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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 May
31, 2011

or

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

Commission File Number000-51198

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.)
|                                                                     |                                           
|4326 Dunbar Street                                                  
|Box 45100                                                           
|Vancouver, BC                                                       
|Canada                                                              
|(Address of principal executive
    offices)                        
|                                                                    
|(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:
50,140,829 as of July 14, 2011

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PART I  FINANCIAL INFORMATION

ITEM 1.            
FINANCIAL STATEMENTS.







GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)



INTERIM CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)

FOR THE SIX MONTHS ENDED MAY 31, 2011 AND 2010(Stated in U.S. Dollars)

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|GLOBAL GREEN SOLUTIONS INC.                                   |  
|------------------------------------------------------------- | -
|(A Development Stage
      Company)                           |  
|                                                              |  
|INTERIM CONSOLIDATED BALANCE
      SHEETS                     |  
|(Unaudited)                                                   |  
|(Stated in U.S. Dollars)                                      |  
|                                                              |  
|                                                              |  
|ASSETS                                                        |  
|Current                                                       |  
|Cash                                                          | $
|Amounts receivable                                            |  
|Prepaid expenses                                              |  
|                                                              |  
|Equipment                                                     |  
|                                                              | $
|LIABILITIES                                                   |  
|Current                                                       |  
|Accounts payable
      and accrued liabilities                | $
|Convertible notes                                             |  
|Loans payable                                                 |  
|                                                              |  
|Project Funding Advances                                      |  
|                                                              |  
|Commitments And Contractual
      Obligations (Note 9)        |  
|Subsequent Events (Note 13)                                   |  
|STOCKHOLDERS DEFICIENCY                                      |  
|Capital Stock                                                 |  
|Authorized:                                                   |  
|100,000,000 Common shares, par value $0.00001 per
      share |  
|Issued and
      outstanding:                                 |  
|50,140,829 common shares at May 31, 2011                      |  
|48,009,229 common shares at November 30,
      2010           |  
|Additional Paid-In Capital                                    |  
|Shares To Be Issued                                           |  
|Share Purchase Warrants                                       |  
|Deficit Accumulated During The
      Development Stage        |  
|Deficiency Attributable to Global Green Solutions
      Inc.  |  
|Deficiency Attributable to
      Non-controlling Interests    |  
|                                                              |  
|                                                              | $

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

F-1

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|GLOBAL GREEN SOLUTIONS INC.(A Development Stage Company)
      INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(Stated in U.S. Dollars)
|-----------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|                                                                                                                                               
|Revenue                                                                                                                                        
|Operating Expenses                                                                                                                             
|Consulting fees                                                                                                                                
|Finance charges                                                                                                                                
|Interest and bank charges                                                                                                                      
|Office and sundry                                                                                                                              
|Professional fees                                                                                                                              
|Project development expenses                                                                                                                   
|Stock-based compensation                                                                                                                       
|                                                                                                                                               
|Operating Loss before Other
      Income                                                                                                       
|(Expense)                                                                                                                                      
|Other Income (Expense)                                                                                                                         
|Gain (Loss) on debt settlements                                                                                                                
|Impairment of advances                                                                                                                         
|Impairment of intangibles                                                                                                                      
|Interest income                                                                                                                                
|Net Loss                                                                                                                                       
|Net (Income) Loss Attributable To Non-controlling Interests                                                                                    
|Net Loss Attributable to Global Green Solutions
      Inc.                                                                                     
|Basic And Diluted Loss Per Common Share                                                                                                        
|Weighted Average Number Of Common Shares
      Outstanding                                                                                     

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

F-2

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|GLOBAL GREEN SOLUTIONS INC. (A Development Stage
      Company)
      INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
        (Unaudited) (Stated in U.S. Dollars)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                
|                                                                                                                                                                
|                                                                                                                                                                
|                                                                                                                                                                
|                                                                                                                                                                
|Cash Flows (Used In) Provided By:
      Operating Activities                                                                                                    
|Net loss                                                                                                                                                        
|Adjustments to reconcile net
      loss to net cash used by operating activities                                                                                
|Depreciation                                                                                                                                                    
|Non-cash finance charges                                                                                                                                        
|Stock-based compensation                                                                                                                                        
|Non-cash consulting services                                                                                                                                    
|Non-cash license fee                                                                                                                                            
|Gain on non-cash debt settlements                                                                                                                               
|Non-cash project development expense recovery                                                                                                                   
|Accrued interest                                                                                                                                                
|Impairment of intangible assets                                                                                                                                 
|Impairment of advances                                                                                                                                          
|Changes to
      operating assets and liabilities                                                                                                               
|Amounts receivable                                                                                                                                              
|Prepaid expenses                                                                                                                                                
|Accounts payable and accrued liabilities                                                                                                                        
|                                                                                                                                                                
|Investing Activities                                                                                                                                            
|Acquisition of
      equipment and intangible asset                                                                                                             
|Pilot project facilities and equipment                                                                                                                          
|                                                                                                                                                                
|Financing Activities                                                                                                                                            
|Issue of share
      capital, net of issuance costs                                                                                                             
|Net proceeds from convertible notes                                                                                                                             
|Advances from
      non-controlling interests                                                                                                                   
|Loan advances (repayments) - net                                                                                                                                
|Project funding
      advances                                                                                                                                  
|                                                                                                                                                                
|Increase (Decrease) In Cash                                                                                                                                     
|Cash, Beginning Of Period                                                                                                                                       
|Cash,
      End Of Period                                                                                                                                       
|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

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(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 of which it owns 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 of $35.4 million for the
period from June 10, 2003 (inception) to May 31, 2011, has a stockholders deficiency of approximately $13.1 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 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 six month period ended May 31, 2011 are not necessarily indicative of results for the entire year ending November
30, 2011.

F-4

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(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)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)



|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | b)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | c)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | d)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   | e)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | f)                                                    
|   |                                                       
|   |                                                       

F-6

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)



|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | g)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | h)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | i)                                                    
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|   |                                                       
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|   | j)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       

F-7

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
|-- | ------------------------------------------------------
|   |                                                       
|   | k)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   |                                                       
|   | l)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | m)                                                    
|   |                                                       
|   |                                                       
|   |                                                       
|   | n)                                                    
|   |                                                       
|   |                                                       

F-8

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

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

F-9

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(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:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | 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 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.
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.

F-10

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GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

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

| | Greensteam has an obligation to grant Aera an Exclusive License Grant in the following circumstances:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | Expenditures incurred in connection with the steam generation project and charged to project development costs in the six month period ended May 31, 2011 totaled $994,922 (2010 - $4,121,786). Total steam generation project
development expenditures to May 31, 2011 aggregate to $11,924,895.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 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 the estimated 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 May
31, 2011, $8,691,918 (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. As a result
of changes to certain estimates contained within the above analysis, no further accretion was recorded during the three month period ended May 31, 2011.                                                                                                                                                         
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | 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. 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. Testing and
system refinements have continued since then, in preparation for meeting the specified test requirements in the Second Amendment. 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 third calendar quarter of 2011.

F-11

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|4. | CONVERTIBLE NOTES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | During the six months ended May 31, 2011, the Company issued convertible notes (the note or notes) in the aggregate amount of $765,616 as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | At the election of the holder, the notes and interest accrued thereon at the rate of 12% per annum compounded annually 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 that were issued in the six months ended May 31, 2011 have been converted into units. No finders fees were paid in connection with these notes.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | During the year ended November 30, 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 connection with these notes, the Company paid a total of $35,873 in finders fees. During the six months ended May 31, 2011, $150,000
of these convertible notes and $38,160 of accrued interest were converted into 1,881,600 units of the Company (refer to Note 7 a) i)).                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | 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.                                                                                                                                                                                             

F-12

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|4. | CONVERTIBLE NOTES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | 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 $224,916 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. 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 May 31, 2011, the Company has recorded
accretion of $341,778 (November 30, 2010: $226,729) and accrued interest of $284,180 (November 30, 2010: $193,669).
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|5. | LOANS PAYABLE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | The Company was indebted as at May 31, 2011 for short term, unsecured loans totaling $1,533,592 (November 30, 2010 - $1,864,005).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|6. | NON-CONTROLLING INTERESTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | For the six month period ended May 31, 2011, the Company recorded net income attributable to a non- controlling interest of $1,214 (2010 loss: $13,910). 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 period ended May 31, 2011 and is to be wound up.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-13

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|7. | CAPITAL STOCK                                                     
|-- | ------------------------------------------------------------------
|   |                                                                   
|   | a)                                                                
|   |                                                                   
|   | During the six month period ended May 31, 2011, the
      Company:

| |  | i)   | Issued 1,881,600 shares on conversion of convertible debt
      and accrued interest totaling $188,160 into 1,881,600 units with each unit
      comprised of one common share and one warrant to acquire a further share
      on payment of $0.25, exercisable for two years.                                                                                                                             
| |  | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ii)  | Issued 250,000 shares in connection with consulting
      services provided to the Company. The estimated fair value of the common
      shares was $35,000 which was expensed in the period.                                                                                                                                                                                                               
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | iii) | Reached agreements with certain lenders during the period
      to settle $328,914 of loan principal, plus accrued interest totaling
      $105,149, and other fees and expenses owing totaling $1,180,663 in
      exchange for 5,002,126 restricted shares of common stock. The shares have
      not yet been issued and their estimated fair value of $742,065 is included
      in Shares To Be Issued.

| |    |              
| | -- | -------------
| | 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 May 31, 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 six month period ended May 31, 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, while 800,000 options expired during the period without being exercised.

During the year ended November 30, 2010, the Company did not
grant any stock options but recorded $132,767 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 May 31, 2011:

| |          |  | STOCK       |  |  | STOCK       |  |  | WEIGHTED    | 
| | -------- |  | ----------- |  |  | ----------- |  |  | ----------- | 
| |          |  | OPTIONS     |  |  | OPTIONS     |  |  | AVERAGE     | 
| |          |  | ISSUED      |  |  | OUTSTANDING |  |  | REMAINING   | 
| | EXERCISE |  | AND         |  |  | AND         |  |  | CONTRACTUAL | 
| | PRICE    |  | OUTSTANDING |  |  | EXERCISABLE |  |  | LIFE        | 
| | $ 0.20   |  | 2,760,000   |  |  | 2,760,000   |  |  | 0.64 years  | 
| | $ 0.20   |  | 675,000     |  |  | 675,000     |  |  | 0.69 years  | 
| |          |  | 3,435,000   |  |  | 3,435,000   |  |  |             | 

F-14

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

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

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

The Companys stock option activity for the six month period
ended May 31, 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   | 
| | Expired during the period                    |  | (800,000   | ) |   | 0.50     |  |  |             | 
| | Balance outstanding, May 31, 2011            |  | 3,435,000  |   | $ | 0.20     |  |  | 0.65 years  | 

As at May 31, 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 May 31, 2011 was $NIL.

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

The Companys share purchase warrant activity for the six month
period ended May 31, 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     |  |  | 0.13 years  | 
| | Granted during the period  |  | 1,881,600  |   |   | 0.25     |  |  |             | 
| | Expired during the period  |  | (1,176,471 | ) |   | 1.50     |  |  |             | 
| | Balance, May 31, 2011      |  | 2,031,600  |   | $ | 0.33     |  |  | 1.76 years  | 

F-15

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(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 six month period ended May 31, 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 May 31, 2011 that are not disclosed elsewhere in these financial statements:
During the six month period ended May 31, 2011, the Company paid and/or accrued consulting fees to directors and officers of the Company in the amount of $89,071 (2010 - $268,988).
  During the six month period ended May 31, 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.
  $Nil (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 six month period ended May 31, 2011, the Company entered into settlement agreements with directors and officers of the Company or with companies controlled by certain directors and officers. The Company agreed to issue 5,002,126
      restricted common shares with an estimated fair value of $742,065 in settlement of loans totaling $328,914, accrued interest totaling $105,149, unpaid expenses totaling $77,114, unpaid consulting fees totaling $795,371, and
      unpaid rent and administrative services totaling $308,178 resulting in a gain on settlement of $872,661. The shares have not yet been issued and their estimated fair value is included in Shares To Be Issued.

F-16

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|9. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS                                                                                                                                                                                                                                                                                         
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                 
|   | Except as disclosed elsewhere in these consolidated financial statements, the Company had no commitments and contractual obligations at May 31, 2011. The following agreements which the Company had previously entered into with
officers, employees and consultants were cancelled in the six month period ended May 31, 2011:
|   |                                                                                                                                                                                                                                                                                                                                 
|   | i)                                                                                                                                                                                                                                                                                                                              
|   |                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                 
|   | ii)                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                 
|   | iii)                                                                                                                                                                                                                                                                                                                            

F-17

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|9. | COMMITMENTS AND CONTRACTUAL OBLIGATIONS
      (Continued)
|-- | ---------------------------------------------------------
|   |                                                          
|   | iv)                                                      
|   |                                                          
|   | v)                                                       
|   |                                                          
|   | vi)                                                      

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

The Company recorded non-cash finance costs as follows:

| |                                                             |   | Six Month           | 
| | ----------------------------------------------------------- | - | ------------------- | 
| |                                                             |   | Period Ended May 31 | 
| |                                                             |   | 2011                | 
| | Amortization of the intrinsic value
      and/or beneficial |   |                     | 
| | conversion feature of the convertible
      notes           | $ | 115,049             | 

During the six month period ended May 31,
      2011 the Company:

| | i)  | Recognized the value of the embedded
      beneficial conversion feature of $224,916 in respect of convertible notes totaling $765,616.                                                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                            
| | ii) | Agreed to issue 5,002,126 restricted
      common shares with an estimated fair value of $742,065 in settlement of certain unpaid fees,
      expenses, loans, and accrued interest totaling $1,614,726 resulting in a gain on settlement of $872,661. The
      shares have not yet been issued and their estimated fair value above is included in Shares To Be Issued. See
      Note 8.

F-18

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|10. | NON-CASH INVESTING AND FINANCING ACTIVITIES (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | During the six month period ended May 31, 2010 the Company:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|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-19

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(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
      Using | 
| | ------------------------ | - | ---------------------------------- | 
| |                          |   | Level 1                            | 
| | Project Funding Advances |   |                                    | 
| | May 31,
      2011       | $ | -                                  | 
| | November 30, 2010        | $ | -                                  | 

Fair Value of Financial Instruments

The following table reflects the fair value of financial
instruments:

| |                                          |  |       |  |   | May 31, 2011 |  |   | November 30, 2010 | 
| | ---------------------------------------- |  | ----- |  | - | ------------ |  | - | ----------------- | 
| |                                          |  |       |  |   | Carrying     |  |   | Estimated         | 
| |                                          |  | Level |  |   | Amount       |  |   | Fair Value        | 
| | Financial Assets:                        |  |       |  |   |              |  |   |                   | 
| | Cash                                     |  | 1     |  | $ | 2,178        |  | $ | 2,178             | 
| | Amounts receivable                       |  | 1     |  |   | 30,954       |  |   | 30,954            | 
| | Financial Liabilities:                   |  |       |  |   |              |  |   |                   | 
| | Accounts payable and accrued liabilities |  | 1     |  |   | 1,374,359    |  |   | 1,374,359         | 
| | Convertible notes                        |  | 3     |  |   | 1,515,913    |  |   | 1,515,913         | 
| | Loans payable                            |  | 1     |  |   | 1,533,592    |  |   | 1,533,592         | 

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
GreensteamTM technology through its 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.

F-20

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(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.

| |                                         |   | Six Months Ended May
      31 |  
| | --------------------------------------- | - | ----------------------------- | -
| |                                         |   | 2011                          |  
| | Operating Loss (Gain):                  |   |                               |  
| | Biomass-fueled steam generation project | $ | 994,922                       |  
| | Other                                   |   | (1,695                        | )
| | Total reportable segments               |   | 993,227                       |  
| | Corporate and other                     |   | (345,324                      | )
| | Total operating loss                    | $ | 647,903                       |  

|    | 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    | The Company entered into an agreement on June 27, 2011 to
      sell its GreensteamTMdemonstration system located near
      Bakersfield, California (the System). The Company will receive $400,000
      in return for the System and 1,000,000 restricted shares of its common
      stock. To date, $256,500 has been received and the shares have not been
      issued. The Company expects to receive the balance before the end of July,
      2011. The agreement provides for the following:
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

F-21

---

GLOBAL GREEN SOLUTIONS INC.
(A Development Stage Company)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MAY 31, 2011 AND 2010(Unaudited)(Stated in U.S. Dollars)

|13. | SUBSEQUENT EVENTS (Continued)
|--- | -----------------------------

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; and
- 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 May 31, 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 GreensteamTM process 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 GreensteamTM process 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 GreensteamTM process consists of a fuel receiving, handling, and preparation system, up to ten GreensteamTM advanced 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 GreensteamTM advanced
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.

---

GreensteamTM is 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

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 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. Extensive process adjustments were then undertaken which significantly improved Greensteam performance, culminating in a resumption of
steam generation in June 2011, utilizing 100% biomass fuel and running for over 24 hours. Operations included simultaneous preparation and waste heat drying of the fuel being consumed, which is a key element of the Greensteam process.

The next key milestone is completion of a 30 day continuous performance test as specified in the Program Agreement. The test is designed to confirm the ability of GreensteamTM to reliably and safely produce steam meeting Aera
specifications from locally derived biomass, specifically by demonstrating:

- Long-term operability by running 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; and
- 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 the third calendar quarter 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 six month period ended May 31, 2011 totaled $994,922 (2010: $4,121,786). The higher level of costs in 2010 was due to
construction which was being completed at that time, whereas equivalent 2011 costs included operations only. As of May 31, 2011, $8,691,918 (November 30, 2010 - $8,307,217) had been received from Aera under the terms of the Second
Amendment.

Business Model

Our business model for GreensteamTM is 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.

---

GreensteamTM project 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 GreensteamTM
project 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
potential problem with respect to the ability of GreensteamTM project
partners to secure major project funding, as GreensteamTM projects
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 May 31 |   |   | Change    |  
|                                              |   | 2011                      |   |   | 2010      |   |   | Amount     |   |  | Percentage |  
|Revenue                                       | $ | -                         |   | $ | -         |   | $ | -          |   |  | -          |  
|Expenses                                      | $ | 895,596                   |   | $ | 3,196,796 |   | $ | (2,301,200 | ) |  | (72%       | )
|(Gain) Loss on debt settlements               |   | (747,895                  | ) |   | -         |   |   | (747,895   | ) |  | -          |  
|Net Income (Loss) - Non-controlling interests | $ | 1,254                     |   | $ | (6,017    | ) | $ | 7,271      |   |  | 121%       |  
|Net Loss  Global Green Solutions             | $ | 148,955                   |   | $ | 3,190,779 |   | $ | (3,041,824 | ) |  | (95%       | )
|Revenues                                      |   |                           |   |   |           |   |   |            |   |  |            |  

We recorded a net loss of $148,955 for the three month period
ended May 31, 2011 and have an accumulated deficit of $35,356,653 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 GreensteamTM project with Aera Energy LLC, starting in 2012
from engineering services to be provided on the first commercial scale unit.

---

Expenses  Three month period ended May 31, 2011 compared to
the three month period ended May 31, 2010

|Items with notable period over period
      differences are as follows: |   |                           |   |   |           |  |   |            |   | 
|----------------------------------------------------------------------- | - | ------------------------- | - | - | --------- |  | - | ---------- | - | 
|                                                                        |   | Three Months Ended May 31 |   |   | Change    | 
|                                                                        |   | 2011                      |   |   | 2010      |  |   | Amount     |   | 
|Consulting fees                                                         | $ | 106,434                   |   | $ | 131,853   |  | $ | (25,419    | ) | 
|Finance charges                                                         | $ | 58,708                    |   | $ | 41,118    |  | $ | 17,590     |   | 
|Interest and bank charges                                               | $ | 73,918                    |   | $ | 212,248   |  | $ | (138,330   | ) | 
|Office and sundry                                                       | $ | (1,448                    | ) | $ | 22,734    |  | $ | (24,182    | ) | 
|Professional fees                                                       | $ | 73,248                    |   | $ | 24,011    |  | $ | 49,237     |   | 
|Project
      development expenses                                      | $ | 584,736                   |   | $ | 2,721,271 |  | $ | (2,136,535 | ) | 
|Stock based compensation                                                | $ | -                         |   | $ | 43,561    |  | $ | (43,561    | ) | 
|(Gain) Loss on debt settlements                                         | $ | (747,895                  | ) | $ | -         |  |   | (747,895   | ) | 

- Consulting fees decreased mainly due to no accrual being made in the
  current quarter for consulting fees for our South African subsidiary, compared
  to an accrual of $25,500 for the same quarter last year. The subsidiary was
  inactive in the current quarter and is to be wound up.
- The increase in Finance charges resulted from an increase in accretion of
  charges on convertible debt, the face value of which was approximately
  $1,803,000 at the end of Q2 2011 compared to approximately $1,127,000 at the
  end of Q2 2010.
- The decrease in Interest and bank charges was mainly due to accretion on
  advances from Aera Energy LLC being approximately $145,000 lower in Q2 2011
  than Q2 2010. As a result of changes to certain estimates, no further
  accretion was recorded during the three month period ended May 31, 2011.
  Advances during the May 31, 2011 quarter were approximately $43,000, compared
  to approximately $2,330,000 in the same quarter in 2010. Those advances
  decreased year over year as the construction of the demonstration project and
  Aeras funding of the project was completed.
- Office and sundry decreased mainly due to no cost in 2011 for rent and
  administrative services, together with a foreign exchange gain in the current
  quarter.
- Professional fees are considerably higher in the 2011 quarter than in
  2010, however the six month year to date costs for 2011 compared to 2010 have
  only changed (decreased) by approximately 7%. The quarterly difference is
  mainly due to differences year over year in timing of billings for external
  accounting services and audit fees.
- Project development costs decreased in Q2 2011 versus Q2 2010 due to the
  completion of construction of the Greensteam demonstration project in June
  2010. Current project development costs are comprised of costs for the project
  site manager and team, site costs, and costs related to testing, development
  and modifications, but no construction.
- Stock-based compensation was lower in Q2 2011 than Q2 2010 due to there
  being no options issued in the six months ended May 31, 2011 and all options
  issued in previous fiscal years were fully expensed by November 30, 2010.

Balance Sheet at May 31, 2011 compared to November 30,
2010

|Items with notable period-end differences
      are as follows: |   |            |  |   |             |  |   |            |   | 
|--------------------------------------------------------------- | - | ---------- |  | - | ----------- |  | - | ---------- | - | 
|                                                                |   | May 31     |  |   | November 30 |  |   | Change     |  
|                                                                |   | 2011       |  |   | 2010        |  |   | Amount     |   | 
|Cash                                                            | $ | 2,178      |  | $ | 140,509     |  | $ | (138,331   | ) | 
|Amounts receivable                                              |   | 30,954     |  |   | 12,837      |  |   | 18,117     |   | 
|Accounts payable and accrued
      liabilities                  | $ | 1,374,359  |  | $ | 2,604,886   |  | $ | (1,230,527 | ) | 
|Convertible notes, net of discount                              | $ | 1,515,913  |  | $ | 1,010,164   |  | $ | 505,749    |   | 
|Loans payable                                                   | $ | 1,533,592  |  | $ | 1,864,005   |  | $ | (330,413   | ) | 
|Project Funding Advances                                        | $ | 8,856,173  |  | $ | 8,446,766   |  | $ | 409,407    |   | 
|Additional Paid In Capital                                      | $ | 21,310,087 |  | $ | 20,435,348  |  | $ | 874,739    |   | 
|Shares to Be Issued                                             | $ | 742,065    |  | $ | -           |  | $ | 742,065    |   | 
|Share Purchase Warrants                                         | $ | 193,816    |  | $ | 620,500     |  | $ | (426,684   | ) | 

- Cash decreased approximately $138,000 during the current period due to
  proceeds from convertible notes, loans, and project funding advances being
  less than the amount required to fund operations.

---

- Accounts payable and accrued liabilities decreased mainly as a result of us reaching agreements with certain lenders during the six months ended May 31, 2011 to settle accrued interest owing of approximately $105,000, and other fees and expenses
owing of approximately $1,181,000 in exchange for restricted shares of our common stock.
- The increase in Convertible Notes resulted from the issuance of new notes with a face value of $765,616 during the six months ended May 31, 2011. A portion of the notes face value, representing the estimated value of the beneficial
conversion feature, was allocated to additional paid-in capital.
- Loans payable decreased primarily as a result of agreements being reached with certain lenders during the six months ended May 31, 2011 to settle approximately $329,000 of loan principal in exchange for restricted shares of our common stock.
- Project funding advances received in the six months ended May 31, 2011 from Aera Energy LLC totaled $384,701. Accretion of $24,706 on these advances was recorded during the same period.
- Additional Paid In Capital increased during the six months ended May 31, 2011 as a result of the following items: approximately $225,000 from recording the value of the embedded conversion feature in convertible notes that were issued;
approximately $478,000 in connection with the expiry of Share Purchase Warrants; approximately $35,000 on the issue of 250,000 shares in connection with the provision of consulting services; and approximately $137,000 on the conversion
of notes and accrued interest.
- Shares To Be Issued increased due to agreements being reached with certain lenders during the six months ended May 31, 2011 to settle approximately $329,000 of loan principal, accrued interest owing of approximately $105,000, and other fees
and expenses owing of approximately $1,181,000 in exchange for 5,002,126 restricted shares of common stock. The shares have not yet been issued and their estimated fair value of $742,065 is included in Shares To Be Issued.
- The value of Share Purchase Warrants decreased by approximately $478,000 when 1,176,471 warrants with an exercise price of $1.50 expired and increased by approximately $51,000 when 1,881,600 warrants with an exercise price of $0.25
were issued during the six months ended May 31, 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 $1.8 million to the end of December 2011 as follows:

- We estimate that our funding requirement for public company administration and maintenance, investor and marketing communications, legal costs, and general management through December 31, 2011 will total approximately $0.3 million.
- Costs related to the commercialization of the Greensteam technology and development of the Aera project, including the project management team, demonstration plant testing, permits, patent work, and commercial infrastructure development are
estimated to total approximately $1.5 million to December 31, 2011.

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 that is sufficient to cover ongoing project development costs and corporate operating expenses. First revenues are expected to be from the GreensteamTM project with Aera, starting in
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 GreensteamTM projects. 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 May 31, 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 May 31, 2011 that have materially affected, or are reasonably likely to materially affect, the Companys internal control over
financial reporting.

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

We had no sales of unregistered securities in the six months ended May 31, 2011 and subsequently, to the date of this report, that were not previously disclosed in our report on Form 10-Q for the quarter ended February 28, 2011.

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.

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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 15th day of July, 2011.

GLOBAL GREEN SOLUTIONS INC.(the Registrant)

BY:  Doug FraterJ. Douglas Frater, President and Principal Executive Officer,

BY:  Arnold HughesArnold Hughes, Principal Accounting Officer, Principal
       
Financial Officer and Treasurer

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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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