   | (12,892 | ) |                      |  
|                                              |  |                   |         |   |                      |  
|FINANCING ACTIVITIES                          |  |                   |         |   |                      |  
|Repayment of obligations under capital leases |  |                   | (778    | ) |                      |  
|Dividends paid on common shares - Note 20     |  |                   | (7,929  | ) |                      |  
|Issuance of common shares                     |  |                   | 2,092   |   |                      |  
|Shares repurchased                            |  |                   | -       |   |                      |  
|Cash used in financing activities             |  |                   | (6,615  | ) |                      |  
|                                              |  |                   |         |   |                      |  
|(DECREASE) INCREASE IN CASH                   |  |                   | (348    | ) |                      |  
|CASH, BEGINNING OF PERIOD                     |  |                   | 13,382  |   |                      |  
|CASH, END OF PERIOD                           |  | $                 | 13,034  |   |                      | $
|                                              |  |                   |         |   |                      |  
|Supplemental cash flow information:           |  |                   |         |   |                      |  
|Interest paid                                 |  | $                 | 147     |   |                      | $
|Interest received                             |  |                   | 30      |   |                      |  
|Income taxes paid (inclusive of tax refunds)  |  |                   | 8,132   |   |                      |  



See accompanying notes to the consolidated financial statements



Page 11







|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)












Explanatory Note












These consolidated financial statements
as initially reported have been amended and restated to correct for certain errors. Refer to Note 3 for a description of the nature
and amount of the restatement adjustments.












Nature of Business












The Cash Store Financial Services
Inc. (the “Company”) operates under two branch banners: The Cash Store Financial and Instaloans, who act as brokers
and lenders to facilitate short-term advances and provide other financial services, to income-earning consumers. As at September
30, 2011, the Company operated 586 (2010 – 544) branches. The Company has operations in Canada and the United Kingdom.



The Cash Store Financial is a
Canadian corporation that is not affiliated with Cottonwood Financial Ltd. or the outlets Cottonwood Financial Ltd. who operates
in the United States under the name "Cash Store."  The Cash Store Financial does not do business under the name
"Cash Store" in the United States and does not own or provide any consumer lending services in the United States.



Change in Fiscal Year



In 2010, the Company changed its
fiscal year end from June 30 to September 30. The fiscal year end change results in a 15 month comparative reporting period from
July 1, 2009 to September 30, 2010.












Note 1 – Significant Accounting Policies










| | (a) | Basis of Presentation
| | --- | ---------------------



These consolidated financial statements
have been prepared by management in accordance with Canadian generally accepted accounting principles (Canadian GAAP) and differ
in certain respects from accounting principles generally accepted in the United States of America (U.S. GAAP), as described in
Note 28. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant
inter-company balances and transactions have been eliminated.



All figures are presented in Canadian
dollars, unless otherwise disclosed.



| | (b) | Use of Estimates
| | --- | ----------------



The preparation of the consolidated
financial statements in conformity with Canadian and U.S. GAAP requires management to make estimates and assumptions that affect
the reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenue and expenses during the reporting periods. Certain estimates, such as those related to allowance
for consumer loan losses, property and equipment, goodwill and intangible asset, income taxes, accrued liabilities related to the
class action lawsuits, depend upon subjective or complex judgments about matters that may be uncertain, and changes in



Page 12









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)














Note 1 – Significant Accounting Policies (continued)










| | (b) | Use of Estimates (continued)
| | --- | ----------------------------



those estimates could materially
impact the consolidated financial statements. Actual results could differ from those estimates made by management.



| | (c) | Business Combinations
| | --- | ---------------------



The Company accounts for all business
combinations using the acquisition method. Acquisition related costs which include finder’s fees, advisory, legal, accounting,
valuation, other professional or consulting fees, and administrative costs are expensed as incurred.



| | (d) | Revenue Recognition
| | --- | -------------------



Revenue arising from brokering
short-term advances for customers is recognized once all services have been rendered, all advance amounts have been received by
the customer, and the brokerage fee has been received by the Company. Revenue from this source is recorded in Loan fees in the
statement of operations.



Revenue arising from direct lending
of short-term advances to customers is recognized on a constant yield basis ratably over the term of the related loan.



Revenue from the Company’s
cheque cashing, money order sales, money transfer, bill payment services and other miscellaneous services is recognized when the
transactions are completed at the point-of-sale in the branch and the related fee charged by the Company has been received. Revenue
from the Company’s banking and non-sufficient funds fees are recognized when collected.



Revenue from each of these sources
is recorded in Other income in the statement of operations.



| | (e) | Retention Payments
| | --- | ------------------



When the Company acts as a broker
on behalf of income earning consumers seeking short-term advances, the funding of short-term advances is provided by independent
third party lenders. The advances provided by the third party lenders are repayable by the customer to the third party lenders
and represent assets of the lenders; accordingly, they are not included on the Company’s balance sheet.



To facilitate the short term advance
business, the Company has entered into written agreements with third party lenders who are prepared to consider lending to the
Company’s customers. Pursuant to these agreements, the Company provides services to the lenders related to the collection
of documents and information as well as loan collection services. Under the terms of the Company’s agreements with third
party lenders, responsibility for losses suffered on account of uncollectible loans rests with the third party lender, unless the
Company has not properly performed its duties as set forth under the terms of the agreement. The significant duties under the terms
of the agreements generally include ensuring that any proposed loan was applied for through an authorized outlet, ensuring each
potential customer meets the loan selection criteria as set forth by the third party lender prior to approval and release of funding,
satisfying the documentation requirements in a full and timely manner, providing loan management services throughout the term of
the loan, and providing collection services on behalf of the third party lender for all loans funded which are not paid in full
by the due date, all of which while ensuring information system integrity is maintained. In the event the Company does not properly
perform its duties and the lenders make a claim as required under the agreement, the Company may be liable to the lenders for losses
they have incurred. A liability is recorded when it is determined that the Company has a liability under the agreement.



Page 13









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010







(in thousands, except share and per share amounts)










Note 1 – Significant Accounting Policies (continued)












| | (e) | Retention Payments (continued)
| | --- | ------------------------------



The Company’s Board of Directors
regularly approves a resolution which authorizes management to pay a maximum amount of retention payments per quarter to third
party lenders as consideration to those lenders that continue to be willing to fund advances to the Company’s customers.
While the third party lenders have not been guaranteed a return, the decision has been made to voluntarily make retention payments
to the lenders to lessen the impact of loan losses experienced by the third party lenders. Retention payments are recorded in the
period in which a commitment is made to a lender pursuant to the resolution approved by the Board of Directors.



| | (f) | Provision for Loan Losses
| | --- | -------------------------



Loans in default consist of direct
lending short-term consumer loans originated by the Company which are past due. The Company defines a past due or delinquent account
whereby payment has not been received in full from the customer on or before the maturity date of the loan. A provision for loan
losses is recorded when the Company no longer has reasonable assurance of timely collection of the full amount of principal and
interest (included in loan fee). In determining whether the Company will be unable to collect all principal and interest payments
due, the Company assesses relevant internal and external factors that affect loan collectability, including the amount of outstanding
loans owed to the Company, historical percentages of loans written off, current collection patterns and other current economic
trends. The provision for loan losses reduces the carrying amount of consumer loan receivables to their estimated realizable amounts.
The provision is primarily based upon models that analyze specific portfolio statistics, and also reflect, to a lesser extent,
management judgement regarding overall accuracy. The analytical model takes into account several factors, including the number
of transactions customers complete and charge-off and recovery rate. The provision is reviewed monthly, and any additional provision
as a result of historical loan performance, current and expected collection patterns and current economic trends is included in
the provision for the loan losses at that time. If the loans remain past due for an extended period of time, an allowance for the
entire amount of the loan is recorded and the loan is ultimately written off. The Company’s policy for charging off uncollectible
consumer loans is to write the loan off when a loan remains in default status for an extended period of time without any extended
payment arrangements made, typically 210 days. Loans to customers who file for bankruptcy are written off upon receipt of the bankruptcy
notice.



| | (g) | Stock Based Compensation
| | --- | ------------------------



The Company has a stock based
compensation plan, which is described in Note 17 (b). The Company accounts for all stock based compensation payments that are settled
by the issuance of equity in accordance with a fair value-based method of accounting. Stock based compensation awards are recognized
in the financial statements over the period in which the related services are rendered, which is usually the vesting period of
the option, or as applicable, over the period to the date an employee is eligible to retire, whichever is shorter, with a corresponding
increase recorded in contributed surplus. The fair value is calculated using the Black-Scholes option-pricing model. When options
are exercised, the proceeds received by the Company, together with the amount in contributed surplus associated with the exercised
options, are credited to share capital.



Page 14









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010







(in thousands, except share and per share amounts)










Note 1 – Significant Accounting Policies (continued)












| | (h) | Earnings Per Share
| | --- | ------------------



Basic earnings per share are computed
by dividing net income by the weighted average number of common shares outstanding during each reporting period. Diluted earnings
per share are computed similar to basic earnings per share except that the weighted average shares outstanding are increased to
include additional shares from the assumed exercise of stock options and warrants, if dilutive. The number of additional shares
is calculated by assuming that outstanding stock options and warrants were exercised, and that proceeds from such exercises were
used to acquire common shares at the average market price during the reporting period.



| | (i) | Consumer Loans Receivable
| | --- | -------------------------



Unsecured short-term and longer-term
advances that the Company originates on its own behalf are reflected on the balance sheet in consumer loans receivable. Consumer
loans receivable are reported net of a provision. In regulated jurisdictions, interest is charged on consumer loans commencing
upon default; however, it is not recorded as income until payment is received in full or partially from the consumer. In unregulated
jurisdictions, interest is charged on consumer loans over the period of the loan and is recorded in income as it is earned.



| | (j) | Income Taxes
| | --- | ------------



Income taxes are accounted for
under the asset and liability method. Future income tax assets and liabilities are recognized for the future income tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. Future income tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to apply
to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on future
income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment or
substantive enactment date. A valuation allowance is recorded against any future income tax assets if it is more likely than not
that the asset will not be realized.



| | (k) | Long-term Investments
| | --- | ---------------------



The Company applies the equity
method of accounting for its investments in The Cash Store Australia Holdings Inc. and RTF Financial Holdings Inc. These investments
are recorded at cost plus the Company’s share of net income or loss to date.



| | (l) | Property and Equipment
| | --- | ----------------------



Property and Equipment are recorded
at cost. Depreciation is recorded using the rates and methods outlined in the table below.



|                                   |  | Rate |    |   | Method | 
|---------------------------------- |  | ---- | -- | - | ------ | 
|Computer hardware                  |  |      | 25 | % |        | 
|Computer software                  |  |      | 20 | % |        | 
|Fixtures, furniture, and equipment |  |      | 20 | % |        | 
|Signs                              |  |      | 20 | % |        | 
|Buildings                          |  |      | 4  | % |        | 
|Vehicles                           |  |      | 20 | % |        | 



Leasehold improvements are depreciated
based on the straight-line basis over the shorter of the lease term, including renewal options that are reasonably assured and
the estimated useful life of the asset.

Page 15







|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010







(in thousands, except share and per share amounts)










Note 1 – Significant Accounting Policies (continued)












| | (m) | Intangible Assets
| | --- | -----------------



Intangible assets acquired individually
or as part of a group of other assets are initially recognized and measured at cost. The cost of a group of intangible assets acquired
in a transaction, including those acquired in a business combination that meet the specified criteria for recognition apart from
goodwill, is allocated to the individual assets acquired based on their fair values.



Both internal and external costs
incurred to purchase and develop computer software are capitalized after the preliminary project stage is completed and management
authorizes the computer software project.



Intangible assets with finite
useful lives are amortized over their estimated useful lives. Intangible assets with indefinite useful lives are not amortized
and are tested for impairment annually on July 1st of each year, or more frequently if events or changes in circumstances
indicate that such assets might be impaired.



The amortization methods and estimated
useful lives of intangible assets, which are reviewed annually, are as follows:



|Customer list, contracts and relationships | Straight-line – 3 years
|------------------------------------------ | -----------------------
|Computer software                          | Straight-line – 5 years
|Non-compete agreements                     | Term of the agreements 
|Brand name                                 | Indefinite life        



| | (n) | Goodwill
| | --- | --------



Goodwill represents the residual
amount that results when the purchase price of an acquired business exceeds the sum of the amounts allocated to the assets acquired,
less liabilities assumed, based on their fair values. Goodwill is allocated as of the date of the business combination to the Company’s
reporting units that are expected to benefit from the business combination. Goodwill is initially recognized as an asset at cost
and is subsequently measured at cost less any accumulated impairment losses.



Goodwill is not amortized and
is tested for impairment annually on July 1st of each year, or more frequently if events or changes in circumstances indicate it
may be impaired. The impairment test is carried out in two steps. In the first step, the carrying amount of the reporting unit
is compared to its fair value. When the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit
is considered not to be impaired and the second step of the impairment test is unnecessary. The second step is carried out when
the carrying amount of a reporting unit exceeds its fair value, in which case the implied fair value of the reporting unit’s
goodwill is compared with its carrying amount to measure the amount of the impairment loss, if any. The implied fair value of goodwill
is determined in the same manner as the value of goodwill is determined in a business combination described in the preceding paragraph,
using the fair value of the reporting unit as if it were the purchase price.



When the carrying amount of the
reporting unit’s goodwill exceeds the implied fair value of the goodwill, an impairment loss is recognized in an amount equal
to the excess.



Page 16







|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010







(in thousands, except share and per share amounts)












Note 1 – Significant Accounting Policies (continued)










| | (o) | Accounting for the Impairment of Long-Lived Assets
| | --- | --------------------------------------------------



Long-lived assets and identifiable
intangibles subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable. Recoverability of assets to be held and used is assessed by a comparison of the carrying
amount of a group of assets to the sum of future undiscounted cash flows expected to be generated from the use and eventual disposition
of the group of assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the group of assets exceeds the fair value of the group of assets. Any assets to be disposed of
by sale are reported at the lower of carrying amount or fair value less costs to sell. Such assets are not depreciated while they
are classified as held-for-sale.



| | (p) | Deferred Revenue
| | --- | ----------------



The Company has entered into a
long-term services contract for which the Company received advance payments. These advance payments are recorded as deferred revenue
and recognized as revenue over the life of the contract.



| | (q) | Deferred Lease Inducements
| | --- | --------------------------



The Company has received various
inducements to lease space for its branches. The inducements are amortized over the remaining terms of the respective leases and
recorded as a reduction to rent expense.



| | (r) | Leases
| | --- | ------



Leases are classified as capital
or operating depending upon the terms and conditions of the contracts. Obligations under capital leases are recorded as an asset
with a corresponding liability. Asset values recorded under capital leases are depreciated on a straight-line basis over the estimated
useful life. Obligations under capital leases are reduced by lease payments net of imputed interest. Computer and phone operating
lease expenses are recorded in selling, general, and administrative expenses. Branch leases are recorded in rent.



| | (s) | Fair Value of Financial Instruments
| | --- | -----------------------------------



The Company’s financial
instruments consist of cash, other receivables, consumer loans receivables less any allowance for loan losses, accounts payable
and accrued liabilities, all of which are short-term in nature and their fair value approximates their carrying value. The fair
value of obligations under capital leases carrying amounts are determined by estimating future cash flows on a borrowing-by-borrowing
basis, and discounting these future cash flows using a rate which takes into account the Company’s spread for credit risk
at year-end for similar terms and types of debt arrangements.





Page 17









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)












Note 2 – Changes in Accounting Policies and Practices












There have been no changes in
accounting policies and practices under Canadian GAAP that have impacted these annual consolidated financial statements.



Recent
Accounting Pronouncements Not Yet Adopted



International Financial Reporting
Standards (IFRS)



The Accounting Standards Board
of the Canadian Institute of Chartered Accountants previously announced its decision to require all publicly accountable enterprises
to report under International Financial Reporting Standards (“IFRS”) for years beginning on or after January 1, 2011.
However, National Instrument 52-107 allows Securities and Exchange Commission (“SEC”) registrants, such as the Company,
to file financial statements with Canadian securities regulators that are prepared in accordance with U.S. GAAP. The Company has
decided to adopt U.S. GAAP instead of IFRS as its primary basis of financial reporting commencing in fiscal 2012.



The decision to adopt U.S. GAAP
was made to enhance communication with shareholders and improve the comparability of financial information reported with its U.S.
based competitors and peer group.












Note 3 – Restatement of Previously Reported Results












| | a) | These consolidated financial statements for the year ended September 30, 2011 and fifteen months
ended September 30, 2010, as initially reported, have been amended and restated to correct for an error resulting from the misunderstanding
of the settlement terms and conditions of the March 5, 2004 British Columbia Class Action claim, which resulted in the application
of an accounting principle to measure and record the liability as at September 30, 2010 and subsequent reporting periods, that
was not appropriate in the circumstances. The restatement impacts the twelve months ended September 30, 2011 and the fifteen months
ended September 30, 2010. The restatement resulted in a reduction in net income in the fifteen months ended September 30, 2010
of $6,601 and an increase in net income in the year ended September 30, 2011 of $1,537.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The effect of the restatement
on the consolidated statement of operations and comprehensive income for the twelve months ended September 30, 2011 and fifteen-month
period ended September 30, 2010 is as follows:



|                                               |  | Year
    ended September 30 2011 |        |   | 15
    months ended September 30 2010 |  
|---------------------------------------------- |  | -------------------------------- | ------ | - | ------------------------------------- | -
|                                               |  | As
    Reported                  |        |   | Adjustments                           |  
|                                               |  |                                  |        |   |                                       |  
|Interest expense                               |  |                                  | -      |   |                                       | $
|Class action settlements                       |  | $                                | 3,206  |   |                                       | $
|INCOME BEFORE INCOME TAXES                     |  |                                  | 14,667 |   |                                       |  
|PROVISION FOR INCOME TAXES - Future (recovery) |  |                                  | (532   | ) |                                       |  
|NET INCOME AND COMPREHENSIVE INCOME            |  |                                  | 9,042  |   |                                       |  
|                                               |  |                                  |        |   |                                       |  
|BASIC EARNINGS PER SHARE                       |  | $                                | 0.52   |   |                                       | $
|DILUTED EARNINGS PER SHARE                     |  |                                  | 0.51   |   |                                       |  

Page 18







|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)












Note 3 – Restatement of Previously Reported Results
(continued)



The effect of the restatement
on the consolidated balance sheets as at September 30, 2011 and 2010 is as follows:



|                                         |  | September
    30 2011 |        |  | September
    30 2010 |  
|---------------------------------------- |  | --------------------- | ------ |  | --------------------- | -
|                                         |  | As
    Reported       |        |  | Adjustments           |  
|                                         |  |                       |        |  |                       |  
|Other receivables                        |  | $                     | 12,575 |  |                       | $
|Current future income taxes              |  |                       | 1,516  |  |                       |  
|Future income taxes                      |  |                       | 2,468  |  |                       |  
|Accounts payable and accrued liabilities |  |                       | 22,989 |  |                       |  
|Future income tax liabilities            |  |                       | 2,388  |  |                       |  
|Retained earnings                        |  |                       | 37,019 |  |                       |  





The effect of the restatement
on the consolidated statement of cash flows for the twelve months ended September 30, 2011 and fifteen-month period ended September
30, 2010 is as follows:



|                                            |  | Year
    ended September 30 2011 |        |   | 15
    months ended September 30 2010 |  
|------------------------------------------- |  | -------------------------------- | ------ | - | ------------------------------------- | -
|                                            |  | As
    Reported                  |        |   | Adjustments                           |  
|                                            |  |                                  |        |   |                                       |  
|Net income                                  |  | $                                | 9,042  |   |                                       | $
|Future income taxes (recovery)              |  |                                  | (532   | ) |                                       |  
|Other receivables and long-term receivables |  |                                  | (2,866 | ) |                                       |  
|Accounts payable and accrued liabilities    |  |                                  | 6,617  |   |                                       | $





Note 5, 6(a), 12, 13, 14(b), 24(c)(iii),
24(c)(iv) and 28(G) have been restated to reflect the related note disclosures.



| | b) | Independent of the restatement outlined in Note 3 a) above, we have also restated Note 23(c) Related
Party Transactions - Third party Lenders, to disclose related party transactions with a privately held entity that raises capital
and provides advances to the Company’s customers (third-party lender). The privately held entity is controlled by the father
of Cameron Schiffner, the Senior Vice President of Operations of the Company. The addition of this disclosure did not impact the
previously reported financial position or results of operations of the Company.
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------










Note 4 – Business Acquisitions












On October 16, 2010, the Company
acquired all the business assets of Dash for Cash representing one branch in Manitoba for total cash consideration of $25 all of
which was allocated to Goodwill. Dash for Cash operated in the short-term advances industry.



On April 26, 2010, the Company
acquired all the business assets of 101019134 Saskatchewan Ltd. (EZ Cash), representing 14 branches in Saskatchewan, for total
cash consideration of $4,476. EZ Cash operated in the short-term advances industry.



On September 1, 2009, the Company
acquired all the business assets of Affordable Payday Loans (APL) representing eight branches in Ontario and two branches in Alberta
for total cash consideration of $800. Affordable Payday Loans operated in the short-term advances industry.

Page 19









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)










Note 4 – Business Acquisitions (continued)












The combined purchase price allocation
for the fifteen months ended September 30, 2010, is detailed in the following table below.



|Net assets acquired at assigned values   |  |   |      
|---------------------------------------- |  | - | -----
|Property and equipment                   |  | $ | 36   
|Non-compete and other intangible assets  |  |   | 392  
|Goodwill                                 |  |   | 4,881
|Accounts payable and accrued liabilities |  |   | (33  
|                                         |  | $ | 5,276





Revenues and earnings since the
acquisitions date and pro-forma information as if the acquisitions were completed as of the dates described below, are as follows:



|                            |  | 2011           |         |  | 2010         |  
|--------------------------- |  | -------------- | ------- |  | ------------ | -
|                            |  | As reported(1) |         |  | Pro forma(2) |  
|Operating revenues          |  | $              | 189,899 |  |              | $
|Net income                  |  |                | 9,042   |  |              |  
|Net income per Common Share |  |                |         |  |              |  
|- Basic                     |  |                | 0.52    |  |              |  
|- Diluted                   |  | $              | 0.51    |  |              | $



(1)Operating revenues and net income for the year ended September 30, 2011, include $72 related to the acquisition of Dash
into Cash and for the fifteen months ended September 30, 2010, include $4,627 and $854, respectively, in respect of the acquisitions
of APL and EZ Cash.



(2)Pro forma amounts for the year ended September 30, 2011,
reflect Dash into Cash as if it was acquired on October 1, 2010.  Pro forma amounts for the fifteen months ended September
30, 2010, reflect APL and EZ Cash as if they were acquired on July 1, 2009.





The acquisition costs related
to the business acquisitions are not significant. Goodwill related to the business acquisitions are 75% tax deductible.



Page 20









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)










Note 5 – Cash










The significant components of
cash are as follows:



|                |  | September 30 |        |  | September 30 |  
|--------------- |  | ------------ | ------ |  | ------------ | -
|                |  | 2011         |        |  | 2010         |  
|                |  |              |        |  | Restated     |  
|                |  |              |        |  | Note 3       |  
|Cash            |  | $            | 13,034 |  |              | $
|Restricted cash |  |              | 6,257  |  |              |  
|                |  | $            | 19,291 |  |              | $





Restricted cash includes $6,257
(2010 - $6,257) in funds to facilitate claims related to the British Columbia class action lawsuit settlement (Note 14 (b)). Subsequent
to year end, the total amount transferred to a third-party administrator was $6,257.



Approximately $3,611 (2010 - $2,697)
was cash in transit as a result of pre-authorized debit, facilitated by a third-party.












Note 6 – Other Receivables and Other Income












| | (a) | Other Receivables
| | --- | -----------------



|                               |  | September 30 |        |  | September 30 |  
|------------------------------ |  | ------------ | ------ |  | ------------ | -
|                               |  | 2011         |        |  | 2010         |  
|                               |  | Restated     |        |  | Restated     |  
|                               |  | Note 3       |        |  | Note 3       |  
|Due from investee corporations |  | $            | 61     |  |              | $
|Due from suppliers             |  |              | 11,143 |  |              |  
|Other                          |  |              | 2,052  |  |              |  
|                               |  | $            | 13,256 |  |              | $
|Long term portion:             |  |              |        |  |              |  
|Other                          |  |              | 681    |  |              |  
|                               |  | $            | 12,575 |  |              | $





Due from Suppliers



Due from suppliers includes $11,143
(2010 - $7,223) of short term receivables from our main suppliers of bank accounts, debit and prepaid mastercard and insurance
products that have occurred in the normal course of business.



Other



Amounts included in Other receivables
are from the sale of a business and amounts due in the normal course of business. Included with long-term receivables is an amount
of $681 (2010 - $450).



Page 21









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)










Note 6 – Other Receivables and Other Income (continued)












| | (b) | Other Income
| | --- | ------------



|                  |  | September 30 |        |  | September 30 |  
|----------------- |  | ------------ | ------ |  | ------------ | -
|                  |  | 2011         |        |  | 2010         |  
|Agency fee income |  | $            | 46,809 |  |              | $
|Other income      |  |              | 6,467  |  |              |  
|                  |  | $            | 53,276 |  |              | $












Note 7 – Consumer Loans Receivable












|                                   |  | September 30 |        |   | September 30 |  
|---------------------------------- |  | ------------ | ------ | - | ------------ | -
|                                   |  | 2011         |        |   | 2010         |  
|Short-term advances receivable     |  | $            | 6,799  |   |              | $
|Term loans receivable              |  |              | 765    |   |              |  
|Allowance for consumer loan losses |  |              | (2,783 | ) |              |  
|                                   |  | $            | 4,781  |   |              | $












Note 8 – Long-Term Investments










| | (a) | The Cash Store Australia Holdings Inc.
| | --- | --------------------------------------



The Company owns 3,000,000 shares,
or approximately 18.3% of the outstanding common shares of The Cash Store Australia Holdings Inc. (AUC) acquired at a price of
$0.06 per share. The carrying amount of this investment is $nil (2010 - $nil). Of the 3,000,000 common shares, 450,000 common shares
are subject to escrow provisions that prevent the Company from selling these shares until the following dates:



|Date          |  | Percentage |    |   | Common Shares | 
|------------- |  | ---------- | -- | - | ------------- | 
|March 8, 2012 |  |            | 15 | % |               | 







Included in selling, general,
and administrative expenses is the Company’s share of AUC’s loss of $nil (2010 - $180).



| | (b) | RTF Financial Holdings Inc.
| | --- | ---------------------------



The Company owns 6,000,000 shares,
or approximately 15.7%, of RTF Financial Holdings Inc. (RTF) acquired at a price of $0.06 per share. The carrying amount of this
investment is $nil (2010 - $nil).



Included in selling, general,
and administrative expenses is the Company’s share of RTF’s loss of $nil (2010 - $360).







Page 22











|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)












Note 9 – Property and Equipment












|                                   |  | September 30 |       
|---------------------------------- |  | ------------ | ------
|                                   |  | 2011         |       
|                                   |  |              |       
|                                   |  | Cost         |       
|                                   |  |              |       
|Leasehold improvements             |  | $            | 28,887
|Fixtures, furniture, and equipment |  |              | 12,421
|Computer hardware                  |  |              | 6,463 
|Signs                              |  |              | 7,533 
|Buildings                          |  |              | 132   
|Vehicle                            |  |              | 77    
|Land                               |  |              | 51    
|Computer software                  |  |              | 241   
|                                   |  | $            | 55,805



|                                   |  | September 30 |       
|---------------------------------- |  | ------------ | ------
|                                   |  | 2010         |       
|                                   |  |              |       
|                                   |  | Cost         |       
|                                   |  |              |       
|Leasehold improvements             |  | $            | 27,359
|Fixtures, furniture, and equipment |  |              | 11,578
|Computer hardware                  |  |              | 5,538 
|Signs                              |  |              | 6,014 
|Buildings                          |  |              | 132   
|Vehicle                            |  |              | 75    
|Land                               |  |              | 51    
|Computer software                  |  |              | 242   
|                                   |  | $            | 50,989





Depreciation expense for the twelve
months ended September 30, 2011 includes a write off of property and equipment of $65 (2010 - $61).



Cost and accumulated depreciation
of property and equipment as at September 30, 2011 included $13,866 of fully depreciated assets.



Page 23









|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)










Note 9 – Property and Equipment (continued)










Assets under capital
lease included above:



|                                  |  | 2011 |      
|--------------------------------- |  | ---- | -----
|                                  |  |      |      
|                                  |  | Cost |      
|                                  |  |      |      
|Computer hardware                 |  | $    | 2,171
|Fixtures, furniture and equipment |  |      | 903  
|                                  |  | $    | 3,074



|                                  |  | 2010 |      
|--------------------------------- |  | ---- | -----
|                                  |  |      |      
|                                  |  | Cost |      
|                                  |  |      |      
|Computer hardware                 |  | $    | 2,050
|Fixtures, furniture and equipment |  |      | 903  
|                                  |  | $    | 2,953





Depreciation of property and equipment
for the twelve months ended September 30, 2011, includes $165 (2010 - $821) relating to assets under capital leases.



During the twelve months ended
September 30, 2011, additions to property and equipment included $121 (2010 - $683) of assets that were acquired by means of capital
lease and $nil (2010 - $47) of assets that were acquired by way of vehicle financing.












Note 10 – Intangible Assets












|                                                   |  | September 30 |       
|-------------------------------------------------- |  | ------------ | ------
|                                                   |  | 2011         |       
|                                                   |  |              |       
|                                                   |  | Cost         |       
|                                                   |  |              |       
|Customer contracts, relationships, lists and other |  | $            | 962   
|Non-compete agreements                             |  |              | 507   
|Computer software                                  |  |              | 6,717 
|Brand name                                         |  |              | 5,300 
|                                                   |  | $            | 13,486



|                                                   |  | 2010 |       
|-------------------------------------------------- |  | ---- | ------
|                                                   |  |      |       
|                                                   |  | Cost |       
|                                                   |  |      |       
|Customer contracts, relationships, lists and other |  | $    | 952   
|Non-compete agreements                             |  |      | 507   
|Computer software                                  |  |      | 5,832 
|Brand name                                         |  |      | 5,300 
|                                                   |  | $    | 12,591





Page 24











|                                                                                  | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------- | ------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010



(in thousands, except share and per share amounts)










Note 10 – Intangible Assets (continued)










During the twelve months ended
September 30, 2011, the Company acquired $nil in non-compete agreements (2010 - $330) and $nil in customer contracts, relationships,
lists and other (2010 - $62) as part of the business acquisitions (Note 4).



Included in computer software
are assets under development with a cost of $262 (2010 - $3,274). These assets have not been amortized in the twelve months ended
September 30, 2011.



Cost and accumulated amortization
of intangibles as at September 30, 2011 included $305 of fully amortized intangible assets.










Note 11 – Goodwill










|                             |  | September 30 |        |  | September 30 |  
|---------------------------- |  | ------------ | ------ |  | ------------ | -
|                             |  | 2011         |        |  | 2010         |  
|Balance, beginning of period |  | $            | 39,108 |  |              | $
|Goodwill acquired - Note 3   |  |              | 25     |  |              |  
|Disposal of goodwill         |  |              | -      |  |              |  
|Balance, end of period       |  | $            | 39,133 |  |              | $












Note 12 – Income Taxes










| | (a) | Provision for Income Taxes
| | --- | --------------------------



The income tax provision
differs from the amount that would be computed by applying the federal and provincial statutory income tax rates of 28.0% (2010
– 29.1%) to income as a result of the following:



|                                                   |  | September 30 |        |   | September 30 |  
|-------------------------------------------------- |  | ------------ | ------ | - | ------------ | -
|                                                   |  | 2011         |        |   | 2010         |  
|                                                   |  | Restated     |        |   | Restated     |  
|                                                   |  | Note 3       |        |   | Note 3       |  
|Income before income taxes                         |  | $            | 16,889 |   |              | $
|Computed tax expense at statutory income tax rates |  | $            | 4,729  |   |              | $
|Change in enacted tax rates                        |  |              | (31    | ) |              |  
|Adjustment for prior year immaterial errors        |  |              | 1,180  |   |              |  
|Stock-based compensation                           |  |              | 206    |   |              |  
|Permanent differences and other                    |  |              | 226    |   |              |  
|Total income tax provision                         |  | $            | 6,310  |   |              | $



Page 25











|                                                                                      | NOTES TO CONSOLIDATED FINANCIAL
    STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED SEPTEMBER 30, 2011 AND
    SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share and per share amounts)                                   










Note 12 – Income
Taxes (continued)










| | (b) | Future Income Taxes
| | --- | -------------------



The tax effects that
give rise to significant portions of the future income tax assets and liabilities are presented below:



|                                                                               |  | September 30 |        |   | September 30 |  
|------------------------------------------------------------------------------ |  | ------------ | ------ | - | ------------ | -
|                                                                               |  | 2011         |        |   | 2010         |  
|                                                                               |  | Restated     |        |   | Restated     |  
|                                                                               |  | Note 3       |        |   | Note 3       |  
|Current:                                                                       |  |              |        |   |              |  
|Accrued liability for class action settlements and other temporary differences |  | $            | 2,562  |   |              | $
|Loan loss provision                                                            |  |              | 438    |   |              |  
|                                                                               |  | $            | 3,000  |   |              | $
|Non-current:                                                                   |  |              |        |   |              |  
|Losses available to be carried forward                                         |  |              | 193    |   |              |  
|Property and equipment, intangible assets and goodwill                         |  |              | 320    |   |              |  
|Deferred lease inducements                                                     |  |              | 308    |   |              |  
|Deferred revenue                                                               |  |              | 1,647  |   |              |  
|                                                                               |  | $            | 2,468  |   |              | $
|Property and equipment, intangible assets and goodwill                         |  | $            | (2,388 | ) |              | $



In assessing the realizability
of future income tax assets, management considers whether it is more likely than not that some portion or all of the future tax
assets will not be realized. The ultimate realization of future income tax assets is dependent upon the generation of future taxable
income during the period in which those temporary differences become deductible. Based upon management assessment, management
believes it is more likely than not that the Company will realize the benefits of these deductible differences. The amount of
the future income tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income
during the carry-forward period are reduced.








Note 13 – Accounts
Payable and Accrued Liabilities












|                                                        |  | September 30 |        |  | September 30 |  
|------------------------------------------------------- |  | ------------ | ------ |  | ------------ | -
|                                                        |  | 2011         |        |  | 2010         |  
|                                                        |  | Restated     |        |  | Restated     |  
|                                                        |  | Note 3       |        |  | Note 3       |  
|Trade accounts payable and accrued liabilities          |  | $            | 6,937  |  |              | $
|Class action settlements Note 14 (a), (b), (c), and (d) |  |              | 10,733 |  |              |  
|Accrued salaries and benefits                           |  |              | 2,808  |  |              |  
|Amounts due to third party lenders                      |  |              | 8,487  |  |              |  
|Other                                                   |  |              | 572    |  |              |  
|                                                        |  | $            | 29,537 |  |              | $



Page 26









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 13 – Accounts
Payable and Accrued Liabilities (continued)










The amounts due to third party
lenders reflects funds made available by lenders but not yet advanced to customers, any liability under the lending agreement,
including any paid retention payments, as well as loan repayment and interest amounts collected from customers. Amounts due to
third party lenders are non-interest bearing, unsecured and have no specified repayment terms.










Note 14 – Class Action
Settlements










| | (a) | Ontario and the rest of Canada with the exception of British
                                                             Columbia and Alberta
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------



On April 13, 2004, a legal proceeding
was commenced against The Cash Store Financial and Instaloans Inc., by Thompson McCutcheon (the “Plaintiff”), a customer.
The Plaintiff obtained an order pursuant to the Class Proceedings Act, 1992, S.O. 1992 c.6 (the “Class Proceeding
Act”), as amended, certifying the action as a class proceeding and appointing him as the representative of the class. The
Plaintiff asserted that the defendants were in breach of the Criminal Code of Canada and the Fair Trading Act as
the aggregate of all charges, including interest, broker fees and card fees, was in excess of those allowed by law. The Statement
of Claim stated that the members of the Class would seek to recover all amounts charged, collected or received by the defendants
at a criminal rate of interest and/or at an excessive rate, as well as damages, costs and interest.



On December 2, 2008, the Ontario
Superior Court of Justice certified the class action lawsuit as a class proceeding under the Act, and granted approval of the
settlement that had been agreed to between the Company and the representative Plaintiff on behalf of the Class. The settlement
does not constitute any admission of liability by The Cash Store Financial.



Under the terms of the settlement,
the Company is to pay to the class a minimum of $750 and a maximum of $1,500 in cash and a minimum of $750 and a maximum of $1,500
in credit vouchers to those customers of The Cash Store Financial and Instaloans, exclusive of Alberta and British Columbia, who
were advanced funds under a loan agreement and who repaid the payday loan plus brokerage fees and interest in full. The credit
vouchers may be used to pay existing outstanding brokerage fees and interest or to pay a portion of brokerage fees and interest
which may arise in the future through new loans advanced. The credit vouchers are fully transferable and have no expiry date. Based
on our estimate of the rate of take-up of the available cash and vouchers, a total provision of $2,010 was previously recorded
to cover the estimated costs of the settlement, including legal fees and other costs. During the year ended June 30, 2009, the
Company paid the legal fees and costs of the class. On August 6, 2009, the claims process was concluded and we issued $750 in
vouchers and $750 in cheques to the class members as full and final satisfaction of all claims. As at September 30, 2011, the
remaining accrual is $46 (2010 - $52).



Page 27









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 14 – Class Action Settlements (continued)










| | (b) | British Columbia (restated – Note 3)
| | --- | ------------------------------------



On March 5, 2004, an action under
the Class Proceedings Act was commenced in the Supreme Court of British Columbia by Andrew Bodnar and others proposing that a
class action be certified on his own behalf and on behalf of all persons who have borrowed money from the defendants, The Cash
Store Financial and All Trans Credit Union Ltd. The action stems from the allegations that all payday loan fees collected by the
defendants constitute interest and therefore violate s. 347 of the Criminal Code of Canada (the “Code”). On May 25,
2006, the claim in British Columbia was affirmed as a certified class proceeding of Canada by the B.C. Court of Appeal. In fiscal
2007, the plaintiffs in the British Columbia action brought forward an application to have certain of the Company’s customers’
third-party lenders added to the claim. On March 18, 2008, another action commenced in the Supreme Court of British Columbia by
David Wournell and others against The Cash Store Financial, Instaloans Inc., and others in respect of the business carried out
under the name Instaloans since April 2005. Collectively, the above actions are referred to as the “British Columbia Related
Actions”.



On May 12, 2009, the Company
settled the British Columbia Related Actions in principle and on February 28, 2010 the settlement was approved by the Court. Under
the terms of the court approved settlement, the Company is to pay to the eligible class members who were advanced funds under
a loan agreement and who repaid the payday loan plus brokerage fees and interest in full, or who met certain other eligibility
criteria, a maximum estimated amount including legal expenses of $18,800, consisting of $9,400 in cash and $9,400 in credit vouchers.
The credit vouchers can be used to pay existing outstanding brokerage fees and interest, to pay a portion of brokerage fees and
interest which may arise in the future through new loans advanced, or can be redeemed for cash from January 1, 2014 to June 30,
2014. The credit vouchers are not transferable and have no expiry date. After approved legal expenses of $6,438 were paid in March
2010, the balance of the settlement amount remaining to be disbursed was $12,362, consisting of $6,181 of cash and $6,181 of vouchers.



By September 30, 2010, the Company
received approximately 6,300 individual claims representing total valid claims in excess of the settlement fund. As the valid
claims exceed the balance of the remaining settlement fund, under the terms of the settlement agreement, the entire settlement
fund of $12,362 will be disbursed to claimants on a pro-rata basis.



In arriving at the liability
recorded at the balance sheet date, the voucher portion of the settlement fund of $6,181 has been discounted using a discount
rate of 16.2%. During the twelve months ended September 30, 2011, the Company recorded accretion expense of $616 (fifteen months
ended September 30, 2010 - $nil) in interest expense. The total liability related to the settlement at September 30, 2011 is $10,587
(2010- $9,971).



| | (c) | Alberta
| | --- | -------



The Company has been served in
prior fiscal periods with a Statement of Claim issued in Alberta alleging that we are in breach of s. 347 of the Code (the interest
rate provision) and certain provincial consumer protection statutes.



The certification motion has
been pending since fiscal 2006 and has not yet been heard. On January 19, 2010, the plaintiffs in the Alberta action brought forward
an application to have a related subsidiary, as well as certain of our customers’ third-party lenders, directors and officers
added to the Claim.



The Company has agreed to a motion
to certify the class proceeding if the third party lenders, officers and directors are removed as defendants. Class counsel has
agreed to the Company’s proposal.



The Company believes that it
conducted its business in accordance with applicable laws and is defending the action vigorously. As at September 30, 2011, a
total of $100 (2010 - $100) has been accrued. However, the likelihood of loss, if any, is not determinable at this time.



Page 28









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 14 – Class Action Settlements (continued)










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



On April 23, 2010, an action
under the Manitoba Class Proceedings Act was commenced in the Manitoba Court of Queen’s Bench by Scott Meeking against The
Cash Store Financial and Instaloans proposing that a class action be certified on his own behalf and on behalf of all persons
in Manitoba and others outside the province who elect to claim in Manitoba and who obtained a payday loan from The Cash Store
Financial or Instaloans. The action stems from the allegations that all payday loan fees collected by the defendants constitute
interest and therefore violate s. 347 of the Criminal Code of Canada.



The Company conducts business
in accordance with applicable laws and is defending the action vigorously. Further it will be maintained that most of the proposed
class members are bound by the judgment in the settlement of the Ontario class action in 2008, as approved by the Ontario Superior
Court of Justice and that accordingly the action should be dismissed. However, the likelihood of loss, if any, is not determinable
at this time.










Note 15 – Deferred Revenue












|          |  | September 30 |       |  | September 30 |  
|--------- |  | ------------ | ----- |  | ------------ | -
|          |  | 2011         |       |  | 2010         |  
|Current   |  | $            | 1,135 |  |              | $
|Long-term |  |              | 4,976 |  |              |  
|          |  | $            | 6,111 |  |              | $



On September 1, 2010, the Company
entered into an agreement with Ria Financial Services, a division of Euronet Worldwide Inc. (NASDAQ: EEFT), to supply money transfer
services across the Company’s network of The Cash Store Financial and Instaloans branches in Canada.The Company received
a $7,000 signing bonus, which will be recognized into revenue over the next seven years, which is the length of the agreement.



Page 29









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 16 – Obligations
under Capital Leases










The Company has financed certain
office furniture, equipment, and printers by entering into capital leasing and financing arrangements.



|                                                                                                                                                                                                                              |  | 2011      |      
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | -----
|                                                                                                                                                                                                                              |  | Aggregate |      
|                                                                                                                                                                                                                              |  | Due       |      
|Various leases - repayable in monthly instalments totalling $57 including imputed interest ranging from nil - 19.8%; due to mature between 2012 - 2015; secured by leased assets with an aggregate carrying amount of $1,258. |  | $         | 1,421
|Less current portion                                                                                                                                                                                                          |  |           | 761  
|                                                                                                                                                                                                                              |  | $         | 660  



|                                                                                                                                                                                                                                                                                            |  | 2010      |      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | -----
|                                                                                                                                                                                                                                                                                            |  | Aggregate |      
|                                                                                                                                                                                                                                                                                            |  | Due       |      
|Various leases - repayable in monthly instalments totalling $59 including imputed interest ranging from nil - 19.8%; due to mature between 2011 - 2014; secured by leased assets with an aggregate carrying amount of $1,302. Included in leases is a one time payment of $368 due in 2011. |  | $         | 2,167
|Less current portion                                                                                                                                                                                                                                                                        |  |           | 1,081
|                                                                                                                                                                                                                                                                                            |  | $         | 1,086



The capital lease repayments
are due as follows:



|     |  | Aggregate |       |  | Less Imputed |   |     |     | 
|---- |  | --------- | ----- |  | ------------ | - | --- | --- | 
|     |  | Due       |       |  | Interest     |   |     | Net | 
|2012 |  | $         | 749   |  |              | $ | 90  |     | 
|2013 |  |           | 433   |  |              |   | 40  |     | 
|2014 |  |           | 233   |  |              |   | 13  |     | 
|2015 |  |           | 27    |  |              |   | 4   |     | 
|     |  | $         | 1,442 |  |              | $ | 147 |     | 



During the twelve months ended
September 30, 2011, the Company incurred interest charges related to capital leases in the amount of $147 (2010 - $179). These
have been included in selling, general, and administrative expenses.



Page 30









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 17 – Share Capital










| | (a) | Issued share capital
| | --- | --------------------



|                                                                        |  | 2011             |            |  | 2010   |  
|----------------------------------------------------------------------- |  | ---------------- | ---------- |  | ------ | -
|                                                                        |  | Number of Shares |            |  | Amount |  
|Authorized:                                                             |  |                  |            |  |        |  
|Unlimited common shares with no par value                               |  |                  |            |  |        |  
|                                                                        |  |                  |            |  |        |  
|Issued:                                                                 |  |                  |            |  |        |  
|                                                                        |  |                  |            |  |        |  
|Balance, beginning of period                                            |  |                  | 17,085,727 |  |        | $
|Transfer from contributed surplus for stock options exercised - Note 19 |  |                  | -          |  |        |  
|Options exercised                                                       |  |                  | 183,487    |  |        |  
|Warrants exercised                                                      |  |                  | 150,000    |  |        |  
|Shares repurchased                                                      |  |                  | -          |  |        |  
|Balance, end of period                                                  |  |                  | 17,419,214 |  |        | $



For the year ended September 30,
2011, the Company did not purchase and subsequently cancel any common shares (2010 – 387,799 common shares at a cost of
$3,336).



| | (b) | Options to Employees and Directors
| | --- | ----------------------------------



The Company has an incentive stock
option plan for certain employees, officers and directors. Options issued under the plan have vesting terms that vary depending
on date granted and other factors. All stock options must be exercised over specified periods not to exceed five years from the
date granted.



|                               |  | 2011                     |           |   | 2010                   |  
|------------------------------ |  | ------------------------ | --------- | - | ---------------------- | -
|                               |  | Total Options for Shares |           |   | Weighted Average Price |  
|Outstanding, beginning of year |  |                          | 1,019,322 |   |                        | $
|Granted                        |  |                          | 155,000   |   |                        |  
|Exercised                      |  |                          | (183,487  | ) |                        |  
|Expired                        |  |                          | (10,000   | ) |                        |  
|Forfeited                      |  |                          | (1,667    | ) |                        |  
|Outstanding, end of year       |  |                          | 979,168   |   |                        |  
|Exercisable, end of year       |  |                          | 505,832   |   |                        | $



At September 30, 2011, the
range of exercise prices, the weighted average exercise price, and weighted average remaining contractual life are as follows:



|Fiscal Year Granted |  | Number Outstanding |         |  | Weighted Average Remaining Term |  |         | Weighted Average Exercise Price |  |   | Number Exercisable | 
|------------------- |  | ------------------ | ------- |  | ------------------------------- |  | ------- | ------------------------------- |  | - | ------------------ | 
|2008                |  |                    | 238,600 |  |                                 |  | 14 mos. |                                 |  | $ | 3.81               | 
|2009                |  |                    | 169,733 |  |                                 |  | 30 mos. |                                 |  |   | 6.65               | 
|2010                |  |                    | 415,835 |  |                                 |  | 40 mos. |                                 |  |   | 12.45              | 
|2011                |  |                    | 155,000 |  |                                 |  | 58 mos. |                                 |  |   | 12.96              | 
|                    |  |                    | 979,168 |  |                                 |  | 35 mos. |                                 |  | $ | 9.42               | 



The fair value of common share
options is estimated at the grant date using the Black-Scholes option pricing model based on the following weighted average assumptions:



Page 31









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 17 – Share
Capital (continued)












| | (b) | Options to Employees and Directors (continued)
| | --- | ----------------------------------------------



|                        |  | 2011 |      |   | 2010 | 
|----------------------- |  | ---- | ---- | - | ---- | 
|Risk free interest rate |  |      | 1.6  | % |      | 
|Expected life (years)   |  |      | 3    |   |      | 
|Expected volatility     |  |      | 39.0 | % |      | 
|Expected dividends      |  |      | 3.7  | % |      | 



The weighted average grant-date
fair value of options granted was estimated at $2.72 (2010 - $3.46) per option.



The Company is authorized to
issue an additional 1,868,167 equity share options under its existing stock option plan.



(c) Warrants to outside agents



|                                    |  | 2011               |         |  | 2010                            |  
|----------------------------------- |  | ------------------ | ------- |  | ------------------------------- | -
|                                    |  | Number of Warrants |         |  | Weighted Average Exercise Price |  
|Balance, beginning of year          |  |                    | 150,000 |  |                                 | $
|Issued                              |  |                    | nil     |  |                                 |  
|Exercised                           |  |                    | 150,000 |  |                                 |  
|Expired                             |  |                    | nil     |  |                                 |  
|Balance, end of year                |  |                    | nil     |  |                                 |  
|Exercisable for shares, end of year |  |                    | nil     |  |                                 |  



On May 14, 2009, the Company
entered into an agreement for the exclusive financing services of a financing agent. In consideration of providing these financial
advisory and agency services, non-transferrable warrants up to a total of 150,000 common shares in the Company were issued at
a strike price of $7.80 per share expiring on May 14, 2011. On April 26, 2011, the Company received $1,170 of proceeds related
to the 150,000 warrants being exercised by the financing agent.










Note 18 – Per Share
Amounts










Basic net income per common share
is calculated by dividing net income attributable to common shares by the total weighted average common shares outstanding during
the period. Diluted net income per common share is calculated to give effect to share option awards and warrants.



The following table presents the
reconciliations of the denominators of the basic and diluted per share computations. Net income attributable to common shares
equaled diluted income attributable to common shares for all periods presented.



|                                                         |  | September 30 |            |  | September 30 | 
|-------------------------------------------------------- |  | ------------ | ---------- |  | ------------ | 
|                                                         |  | 2011         |            |  | 2010         | 
|Basic total weighted average common shares outstanding   |  |              | 17,259,196 |  |              | 
|Effect of dilutive securities                            |  |              |            |  |              | 
|Share option awards                                      |  |              | 369,345    |  |              | 
|Warrants                                                 |  |              | 34,839     |  |              | 
|Diluted total weighted average common shares outstanding |  |              | 17,663,380 |  |              | 



Page 32









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 19 – Contributed Surplus










For stock options granted to
certain employees, officers and directors after July 1, 2002, the Company records compensation expense using the fair value method.
Compensation costs are recognized over the vesting period as an increase to stock-based compensation expense, which has been recorded
in selling, general, and administrative expenses, with a corresponding increase to contributed surplus. When options are exercised,
the fair-value amount in contributed surplus is credited to share capital.



|                                 |  | September 30 |       |   | June 30 |  
|-------------------------------- |  | ------------ | ----- | - | ------- | -
|                                 |  | 2011         |       |   | 2010    |  
|Balance at beginning of period   |  | $            | 3,981 |   |         | $
|Stock options exercised          |  |              | (589  | ) |         |  
|Stock-based compensation expense |  |              | 786   |   |         |  
|                                 |  | $            | 4,178 |   |         | $










Note 20 – Dividends












|                          |  | 2011               |                 
|------------------------- |  | ------------------ | ----------------
|                          |  | Declared effective |                 
|Dividend per Common Share |  |                    |                 
|Dividend $0.10            |  |                    | December 6, 2010
|Dividend $0.12            |  |                    | February 7, 2011
|Dividend $0.12            |  |                    | May 9, 2011     
|Dividend $0.12            |  |                    | August 10, 2011 
|Dividend                  |  |                    | N/A             
|                          |  |                    |                 



|                          |  | 2010               |                  
|------------------------- |  | ------------------ | -----------------
|                          |  | Declared effective |                  
|Dividend per Common Share |  |                    |                  
|Dividend $0.14            |  |                    | September 9, 2009
|Dividend $0.10            |  |                    | October 28, 2009 
|Dividend $0.10            |  |                    | February 10, 2010
|Dividend $0.10            |  |                    | May 11, 2010     
|Dividend $0.10            |  |                    | August 11, 2010  
|                          |  |                    |                  



The Company reviews its dividend
distribution policy on a quarterly basis, evaluating its financial position, profitability, cash flow and other factors the Board
of Directors considers relevant.



Page 33









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 21 – Commitments










| | (a) | Lease Commitments
| | --- | -----------------



The
Company is committed to future minimum annual operating lease payments for office and branch premises, which expire through 2022.



|           |  | Aggregate Lease  Payments |       
|---------- |  | ------------------------- | ------
|2012       |  | $                         | 20,425
|2013       |  |                           | 18,900
|2014       |  |                           | 15,183
|2015       |  |                           | 10,395
|2016       |  |                           | 5,042 
|Thereafter |  |                           | 16,548
|           |  | $                         | 86,493



(b) New Branch Openings and
Additional Lease Commitments



Subsequent
to the year-end, the Company has committed to leases for five additional Cash Store Financial and Instaloans locations. The additional
minimum annual lease payments required for the next five years, including these five leases and thereafter are as follows:



|           |  | Additional Lease  Payments |       |  | Aggregate Lease  Payments |  
|---------- |  | -------------------------- | ----- |  | ------------------------- | -
|2012       |  | $                          | 162   |  |                           | $
|2013       |  |                            | 202   |  |                           |  
|2014       |  |                            | 202   |  |                           |  
|2015       |  |                            | 202   |  |                           |  
|2016       |  |                            | 202   |  |                           |  
|Thereafter |  |                            | 1,299 |  |                           |  
|           |  | $                          | 2,269 |  |                           | $












Note 22 – Contingencies












| | (a) | Legal Proceedings
| | --- | -----------------



The Company has been served in
prior fiscal periods with Statements of Claim issued in Alberta alleging that the Company is in breach of s. 347 of the Criminal
Code (the interest rate provision) and certain provincial consumer protection statutes. One of the claims is in respect of payday
loans and the certification motion has been pending since fiscal 2006. The other Alberta claim is in respect of title loans in
which the Company has agreed to a motion to certify the class proceeding if the lenders, officers and directors are removed as
defendants. Class counsel has agreed to our proposal. The Company believes that it conducts its business in accordance with applicable
law and is defending each of the actions vigorously. However, the likelihood of loss if any is not determinable.



Page 34









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 22 – Contingencies (continued)










| | (a) | Legal Proceedings (continued)
| | --- | -----------------------------



The Company is also involved
in other claims related to the normal course of operations. Management believes that it has adequately provided for these claims.



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



When the Company acts as a broker
on behalf of consumers seeking short term advances, the funding of the advances is provided directly to the customers by independent
third party lenders. The Company has entered into written business arrangements with a number of third party lenders that are
prepared to consider lending to customers. Pursuant to these agreements, services related to the collection of documents and information
as well as loan collection services are provided to the third party lenders. The agreements also provide that the third party
lenders are responsible for losses suffered as a result of uncollectible loans provided the required duties under the terms of
the agreements have been properly performed by the subsidiaries. In the event the duties are not properly performed and the lenders
make a claim as required under the agreement, the subsidiaries may be liable to the lenders for losses they have incurred. The
Company’s contingent risk is the balance of the third party lenders loan portfolio which totalled approximately $104,581
as at September 30, 2011 (2010 - $109,082).



To date, no claims have been
made by the third party lenders and no payments have been made or accrued by the subsidiaries pursuant to this clause in the agreements.
Risk is managed through compliance with the loan limits, procedures and selection criteria established by the lenders.












Note 23 – Related Party Transactions










(a) The Cash Store Australia
Holdings Inc.



The Company provides administrative
services to The Cash Store Australia Holdings Inc. The Company entered into an interim services agreement with AUC to provide
ongoing services such as financial and accounting support, contracts administrative services, and the use of the Company’s
information technology and telecommunication systems. Included in selling, general, and administrative expenses is a recovery
of $363 (2010 - $362) relating to these services. These transactions were subject to normal trade terms and were measured at the
actual exchange amount.



The Company has a $16 (2010 -
$7) receivable from AUC. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment. The receivable
was repaid subsequent to year-end.



(b) RTF Financial Holdings
Inc.



The Company provides administrative
services to RTF Financial Holdings Inc. The Company entered into an interim services agreement with RTF to provide ongoing services
such as financial and accounting support and contracts administrative services. Included in selling, general, and administrative
expenses is a recovery of $240 (2010 - $120) relating to these services. These transactions were subject to normal trade terms
and were measured at the actual exchange amount.



Page 35









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 23 – Related
Party Transactions (continued)










(b) RTF Financial Holdings
Inc. (continued)



The Company has a $45 (2010 -
$485) receivable from RTF. Amounts due are non-interest bearing, unsecured and have no specified terms of repayment. The receivable
was repaid subsequent to year-end.



(c) Third party lenders (restated)



A
privately held entity that raises capital and provides advances to the Company’s customers (third-party lender) is controlled
by the father of Cameron Schiffner, the Senior Vice President of Operations of the Company. In addition, Cameron Schiffner’s
brother was a member of management of AUC and is a member of management of the third-party lender. The Company’s relationship
with the third-party lender predates Cameron Schiffner’s employment with the Company. Included in retention payments are
$11,674 for the year ended September 30, 2011 (fifteen months ended September 30, 2010 - $13,531) of amounts paid or payable directly
to this third-party lender. As at September 30, 2011, included in accrued liabilities is $2,281 (September 30, 2010 - $1,849)
due to this third-party lender. The Company’s contingent risk in this third-party lender’s loan portfolio totalled
$44,967 as at September 30, 2011 (September 30, 2010 - $48,415).












Note 24 – Financial Instruments and Risk Management










(a) Classification
of Financial Instruments



The Company has made the following
classifications: cash as held-for-trading, other receivables and consumer loans receivable as loans and receivables, and accounts
payable and accrued liabilities and obligations under capital leases as other financial liabilities.



(b) Fair
Values



The fair values of financial
instruments are determined with respect to the hierarchy that prioritizes the input to fair value measurement. In the absence
of an active market, the Company determines fair value by using valuation techniques that refer to observable market data or estimated
market prices. Fair values are inherently judgmental, thus the estimated fair values do not necessarily reflect amounts that would
be received or paid in case of immediate settlement of these instruments. The use of different estimations, methodologies and
assumptions could have a material effect on the estimated fair value amounts. The carrying value of other receivables, consumer
loans receivable net, accounts payable and accrued liabilities approximate their fair values due to the relatively short-term
nature of these balances. The fair value of obligations under capital leases are determined by estimating future cash flows on
a borrowing-by-borrowing basis, and discounting these future cash flows using a rate which takes into account the Company’s
spread for credit risk at year-end for similar terms and types of arrangements. Based on estimates, the fair-value of the Company’s
obligation under capital lease as at September 30, 2011 and 2010 are not significantly different than their carrying value.



The hierarchy for inputs used
in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring
that the most observable inputs be used when available. The hierarchy gives the highest priority to unadjusted quoted prices in
active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three
levels of fair value hierarchy based on the reliability of inputs are as follows:



Page 36









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 24 – Financial
Instruments and Risk Management (continued)










(b) Fair
Values (continued)



| | · | Level 1 –
                                                                                                           inputs are unadjusted
                                                                                                           quoted prices of identical
                                                                                                           instruments in active
                                                                                                           markets.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Level 2 –
                                                                                                           inputs other than quoted
                                                                                                           prices included in
                                                                                                           Level 1 that are observable
                                                                                                           for the asset or liability,
                                                                                                           either directly or
                                                                                                           indirectly.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | · | Level 3 –
                                                                                                           inputs used in a valuation
                                                                                                           technique are not based
                                                                                                           on observable market
                                                                                                           data in determining
                                                                                                           fair values of these
                                                                                                           instruments.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



The Company has segregated all
financial assets and liabilities that are measured at fair value into the most appropriate level within the fair value hierarchy
based on the inputs used to determine the fair value at the measurement date. Cash is the only financial instruments valued using
Level 1 inputs (quoted market prices). There were no financial instruments categorized in Level 2 (valuation techniques using
observable market inputs) and Level 3 (valuation techniques using non-observable market inputs) as at September 30, 2011.



(c) Risk
Management



The Company is exposed to a number
of financial risks in the normal course of its business operations, including market risks resulting from fluctuations in interest
rates, as well as credit and liquidity risks. The nature of the financial risks and the Company’s strategy for managing
these risks has not changed significantly from the prior period.



Market risk is the risk of loss
that results from changes in market factors such as foreign currency exchange rates and interest rates. The level of market risk
to which the Company is exposed at any point in time varies depending on market conditions, expectations of future price or market
rate movements and composition of the Company’s financial assets and liabilities held, non-trading physical assets, and
contract portfolios.



Overall, the Company’s
Board of Directors has responsibility for the establishment and approval of the Company's risk management policies. To manage
the exposure to changes in market risk, management performs a risk assessment on a continual basis to help ensure that all significant
risks related to the Company and its operations have been reviewed and assessed to reflect changes in market conditions and the
Company's operating activities. The following summarizes the types of market price risks to which the Company is exposed, and
the risk management instruments applied to mitigate them. The sensitivities provided below are hypothetical and should not be
considered to be predictive of future performance or indicative of earnings on these contracts. The Company does not currently
use derivative financial instruments to manage its market risks and does not hold or issue derivative financial instruments for
trading or speculative purposes.



| | (i) | Currency Risk
| | --- | -------------



The Company is exposed to currency
risk due to operations in the United Kingdom; however, the majority of operations are in Canada and as such this risk is not considered
significant to the Company.



| | (ii) | Interest Rate Risk
| | ---- | ------------------



The Company does not have any
variable interest bearing obligations; therefore, the
Company’s exposure to interest rate fluctuations relative to financial instruments is minimal.



Page 37









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 24 – Financial Instruments and Risk Management
(continued)










(c) Risk
Management (continued)



| | (iii) | Credit Risk
| | ----- | -----------



Credit risk is the risk of financial
loss to the Company if a customer or counter-party to a financial instrument fails to meet its contractual obligations and arises
principally from the Company’s cash, other receivables, consumer loans receivable, and long-term receivable. The maximum
amount of credit risk exposure is limited to the carrying amount of the balances disclosed in these financial statements.



The best representation of the
Company’s maximum exposure (excluding tax effects) to credit risk, which is a worst case scenario and does not reflect results
expected by the Company, is as set out in the following table:



|                                        |  | September 30 |        |  | September 30 |  
|--------------------------------------- |  | ------------ | ------ |  | ------------ | -
|                                        |  | 2011         |        |  | 2010         |  
|                                        |  | Restated     |        |  | Restated     |  
|                                        |  | Note 3       |        |  | Note 3       |  
|Cash - Note 5                           |  | $            | 19,291 |  |              | $
|Other receivables - Note 6              |  |              | 12,575 |  |              |  
|Consumer loans receivable, net - Note 7 |  |              | 4,781  |  |              |  
|Long-term receivable - Note 6           |  |              | 681    |  |              |  
|                                        |  | $            | 37,328 |  |              | $



Cash: Credit risk associated
with cash is minimized substantially by ensuring that these financial assets are placed with reputable Canadian financial institutions
that have been accorded strong investment grade ratings by a primary rating agency.



Other receivables: Other
receivables includes amounts owing to the Company from various parties. Included within other receivables are amounts of $11,143
whereby a significant portion is owed by two different parties and as such, these balances represent a concentration of credit
risk to the Company. For such parties, the Company trades with entities that are assessed as being credit worthy and the Company
maintains an ongoing review of their credit status. The balance of other receivables is owed by a large number of parties that
individually owe amounts to the Company that are not significant in value as at September 30, 2011.



Consumer loans receivable:The Company also directly lends to its customers and has no significant concentration of credit risk with any particular individual
related to short-term advances.



Credit risk relates to the possibility
of default of payment on the Company’s consumer loans receivable. The Company performs on-going credit evaluations, and
reviews the aging of the receivable, payment history and other factors, and it establishes a provision for loan losses when it
is determined that a loan is impaired.



Page 38









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 24 – Financial Instruments and Risk Management
(continued)










| | (c) | Risk Management (continued)
| | --- | ---------------------------



| | (iii) | Credit Risk (continued)
| | ----- | -----------------------



The following table presents
an analysis of the age of consumer loans receivable as of September 30, 2011.



|                                                                     |  | September 30 |        |   | September 30 |  
|-------------------------------------------------------------------- |  | ------------ | ------ | - | ------------ | -
|                                                                     |  | 2011         |        |   | 2010         |  
|                                                                     |  |              |        |   |              |  
|Consumer loans receivable, net of allowance for consumer loan losses |  |              |        |   |              |  
|Current                                                              |  | $            | 2,176  |   |              | $
|1-30 days past due date                                              |  |              | 856    |   |              |  
|31-60 days past due date                                             |  |              | 531    |   |              |  
|61-90 days past due date                                             |  |              | 417    |   |              |  
|Greater than 90 days past due date                                   |  |              | 3,584  |   |              |  
|Consumer loans receivable                                            |  |              | 7,564  |   |              |  
|Allowance for consumer loan losses                                   |  |              | (2,783 | ) |              |  
|                                                                     |  | $            | 4,781  |   |              | $



The Company makes significant
estimates in respect of the allowance for consumer loan losses. Historical information is considered when determining whether
past-due accounts should be provided for and the same factors are considered when determining whether to write off amounts charged
to the allowance against the consumer loans receivable.



The following table presents
a summary of the activity related to the Company’s allowance for consumer loan losses.



|                                  |  | 2011 |       |   | 2010 |  
|--------------------------------- |  | ---- | ----- | - | ---- | -
|Balance, beginning of period      |  | $    | 511   |   |      | $
|Provisions made during the period |  |      | 2,559 |   |      |  
|Write-offs during the period      |  |      | (287  | ) |      |  
|Balance, end of period            |  | $    | 2,783 |   |      | $



| | (iv) | Liquidity Risk
| | ---- | --------------





Liquidity risk is the risk that
the Company will not be able to meet its financial obligations as they become due or will not receive sufficient funds from its
third party lenders to advance to the Company’s customers. The Company manages all liquidity risk through maintaining a
sufficient working capital amount through daily monitoring of controls, cash balances and operating results. The Company’s
principal sources of cash are funds from operations, which the Company believes will be sufficient to cover its normal operating
and capital expenditures.



Page 39









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 24 – Financial Instruments and Risk Management
(continued)










| | (c) | Risk Management (continued)
| | --- | ---------------------------



| | (iv) | Liquidity Risk (continued)
| | ---- | --------------------------



The maximum exposures to liquidity
risk are represented by the carrying amount of accounts payable and accrued liabilities, and obligations under capital leases,
which is approximately $24,920. This amount is made up of the following:



|                                                      |  | Carrying Amount |        |  | Contractual Cash Flows |   |        | Less Than 1 Year |  |   | 1-3 Years | 
|----------------------------------------------------- |  | --------------- | ------ |  | ---------------------- | - | ------ | ---------------- |  | - | --------- | 
|                                                      |  | Restated        |        |  | Restated               |   |        | Restated         |  |   |           | 
|                                                      |  | Note 3          |        |  | Note 3                 |   |        | Note 3           |  |   |           | 
|Accounts payable and accrued liabilities              |  | $               | 29,537 |  |                        | $ | 29,537 |                  |  | $ | 29,537    | 
|Obligations under capital leases (including interest) |  |                 | 1,295  |  |                        |   | 1,421  |                  |  |   | 761       | 
|                                                      |  | $               | 30,832 |  |                        | $ | 30,958 |                  |  | $ | 30,298    | 












Note 25 – Management of Capital










The Company’s objective
when managing capital is to provide a return to its shareholders by fairly pricing its services with the associated level of risk
while being able to sufficiently fund future growth initiatives. The Company defines capital that it manages as the aggregate
of its shareholders’ equity, which is comprised of share capital, contributed surplus and retained earnings.



In order to maintain or adjust
its capital structure, the Company, upon approval from its Board of Directors, may issue shares, repurchase shares through a normal
course issuer bid, pay dividends or undertake other activities as deemed appropriate under the specific circumstances. The Board
of Directors reviews and approves any material transactions out of the ordinary course of business, including proposals on acquisitions
or other major investments or divestures, as well as capital and operating budgets.



The Company sets the amount of
capital in proportion to risk and manages the capital structure and makes adjustments to it based on economic or regulatory changes.
In order to maintain or modify the capital structure, the Company may seek additional sources of capital. The Company has limited
reliance on debt facilities and is not subject to any restrictive covenants.



The Company’s capital management
objectives, policies and procedures were unchanged since the prior year-end.



Page 40









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 26 – Subsequent Event










On November 16, 2011, the Company
declared a quarterly dividend of $0.12 per common share. The dividend is payable on December 14, 2011, to shareholders of record
on November 29, 2011.








Note 27 – Comparative
Figures










Certain comparative figures have
been reclassified to conform to the presentation adopted for the current period. Specifically, certain amounts previously recorded
within Selling, general and administrative expense have been reclassified to Other income for all periods presented.










Note 28 – U.S. GAAP Reconciliation












The Company prepares its consolidated financial
statements in accordance with Canadian GAAP, which conforms from a recognition and measurement perspective in all material aspects
applicable to the Company with U.S. GAAP for the periods presented. Presentation differences and additional disclosures required
under U.S. GAAP are as follows:



| | (A) | Consolidated Statements
                                                                        of Cash Flows
| | --- | -------------------------------------------------------------------------------------------------------------



Canadian GAAP permits the disclosure
of a subtotal of the amount of funds provided by operating activities before changes in non-cash operating items in the consolidated
statements of cash flows. U.S. GAAP does not permit this subtotal to be included in the consolidated statements of cash flows.



| | (B) | Long- Term Investments
| | --- | ----------------------



U.S. GAAP requires the Company
to disclose the aggregate quoted market value of long-term investments, which is not required under Canadian GAAP.



(a) The Cash Store Australia
Holdings Inc.



The Company accounts for the
investment under the equity method of accounting as it has significant influence over strategic operating, investing and financing
activities due to board representation and management involvement in day to day operations. The difference between the carrying
amount of the investment and the underlying equity in net assets of the investee is not significant. The aggregate quoted market
value of this investment is $2,700.



Page 41











|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 28 – U.S. GAAP Reconciliation (continued)












(b) RTF Financial Holdings
Inc.



The Company accounts for the
investment under the equity method of accounting as it has significant influence over strategic operating, investing and financing
activities due to board representation and management involvement in day to day operations. The difference between the carrying
amount of the investment and the underlying equity in net assets of the investee is not significant. No aggregate quoted market
value of the investment exists as RTF is not publicly traded.



| | (C) | Intangible Assets
| | --- | -----------------



The estimated aggregate annual
amortization expense for the next five years for intangible assets subject to amortization is as follows:



|Fiscal year ending September 30            |  | 2012 |       |  | 2013 |   |       | 2014 |  |   | 2015 |  |  | 2016 |  
|------------------------------------------ |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ---- |  |  | ---- | -
|Amortization expense for intangible assets |  | $    | 2,260 |  |      | $ | 2,214 |      |  | $ | 804  |  |  | $    | -



| | (D) | Income Taxes
| | --- | ------------



Under Canadian GAAP, the tax
effects of temporary differences are referred to as future income taxes. Under U.S. GAAP, the tax effects of temporary differences
are referred to as deferred income taxes.



The Company has a tax loss carry
forward in the amount of $689.



The Company currently does not
have any unrecognized tax benefits. The Company’s tax positions for 2008 to present in Canada remain subject to examination
by tax authorities. The Company’s tax position for the current fiscal year in the United Kingdom remains subject to examination
by tax authorities.



| | (E) | Accounts Payable and
                                                                        Accrued Liabilities
| | --- | ----------------------------------------------------------------------------------------------------------------



U.S. GAAP requires the Company
to disclose components of accrued liabilities, which is not required under Canadian GAAP. Accrued liabilities included in trade
accounts payable and accrued liabilities within Note 13 as at September 30, 2011, were $4,097 (2010 - $2,749).



Page 42









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               














Note 28 – U.S. GAAP Reconciliation (continued)










| | (F) | Stock Based Compensation
| | --- | ------------------------



U.S. GAAP requires the Company
to disclose nonvested share options, which is not required under Canadian GAAP. A summary of the status of the Company's nonvested
share options as of September 30, 2011, and the changes during the fifteen months ended September 30, 2010, is presented below:



|                               |  | September 30             |          |   | September 30           |  
|------------------------------ |  | ------------------------ | -------- | - | ---------------------- | -
|                               |  | 2011                     |          |   | 2010                   |  
|                               |  | Total Options for Shares |          |   | Weighted Average Price |  
|Nonvested, beginning of period |  |                          | 697,678  |   |                        | $
|Granted                        |  |                          | 155,000  |   |                        |  
|Vested                         |  |                          | (377,675 | ) |                        |  
|Forfeited                      |  |                          | (1,667   | ) |                        |  
|Nonvested, end of period       |  |                          | 473,336  |   |                        | $



The total intrinsic value of
options exercised during the twelve months ended September 30, 2011, was $1,593 (2010 - $3,610). The total fair value of options
that vested during the twelve months ended September 30, 2011, was $1,346 (2010 - $996).



As at September 30, 2011, and
September 30, 2010, the aggregate intrinsic value of options outstanding was $1,610 and $7,635, respectively, while the aggregate
intrinsic value of the options that are currently exercisable was $1,521 and $3,322, respectively.



As at September 30, 2011, there
was $1,125 of total unrecognized compensation costs related to non-vested stock options. The Company expects to recognize this
expense over a weighted average period of 1.8 years.



For the twelve months ended September
30, 2011, the total cash received for stock options exercised totaled $939 (2010 - $1,725).



Page 43









|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               












Note 28 – US GAAP Reconciliation (continued)












| | (G) | Financial Instruments
                                                                        (restated)
| | --- | --------------------------------------------------------------------------------------------------------



Valuation Techniques:



The following table presents
the carrying amounts and estimated fair values of the Company’s financial instruments:



|                                         |  | September 30    |        |  | September 30 |  
|---------------------------------------- |  | --------------- | ------ |  | ------------ | -
|                                         |  | 2011            |        |  | 2010         |  
|                                         |  | Carrying
 Value |        |  | Fair Value   |  
|                                         |  | Restated        |        |  | Restated     |  
|                                         |  | Note 3          |        |  | Note 3       |  
|Financial Assets                         |  |                 |        |  |              |  
|Cash                                     |  | $               | 19,291 |  |              | $
|Other receivables                        |  |                 | 12,575 |  |              |  
|Consumer loans receivable                |  |                 | 4,781  |  |              |  
|Long term receivable                     |  | $               | 681    |  |              | $
|Financial Liabilities                    |  |                 |        |  |              |  
|Accounts payable and accrued liabilities |  | $               | 29,537 |  |              | $
|Obligations under capital leases         |  | $               | 1,295  |  |              | $



| | (H) | Recent United States
                                                                        Accounting Pronouncements
| | --- | ----------------------------------------------------------------------------------------------------------------------



In 2010, FASB amended ASC Topic
310 “Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses.” The ASC significantly
expands existing disclosures about the credit quality of financing receivables and their allowance for credit losses. The ASC
affects all entities with financing receivables, excluding short-term trade accounts receivable or receivables measured at fair
value or lower of cost and fair value. This section is effective for interim and annual reporting periods ending on or after December
15, 2010. The adoption of the provisions of ASC Topic 310 did not have a material impact on the Company’s consolidated financial
statements.



In 2010, FASB issued ASU 2010-13,
“Effect of Denominating the Exercise Price of a Share-Based Award in the Currency of the Market in Which the Underlying
Equity Security Trades a consensus of the FASB Emerging Issues Task Force (Issue No. 09-J).” The Task Force reached a consensus
that an employee share-based payment with an exercise price denominated in the currency of a market in which a substantial portion
of the entity’s equity securities trade should be considered an equity classified award assuming all other criteria for
equity classification are met. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning,
on or after December 15, 2010. The Company is evaluating the impact of the adoption of this ASU on its consolidated financial
statements.



In December 2010, FASB issued
ASU 2010-28, “When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying
Amounts”. The amendments in this ASU modify Step 1 of the goodwill impairment test for reporting units with zero or negative
carrying amounts. For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is
more likely than not that a goodwill impairment exists. This ASU is effective for fiscal years, and interim periods within those
years, beginning on or after December 15, 2010. The Company is evaluating the impact of the adoption of this ASU on its consolidated
financial statements.



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|                                                                                      | NOTES
    TO CONSOLIDATED FINANCIAL STATEMENTS
|------------------------------------------------------------------------------------- | ----------------------------------------------
|FOR THE TWELVE AND FIFTEEN MONTHS ENDED
    SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2010
|                                                                                     
|                                                                                     
|(in thousands, except share
    and per share amounts)                               










Note 28 – US GAAP Reconciliation (continued)










| | (H) | Recent United States
                                                                        Accounting Pronouncements (continued)
| | --- | ----------------------------------------------------------------------------------------------------------------------------------



In December 2010, FASB issued
ASU 2010-29, “Disclosure of Supplementary Pro Forma Information for Business Combinations”. The objective of this
Update is to address diversity in practice about the interpretation of the pro forma revenue and earnings disclosure requirements
for business combinations. The Task Force reached a consensus that if an entity presents comparative financial statements, the
entity should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during
the current year had occurred as of the beginning of the comparable prior annual reporting period. This ASU is effective for business
combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or
after December 15, 2010. The Company is evaluating the impact of the adoption of this ASU on its consolidated financial statements.



In May 2011, FASB issued ASU
2011-04 “Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP
and IFRSs.” This ASU was issued concurrently with IFRS 13, Fair Value Measurements, to provide largely identical guidance
about fair value measurement and disclosure requirements. The new standards do not extend the use of fair value but, rather, provide
guidance about how fair value should be applied where it already is required or permitted under IFRS or U.S. GAAP. For U.S. GAAP,
most of the changes are clarifications of existing guidance or wording changes to align with IFRS 13. The Company is required
to apply the ASU prospectively for interim and annual periods beginning after December 15, 2011. Early adoption is not permitted.
In the period of adoption, a reporting entity will be required to disclose a change, if any, in valuation technique and related
inputs that result from applying the ASU and to quantify the total effect, if practicable. The Company is evaluating the impact
of the adoption of this ASU on its consolidated financial statements.



In June 2011, FASB issued ASU
2011-05 “Comprehensive Income: Presentation of Comprehensive Income.” This ASU increases the prominence of other comprehensive
income in financial statements. Under this ASU, an entity will have the option to present the components of net income and comprehensive
income in either one or two consecutive financial statements. The ASU eliminates the option in U.S. GAAP to present other comprehensive
income in the statement of changes in equity. An entity should apply the ASU retrospectively. The ASU is effective for fiscal
years, and interim periods within those years, beginning after December 15, 2011. The Company is evaluating the impact of the
adoption of this ASU on its consolidated financial statements.



In September 2011, the FASB amended
the guidance on the annual testing of goodwill for impairment. The amended guidance will allow companies to assess qualitative
factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the
two-step goodwill impairment test required under current accounting standards. This guidance will be effective for the Company’s
fiscal year ending September 30, 2012, with early adoption permitted. The Company has determined that this new guidance will not
have a material impact on its consolidated financial statements.



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