CIBT Reports Sale of Ground Floor Commercial Units at one of its GEC Branded Properties & Provides Summary Update

Vancouver, BC – September 4, 2018 – CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to announce that one of its real estate investment limited partnerships (the “LP”) has completed the sale of four commercial ground floor units at one of the GEC® branded properties (the “Property”) for gross proceeds of $6 million before leasehold improvements subsidy, realtor’s commission and closing adjustments.  Net proceeds from the sale are approximately $5.5 million.

The Property was purchased on November 2^nd, 2015.  It is a four-storey condominium project that has four commercial strata units located on the first floor, and thirty residential strata units located on the second to fourth floors.  The building was purchased for $17.75 million, or an average cost of $491 per buildable square foot The sale of the four ground floor commercial units represents a net selling price of approximately $647 per square foot before adjustments.

The LP has retained all of the residential condominium units on the 2^nd, 3^rd and 4^th floors, which are fully occupied by students attending Simon Fraser University, Capilano University, BCIT, Sprott Shaw College Burnaby campus and other schools within Metro Vancouver.

“The sale of the commercial units on the ground floor will reduce the mortgage principal and borrowing interest, increase cash flow, and most importantly, allow us to stay focused on our core competency which is providing market rental apartments designed for students,” commented Toby Chu, Chairman, President and CEO of CIBT.  The following is a summary of our real estate division’s recent transactions over the past six months:

• March 19, 2018: Structured the exit of GEC® Granville for its original limited partner for $57 million. This limited partner earned a net return of 130% within 27 months. The Company has subsequently increased its ownership (as a limited partner) from 20% to 47% and continues to operate the property. The most recent appraised value of GEC Granville is $65.92 million.
• March 21, 2018: Signed contract to purchase through a real estate investment limited partnership, Global Education City® (Richmond) for $230 million, with the initial $50 million deposit for this project being paid by June 30^th,
• August 14, 2018: Sold GEC® Viva Tower for $55.5 million and successfully exited with a return of 333% over 41 months. The Company continues to manage and operate this property for five years post-exit.
• August 27, 2018: Purchased GEC® Pearson for $42.5 million and commenced operations immediately. Current appraised value for this property is $87.1 million, representing a return of invested capital (ROIC) of 317% over four years.  GEC® Pearson is expected to generate $4.5 million in annual rental revenue to GEC Pearson Limited Partnership.
• August 31, 2018: Sold the four ground-floor commercial units of the Property for $6 million.  Proceeds will be used to reduce the mortgage expense and increase profitability.  All residential units will continue to be owned by the LP and operated by CIBT.

“With an average of one transaction per month since March 2018, these purchase and sale transactions have totalled over $379 million in transaction value and generated substantial returns to CIBT and its shareholders, as well as the other limited partners. In aggregate, these transactions of GEC® branded projects have expanded our footprint, increased our rental supply and have created tremendous cash flow and liquidity for CIBT, which will allow us to act on new acquisition opportunities efficiently,” continued Toby Chu.

About CIBT Education Group:
CIBT Education Group Inc. is one of the largest education and student housing investment companies in Canada focused on the global education market since 1994.  Listed on the Toronto Stock Exchange and U.S OTCQX International, CIBT owns business and language colleges, student housing properties, recruitment centres and corporate offices at 43 locations in Canada and abroad.  Total annual enrollment for the group exceeds 12,000 students.  Its education providers include Sprott Shaw College (established in 1903), Sprott Shaw Language College, Vancouver International College and CIBT School of Business.  Through these schools, CIBT offers business and management programs in healthcare, hotel management, language training, and over 150 career, language and vocational programs.  CIBT owns Global Education City Holdings Inc., an investment holding and development company focused on developing education related real estate such as student hotels, serviced apartments and education super centres.  Total portfolio and development budget of projects under the GEC® brand is more than C$1 billion.  CIBT also owns Global Education Alliance (“GEA”) and Irix Design Group (“Irix Design”). GEA recruits international students on behalf of many elite kindergartens, primary and secondary schools, colleges and universities in North America.  Irix Design is a leading design and advertising company based in Vancouver, Canada.  Visit us online and watch our corporate video at www.cibt.net.

Toby Chu
Chairman, President and Chief Executive Officer
CIBT Education Group Inc.
Investor Relations Contact: 1-604-871-9909 extension 318 or | Email: info@cibt.net

Forward-Looking Statements:
Some statements in this news release contain forward-looking information (the “forward-looking statements”).  Forward-looking statements are statements that are not historical facts and in this news release include, without limitation, the statement as to the expected total recurring rental revenue to be generated from GEC® Pearson, and that cash flow and liquidity from recent sale transactions will allow CIBT to act on new acquisition opportunities efficiently.  Forward-looking statements are subject to various risks, uncertainties and other factors (collectively, “Risks”) that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements.  The Risks include, without limitation, that GEC® Pearson’s rental revenues will not be as high as expected and that CIBT will not be able to identify and or complete future acquisition opportunities.  Forward-looking statements are based on the beliefs, opinions and expectations of CIBT’s management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.