---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28,
2011

or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-51198

GLOBAL GREEN SOLUTIONS INC.(Exact name of registrant as specified in its
charter)

|NEVADA                                                               | 20-8616221                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)

PO Box 45100 4326 Dunbar
Street Vancouver, BCCanada(Address of
principal executive offices)

(604) 408-0153 Toll Free
(866) 408-0153

Indicate by check mark whether the issuer (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [X]     
NO [ ]

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
YES [ ]         NO [ ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of large accelerated filer, accelerated
filer, non-accelerated filer, and smaller reporting company in Rule 12b-2
of the Exchange Act.

|Large Accelerated Filer                             | [ ] | Accelerated Filer         | [ ]
|--------------------------------------------------- | --- | ------------------------- | ---
|Non-accelerated Filer                               | [ ] | Smaller Reporting Company | [X]
|(Do not check if a smaller reporting
      company) |     |                          

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).YES [
]         NO [X]

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date:
49,881,829 as of April 12, 2011

---

PART I  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.



GLOBAL GREEN SOLUTIONS INC.(A Development Stage
  Company)

INTERIM CONSOLIDATED FINANCIAL
  STATEMENTS(Unaudited)

FOR THE THREE MONTHS ENDED FEBRUARY 28, 2011 AND
  2010(Stated in U.S. Dollars)

---

|GLOBAL GREEN SOLUTIONS INC.        
|-----------------------------------
|(A Development Stage Company)      
|                                   
|INTERIM CONSOLIDATED BALANCE SHEETS
|(Unaudited)                        
|(Stated in U.S. Dollars)           

|                                                                                                                                                                                                                                                                   |   | FEBRUARY 28 |   |   | NOVEMBER 30 |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | - | ----------- | - | - | ----------- | -
|                                                                                                                                                                                                                                                                   |   | 2011        |   |   | 2010        |  
|ASSETS                                                                                                                                                                                                                                                             |   |             |   |   |             |  
|                                                                                                                                                                                                                                                                   |   |             |   |   |             |  
|Current                                                                                                                                                                                                                                                            |   |             |   |   |             |  
|Cash                                                                                                                                                                                                                                                               | $ | 99,655      |   | $ | 140,509     |  
|Amounts receivable                                                                                                                                                                                                                                                 |   | 19,044      |   |   | 12,837      |  
|Prepaid
      expenses                                                                                                                                                                                                                                             |   | 41,624      |   |   | 29,792      |  
|                                                                                                                                                                                                                                                                   |   | 160,323     |   |   | 183,138     |  
|Equipment                                                                                                                                                                                                                                                          |   | 4,049       |   |   | 4,419       |  
|                                                                                                                                                                                                                                                                   | $ | 164,372     |   | $ | 187,557     |  
|                                                                                                                                                                                                                                                                   |   |             |   |   |             |  
|LIABILITIES                                                                                                                                                                                                                                                        |   |             |   |   |             |  
|                                                                                                                                                                                                                                                                   |   |             |   |   |             |  
|Current                                                                                                                                                                                                                                                            |   |             |   |   |             |  
|Accounts
      payable and accrued liabilities                                                                                                                                                                                                                     | $ | 1,991,602   |   | $ | 2,604,886   |  
|Convertible notes                                                                                                                                                                                                                                                  |   | 1,203,551   |   |   | 1,010,164   |  
|Loans
      payable                                                                                                                                                                                                                                                |   | 1,771,163   |   |   | 1,864,005   |  
|                                                                                                                                                                                                                                                                   |   | 4,966,316   |   |   | 5,479,055   |  
|Project Funding
      Advances                                                                                                                                                                                                                                     |   | 8,812,712   |   |   | 8,446,766   |  
|                                                                                                                                                                                                                                                                   |   | 13,779,028  |   |   | 13,925,821  |  
|Commitments And
      Contractual Obligations (Note 9)                                                                                                                                                                                                             |   |             |   |   |             |  
|Subsequent Events (Note 13)                                                                                                                                                                                                                                        |   |             |   |   |             |  
|                                                                                                                                                                                                                                                                   |   |             |   |   |             |  
|DEFICIENCY                                                                                                                                                                                                                                                         |   |             |   |   |             |  
|Capital Stock                                                                                                                                                                                                                                                      |   |             |   |   |             |  
|Authorized: 
                    
      100,000,000 Common shares, par value $0.00001 per
      share 
          Issued and outstanding: 
                    
      48,009,299 common shares at February 28, 2011 and 
                    
    November 30, 2010 |   | 480         |   |   | 480         |  
|                                                                                                                                                                                                                                                                   |   |             |   |   |             |  
|Additional Paid-In Capital                                                                                                                                                                                                                                         |   | 20,976,802  |   |   | 20,435,348  |  
|Shares To Be Issued                                                                                                                                                                                                                                                |   | 587,356     |   |   | -           |  
|Share Purchase Warrants                                                                                                                                                                                                                                            |   | 142,500     |   |   | 620,500     |  
|Deficit Accumulated During
      The Development Stage                                                                                                                                                                                                             |   | (35,207,698 | ) |   | (34,680,536 | )
|Deficiency Attributable to Global Green
      Solutions Inc.                                                                                                                                                                                                       |   | (13,500,560 | ) |   | (13,624,208 | )
|Deficiency Attributable to
      Non-controlling Interests                                                                                                                                                                                                         |   | (114,096    | ) |   | (114,056    | )
|                                                                                                                                                                                                                                                                   |   | (13,614,656 | ) |   | (13,738,264 | )
|                                                                                                                                                                                                                                                                   | $ | 164,372     |   | $ | 187,557     |  

The accompanying condensed notes are an integral part of these
  interim consolidated financial statements.

F-1

---

|GLOBAL GREEN SOLUTIONS INC.                  
|---------------------------------------------
|(A Development Stage Company)                
|                                             
|INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
|(Unaudited)                                  
|(Stated in U.S. Dollars)                     

|                                                         |   |                    |   |   |             |   |   | CUMULATIVE    |  
|-------------------------------------------------------- | - | ------------------ | - | - | ----------- | - | - | ------------- | -
|                                                         |   |                    |   |   |             |   |   | PERIOD FROM   |  
|                                                         |   |                    |   |   |             |   |   | INCEPTION     |  
|                                                         |   |                    |   |   |             |   |   | JUNE 10, 2003 |  
|                                                         |   | THREE MONTHS ENDED |   |   | TO          |  
|                                                         |   | FEBRUARY 28        |   |   | FEBRUARY 28 |  
|                                                         |   | 2011               |   |   | 2010        |   |   | 2011          |  
|                                                         |   |                    |   |   |             |   |   |               |  
|Revenue                                                  | $ | -                  |   | $ | -           |   | $ | **-**         |  
|                                                         |   |                    |   |   |             |   |   |               |  
|Operating Expenses                                       |   |                    |   |   |             |   |   |               |  
|Consulting fees                                          |   | 58,177             |   |   | 134,686     |   |   | 4,424,193     |  
|Finance charges                                          |   | 56,341             |   |   | 31,968      |   |   | 2,302,654     |  
|Interest and bank charges                                |   | 82,726             |   |   | 136,132     |   |   | 825,274       |  
|Office, sundry, and debt
      settlements               |   | (93,221            | ) |   | 59,697      |   |   | 1,538,207     |  
|Professional fees                                        |   | 14,688             |   |   | 71,198      |   |   | 992,843       |  
|Project development expenses                             |   | 408,491            |   |   | 1,424,898   |   |   | 14,655,512    |  
|Stock-based compensation                                 |   | -                  |   |   | 85,606      |   |   | 7,660,100     |  
|                                                         |   | 527,202            |   |   | 1,944,185   |   |   | 32,398,783    |  
|                                                         |   |                    |   |   |             |   |   |               |  
|Operating Loss Before
      Other Income (Expense)       |   | (527,202           | ) |   | (1,944,185  | ) |   | (32,398,783   | )
|                                                         |   |                    |   |   |             |   |   |               |  
|Other Income (Expense)                                   |   |                    |   |   |             |   |   |               |  
|Impairment of advances                                   |   | -                  |   |   | -           |   |   | (2,837,160    | )
|Impairment of intangible assets                          |   | -                  |   |   | -           |   |   | (357,100      | )
|Interest income                                          |   | -                  |   |   | -           |   |   | 60,049        |  
|                                                         |   |                    |   |   |             |   |   |               |  
|Net Loss                                                 |   | (527,202           | ) |   | (1,944,185  | ) |   | (35,532,994   | )
|                                                         |   |                    |   |   |             |   |   |               |  
|Net Loss Attributable To Non-controlling
      Interests |   | 40                 |   |   | 7,893       |   |   | 325,296       |  
|                                                         |   |                    |   |   |             |   |   |               |  
|Net Loss Attributable to Global Green Solutions Inc.     | $ | (527,162           | ) | $ | (1,936,292  | ) | $ | (35,207,698   | )
|                                                         |   |                    |   |   |             |   |   |               |  
|Basic And Diluted Loss Per Common Share                  | $ | (0.01              | ) | $ | (0.04       | ) |   |               |  
|                                                         |   |                    |   |   |             |   |   |               |  
|Weighted Average Number Of Common Shares Outstanding     |   | 48,009,229         |   |   | 47,090,543  |   |   |               |  

The accompanying condensed notes are an integral part of these
  interim consolidated financial statements.

F-2

---

|GLOBAL GREEN SOLUTIONS INC.                  
|---------------------------------------------
|(A Development Stage Company)                
|                                             
|INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
|(Unaudited)                                  
|(Stated in U.S. Dollars)                     

|                                                                                                     |   |                    |   |   |                  |   |   | CUMULATIVE  |  
|---------------------------------------------------------------------------------------------------- | - | ------------------ | - | - | ---------------- | - | - | ----------- | -
|                                                                                                     |   |                    |   |   |                  |   |   | PERIOD FROM |  
|                                                                                                     |   |                    |   |   |                  |   |   | INCEPTION   |  
|                                                                                                     |   | THREE MONTHS ENDED |   |   | JUNE 10, 2003 TO |  
|                                                                                                     |   | FEBRUARY 28        |   |   | FEBRUARY 28      |  
|                                                                                                     |   | 2011               |   |   | 2010             |   |   | 2011        |  
|Cash Flows (Used In) Provided By:                                                                    |   |                    |   |   |                  |   |   |             |  
|Operating Activities                                                                                 |   |                    |   |   |                  |   |   |             |  
|Net loss                                                                                             | $ | (527,202           | ) | $ | (1,944,185       | ) | $ | (35,532,994 | )
|Adjustments
      to reconcile net loss to net cash 
               used by operating
    activities |   |                    |   |   |                  |   |   |             |  
|Depreciation                                                                                         |   | 370                |   |   | 1,338            |   |   | 66,031      |  
|Non-cash finance charges                                                                             |   | 56,341             |   |   | 31,968           |   |   | 2,302,654   |  
|Stock-based compensation                                                                             |   | -                  |   |   | 85,606           |   |   | 7,660,100   |  
|Non-cash consulting services                                                                         |   | -                  |   |   | 32,613           |   |   | 1,028,083   |  
|Non-cash license fee                                                                                 |   | -                  |   |   | -                |   |   | 165,000     |  
|Non-cash settlement                                                                                  |   | (124,766           | ) |   | -                |   |   | (117,588    | )
|Non-cash project development expense                                                                 |   |                    |   |   |                  |   |   |             |  
|recovery                                                                                             |   | -                  |   |   | -                |   |   | (575,314    | )
|Accrued interest                                                                                     |   | 82,726             |   |   | 133,520          |   |   | 774,782     |  
|Impairment of intangible assets                                                                      |   | -                  |   |   | -                |   |   | 2,837,160   |  
|Impairment of advances                                                                               |   | -                  |   |   | -                |   |   | 357,100     |  
|Changes to
      operating assets and liabilities                                                    |   |                    |   |   |                  |   |   |             |  
|Amounts receivable                                                                                   |   | (6,207             | ) |   | (3,947           | ) |   | (138,044    | )
|Prepaid expenses                                                                                     |   | (11,832            | ) |   | (70,876          | ) |   | (41,624     | )
|Accounts payable and accrued liabilities                                                             |   | (122,640           | ) |   | 459,518          |   |   | 2,150,290   |  
|                                                                                                     |   | (653,210           | ) |   | (1,274,445       | ) |   | (19,064,364 | )
|Investing Activities                                                                                 |   |                    |   |   |                  |   |   |             |  
|Acquisition
      of equipment and intangible assets                                                 |   | -                  |   |   | (3,894           | ) |   | (70,180     | )
|Pilot project facilities and equipment                                                               |   | -                  |   |   | -                |   |   | (2,718,160  | )
|                                                                                                     |   | -                  |   |   | (3,894           | ) |   | (2,788,340  | )
|Financing Activities                                                                                 |   |                    |   |   |                  |   |   |             |  
|Issue of
      share capital, net of issuance costs                                                  |   | -                  |   |   | -                |   |   | 7,907,588   |  
|Net proceeds from convertible notes                                                                  |   | 191,000            |   |   | 148,100          |   |   | 2,734,932   |  
|Advances
      from non-controlling interests                                                        |   | -                  |   |   | 5,100            |   |   | 122,116     |  
|Loan advances (repayments) - net                                                                     |   | 80,116             |   |   | (1,250           | ) |   | 2,539,266   |  
|Project
      funding advances                                                                       |   | 341,240            |   |   | 1,413,986        |   |   | 8,648,457   |  
|                                                                                                     |   | 612,356            |   |   | 1,565,936        |   |   | 21,952,359  |  
|(Decrease) Increase In Cash                                                                          |   | (40,854            | ) |   | 287,597          |   |   | 99,655      |  
|Cash, Beginning Of
      Period                                                                      |   | 140,509            |   |   | 41,956           |   |   | -           |  
|Cash, End Of Period                                                                                  | $ | 99,655             |   | $ | 329,553          |   | $ | 99,655      |  
|Supplemental
      Information                                                                       |   |                    |   |   |                  |   |   |             |  
|Cash
      Activities:                                                                               |   |                    |   |   |                  |   |   |             |  
|Interest paid                                                                                        | $ | -                  |   | $ | -                |   |   |             |  
|Income taxes paid                                                                                    | $ | -                  |   | $ | -                |   |   |             |  

Non-Cash Investing and Financing Activities (Note
  10)

The accompanying condensed notes are an integral part of these
  interim consolidated financial statements.

F-3

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|1. | NATURE OF OPERATIONS AND GOING
      CONCERN
|-- | --------------------------------------------

Global Green Solutions Inc. (the
  Company) was incorporated June 10, 2003 in the State of Nevada, is a
  development stage company and is devoting all of its efforts to establishing a
  new business. That business is the use of heat from the combustion of biomass to
  generate industrial process steam and electrical power.

The Company conducts the majority of
  its operations through its subsidiary, Global Greensteam LLC, a California
  corporation owned 100%. That subsidiary is developing its Greensteam process
  technology and projects that convert biomass (primarily wood and crop waste) to
  low-cost steam. The steam can be used for industrial purposes or for combined
  heat and power applications.

The accompanying financial statements
  have been prepared assuming the Company will continue as a going concern. As
  shown in the accompanying financial statements, the Company has incurred a net
  loss since inception (before Non-controlling Interests) of $35.5 million for the
  period from June 10, 2003 (inception) to February 28, 2011, has a stockholders
  deficiency of approximately $13.5 million, and has no revenue. The future of the
  Company is dependent upon its ability to obtain financing and upon future
  profitable operations from the development and marketing of its Greensteam
  biomass combustion projects. The Company plans to continue as a going concern by
  actively developing and marketing its Greensteam technology. It intends to raise
  additional capital for the development and marketing of its project primarily
  through the issuance of common shares and or the issuance of debt securities. It
  may also raise additional capital by selling interests in its projects. There
  can be no assurance that the Company will be successful in marketing and
  developing its project or in securing financing. These financial statements do
  not include any adjustments relating to the recoverability and classification of
  recorded assets, or the amounts of and classification of liabilities that might
  be necessary in the event the Company cannot continue in existence.

The unaudited financial information
  furnished herein reflects all adjustments, which in the opinion of management
  are necessary to fairly state the Companys financial position and the results
  of its operations for the periods presented. These statements should be read in
  conjunction with the Companys financial statements and notes thereto for the
  fiscal year ended November 30, 2010. The Company assumes that users of the
  interim financial information herein have read or have access to the audited
  financial statements for the preceding fiscal year and that the adequacy of
  additional disclosure needed for a fair presentation may be determined in that
  context. Accordingly, certain footnote disclosure, which would substantially
  duplicate the disclosure contained in the November 30, 2010 financial
  statements, has been omitted. The results of operations for the three month
  period ended February 28, 2011 are not necessarily indicative of results for the
  entire year ending November 30, 2011.

F-4

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING
      POLICIES
|-- | ------------------------------------------------

In June 2009, the Financial Accounting
  Standards Board (FASB) issued its final Statement of Financial Accounting
  Standards (SFAS) No. 168, The FASB Accounting Standards Codification(ASC) and the Hierarchy of Generally Accepted Accounting
    Principles, a replacement of FASB Statement No. 162 (SFAS 168). SFAS 168
  establishes the FASB Accounting Standards Codification(Codification), which officially launched July 1, 2009, to become the
  source of authoritative U.S. generally accepted accounting principles (GAAP)
  recognized by the FASB to be applied by non-governmental entities, superseding
  existing FASB, American Institute of Certified Public Accountants (AICPA), Emerging Issues Task Force(EITF), and related accounting literature.
  Rules and interpretive releases of the Securities and Exchange Commission
  (SEC) under authority of federal securities laws are also sources of
  authoritative U.S. GAAP for SEC registrants. SFAS 168 is effective for the
  Company as of the year ended November 30, 2009. The Codification did not change
  or alter existing GAAP. It did not have a substantive impact on the Companys
  financial statements. The only impact is that references to authoritative
  accounting literature are in accordance with the Codification.

The financial statements have, in
  managements opinion, been properly prepared within reasonable limits of
  materiality and within the framework of the significant accounting policies
  summarized below:

| | a) | Principles of Consolidation                                                                                                                                                                                                                                                                                                                                      
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                  
| |    | The accompanying consolidated financial statements
      include the financial statements of the Company and its subsidiaries. All
      inter-company balances and transactions have been eliminated in
      consolidation and net earnings are reduced by the portion of the net
      earnings of subsidiaries applicable to non-controlling
      interests.
| |    |                                                                                                                                                                                                                                                                                                                                                                  
| |    | The Company conducts a portion of its operations through
      certain subsidiaries, being:                                                                                                                                                                                                                                                                      

| | - | Global Greensteam LLC, a California corporation
      owned 100%;                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | Global Green Solutions Ltd., a United Kingdom
      corporation owned 100%, which owns an 80% interest in Global Green
      Solutions (SA) (Proprietary) Limited (PTY), a South African corporation;

Three other subsidiaries are
  inactive.

The portion of the income and net
  assets applicable to the non-controlling interest in the majority-owned
  operations of the Companys South African subsidiary is reflected as
  non-controlling interest.

FASB Interpretation Number (FIN)
  46R, Consolidation of Variable Interest Entities(ASC 810, Consolidation)
  addresses the consolidation of certain business entities in which equity
  investors do not have the characteristics of a controlling financial interest or
  do not have sufficient equity at risk for the entity to finance its activities
  without additional subordinated financial support from other parties ("variable
  interest entities"). Variable interest entities are required to be consolidated
  by their primary beneficiaries. The Company has determined that it does not have
  variable interests in other entities that qualify for consolidation.

F-5

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------

| | b) | Use of Estimates and Assumptions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Preparation of the Companys financial statements in
      conformity with United States GAAP requires management to make estimates
      and assumptions that affect certain reported amounts and disclosures.
      Accordingly, actual results could differ from those estimates. The
      significant areas requiring managements estimates and assumptions relate
      to determining the fair value of stock-based compensation, fair value of
      shares issued for services and the acquisitions, and useful lives of
      long-lived assets.                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | c) | Development Stage Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The Company is a development stage company as defined in
      FASB ASC 915, Development Stage Entities. Among the disclosures
      required by FASB ASC 915 are that the Companys financial statements be
      identified as those of a development stage company, and that the
      statements of operations, equity (deficit) and cash flows disclose
      activity since the date of the Companys inception.                                                                                                                                                                                                                                                                                            
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | d) | Equipment and Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Equipment is recorded at cost less accumulated
      depreciation. Depreciation is computed and recorded when equipment is put
      into use, using the straight line method over the assets estimated useful
      life.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | Major renewals and improvements are capitalized, while
      routine maintenance and repairs are expensed as incurred. The Company
      assesses equipment for impairment whenever events or changes in
      circumstances indicate that an assets carrying amount may not be
      recoverable.                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | e) | Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | The Company has adopted the provision codified in ASC
      350, Intangibles  Goodwill and Otherwhich revises the accounting
      for purchased goodwill and intangible assets. Under ASC 350, goodwill and
      intangible assets with indefinite lives are no longer amortized and are
      tested for impairment annually. The determination of any impairment would
      include a comparison of estimated future operating cash flows anticipated
      during the remaining life with the net carrying value of the asset as well
      as a comparison of the fair value to book value of the Company. The
      Company had no intangible assets as at February 28, 2011 and November 30,
      2010.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | f) | Impairment of Long-Lived Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |    | In accordance with ASC 360, Property, Plant, and
      Equipment, the carrying value of equipment and other long-lived assets
      is reviewed on a regular basis for the existence of facts or circumstances
      that may suggest impairment. The Company recognizes impairment when the
      sum of the expected undiscounted future cash flows is less than the
      carrying amount of the asset. Impairment losses, if any, are measured as
      the excess of the carrying amount of the asset over its estimated fair
      value.                                                                                                                                                                   

F-6

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------

| | g) | Financial Instruments and Concentration of Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The fair values of financial instruments, which include
      cash, amounts receivable, accounts payable and accrued liabilities,
      convertible notes, and loans payable were estimated to approximate their
      carrying values due to the immediate or relatively short maturity of these
      instruments. Management does not believe that the Company is subject to
      significant interest currency or credit risks arising from these financial
      instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | h) | Basic and Diluted Net Income (Loss) Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | The Company computes net income (loss) per share in
      accordance with ASC 260, Earnings Per Share, which requires
      presentation of both basic and diluted earnings (loss) per share on the
      face of the income statement. The latter amount is computed by dividing
      net income (loss) available to common shareholders (numerator) before and
      after discontinued operations, by the weighted average number of common
      shares outstanding (denominator) during the period, including contingently
      issuable shares where the contingency has been resolved. The diluted loss
      per share calculation gives effect to all dilutive potential common shares
      outstanding during the period using the treasury stock method and
      convertible preferred stock using the if-converted method. In computing
      diluted loss per share, the average stock price for the period is used in
      determining the number of shares assumed to be purchased from the exercise
      of stock options or warrants.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | i) | Development Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | Development costs are expensed in the period they are
      incurred unless they meet specific criteria related to technical, market
      and financial feasibility, as determined by management, including but not
      limited to the establishment of a clearly defined future market for the
      product, and the availability of adequate resources to complete the
      project. If all criteria are met, the costs are deferred and amortized
      over the expected useful life, or written off if a product is abandoned.
      At February 28, 2011 and November 30, 2010, the Company had no deferred
      product development costs.                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | j) | Common Share Non-Monetary Consideration                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | In situations where common shares are issued and the fair
      value of the goods or services received is not readily determinable, the
      fair value of the common shares is used to measure and record the
      transaction. The fair value of the common shares issued in exchange for
      the receipt of goods and services is based on the stock price as of the
      earliest of the date at which:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |    | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

F-7

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------

| | k) | Stock-Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | On December 1, 2005, the Company adopted the fair value
      recognition provisions codified in ASC 718, Compensation-Stock
        Compensation. The Company adopted those provisions using the modified-
      prospective-transition method. Under this method, compensation cost
      recognized for all periods prior to December 1, 2005 includes: a)
      compensation cost for all share-based payments granted prior to, but not
      yet vested as of November 30, 2005, based on the grant-date fair value and
      b) compensation cost for all share- based payments granted subsequent to
      November 30, 2005, based on the grant-date fair value. In addition,
      deferred stock compensation related to non-vested options is required to
      be eliminated against additional paid-in capital. The results for periods
      prior to December 1, 2005 were not restated.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | The Company accounts for equity instruments issued in
      exchange for the receipt of goods or services from parties other than
      employees in accordance with ASC 505, Equity. Costs are measured at
      the estimated fair market value of the consideration received or the
      estimated fair value of the equity instruments issued, whichever is more
      reliably measurable. The value of equity instruments issued for
      consideration other than employee services is determined on the earliest
      of a performance commitment or completion of performance by the
      counterparty.                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | l) | Share Purchase Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | The Company accounts for common share purchase warrants
      at fair value in accordance with ASC 815, Derivatives and Hedging.
      The Black-Scholes option pricing valuation method is used to determine
      fair value of these warrants. Use of this method requires that the Company
      make assumptions regarding stock volatility, dividend yields, expected
      term of the warrants and risk-free interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | m) | Funding Advances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | The Company records funding advances on receipt and
      accretion thereon over the estimated term to the commencement of
      settlement of those advances. Accretion is recorded using the effective
      interest method such that the balance of advances and accretion as of the
      estimated settlement date is equal to the estimated fair value of the
      future settlement amount and is included in interest and bank
      charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | n) | Non-controlling Interests                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |    | Effective December 1, 2009, the Company adopted new
      accounting and reporting standards for the non- controlling interest in a
      subsidiary. The adoption of the new guidance required a change in what was
      formerly minority interest to non-controlling interest and the placement
      of non-controlling interest within the equity (deficiency) section rather
      than the liabilities section of the consolidated balance
      sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-8

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued)
|-- | -----------------------------------------------------

| | o) | Recent Accounting Pronouncements
| | -- | --------------------------------

The Company has adopted the provisions
  of ASC 810, Consolidation.The revised guidance establishes new
  accounting, reporting and disclosure standards for the non-controlling interest
  in a subsidiary and for the deconsolidation of a subsidiary. Among other
  requirements, ASC 810 requires a company to clearly identify and present
  ownership interests in subsidiaries held by parties other than the company in
  the consolidated financial statements within the equity section, but separate
  from the companys equity. It also requires that the net income to be reported
  include the amounts attributable to both the parent and the non-controlling
  interest. The revised guidance has been applied prospectively as of the
  beginning of fiscal year 2010, except for the presentation and disclosure
  requirements which will be applied retrospectively for prior periods. Other than
  the change in presentation of non-controlling interests, this adoption did not
  have a material impact on the Companys financial statements.

In February 2010, FASB issued
  Accounting Standards Update (ASU) 2010-09 Subsequent Events(Topic 855) Amendments to Certain Recognition and Disclosure Requirements. ASU
  2010-09 removes the requirement for an SEC filer to disclose a date in both
  issued and revised financial statements. Revised financial statements include
  financial statements revised as a result of either correction of an error or
  retrospective application of GAAP. All of the amendments in ASU 2010-09 are
  effective upon issuance of the final ASU, except for the use of the issued date
  for conduit debt obligors. That amendment is effective for interim or annual
  periods ending after June 15, 2010. The Company adopted ASU 2010-09 in February,
  2010 and it did not have a material impact on the Companys financial
  statements.

In January 2010, the FASB issued ASU
  2010-06, Fair Value Measurements and Disclosures (Topic 820), Improving
    Disclosures about Fair Value Measurements,amending ASC 820. ASU 2010-06
  requires entities to provide new disclosures and clarify existing disclosures
  relating to fair value measurements. The new disclosures and clarifications of
  existing disclosures are effective for interim and annual reporting periods
  beginning after December 15, 2009, except for the disclosures about purchases,
  sales, issuances, and settlements in Level 3 fair value measurements, which are
  effective for fiscal years beginning after December 15, 2010 and for interim
  periods within those fiscal years. The Company is currently evaluating the
  impact of ASU 2010-06, but does not expect its adoption to have a material
  impact on the Companys financial position or results of operations.

F-9

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|3. | PROJECT DEVELOPMENT
|-- | -------------------

On February 20, 2007 the Company
  completed an acquisition agreement for Greensteam Development Inc., which
  resulted in Global Greensteam LLC (Greensteam), a venture with two other
  companies for the purpose of converting waste biomass into low cost steam for
  industrial applications. The Companys interest in the new venture initially was
  57%, with the other two companies holding 38% and 5% respectively. The Companys
  ownership interest increased to 95% in December, 2007 and 100% in April, 2008
  when it acquired first the 38% and then the 5% held by the two other
  companies.

The consideration to be paid by the
  Company to third parties in connection with the acquisition agreement is the
  issuance of 4.6 million shares, as follows:

| | - | 150,000 shares of restricted
      common stock upon execution of the definitive agreement (issued in the
      year ended November 30, 2007);                                                                                                                                                                                                                                                                                                   
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | 3,985,000 shares to be issued on achievement of various
      milestone events, including execution of a steam contract through to
      commissioning of the 15thgenerating unit or the second
      anniversary of a steam supply contract.                                                                                                                                                                                                    
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | 600,000 shares of the Company to be issued to the initial
      38% interest holder as contingent consideration will be issued, based on
      achievement of various milestone events, including delivery of commercial
      steam generation from up to 10 units and after successful experimental
      testing and operational permitting and accepted by the customer purchasing
      the steam as the steam production commencement date.

Greensteam entered into a Program
  Agreement with Aera Energy LLC (Aera), an oil and gas company, on March 31,
  2008, a First Amendment to the Program Agreement, effective October 22, 2008,
  and a Second Amendment to the Program Agreement effective November 24, 2009. The
  Program Agreement provides for a demonstration unit which will use Greensteams
  waste-to-steam process technology to burn waste biomass to create steam, to be
  built at a location of the oil and gas company. The Program Agreement also
  provides that up to ten commercial scale units could be built, depending on the
  results of the demonstration unit.

F-10

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|3. | PROJECT DEVELOPMENT(Continued)                                                                                                                                 
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                
|   | The Second Amendment to the Program Agreement replaced
      and superseded the First Amendment in its entirety. Under the terms of the
      Second Amendment:

| |  | Aera would contribute up to $3 million of the cost of the
      demonstration unit as per the First Amendment to the Program Agreement.                                                                                                                                                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | An additional $5 million for the demonstration unit up to
      a total of $8 million approved by the Aera Board of Directors.                                                                                                                                                                                                                                                                                                                                                                                                  
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | Payments from Aera were to be used exclusively for the
      management, design, engineering, permitting, construction (including
      materials), and operation of the demonstration unit.                                                                                                                                                                                                                                                                                                                                    
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | In return, if the demonstration unit meets the pre-agreed
      specific test requirements and there is a full scale period, Greensteam
      will be obligated to provide Aera with discount-priced steam.                                                                                                                                                                                                                                                                                                                     
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | If there is no full scale period in which Greensteam can
      provide Aera with discount-priced Steam, Greensteam will grant Aera a
      perpetual, exclusive license to use Greensteams technology at any
      property owned or leased by Aera, and access to Greensteams intellectual
      property (collectively the Exclusive License Grant), subject to a
      royalty of 0.004 times the Incremental Energy Charge as defined in the
      Agreement, should Aera proceed with the full scale period on its own.
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | Greensteam has an obligation to grant Aera an Exclusive
      License Grant in the following circumstances:                                                                                                                                                                                                                                                                                                                                                                                                                     

| | a. | If the demonstration unit fails to meet the pre-agreed
      specific test requirements and either party gives notice as
      provided;                                                                                                                                                                                                                                                                                                                                                                                             
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | b. | If the demonstration unit meets the pre-agreed specific
      test requirements, both parties give notice that the pre-agreed specific
      test requirements are met or that the test results are acceptable, Aeras
      Board approves amending the full scale period definition by replacing the
      language five years with ten years, and Greensteam is subsequently
      unable to (1) obtain the full scale permit after diligent effort or (2)
      obtain financing for the first project after diligent effort;
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | c. | If the demonstration unit meets the pre-agreed specific
      test requirements, both parties give notice that the pre-agreed specific
      test requirements are met or that the test results are acceptable,
      Greensteam subsequently obtains the full scale permit, Greensteam obtains
      financing for the first project, and Greensteam fails to implement the
      full scale period project(s).                                                                                                                     

F-11

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|3. | PROJECT DEVELOPMENT(Continued)
|-- | ------------------------------

Expenditures incurred in connection
  with the steam generation project and charged to project development costs in
  the quarter ended February 28, 2011 totaled $410,186 (2010 - $1,414,956). Total
  project development expenditures to February 28, 2011 aggregate to
  $11,340,159.

The pricing formula now includes a
  lower discount amount per volume of steam, but for the full term of the
  Agreement. The Company records the Aera advances and accretion thereon over the
  term to commencement of delivery of steam from the first commercial scale
  project to Aera. Accretion is recorded using the effective interest method such
  that the balance of advances and accretion is equal to the estimated fair value
  of the future steam discount. As of February 28, 2011, $8,648,457 (November 30,
  2010 - $8,307,217) had been received from Aera under the terms of the Program
  Agreement and $164,255 (November 30, 2010 - $139,549) had been recorded as the
  estimated accretion thereon.

Construction of the demonstration unit
  commenced in January, 2010 at Aeras Belridge oilfield, near Bakersfield,
  California and was completed in June, 2010 at a cost of approximately $9
  million. Testing and system refinements have continued since then, in
  preparation for meeting the specified test requirements in the Second Amendment.
  In December, 2010, the demonstration plant achieved full steam generation
  capacity of approximately 5.8 MW (thermal), operating exclusively on residual
  woody agricultural biomass fuel. The steam was supplied to Aera for its enhanced
  oil recovery operations. The next key milestone is completion of a 30 day test
  as specified in the Program Agreement. The test is designed to confirm the
  ability of Greensteam to reliably and safely produce steam meeting Aera
  specifications from locally derived biomass. A successful test should trigger
  Aeras agreement to proceed with the full scale project. The 30 day test is
  expected to be completed in the second calendar quarter of 2011.

F-12

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|4. | CONVERTIBLE NOTES
|-- | -----------------

During the quarter ended February 28,
  2011, the Company issued convertible notes (the note or notes) in the
  aggregate amount of $200,500 on December 21, 2010 ($10,000) and February 14,
  2011 ($190,500) due and payable on December 7, 2012 ($10,000) and February 14,
  2013 ($190,500), together with interest at the rate of 12% per annum compounded
  annually. At the election of the holder, the notes and interest accrued thereon
  are convertible into units at a rate of $0.10 per unit. Each unit is comprised
  of one restricted share of common stock and one share purchase warrant. Each
  share purchase warrant entitles the holder to purchase an additional common
  share at $0.25 per share for a two year term from the date of conversion. To
  date, none of the notes or accrued interest has been converted into units. No
  finders fees were paid in connection with these notes.

On March 21, 2011, the Company issued
  convertible notes (the note or notes) in the aggregate amount of $565,116
  due and payable on March 21, 2013 together with interest at the rate of 12% per
  annum compounded annually. All other terms of the notes are identical to those
  issued during the period ended February 28, 2011. No finders fees were paid in
  connection with these notes.

During the year ended November, 2010,
  the Company issued convertible notes (the note or notes) in the aggregate
  amount of $240,000 which are due and payable between November 24, 2011 and
  November 1, 2012, together with interest. All other terms of the notes are
  identical to those issued in 2011. To date, none of the notes or accrued
  interest has been converted into units. In connection with these notes, the
  Company paid a total of $12,600 in finders fees.

During the year ended November 30,
  2009, the Company issued convertible notes (the note or notes) in the
  aggregate amount of $847,405 which are due and payable between March 2, 2011 and
  October 23, 2011, together with interest. All other terms of the notes are
  identical to those issued in 2011. In April, 2011, notes aggregating $150,000 of
  the preceding total were converted into 1,881,600 shares, together with warrants
  entitling the holders to acquire an additional 1,881,600 shares. In connection
  with these notes, the Company paid a total of $35,873 in finders fees.

During the year ended November 30,
  2008, the Company issued a convertible note (the note) in the aggregate amount
  of $100,000 due and payable on October 31, 2010 together with interest. All
  other terms of the note are identical to those issued in 2011. The holder of the
  note agreed to extend the term of the note for one year, to October 31, 2011. To
  date, none of the note or accrued interest has been converted into units.

In accordance with the provisions of
  ASC 470-20, Debt, the Company recognized the value of the embedded beneficial
  conversion feature of $29,412 in connection with the 2008 note, $250,843 in
  connection with the 2009 notes, $75,242 in connection with the 2010 notes, and
  $63,454 in connection with the 2011 notes. The fair value of the embedded
  beneficial conversion feature was estimated to be the difference between the
  issue date fair value and face amount of the debt with the fair value of the
  debt being determined on a relative fair value basis, based on the underlying
  estimated fair values of the common shares and share purchase warrants issuable
  on conversion. The embedded beneficial conversion feature was recorded as a
  credit to additional paid-in capital.

F-13

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|4. | CONVERTIBLE NOTES(Continued)
|-- | ----------------------------

The resulting debt discount and finders
  fees are being accreted over the term of the note using the effective interest
  amortization method. In the event of conversion of the note, the proceeds will
  be allocated proportionately to the share
  purchase warrants issued and to the common shares issued, consistent with the
  original allocations between their debt and equity components To February 28,
  2011, the Company has recorded accretion of $283,070 (November 30, 2010:
  $226,729) and accrued interest of $229,907 (November 30, 2010: $193,669).

|5. | LOANS PAYABLE
|-- | -------------

The Company was indebted as at February
  28, 2011 for short term loans totaling $1,771,163 (November 30, 2010 -
  $1,864,006).

| | - | Of that total, $654,292 (November
      30, 2010: $654,292) is unsecured, non-interest bearing, and with no
      specific terms of repayment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | - | $213,955 (November 30, 2010 -
      $377,414) of the total is due to companies controlled by individual
      directors. The Company reached agreements with certain lenders in
      February, 2011 to settle $163,459 of loan principal, plus accrued interest
      totaling $61,063, and other fees and expenses owing totaling $487,600 in
      exchange for 3,455,033 restricted shares of common stock. The shares have
      not yet been issued and their estimated fair value of $587,356 is included
      in Shares To Be Issued. The other lenders have similarly agreed to settle
      the $213,955 balance outstanding in exchange for shares of common stock;
      however the formal agreements are not yet executed.
| | - | $902,916 (November 30, 2010:
      $832,300) is unsecured, bearing interest at 10% per annum on $822,800 and
      12% per annum on $80,116, and with no specific terms of repayment. $80,116
      was exchanged for convertible debt in March, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | To February 28, 2011, the Company
      has recorded accrued interest of $242,768 (November 30, 2010 - $283,385)
      which is included in Accounts Payable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

|6. | NON-CONTROLLING INTERESTS
|-- | -------------------------

For the three month period ended
  February 28, 2011, the Company has recorded a non-controlling interest share of
  loss of $40 (2009: $7,893). The non-controlling interest is the 20% of the
  Companys South African subsidiary that is not owned by the Company. That
  subsidiary was inactive during the quarter and is to be wound up.

|7. | CAPITAL STOCK
|-- | -------------

| | a) | Common Stock
| | -- | ------------

During the three month period ended
  February 28, 2011, the Company did not issue any shares. However, the Company
  reached agreements with certain lenders during the period to settle $163,459 of
  loan principal, plus accrued interest totaling $61,063, and other fees and
  expenses owing totaling $487,600 in exchange for 3,455,033 restricted shares of
  common stock. The shares have not yet been issued and their estimated fair value
  of $587,356 is included in Shares To Be Issued.

F-14

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|7. | CAPITAL STOCK(Continued)
|-- | ------------------------

| | b) | Stock Options
| | -- | -------------

The Company has a stock option plan
  that provides for the issuance of options to its directors, officers, employees
  and consultants. The number, exercise price, term and vesting conditions of the
  options are determined by the board of directors. The maximum number of shares
  of the Company available for grants of stock options under the current plan was
  initially 10,000,000 common shares. To February 28, 2011, 4,549,850 options
  (November 30, 2010: 4,549,850) had been issued under this plan, leaving
  5,450,150 available to be issued. During the three month period ended February
  28, 2011, the Company did not grant any stock options and recorded $Nil
  (November 30, 2010: $132,767) in stock-based compensation expense for options
  granted in prior years.

During the year ended November 30,
  2010, the Company did not grant any stock options but recorded $132,767 (2009 -
  $512,640) in stock-based compensation expense for options granted in prior
  years. Of that amount, $710 related to options issued in 2009, $72,757 was in
  connection with options issued in 2008, and $59,300 was expense related to the
  final vesting of options issued in 2007.

The following table provides certain
  information with respect to the above stock options that are outstanding and
  exercisable at February 28, 2011:

STOCK
      STOCK
      WEIGHTEDOPTIONS
      OPTIONS
      AVERAGEISSUED
      OUTSTANDING
      REMAININGEXERCISE
      AND
      AND
      CONTRACTUALPRICE
      OUTSTANDING
      EXERCISABLE
      LIFE$ 0.20
      2,760,000
      2,760,000
      0.90 years$ 0.20
      675,000
      675,000
      0.94 years$ 0.50
      300,000
      300,000
      0.16 years$ 0.50
      500,000
      500,000
      0.08 years4,235,000
      4,235,000


F-15

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|7. | CAPITAL STOCK(Continued)
|-- | ------------------------

| | b) | Stock Options (Continued)
| | -- | -------------------------

The Companys stock option activity
  for the three month period ended February 28, 2011 and the year ended November
  30, 2010 was as follows:

| |                                              |  |            |   |   |          |  |  | WEIGHTED    | 
| | -------------------------------------------- |  | ---------- | - | - | -------- |  |  | ----------- | 
| |                                              |  |            |   |   | WEIGHTED |  |  | AVERAGE     | 
| |                                              |  | NUMBER     |   |   | AVERAGE  |  |  | REMAINING   | 
| |                                              |  | OF         |   |   | EXERCISE |  |  | CONTRACTUAL | 
| |                                              |  | OPTIONS    |   |   | PRICE    |  |  | LIFE        | 
| |                                              |  |            |   |   |          |  |  |             | 
| | Balance outstanding, November
      30, 2009 |  | 5,550,000  |   | $ | 0.39     |  |  | 1.58 years  | 
| |                                              |  |            |   |   |          |  |  |             | 
| | Expired during the year                      |  | (1,315,000 | ) |   | 0.80     |  |  |             | 
| |                                              |  |            |   |   |          |  |  |             | 
| | Balance outstanding, November
      30, 2010 |  | 4,235,000  |   |   | 0.26     |  |  | 1.00 year   | 
| |                                              |  |            |   |   |          |  |  |             | 
| | Balance outstanding February
      28, 2011  |  | 4,235,000  |   | $ | 0.26     |  |  | 0.75 years  | 

As February 28, 2011, the aggregate
  intrinsic value (AIV) under the provisions of ASC 718, Compensation-Stock
    Compensation, of all outstanding, vested stock options was $NIL and the AIV
  of options exercised during the period ended February 28, 2011 was $NIL.

| | c) | Share Purchase Warrants
| | -- | -----------------------

The Companys share purchase warrant
  activity for the three month period ended February 28, 2011 and the year ended
  November 30, 2010 was as follows:

| |                            |  |            |   |   |          |  |  | WEIGHTED    | 
| | -------------------------- |  | ---------- | - | - | -------- |  |  | ----------- | 
| |                            |  | NUMBER OF  |   |   | WEIGHTED |  |  | AVERAGE     | 
| |                            |  | SHARE      |   |   | AVERAGE  |  |  | REMAINING   | 
| |                            |  | PURCHASE   |   |   | EXERCISE |  |  | CONTRACTUAL | 
| |                            |  | WARRANTS   |   |   | PRICE    |  |  | LIFE        | 
| |                            |  |            |   |   |          |  |  |             | 
| | Balance, November 30, 2009 |  | 1,326,471  |   | $ | 1.49     |  |  | 1.13 years  | 
| |                            |  |            |   |   |          |  |  |             | 
| | Balance, November 30, 2010 |  | 1,326,471  |   |   | 1.49     |  |  | 1.13 years  | 
| |                            |  |            |   |   |          |  |  |             | 
| | Expired during the period  |  | (1,176,471 | ) |   | 1.50     |  |  |             | 
| |                            |  |            |   |   |          |  |  |             | 
| | Balance, February 28, 2011 |  | 150,000    |   | $ | 1.40     |  |  | 0.67 years  | 

The 150,000 share purchase warrants
  above are outstanding and exercisable at February 28, 2011.

F-16

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|7. | CAPITAL STOCK(Continued)
|-- | ------------------------

| | d) | Restricted Common Shares in
      Escrow
| | -- | ----------------------------------------

In accordance with the terms of the
  First Amendment to the Program Agreement with Aera Energy LLC (Aera) (see Note
  3), respecting the biomass-fueled steam generation project, the Company issued
  twenty million of its restricted common shares, with Aeras name as beneficial
  owner, to be held in escrow. The shares, or some portion of the shares, were
  only to be released to Aera if Global Greensteam LLC failed to pay on a timely
  basis an early termination fee as defined in the Amendment, should it be
  required, and Aera exercised its option in those circumstances to take
  possession of the shares. The Amendment and the escrow agreement provided for
  the eventual return to the Company of all of the shares placed in escrow in the
  event that no early termination fee is required. Under the terms of the escrow
  agreement, neither the Company nor Aera have voting or dispositive powers for
  the shares while they are in escrow. Therefore the shares are not included in
  the total issued and outstanding shares presented or in the determination of the
  weighted average number of shares outstanding.

As detailed in Note 3, the First
  Amendment to the Program Agreement has been replaced and superseded in its
  entirety by a Second Amendment to the Program Agreement. The Second Amendment
  includes no requirement for shares of the Company to be held in escrow in
  connection with the Program Agreement or for any other purpose. Therefore the
  Company expects to reach agreement with Aera to cancel the escrow agreement,
  remove the 20 million shares from escrow and have them cancelled.

|8. | RELATED PARTY TRANSACTIONS AND AMOUNTS
      OWING
|-- | --------------------------------------------------

During the three month period ended
  February 28, 2011, the Company carried out a number of transactions with related
  parties. These transactions were recorded at their exchange amount, which is the
  amount of consideration established and agreed to by the related parties. The
  following are related party transactions and amounts owing at February 28, 2011
  that are not disclosed elsewhere in these financial statements:

| | - | During the three month period ended February 28, 2011,
      the Company paid and/or accrued consulting fees to directors and officers
      of the Company in the amount of $28,500 (2010 - $136,065).                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | During the three month period ended February 28, 2011,
      the Company paid or accrued $Nil (2010 - $34,134) in rent and
      administration fees to a company controlled by a significant shareholder
      of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                         
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | $720,283 (November 30, 2010 - $1,334,101) was owing to
      related parties and is included in accounts payable and accrued
      liabilities. These amounts are unsecured, non-interest bearing, and have
      no specific terms of repayment. See also Note 5.                                                                                                                                                                                                                                                                                                                                                                                      
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | During the three month period ended February 28, 2011,
      the Company entered into two settlement agreements with companies
      controlled by a director of the Company. The Company agreed to issue
      3,455,033 restricted common shares with an estimated fair value of
      $587,356 in settlement of loans totaling $163,459, accrued interest
      totaling $61,063, unpaid expenses totaling $10,505, unpaid consulting fees
      totaling $162,101, and unpaid rent and administrative services totaling
      $314,994. The shares have not yet been issued and their estimated fair
      value is included in Shares To Be Issued.

F-17

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|9. | COMMITMENTS AND CONTRACTUAL
      OBLIGATIONS
|-- | ---------------------------------------------

Except as disclosed elsewhere in these
  consolidated financial statements, the Company had the following commitments and
  contractual obligations at February 28, 2011:

The Company entered into the following
  agreements with officers, employees and consultants:

| | i) | Effective February 1, 2007, and having a five year term
      with a privately held company controlled by an officer of the Company, to
      provide services of a Chief Executive Officer, as well as office premises
      for the Company in Europe. This agreement superseded an earlier agreement
      that was cancelled by mutual consent. The fees for providing the services
      were as follows:
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Base compensation of $11,030 (8,500
  Euros) per month; Office rent of $1,560 (1,200 Euros) per month; $2,600 (2,000
  Euros) monthly for European Social costs. An annual performance bonus of 1% of
  net profit;

In addition, the Company granted the
  right to buy 4,250,000 shares of the Company at $0.00001. 4,250,000 shares were
  issued by January 31, 2008. The agreement may be terminated upon provision of 6
  months notice by the Company or 60 days notice by the Chief Executive Officer.
  The Company reached agreement with the Chief Executive Officer in February, 2011
  to cancel this contract. Terms for a replacement agreement have yet to be
  determined.

| | ii) | On September 18, 2007, effective from May 1, 2007, for
      the services of a Chief Operating Officer. The agreement has a five year
      term and includes base annual compensation of $96,000 plus $12,000
      annually for providing a serviced office, and $48,000 annually for
      marketing and communication services. All amounts are payable monthly. The
      contract may be terminated upon six months notice. The Company reached
      agreement with the Chief Operating Officer in February, 2011 to cancel
      this contract. Terms for a replacement agreement have yet to be
      determined.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iii) | Effective February 1, 2008, with a four year term for the
      provision of services of a Corporate Secretary by a consulting firm that
      is owned and controlled by a director of the Company. The agreement
      includes base compensation of $6,500 per month, plus applicable tax. The
      agreement may be terminated by either party upon thirty days written
      notice. In the event of termination upon a change of control, the
      consulting firm is entitled to severance compensation equal to twelve
      months of base compensation. This replaced a previous agreement which had
      expired. The Company reached agreement with the consulting firm in
      February, 2011 to cancel this contract. Terms for a replacement agreement
      have yet to be determined.
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | iv) | Effective February 1, 2008, with a four year term for the
      provision of services of a corporate consulting firm which is owned and
      controlled by a director of the Company. The agreement includes base
      compensation of $2,500 per month, plus applicable tax. The agreement may
      be terminated by either party upon thirty days written notice. In the
      event of termination upon a change of control, the consultant is entitled
      to severance compensation equal to twelve months of base compensation.
      This replaced a previous agreement which had expired. The Company reached
      agreement with the consulting firm in February, 2011 to cancel this
      contract. Terms for a replacement agreement have yet to be
      determined.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

F-18

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|9. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS(Continued)
|-- | --------------------------------------------------

| | v)  | Effective May 1, 2008, for the provision of services of a
      General Manager for its subsidiary, Global Green Solutions Pty Ltd. The
      agreement has a three year term ending April 30, 2011 and may be
      terminated on three months notice. Compensation under this agreement is
      comprised of a base fee of $81,600 annually, payable monthly, and an
      option to acquire 100,000 restricted common shares at $0.00001, vesting
      immediately. 100,000 shares were issued in the year ended November 30,
      2008. The Company reached agreement with the General Manager in February,
      2011 to cancel this contract. The agreement will not be replaced as the
      cancellation is part of a wind-up of the Companys South African
      subsidiary which is expected to be completed in early 2011.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | vi) | Effective January 1, 2009, with a three year term for the
      services of a Chief Financial Officer. The agreement includes base
      compensation of $8,000 per month, plus applicable tax. The agreement may
      be terminated upon six months notice by the Company. The Company reached
      agreement with the Chief Financial Officer in February, 2011 to cancel
      this contract. Terms for a replacement agreement have yet to be
      determined.                                                                                                                                                                                                                                                                                                                                                                    

|10. | NON-CASH INVESTING AND FINANCING
      ACTIVITIES
|--- | -------------------------------------------------

The Company recorded non-cash finance
  costs as follows:

Three MonthPeriod Ended February 282011
      
      
      2010Amortization of the intrinsic value and/or
        beneficialconversion feature of the
        convertible notes
      $
      56,341
      
      $
      31,968


During the three month period ended
  February 28, 2011:

| | i)  | The Company recognized the value of the embedded
      beneficial conversion feature of $63,454 in respect of convertible notes
      totaling $200,500.                                                                                                                                                                                                                                              
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| | ii) | The Company agreed to issue 3,455,033 restricted common
      shares with an estimated fair value of $587,356 in settlement of certain
      unpaid fees, expenses, loans, and accrued interest totaling $712,122,
      resulting in a gain on settlement of $124,766. The shares have not yet
      been issued and their estimated fair value is included in Shares To Be
      Issued. See Note 8.

During the three month period ended
  February 28, 2010:

| | i) | The Company recognized the value of the embedded
      beneficial conversion feature of $56,000 in respect of convertible notes
      totaling $180,000.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------

F-19

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|10. | NON-CASH INVESTING AND FINANCING ACTIVITIES(Continued)
|--- | ------------------------------------------------------

| | ii)  | In connection with three consulting agreements, the
      Company issued 750,000 shares with a fair value of $78,750, all of which
      had been expensed in the year ended November 30, 2009 and recorded as
      Shares To Be Issued at that date.                                                                                                                                                                                                                      
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | iii) | The Company issued 75,000 shares with a fair value of
      $8,438 in connection with a consulting agreement, $4,500 of which was
      expensed in the period and $3,938 of which was expensed in the year ended
      November 30, 2009 and included in Shares To Be Issued at that date. A
      further 75,000 shares with a fair value of $8,813, which was expensed in
      the period, were issuable at February 28, 2010 and included in Shares To
      Be Issued.

|11. | FAIR VALUE OF ASSETS AND
      LIABILITIES
|--- | ------------------------------------------

Fair value is defined as the exchange
  price that would be received for an asset or paid to transfer a liability (an
  exit price) in the principal or most advantageous market for the asset or
  liability in an orderly transaction between market participants on the
  measurement date. U.S. GAAP requires that valuation techniques maximize the use
  of observable inputs and minimize the use of unobservable inputs. ASC 820-10 Fair Value Measurementsalso establishes a fair value hierarchy which
  prioritizes the valuation inputs into three broad levels. Based on the
  underlying inputs, each fair value measurement in its entirety is reported in
  one of the three levels. These levels are:

Level 1 - Valuation is based upon
  quoted prices for identical instruments traded in active markets. Level 1 assets
  and liabilities include debt and equity securities traded in an active exchange
  market, as well as U.S. Treasury securities.

Level 2 - Valuation is based upon
  quoted prices for similar instruments in active markets, quoted prices for
  identical or similar instruments in markets that are not active, and model based
  valuation techniques for which all significant assumptions are observable in the
  market or can be corroborated by observable market data for substantially the
  full term of the assets or liabilities.

Level 3 - Valuation is determined using
  model-based techniques with significant assumptions not observable in the
  market.

Assets and Liabilities Measured at Fair
  Value on a Recurring Basis

The Company has no assets or
  liabilities subject to recurring measurement.

F-20

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|11. | FAIR VALUE OF ASSETS AND LIABILITIES(Continued)
|--- | -----------------------------------------------

Assets and Liabilities Measured at Fair
  Value on a Nonrecurring Basis

For assets measured at fair value on a
  nonrecurring basis, the following table provides the fair value measures by
  level of valuation assumptions used:

Fair Value Measurement UsingLevel 1
      
      
      Level 2
      
      
      Level 3Project Funding AdvancesFebruary 28,
        2011
      $
      -
      
      $
      -
      
      $
      8,812,712November 30, 2010
      $
      -
      
      $
      -
      
      $
      8,446,766


Fair Value of Financial Instruments

The following table reflects the fair
  value of financial instruments:

| |                                                |  |       |  |   | February 28, 2011 |  |   | November 30, 2010 | 
| | ---------------------------------------------- |  | ----- |  | - | ----------------- |  | - | ----------------- | 
| |                                                |  |       |  |   | Carrying          |  |   | Estimated         | 
| |                                                |  | Level |  |   | Amount            |  |   | Fair Value        | 
| | Financial Assets:                              |  |       |  |   |                   |  |   |                   | 
| | Cash                                           |  | 1     |  | $ | 99,655            |  | $ | 99,655            | 
| | Amounts receivable                             |  | 1     |  |   | 19,044            |  |   | 19,044            | 
| | Financial Liabilities:                         |  |       |  |   |                   |  |   |                   | 
| | Accounts
      payable and accrued liabilities |  | 1     |  |   | 1,991,602         |  |   | 1,991,602         | 
| | Convertible notes                              |  | 3     |  |   | 1,203,551         |  |   | 1,203,551         | 
| | Loans payable                                  |  | 1     |  |   | 1,771,163         |  |   | 1,771,163         | 

Due to the relatively short term nature
  of cash, amounts receivable, accounts payable and accrued liabilities, and loans
  payable, the fair value of these instruments approximates their carrying value.
  Convertible notes are recorded at estimated fair value on issue and at amortized
  cost on an ongoing basis. The carrying amount of the Companys convertible debt
  approximates the fair value.

|12. | SEGMENTED INFORMATION
|--- | ---------------------

The Company follows ASC 280, Segment
  Reporting, and currently has one reportable segment in the development of
  renewable energy technologies, being a biomass-fueled steam generation
  technology.

The Company is developing and marketing
  its GreensteamTMtechnology through its the demonstration project in
  California. The technology is designed to converts biomass (primarily wood and
  crop waste) to low-cost steam with an extremely low emissions profile and high
  conversion efficiency. The steam is intended to be used for industrial purposes,
  to generate electrical power, or for distributed heating. One contract is in the
  early commercial stage in the United States, and other project opportunities are
  being developed in Europe.

F-21

---

|GLOBAL GREEN SOLUTIONS INC.                                       
|------------------------------------------------------------------
|(A Development Stage Company)                                     
|                                                                  
|CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL
      STATEMENTS
|                                                                  
|THREE MONTHS ENDED FEBRUARY 28, 2011                              
|(Unaudited)                                                       
|(Stated in U.S. Dollars)                                          

|12. | SEGMENTED INFORMATION(Continued)
|--- | --------------------------------

Financial information for the each
  segment is presented in the following table. The accounting policies of each
  reportable segment are the same as those of the consolidated company, as
  described in Note 2, Summary of Significant Accounting Policies. The corporate
  and other category includes unallocated corporate costs related to being a
  publicly traded company and other head office costs.

| |                                         |   | Three Months Ended February
      28 |  
| | --------------------------------------- | - | ------------------------------------ | -
| |                                         |   | 2011                                 |  
| | Operating Loss (Gain):                  |   |                                      |  
| | Biomass-fueled steam generation project | $ | 410,186                              |  
| | Other                                   |   | (1,695                               | )
| | Total reportable segments               |   | 408,491                              |  
| | Corporate and other                     |   | 118,711                              |  
| | Total operating loss                    | $ | 527,202                              |  

The Companys long-lived assets,
  including additions to equipment and depreciation, relate mainly to project
  design, computer and control systems which are predominately located in the
  United States.

|13. | SUBSEQUENT EVENTS
|--- | -----------------

On March 21, 2011, the Company issued
  convertible notes (the note or notes) in the aggregate amount of $565,116
  due and payable on March 21, 2013 together with interest at the rate of 12% per
  annum compounded annually. All other terms of the notes are identical to those
  issued during the period ended February 28, 2011. No finders fees were paid in
  connection with these notes. The total included $80,116 that was received prior
  to February 28, 2011 and included in Loans Payable as of that date.

In April, 2011, notes aggregating
  $150,000 which matured in March, 2011 were converted into 1,881,600 shares,
  together with warrants entitling the holders to acquire an additional 1,881,600
  shares.

Management has evaluated subsequent
  events and the impact on the reported results and disclosures and has concluded
  that no other significant events require disclosure as of the date the interim
  consolidated financial statements were issued.

F-22

---

ITEM 2.        
 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS.

Forward Looking Statements.

This quarterly report contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These statements
relate to future events or our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as may, should,
expects, plans, anticipates, believes, estimates, predicts,
potential or continue or the negative of these terms or other comparable
terminology. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors, including the risks in the section
entitled Risk Factors and the risks set out below, any of which may cause our
or our industrys actual results, levels of activity, performance or
achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by these
forward-looking statements. These risks include, by way of example and not in
limitation:

- the uncertainty of future revenue and profitability based upon our current
  financial condition and history of losses;
- risks related to failure to obtain adequate financing on a timely basis
  and on acceptable terms for our planned projects;
- other risks and uncertainties related to our business strategy.

This list is not an exhaustive list of the factors that may
affect any of our forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on our
forward-looking statements.

Forward looking statements are made based on managements
beliefs, estimates and opinions on the date the statements are made and we
undertake no obligation to update forward-looking statements if these beliefs,
estimates and opinions or other circumstances should change. Although we believe
that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.

We are not aware of any events or circumstances that occurred
during the period ended February 28, 2011 that are reasonably likely to cause
actual results to differ materially from material forward looking information in
our Corporate Presentation on our website, for a period covered in that
presentation that is not yet complete.

Our financial statements are stated in United States dollars
(US$) and are prepared in accordance with United States Generally Accepted
Accounting Principles. In this annual report, unless otherwise specified, all
dollar amounts are expressed in United States dollars and all references to
common stock refer to the common shares in our capital stock.

As used in this annual report, the terms we, us, our, the
Company and Global Green means Global Green Solutions Inc. and its
subsidiaries, unless the context clearly requires otherwise.

Business Operations

Global Green Solutions Inc. is currently a development stage
company and is devoting all of its efforts to establishing the GreensteamTMprocess and technology for the production of industrial process steam and
heat (GreensteamTM) through its subsidiary, Global Greensteam LLC
(Greensteam).

Greensteam is developing and marketing its process to convert
biomass (primarily wood and crop waste) to low-cost steam. Utilizing the
GreensteamTMprocess is projected to provide steam at lower cost than
if it was produced by a system fueled with natural gas. The steam can be used
for industrial purposes or for combined heat and power applications. The process
promises high thermal conversion efficiency and minimal air pollution, and can
utilize a wide range of biomass fuels. One contract is in the early commercial
stage in the United States and other project opportunities are being explored in
Europe.

The GreensteamTMprocess consists of a fuel
receiving, handling, and preparation system, up to ten GreensteamTMadvanced biomass to steam energy conversion units and a steam turbine
generator (electricity generation option). The fuel receiving, handling and
preparation system receives biomass fuel, removes contaminants and sizes the
product for common storage. The energy contained in the biomass is converted to
steam energy in the GreensteamTMadvanced biomass energy conversion
unit. If electricity is a required output, a steam turbine generator converts
the steam pressure energy into electrical power, with the remaining heat energy
available as industrial process steam or hot water heat. The heart of
Greensteams uniqueness and source of intellectual property is in the advanced energy
conversion unit. Patents have been applied for both for the overall process and
the burner.

---

GreensteamTMis specifically designed to utilize a
wide range of waste biomass fuels from agricultural, forest, and municipal
sources including:

- Orchard and forest waste wood residues;
- Sawmill and pulp and paper mill waste;
- Industrial and commercial wood waste;
- Urban wood waste;
- Energy crops;
- Farm animal manures; and
- Agricultural crop residues  Straw.

We entered into a Program Agreement with Aera Energy LLC
(Aera), a California oil and gas company on March 31, 2008, a First Amendment
to the Program Agreement, effective October 22, 2008, and a Second Amendment to
the Program Agreement effective November 24, 2009. The Program Agreement
provides for a test or demonstration unit which will use Greensteams
waste-to-steam process technology to burn waste biomass to create steam, to be
built in an Aera oilfield. Upon successful operation of the demonstration unit,
the Program Agreement provides that up to ten commercial scale units could be
built. Each of these units is expected to consume approximately 75 thousand tons
of biomass per year and generate 80 MMBTU per hour. If the demonstration unit
and commercial scale units are successful Aera is expected to use the steam in
its enhanced oil recovery operations, replacing an equivalent amount of natural
gas fired steam generation.

Construction of the demonstration plant commenced in January,
2010 at Aeras Belridge oilfield, near Bakersfield, California and was completed
in June, 2010 at a cost of approximately $9 million. Testing and system
refinements have continued since then, in preparation for meeting the Specific
Test Requirements in the Program Agreement. In December, 2010, the demonstration
plant achieved full steam generation capacity of approximately 5.8 MW (thermal),
operating exclusively on residual woody agricultural biomass fuel. The steam was
supplied to Aera for its enhanced oil recovery operations. The next key
milestone is completion of a 30 day test as specified in the Program Agreement.
The test is designed to confirm the ability of GreensteamTMto
reliably and safely produce steam meeting Aera specifications from locally
derived biomass specifically by demonstrating:

- Long-term operability by operating the test unit for a minimum of 540
  hours out of any continuous 720 hour period,
- NOx reduction, particulate reduction, other emissions reduction, and waste
  management by complying with the experimental permit,
- An acceptable steam product by generating 750 barrels of steam per day at
  specified quality and pressure.

A successful test should trigger Aeras agreement to proceed
with the full scale project. We expect the completion of this 30 day test in Q2
of 2011. Following that, the 1.25 MW electrical equivalent demonstration plant
will provide process and air emissions data to enable optimization for
performance and final air emissions permit approval for full scale units.

Expenditures incurred in connection with the steam generation
project and charged to project development costs in the three month period ended
February 28, 2011 totaled $410,186 (2010: $1,414,956). As of February 28, 2011,
$8,648,457 (November 30, 2010 - $8,307,217) had been received from Aera under
the terms of the Second Amendment.

Business Model

Our business model for GreensteamTMis to license
the proprietary technology to project partners who will build, own and operate
plants in various geographic locations. We will provide engineering
specifications for the project design and equipment, sourcing of core equipment
components, engineering support in the application of the technology, and
consulting support for obtaining the required permits, fuel supply, and energy
sales agreements needed to ensure success of the project.

GreensteamTMproject partners will typically be
project operating companies which own and operate one or more energy producing
facilities, and include local project developers who typically own and operate a
single project, energy service companies who operate multiple facilities for
industrial and electrical utility energy production, industrial companies and
electric utilities themselves, and large owner operator companies who own and
operate multiple facilities across a wide geography.

---

Steam and electricity produced by a GreensteamTMproject is expected to be purchased under long term contracts (typically
10-20 years) by industrial companies, electric utilities or municipalities. When
industrial companies purchase the energy, the projects will be located at their
site. For a municipality or electric utility, the project will be located local
to the biomass source or collection point.

We have targeted Europe and North America for initial project
development activities and are currently focusing on the Western Americas and
the UK, both areas being in the geographic sweet spot for public policy and
availability of reliable energy purchasers.

Biomass to energy market outlook

Rapid renewable energy (RE) growth in Europe and North America
is driven by government targets for RE electrical and heat production by 2020.
Biomass to energy is an attractive RE solution because:

- Sustainable and economical biomass supplies can provide the base load
  generation to meet the RE targets.
- Biomass to energy technology currently available is proven for small to
  medium and large size generation capacity for industrial and commercial
  combined heat and power (CHP) facilities.
- Distributed small-medium size biomass generation facilities built local to
  biomass supply sources are sustainable and economical.

Effect of Current Economic Conditions

Any decrease in the price of fossil fuels is a potential
negative factor in regard to how investors may view our Greensteam projects.
With GreensteamTM, our expectation is that by 2012, when the first
project earns revenue from selling steam, the price of fossil fuels will make
the economics of the project favorable. The overall tightness of capital is a
problem with respect to the ability of GreensteamTMproject partners
to secure major project funding, as GreensteamTMprojects are capital
intensive. We will initially concentrate on projects where either GHG or
emissions compliance is a business-threatening issue and the owner has little
choice in managing that threat.

Industry Trends

There is strong global interest in converting waste biomass to
energy. In industrial applications, this is driven by the business need to
reduce air pollutants and greenhouse gas emissions and as a cost reduction or
hedge to natural gas prices. In utility applications, it is driven by Renewable
Portfolio Standards (RPS) regulations mandating that a percentage of electricity
is supplied from renewable sources. In the U.S. RPS regulations are currently at
the state level, air pollutant regulations are at both the state and federal
levels, and GHG regulations are at the state level and led by California and
some of the Northeast states.

Results of Operations

|                                                    |   | Three Months Ended February 28 |   |   | Change    |  
|--------------------------------------------------- | - | ------------------------------ | - | - | --------- | -
|                                                    |   | 2011                           |   |   | 2010      |  
|Revenue                                             | $ | -                              |   | $ | -         |  
|Expenses                                            | $ | 527,202                        |   | $ | 1,944.185 |  
|Net Income (Loss) - Non-controlling
      interests | $ | (40                            | ) | $ | (7,893    | )
|Net Loss  Global
      Green Solutions             | $ | 527,162                        |   | $ | 1,936,292 |  

Revenues

We recorded a net loss of $527,162 for the three month period
ended February 28, 2011 and have an accumulated deficit of $35,207,698 since
inception. We have had no operating revenues since our inception on June 10,
2003. We do not anticipate that we will generate any revenues during the period
in which we are a development stage company. First revenues are expected to be
from the GreensteamTMproject with Aera, starting in early 2012 from
engineering services provided on the first commercial scale unit.

---

Expenses  Three month period ended February 28, 2011
compared to the three month period ended February 28, 2010

Items with notable period over period differences are as
follows:

|                                       |   | Three Months Ended February 28 |   |   | Change    | 
|-------------------------------------- | - | ------------------------------ | - | - | --------- | 
|                                       |   | 2011                           |   |   | 2010      | 
|Consulting fees                        | $ | 58,177                         |   | $ | 134,686   | 
|Finance charges                        | $ | 56,341                         |   | $ | 31,968    | 
|Interest and bank charges              | $ | 82,726                         |   | $ | 136,132   | 
|Office and sundry and debt settlements | $ | (93,221                        | ) | $ | 59,697    | 
|Professional fees                      | $ | 14,688                         |   | $ | 71,198    | 
|Project development expenses           | $ | 408,491                        |   | $ | 1,424,898 | 
|Stock based compensation               | $ | -                              |   | $ | 85,606    | 

- Consulting fees decreased mainly due to the following two items. In
  accordance with the agreement (not yet fully executed as of the date of this
  report) from the directors and officers to terminate their consulting
  agreements effective November 30, 2010, no fees were paid or accrued for the
  first two months of the quarter ended February 28, 2011 and a reduced amount
  was paid in February, 2011. This resulted in a cost saving of approximately
  $36,000 over the prior years first quarter. Amortization of deferred
  compensation was $Nil in Q1 2011 compared to approximately $33,000 in Q1 2010,
  as prepaid consulting services were fully amortized.
- The increase in Finance charges resulted from an increase in accretion of
  charges on convertible debt, the face value of which was approximately
  $1,388,000 at the end of Q1 2011 compared to approximately $1,127,000 at the
  end of Q1 2010.
- The decrease in Interest and bank charges  was mainly due to accretion on advances
  from Aera Energy being approximately $50,000 lower in Q1 2011 than Q1 2010.
  Those advances decreased to approximately $341,000 during Q1 2011, compared to
  approximately $1,414,000 during Q1 2010, as the construction of the
  demonstration project and Aeras funding of the project was completed.
- Office and sundry decreased mainly as a result of a gain on settlement of
  approximately $125,000 and a decrease in rent and administrative services of
  approximately $34,000.
- Professional fees decreased in Q1 2011 compared to Q1 2010 mainly due to
  differences year over year in timing of billings for external accounting
  services and audit fees.
- Project development costs decreased in Q1 2011 versus Q1 2010 due to the
  completion of construction of the Greensteam demonstration project in June
  2010.
- Stock-based compensation was lower in Q1 2011 than Q1 2010 due to there
  being no options issued in the three months ended February 28, 2011 and all
  options issued in previous fiscal years were fully expensed by November 30,
  2010.

Balance Sheet at February 28, 2011 compared to November 30,
2010

Items with notable period-end differences are as follows:

|                                         |   | February 28 |  |   | November 30 |  |   | Change   |  
|---------------------------------------- | - | ----------- |  | - | ----------- |  | - | -------- | -
|                                         |   | 2011        |  |   | 2010        |  |   | Amount   |  
|Cash                                     | $ | 99,655      |  | $ | 140,509     |  | $ | (40,854  | )
|Accounts payable and accrued liabilities | $ | 1,991,602   |  | $ | 2,604,886   |  | $ | (613,284 | )
|Convertible notes, net of
      discount | $ | 1,203,551   |  | $ | 1,010,164   |  | $ | 193,387  |  
|Loans payable                            | $ | 1,771,163   |  | $ | 1,864,005   |  | $ | (92,842  | )
|Project Funding Advances                 | $ | 8,812,712   |  | $ | 8,446,766   |  | $ | 365,946  |  
|Additional Paid In Capital               | $ | 20,976,802  |  | $ | 20,435,348  |  | $ | 541,454  |  
|Shares to Be Issued                      | $ | 587,356     |  | $ | -           |  | $ | 587,356  |  
|Share Purchase Warrants                  | $ | 142,500     |  | $ | 620,500     |  | $ | (478,000 | )

- Cash decreased approximately $41,000 during the quarter due to funding
  that was raised through convertible notes, loans, and project funding advances
  being slightly less than what was required for operations.
- Payables decreased mainly as a result of two debt settlements totaling
  approximately $488,000 and a reduction of Greensteam project payables of
  approximately $112,000.
- The increase in Convertible Notes resulted from the issuance of new notes
  with a face value of $200,500 during the three months ended February 28, 2011.

---

- Loans payable decreased as a result of a settlement agreement in
  connection with two loans totaling approximately $163,000, offset by advances
  of approximately $71,000 received for the purchase of convertible notes, for
  which the notes were issued after February 28, 2011. Those advances were
  temporarily classified as loans payable.
- Project funding advances received in the three months ended February 28,
  2011 from Aera Energy LLC totaled $341,240. Accretion of $24,706 on these
  advances was recorded during the same period.
- Additional Paid In Capital increased approximately $63,000 from recording
  the value of the embedded conversion feature in convertible notes that were
  issued in the quarter ended February 28, 2011, and increased $478,000 in
  connection with the expiry of Share Purchase Warrants during the same period.
- The Company reached agreements with certain lenders during the quarter
  ended February 28, 2011 to settle approximately $712,000 of loans and other
  amounts owing in exchange for restricted shares of common stock with an
  estimated fair value of $587, 356. The shares have not yet been issued and
  their estimated fair value is included in Shares To Be Issued.
- The value of Share Purchase Warrants decreased due to the fact that a
  total of 1,176,471 warrants expired during the quarter ended February 28,
  2011.

Liquidity and Capital Resources

Our ability to generate adequate amounts of cash to meet our
needs is entirely dependent on the issuance of shares, debt securities, loans,
or the sale of project equity.

We estimate that we require $2.7 million to the end of December
2011 as follows:

- We estimate that our funding requirement for public company administration
  and maintenance, fund raising, investor relations, and general management
  costs through December 31, 2011 will total approximately $0.4 million.
- Costs related to the Aera project, including the project management team,
  demonstration plant testing, permits, full scale engineering work, patent
  work, an Engineering, Procurement and Construction contract, and funding are
  estimated to total approximately $1.9 million to December 31, 2011.
- We have budgeted a further $0.4 million through to December 2011 for the
  purpose of building a sustainable GreensteamTMbusiness, i.e. one
  that is expanded beyond a single project. These costs include marketing
  collateral, project development not related to the Aera project, certain legal
  costs, and investor communications.

We are still a development stage company and have not generated
any revenues from our operations to date. We have no certainty that the cash
flows necessary to meet the above requirements can be obtained from outside
sources and we will have a serious liquidity issue until major funding is
obtained, sufficient to cover ongoing project development costs and corporate
operating expenses. First revenues are expected to be from the GreensteamTMproject with Aera, starting in early 2012, from engineering services
provided on the first commercial scale unit. We will be dependent initially on a
few projects to grow our business. While our objective will be to broaden that
project base as soon as is practicable, we need to balance expansion against
ensuring the success of initial GreensteamTMprojects. We are
pursuing funding initiatives through a variety of sources.

ITEM
3.           QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are a smaller reporting company as defined by Rule 12b-2 of
the Securities Exchange Act of 1934 and are not required to provide information
under this item.

ITEM
4.           CONTROLS AND
PROCEDURES.

A. Disclosure Controls and Procedures

As required by paragraph (b) of Rules 13a-15 or 15d-15 under
the Securities Exchange Act of 1934, the Companys principal executive officer
and principal financial officer evaluated the Companys disclosure controls and
procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as
of the end of the period covered by this Quarterly Report on Form 10-Q. Based on
this evaluation, these officers concluded that as of the end of the period
covered by this Quarterly Report on Form 10-Q, these disclosure controls and
procedures were adequate to ensure that the information required to be disclosed
by the Company in reports it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in the rules and forms of the Securities and Exchange Commission and include
controls and procedures designed to ensure that such information is accumulated
and communicated to the Companys management, including the Companys principal
executive officer and principal financial officer, to allow timely decisions
regarding required disclosure.

---

Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within the Company have been detected. These inherent limitations include the realities that
judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.

B. Management’s Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over our financial reporting. In order to evaluate the effectiveness of internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley
Act, management has conducted an assessment, including testing, using the criteria in the Internal Control - Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Our system of
internal control over financial reporting is 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. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Based on our evaluation under the framework in the Internal Control-Integrated Framework, our Chief Executive Officer and Chief Financial Officer concluded that our internal controls over financial reporting were effective as of February 28, 2011.

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

C. Changes in Internal Control over Financial Reporting.

There were no changes in the Company’s internal control over financial reporting during the quarter ended February 28, 2011 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over
financial reporting.

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PART II  OTHER INFORMATION

ITEM
1.           LEGAL
PROCEEDINGS

We are not a party to any current or pending legal proceedings
as of the date of this quarterly report.

Item
1A.           RISK
FACTORS

There have been no material changes from the risk factors as
previously disclosed in our annual report on Form 10-K for the year ended
November 30, 2010 or in the Assumptions and Risks section of our Corporate
Presentation on our website.

Item
2.           UNREGISTERED
SALES OF EQUITY SECURITIES

On December 21, 2010, February 14, 2011, and March 21, 2011 we
completed private placements of securities to US subscribers pursuant to Rule
506 of Reg D of the Securities Act of 1933 wherein we issued convertible notes
in the aggregate amount of $705,500, due and payable, together with interest at
the rate of 12% per annum compounded annually, on December 7, 2012 ($10,000),
February 14, 2013 ($140,500) and March 21, 2013 ($555,000). At the election of
the holder, the note and interest accrued thereon are convertible into units at
a rate of $0.10 per unit. Each unit is comprised of one restricted share of
common stock and one share purchase warrant. Each share purchase warrant
entitles the holder to purchase an additional common share at $0.25 per share
for a two year term from the date of conversion. The notes were issued to
fifteen persons who represented that they were an accredited investor. No
compensation was paid in connection with the issuance of these notes.

On February 14, 2011 and March 21, 2011 we completed private
placements of securities to offshore subscribers pursuant to Regulation S of the
Securities Act of 1933 wherein we issued convertible notes in the aggregate
amount of $60,116 due and payable, together with interest at the rate of 12% per
annum compounded annually, on February 14, 2013 ($50,000) and March 21, 2013
($10,116). At the election of the holder, the note and interest accrued thereon
are convertible into units at a rate of $0.10 per unit. Each unit is comprised
of one restricted share of common stock and one share purchase warrant. Each
share purchase warrant entitles the holder to purchase an additional common
share at $0.25 per share for a two year term from the date of conversion. The
notes were issued outside of the United States to two non-US persons. No
compensation was paid in connection with the issuance of these notes.

ITEM
6.           EXHIBITS.

The following documents are included herein:

|Exhibit No. | Document Description                                                                                                
|----------- | --------------------------------------------------------------------------------------------------------------------
|31.1        | Certification of Principal
      Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002. 
|31.2        | Certification of Principal Financial Officer
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.       
|32.1        | Certification pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief Executive
      Officer.
|32.2        | Certification pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 for the Chief Financial Officer.            

---

SIGNATURES

In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized on this 15thday of April, 2011.

| | GLOBAL GREEN SOLUTIONS INC.
| | ---------------------------
| | (the Registrant)         
| |                            
| | BY:                        
| |                            
| |                            
| | BY:                        
| |                            
| |                            

---

EXHIBIT INDEX

|Exhibit No. | Document Description                                                                                                
|----------- | --------------------------------------------------------------------------------------------------------------------
|31.1        | Certification of Principal
      Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of
      2002. 
|31.2        | Certification of Principal Financial Officer
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.       
|32.1        | Certification pursuant to
      Section 906 of the Sarbanes-Oxley Act of 2002 for the Chief Executive
      Officer.
|32.2        | Certification pursuant to Section 906 of the
      Sarbanes-Oxley Act of 2002 for the Chief Financial Officer.      



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