VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 20, 2014) -


Grande West Transportation Group Inc. (TSX VENTURE:BUS) ("Grande West" or the "Company") is pleased to announce that it has closed, subject to TSX Venture Exchange (the "TSX-V") final approval, the final tranche of its brokered private placement ("Private Placement") originally announced on July 16, 2014. The closing of the first tranche occurred on August 26, 2014. With the closing of the final tranche, a total of 2,859,500 Units have been issued in two tranches for total proceeds of $1,429,750.

The net proceeds from the Private Placement will be used to fund the advance purchase of 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 final tranche, Grande West issued 785,500 Units at a price of $0.50 per Unit, for gross proceeds of $392,750. 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 for a period of 24 months from the closing date of the Private Placement, 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 February 21, 2015.

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 30th 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' commission of $27,492 and agents' options (the "Agents' Option") to purchase 54,985 units ("Agent's Units") were paid to arm's length agents. Each Agent's Option is exercisable for a period of 24 months from the closing date of the Private Placement 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.

The Private Placement is exempt from prospectus and registration requirements of applicable securities laws. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States or to "U.S. Persons", as such term is defined in Regulation S promulgated under the U.S Securities Act ("U.S. Persons"), except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.

About Grande West Transportation Group

Grande West was formed in 2008 to design and develop a 27.5 foot bus, known as the "Vicinity." With little competition in the "mid-size" bus range, Grande West has set itself apart from others with the Vicinity bus - a heavy duty mid-size, true, community transit bus.

The Vicinity is designed with affordability, accessibility and global responsibility in mind. It costs materially less than a 40 foot transit bus, burns less fuel, emits less harmful emissions, has lower maintenance costs and achieves a life span twice as long as the cut-away buses which are based on a truck chassis which are currently used by many transit operators.

In a large and unsaturated market segment, Grande West is poised to capture sales growth from both the replacement of cut-away buses and the right sizing of larger buses for better utilization of transit fleets across Canada and the United States.

Grande West has delivered a total of 31 Vicinity buses: 15 buses to BC Transit, 3 buses to Kings Transit in Nova Scotia and 13 buses to Transdev in Quebec. The potential sales funnel is constantly growing, as the Vicinity is introduced to transit agencies across Canada.

For marketing and customer testing, three Vicinity buses are being demonstrated including our new 30 foot model with two doors for the Ontario market and airport shuttle bus applications.

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the use of proceeds from the Private Placement, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results to differ materially from Grande West's expectations include uncertainties relating to the receipt of final approval from the TSX-V; and other risk and uncertainties disclosed in Grande West's reports and documents filed with applicable securities regulatory authorities from time to time. Grande West's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Grande West assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.

Contact Information:

Grande West Transportation
William R. Trainer
President & CEO
Ph: (604) 607-4000

The Howard Group Inc.
Jeff Walker / Ariel Cobangbang
Investor Relations
Ph: 1-888-221-0915 /