CIBT Education : F2017 Q1 Management Discussion and Analysis

CIBT EDUCATION GROUP INC. MANAGEMENT'S DISCUSSION & ANALYSIS

(EXPRESSED IN CANADIAN DOLLARS UNLESS OTHERWISE STATED)

FOR THE QUARTER ENDED NOVEMBER 30, 2016 CIBT EDUCATION GROUP INC. (the "Company") MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE QUARTER ENDED NOVEMBER 30, 2016

The following Management's Discussion & Analysis ("MD&A") is prepared in accordance with National Instrument 51- 102F1, and should be read in conjunction with the consolidated financial statements and related notes for the quarter ended November 30, 2016, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). The comparatives in this MD&A have been presented in accordance with IFRS. Additional information about the Company, including its annual information form, are available under the Company's profile on SEDAR (www.sedar.com).

The forward-looking statements (and their underlying material factors or assumptions) in this MD&A include, without limitation, the following:

1. the students accommodations business is expected to benefit the Company in four ways: structuring fee, steady stream of rental income, ongoing management fees as well as any capital gain upon exit;

2. that students from the Company's own education subsidiaries and its partner schools will provide a steady supply of students into its student housing projects; the underlying material factors or assumptions are that the Company will become more vertically integrated in the future and that GEC branded housing projects will remain the economical choice for incoming students;

3. the expectation that GEA will successfully complete its programs and add more partner schools and unique programs designed for domestic and international students; the underlying material factor or assumption is that the demand for international students by the Company's partner schools will continue to grow;

4. the Company's plans for the proposed education super centers; the underlying material factors or assumptions are that the Company arranges enough equity financing from investment partners and is able to secure loans to enable the respective limited partnerships to buy the GEC Education Mega Center project and GEC Education Super Center project; that the relevant municipalities are receptive to the proposed building plans; and that these projects can be built for a price determined reasonable by the Company and its investment partners; and these projects can be completed in a reasonable amount of time as determined by the Company and the developer; and

5. the Company's plans for sufficient student centric facilities to be built over a five year period to accommodate up to 10,000 students; the underlying material factors or assumptions are that the Company will be able to continue to arrange the required equity funding from investment partners at the current pace; that the number of future domestic and international students will increase near predicted rates, and that GEC branded housing projects will remain the economical choice for incoming students.

The Company believes the expectations reflected in these forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this MD&A should not be unduly relied upon. These forward-looking statements speak only as of the date of this MD&A, and the Company assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities law.

Reference should also be made to the risks described herein under the heading "Risks Related to the Company's Business" for a discussion of these and other sources of factors underlying forward-looking statements and those additional risks set forth under the heading "Risk Factors" in the Company's annual information form for the financial year ended August 31, 2016. The Company believes the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this MD&A should not be unduly relied upon. These forward-looking statements speak only as of the date of this MD&A, and the Company assumes no obligation to update or review them to reflect new events or circumstances except as required by applicable securities law.

All figures are in Canadian dollars unless otherwise noted. This MD&A has been prepared as of November 30, 2016. In this MD&A, the following terms have the meanings shown:

"Fiscal 2017" means the fiscal year ending August 31, 2017 "Fiscal 2016" means the fiscal year ending August 31, 2016 "Fiscal 2015" means the fiscal year ending August 31, 2015 "Fiscal 2014" means the fiscal year ending August 31, 2014

"First Quarter of Fiscal 2017" means the three months ending November 30, 2016 "Second Quarter of Fiscal 2017" means the three months ending February 28, 2017 "Third Quarter of Fiscal 2017" means the three months ending May 31, 2017 "Fourth Quarter of Fiscal 2017" means the three months ending August 31, 2017

"First Quarter of Fiscal 2016" means the three months ended November 30, 2015 "Second Quarter of Fiscal 2016" means the three months ended February 29, 2016 "Third Quarter of Fiscal 2016" means the three months ended May 31, 2016 "Fourth Quarter of Fiscal 2016" means the three months ended August 31, 2016

"First Quarter of Fiscal 2015" means the three months ended November 30, 2014 "Second Quarter of Fiscal 2015" means the three months ended February 28, 2015 "Third Quarter of Fiscal 2015" means the three months ended May 31, 2015 "Fourth Quarter of Fiscal 2015" means the three months ended August 31, 2015

NON-IFRS FINANCIAL MEASUREMENTS

Earnings before interest, taxes, depreciation and amortization ("EBITDA") are non-IFRS financial metric used in this Management's Discussion & Analysis. These non-IFRS financial measurements do not have any standardized meaning as prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other issuers. Management uses EBITDA metrics to measure the profit trends of the business units and segments in the consolidated group since it eliminates the effects of financing decisions. Certain investors, analysts and others utilize these non-IFRS financial metrics in assessing the Company's financial performance. These non-IFRS financial measurements have not been presented as an alternative to net loss or any other financial measure of performance prescribed by IFRS. Reconciliation of the non-IFRS measure has been provided throughout this MD&A.

Date of Report - January 16, 2017 CIBT EDUCATION GROUP INC. MANAGEMENT'S DISCUSSION & ANALYSIS FOR THE QUARTER ENDED NOVEMBER 30, 2016 NATURE OF BUSINESS

CIBT Education Group Inc. (the "Company") is an education and student-housing investment company focused on the global education market since 1994. Listed on the Toronto Stock Exchange (TSX) under the trading symbol "MBA" and quoted on the OTCQX-International under the trading symbol "MBAIF", the Company owns and operates a network of business, technical and language colleges in North America and Asia. Its real estate arm owns and operates a network of serviced apartments and hotels that provide student housing in the Metro Vancouver area, British Columbia.

The Company's operating entities are as follows:

Legal / Operating Entity	Business Description
CIBT School of Business & Technology Corp. ("CIBT" or "CIBT China")	Associate Degree provider offering automotive technical training, English teacher preparation, English as Second Language, and accounting programs in China.
Sprott Shaw College ("SSDC")	Private career and technical training college offering diplomas and certificates in health care, tourism, hospitality, business, administrative, technical trades, and international studies in Canada.
Global Education Alliance Inc. ("GEA")	International students' referral and on-ground concierge services for elite kindergarten, primary, secondary school and university students coming to study in North America.
Global Education City Holdings Inc. ("Global Education Holdings")	Investment holding and management company with focus on student housing real estate projects in Canada such as serviced apartments and hotels for domestic and international students as well as technology professionals in the Metro Vancouver area in British Columbia
IRIX Design Group Inc. ("IRIX")	Design and advertising company.
Vancouver International College ("VIC")	English as a Second Language College, offering accredited programs including General English (ESL), College Preparation/Pathway, Business English, Medical English and IELTS Test Preparation.

The Company's primary business units consist of CIBT (including GEA), SSDC, IRIX, Global Education Holdings, VIC and Corporate (head office) functions.

Industry Growth Prospect

Growing at 8% annually, international education is an $11.4 billion industry in Canada (2014).1 The industry created 86,570 jobs and generated $455 million in government tax revenues in 2011 according to statistics published by Citizenship and Immigration Canada.2 The Canadian government is ramping up to become one of the top 5 largest destination countries in the world for foreign students behind the US and the UK.3 According to a federal government news release, the quota of international students allowed admission into Canada is expected to climb 80% in 8 years, from 250,000 in 2014 to 450,000 by 2022.4 Recent data suggests that this goal may have been reached. In 2015, the number of international students at all

1 http://monitor.icef.com/2016/11/canadas-international-student-enrolment-up-8/

2 "Canada's International Education Strategy- Harnessing our knowledge advantage to drive innovation and prosperity"- 2014 http://international.gc.ca/global-markets-marches-mondiaux/assets/pdfs/overview-apercu-eng.pdf

3 "Ottawa aims to double number of foreign students- Program to be announced Wednesday will target countries with a fast- growing middle class"- 2014 http://www.vancouversun.com/Ottawa+aims+double+number+foreign+students/9388022/story.html? lsa=faae-64cb

4 "Canada wants to double its international student body"- http://www.cbc.ca/news/canada/british-columbia/canada-wants-to-double-its-international- student-body-1.2497819