They're sitting on a spot in the Exhibition Grounds that's now probably actually just a littttle bit outside the Exhibition Grounds, pretty much where Lake Shore Boulevard is now. Behind them, in a sliver on the left-hand side of the photo, you can see just a bit of the Manufacturer's Building. It was built a few years earlier and would burned down in the 1960s. They built the modernist Better Living Building to replace it. It's still there today.
I came across this photo here.