Grande West Closes First Tranche of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 27, 2014) - Grande West Transportation Group Inc. (TSX VENTURE:BUS)

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("Grande West" or the "Company") is pleased to announce that it has closed, subject to TSX Venture Exchange (the "TSX-V") final approval, the first tranche of its brokered private placement ("Private Placement") announced on July 16, 2014. Grande West has issued 2,074,000 units ("Units") at a price of $0.50 per Unit, for gross proceeds of $1,037,000. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one non-transferable share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one additional Common Share until August 26, 2016, subject to an accelerated expiry provision as more particularly described below, at an exercise price of $0.65. The Common Shares and Warrants underlying the Units are subject to a four month hold period expiring December 27, 2014.

The net proceeds from the first tranche of the Private Placement will be used to fund the advance purchase of up to 15 Vicinity buses, both 27.5 and 30 foot models, to be held as inventory available for sale, for general and administrative expenses and for working capital purposes.

In the event that on any 20 consecutive trading days occurring after the date that is four months and one day following the closing date of the Private Placement, the closing price of the Common Shares on the TSX-V is greater than $0.95, the expiry date of the Warrants may be accelerated, at the sole discretion of the Company, to the 30^TH day after the date on which the Company gives notice to the Warrant holders of such acceleration.

Pursuant to the agency agreement dated August 26, 2014, Wolverton Securities Ltd. and Euro Pacific Canada, Inc. acted as co-lead agents in the Private Placement. In connection with closing the Private Placement, agents' fees and expenses of $113,840.00 and agents' options (the "Agent's Option") to purchase 145,180 units ("Agent's Units") were paid to arm's length agents. Each Agents' Option is exercisable until August 26, 2016 at an exercise price of $0.50 per Agent's Unit. Each Agent's Unit consists of one common share of the Company and one-half of one non-transferable share purchase warrant (each whole warrant, an "Agent's Warrant"). Each Agent's Warrant is exercisable on the same terms as the Warrants underlying the Units.