April 15, 2013 Owner-Operator for Grand Canadian Academy - Hongkou Michael Lo Grand Canadian Academy (Asia) Ltd.

808 1288 West Georgia Street Vancouver BC V6E 4R3 Dear Michael Lo: Re: Certification Status Inspection Grand Canadian Academy Hongkou

Ref: 166923

In January 2013, a transition plan and new operational guidelines for all BC Offshore Schools was provided to all owner-operators under the BC Global Education Program. The purpose of these guidelines is to ensure that BC Offshore Programs are offering quality programs on an ongoing and consistent basis. On behalf of the Ministry of Education, I am writing to you following the completion of the inspection at Grand Canada Academy Hongkou on March 25, 2013, as the owner-operator responsible to outline the Ministrys critical concerns in relation to operations of this British Columbia Offshore Program authorized under the BC Offshore School Program Certification Status Agreement (Agreement). Specific concerns reported by the inspection team and to the Ministry include the following: staff complaints; high turnover of Principals; insufficient staff supports and fulfillment of employment contracts; conflicts with the Chinese host school; lack of presence of the owner-operator; English Language Assessment concerns and the proficiency level of students currently admitted in Grade 10; and non-compliance with the required PEN numbers by September 30th annually. These concerns fall within the responsibility of the owner-operator under the Agreement. As outlined under section 15 of the Agreement the Ministry of Education may, at its discretion, terminate the Agreement and cancel the certification of a British Columbia Offshore Program. This letter forms the Ministry of Education written notice that certification status will be cancelled at Grand Canada Academy Hongkou effective July 15, 2013. Grand Canadian Academy (Asia) Ltd. is required to build an effective transition plan and continue the operation of the school for the remainder of the 2012/13 school year. .../2
Ministry of Education
International Education Branch PO Box 9153 Stn Prov Govt Victoria BC V8W 9H1 Telephone: (250) 356-1404 Facsimile: (250) 953-4908 Email: international.education@gov.bc.ca Website: www.bced.gov.bc.ca/offshore_schools/

The inspection team would like to specifically recognize the strong team approach and work of the three teachers who have managed through a difficult year and assumed additional responsibilities in the absence of a Principal for a number of months by focusing solely on supporting the students. The Ministry asks that Grand Canadian Academy (Asia) Ltd. work collaboratively with the Ministry to manage an effective transition of all operations that ensures strong support of both teachers and students as you move to close the BC Offshore School at Grand Canada Academy Hongkou. Sincerely, Original signed by: Kerry Pridmore Director International Education