CIBT Education : Annual Information Form

CIBT EDUCATION GROUP INC.

Annual Information Form

For the fiscal year ended

August 31, 2021

777 West Broadway, Suite 1200

Vancouver, BC, V5Z 4J7

Tel: [phone]

Fax: [phone]

Website: www.cibt.net

Dated: November 29, 2021

TABLE OF CONTENTS
GLOSSARY .................................................................................................................................................................	1
PRELIMINARY NOTES............................................................................................................................................	2
CORPORATE STRUCTURE ....................................................................................................................................	4
NAME, ADDRESS AND INCORPORATION ..................................................................................................................	4
INTERCORPORATE RELATIONSHIPS .........................................................................................................................	4
GENERAL DEVELOPMENT OF THE BUSINESS ...............................................................................................	5
THREE YEAR HISTORY ............................................................................................................................................	5
DESCRIPTION OF BUSINESS.................................................................................................................................	7
GENERAL ................................................................................................................................................................	7
SERVICES ................................................................................................................................................................	8
SPECIALIZED SKILL AND KNOWLEDGE..................................................................................................................	12
COMPETITIVE CONDITIONS ...................................................................................................................................	12
INTANGIBLE ASSETS .............................................................................................................................................	13
CYCLES .................................................................................................................................................................	13
EMPLOYEES...........................................................................................................................................................	13
FOREIGN OPERATIONS ..........................................................................................................................................	14
BANKRUPTCY AND SIMILAR PROCEDURES ............................................................................................................	14
RISK FACTORS.......................................................................................................................................................	14
DIVIDENDS...............................................................................................................................................................	19
DESCRIPTION OF CAPITAL STRUCTURE.......................................................................................................	19
COMMON SHARES .................................................................................................................................................	19
MARKET FOR SECURITIES.................................................................................................................................	20
MARKET................................................................................................................................................................	20
TRADING PRICE AND VOLUME ..............................................................................................................................	20
DIRECTORS AND OFFICERS...............................................................................................................................	20
NAME, OCCUPATION AND SECURITY HOLDING .....................................................................................................	20
CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS....................................................................	22
LEGAL PROCEEDINGS AND REGULATORY ACTIONS ...............................................................................	22
INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS....................................	23
TRANSFER AGENTS AND REGISTRARS ..........................................................................................................	23
MATERIAL CONTRACTS .....................................................................................................................................	24
INTERESTS OF EXPERTS .....................................................................................................................................	24
ADDITIONAL INFORMATION.............................................................................................................................	24
AUDIT COMMITTEE ...............................................................................................................................................	24
GENERAL ..............................................................................................................................................................	26
APPENDIX A - Amended and Restated Audit Committee Charter

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GLOSSARY

In addition to the terms defined elsewhere in this AIF, the following terms have the meanings shown.

"AIF" means an annual information form prepared pursuant to Part 6 of National Instrument 51-102Continuous Disclosure Obligations.

"Board" means the Company's board of directors.

"Company" means CIBT Education Group Inc. and its direct and indirect subsidiaries on a consolidated basis unless otherwise indicated.

"Fiscal 2019" means the Company's fiscal year ended August 31, 2019. "Fiscal 2020" means the Company's fiscal year ended August 31, 2020. "Fiscal 2021 means the Company's fiscal year ending August 31, 2021. "Fiscal 2022 means the Company's fiscal year ending August 31, 2022. "Fiscal 2023 means the Company's fiscal year ending August 31, 2023.

"GEA" means the Company's subsidiary, Global Education Alliance Inc. "NI 52-110" means National Instrument 52-110Audit Committees.

"RMB" means the renminbi, the national currency of the People's Republic of China. "SEDAR" means the System for Electronic Document Analysis and Retrieval. "TSX" means the Toronto Stock Exchange.

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PRELIMINARY NOTES

Date of Information

Unless otherwise stated, the information herein is presented as at August 31, 2021, being the last day of the Company's most recently completed financial year.

Currency

Unless otherwise specified, in this AIF all references to "dollars" or to "$" are to Canadian dollars.

Cautionary Note Regarding Forward-Looking Statements

This AIF contains "forward-looking information" within the meaning of Canadian securities laws. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties. Forward-looking statements include, but are not limited to, financial projections, information or expectations about the Company's business plans, results of operations, products or markets, or otherwise makes statements about future events. Such forward-looking statements can be identified by the use of words such as "intends", "anticipates", "believes", "estimates", "projects", "forecasts", "expects", "plans" and "proposes". The forward-looking statements in this AIF include, without limitation, information with respect to the impact of COVID-19 on the Company's anticipated cash flows, that the student-centric accommodations business provides the Company with four potential benefits: (1) fees from developing and structuring each project, (2) a proportional interest in the net profits generated by each project through the holding of limited partnership units, (3) fees from managing the business operations of each project, and

(4) a proportionate interest in any capital gain upon exit.

Although the Company believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. These include, among others, the risk factors and other cautionary statements under "Description of Business" which identify important factors that could cause actual results to differ materially from those described in the forward-looking statements. Factors that could cause actual results to differ materially from the forward-looking statements include but are not limited to the following:

• a rising inflation rate and consumer price index rate which may lead to a rising interest rate
• a slower than expected return of international students to Canada
• the reimposition of government restrictions relating to the COVID-19 global pandemic
• fluctuation of real estate prices
• risks related to real estate project developments generally such as interest rates and construction delays due to factors including permit issuance, construction costs and construction labour market shortages including but not limited to:
  o rezoning process risk due to delays in permit approval, issuance, design changes or use of property may result in extensive cost increases
  o significant interest rate increases will affect financial performance, and lending sentiment by construction lenders may impact the cost of mortgage financing
  o significant insurance premium increases will affect financial performance
  o construction delays, cost overruns and exchange rate fluctuation on construction materials will impact the cost of construction
• increased competition in the sectors in which the Company has investments
• need for additional capital to complete acquisitions and expand operations
• dependence on key personnel, the Company's facility providers and educational service providers
• ability to compete effectively with competitors that have greater financial, marketing and other resources
• increases in the frequency and severity of extreme weather events, such as wildfires and severe winter weather conditions, could impact travel demand in BC, lead to supply chain interruptions and may cause damage to physical assets
• ability to manage planned growth and integrate new business opportunities into existing operations

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• risks involving the Chinese legal system, tax system, and foreign currency limitation which could impact the operations of CIBT's subsidiary in China
• risks related to government regulations and obtaining required approvals
• the possibility that personal information that the Company collects may be vulnerable to breach, theft or loss, which could subject the Company to liability or adversely affect its reputation and operations
• government policy relating to rent control may affect rental income
• government policy relating to foreign investment may affect investor sentiment
• the inability of any of the Company's limited partnerships to repay loans guaranteed by the Company or its subsidiaries could have a significant effect on the Company's financial performance

Although the Company has attempted to identify important factors that could affect the Company and may cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this AIF speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events, other than as required by applicable securities laws.

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