Grand Power Announces Closing of Private Placement

HONG KONG, CHINA and CALGARY, ALBERTA--(Marketwired - Nov. 9, 2015) - Grand Power Logistics Group Inc. (the "Corporation") (TSX VENTURE:GPW) announces that it has completed a non-brokered private placement of a convertible debenture (the "Debenture") in the principal amount of up to $5,000,000 with interest at the rate of 10% per annum payable quarterly. The Debenture has a maturity date of two years from the date of closing and will be convertible, at the option of the holder, into common shares of the Corporation at a conversion price of $0.08 per share within the first year of the term of the Debenture for a total of 62,500,000 common shares and at a conversion price of $0.10 per share within the second year of the term of the Debenture for a total of 50,000,000 common shares. In consideration of the advance of the principal amount by the holder of the Debenture, the Corporation has issued 31,250,000 warrants ("Warrants") to the Debenture holder, with each Warrant allowing the holder to purchase one common share of the Corporation at a price of $0.12 per share, which Warrants will expire two years from the date of closing. The Debenture sold under the Offering, along with Warrants, will be subject to a statutory four month hold period, which expires March 8, 2016.

The proceeds of the private placement will be used to purchase the additional share ownership interest in the Yangshan Project company as announced in the Corporation's press release of August 24, 2015, to develop the e-commerce business as announced on the Corporation's press release of June 22, 2015, and for general working capital for the Corporation's other business activities.

Ricky Chiu, the President and CEO of the Corporation, has acquired the whole Debenture issued under this Private Placement. Mr. Chiu currently owns 16,747,922 common shares which represent 20.285% of the total 82,562,278 issued common shares of the Corporation. On a fully diluted basis, he would own 110,497,922 common shares, which would represent 62.67% of a total issued 176,312,278 common shares if the Debenture was converted in the first year of its term or 97,997,922 common shares which represent 59.82% of a total issued of 163,812,278 common shares if the Debenture was converted in the second year of its term. The issuance of the Debenture and Warrants was a related party transaction under the Policies of the TSX Venture Exchange, and was approved by the shareholders (other than Ricky Chiu and his affiliates) of the Corporation representing 98.73% of the votes cast at a special meeting of shareholders held on October 19, 2015.

Mr. Chiu said, "I am very excited to close this private placement, which represents a substantial investment and commitment by myself in Grand Power, its employees and its future." He added, "We look forward to using the additional capital to grow our core business, plus as mentioned previously, expand and diversify our operations into e-commerce and acquire a larger stake in the Yangshan Port project, which should provide significant benefit to the Company and our shareholders in the coming years."

About Grand Power Logistics Group Inc.

Grand Power operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express), and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), one of China's largest economic regions. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen and Guangzhou. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Beijing, Tianjin and Xiamen. For more information, please visit http://www.grandpowerlogistics.com.

Forward-looking Information

Statements included in this press release that are not historical facts may be considered "forward looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

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