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This paper describes an approach, where an exploration- based simulation environment for conducting and observing science experiments is combined with a game environment to provide a learning environment that supports learning with understanding and transfer. We describe the components of the learning environment that includes active controls to create an "inspectable simulation, and a formative assessment scheme that aids monitoring and learning for novice learners. A preliminary experiment demonstrates the effectiveness of the simulation environment. In future, we will extend this environment by linking it to our teachable agent system, Betty's Brain, and develop a simulation-based "game environment that includes a sequence of challenges to further motivate the student and expand their learning abilities.