CANNABIS SCIENCE, INC. (“CSI”)

PRO FORMA CONSOLIDATED BALANCE SHEET

Based on historical data and reflect adjustments for the separate companies for the year ended December 31, 2011 (unaudited).

CSI

GGECO

ADJUSTMENTS

REF.

PRO FORMA

CONSOLIDATED

ASSETS

$

$

$

$

Cash

               2,197

                  585

                      -

               2,782

Accounts receivable

                      -

                      -

                      -

                      -

Prepaid expenses and deposits

               3,128

                      -

                      -

               3,128

               5,325

                  585

                      -

               5,910

Due from related parties

                      -

             28,337

            (28,337)

 a

                      -

Deposits

               6,666

                      -

                      -

               6,666

Property and equipment (net)

                  967

                      -

                      -

                  967

Intangibles (net)

             47,588

                      -

           860,000

 f

           907,588

Goodwill

                      -

                      -

           124,686

 g

           124,686

TOTAL ASSETS

             60,546

             28,922

           956,349

         1,045,817

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities

Accounts payable

           476,589

                      -

           476,589

Accrued expenses

         1,463,127

             25,271

             25,000

 d

         1,513,398

Advances from related parties

           156,818

                      -

           156,818

Advances from stockholders

           194,413

                      -

           194,413

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

         2,290,947

             25,271

         2,341,218

STOCKHOLDERS' DEFICIT

Preferred stock

               1,000

                      -

               1,000

Common stock

           305,421

             42,100

            (42,100)

 a,b

           305,421

Prepaid consulting

          (379,156)

                      -

          (379,156)

Additional paid-in capital

       68,379,003

                      -

           935,000

 e

       69,314,003

Deficit accumulated during development stage

     (70,536,669)

            (38,449)

             38,449

 c

     (70,536,669)

TOTAL STOCKHOLDERS' DEFICIT

       (2,230,401)

               3,651

       (1,295,401)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

             60,546

             28,922

           956,349

         1,045,817

a. to eliminate stockholder loans on acqusition of GGECO.

b. to eliminate GGECO share capital on acquisition.

c. to eliminate GGECO deficit on acquisition.

d. to accrue professional fees for acquisition.

e. to allocate the value of shares issued on acquisition.

f. to record intangibles for GGECO.

g. to record goodwill acquired with GGECO.

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

For the year ended December 31, 2011 (audited):

CSI

GGECO

ADJUSTMENTS

REF.

PRO FORMA

CONSOLIDATED

$

$

$

$

REVENUE

             73,702

             10,145

             83,847

OPERATING EXPENSES

Investor relations

             86,182

                      -

             86,182

Professional fees

           118,749

               1,400

           120,149

Net loss (gain) on settlement of liabilities

         5,129,800

                      -

         5,129,800

Depreciation and amortization

             22,362

                      -

             22,362

General and administrative

         3,055,065

               9,106

         3,064,171

Total operating expenses

         8,412,158

             10,506

         8,422,664

NET OPERATING PROFIT (LOSS)

       (8,338,456)

                (361)

       (8,338,817)

Other income

                      -

                      -

                      -

Interest expense

                (588)

                      -

                (588)

NET INCOME (LOSS) BEFORE INCOME TAXES

       (8,339,044)

                (361)

       (8,339,405)

Income tax provision

                      -

                      -

                      -

Income tax benefit

                      -

                      -

                      -

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

       (8,339,044)

                (361)

       (8,339,405)

Discontinued operations

                      -

                      -

Income tax benefit

                      -

                      -

NET INCOME (LOSS)

       (8,339,044)

                (361)

       (8,339,405)

No adjustments.