Grande West Announces Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 26, 2015) -

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Grande West Transportation Group Inc. (TSX VENTURE:BUS) ("Grande West" or the "Company") is pleased to announce it has entered into an engagement letter (the "Engagement Letter") with Euro Pacific Canada, Inc. (the "Agent"), as agent, to sell, on a "commercially reasonable efforts" private placement basis, up to 12,000,000 units (the "Units") at a price of $0.25 per Unit, for aggregate gross proceeds to Grande West of up to $3,000,000 (the "Private Placement").

Each Unit shall consist of one common share of the Company (a "Common Share") and a half of one non-transferable share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall then entitle the holder thereof to acquire one additional Common Share for a period of 36 months from the closing date of the Private Placement at an exercise price of $0.40.

Insiders and founding shareholders of the Company have committed to participate in the Private Placement for a minimum of $1,000,000.

The net proceeds from the Private Placement will be used to fund the operations of the Company through to achieving positive cash flow. The sales order pipeline projections for Vicinity buses have materially improved for 2015 and subsequent years.

Completion of the Private Placement is subject to a number of conditions, including the completion of due diligence by the Agent, the negotiation and execution of definitive documentation and receipt of the approval of the TSX.V to list the Common Shares underlying the Units and the Warrants on the TSX.V. All securities issued pursuant to the Private Placement will be subject to a four month and one day hold period in accordance with applicable securities laws.

Pursuant to the Engagement Letter, the Agent shall be entitled to receive compensation in the following form: (a) a 7% cash commission on the gross proceeds of the Private Placement; and (b) options (the "Agent's Options") to purchase up to 7% of the number of Units subscribed for under the Private Placement. Each Agent's Option will be exercisable for a period of 36 months from the closing date of the Private Placement at an exercise price of $0.40 per Unit. In addition, the Agent shall be entitled to receive a corporate finance fee and compensation for reasonable expenses of or incidental to, the issuance of Units under the Private Placement which are incurred by the Agent including the legal fees of Agent's counsel, disbursements and other expenses.