Source: Grande West Transportation Group Inc.

BC Transit Awards Grande West With a Contract for Up to 112 Vicinity® Buses

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 10, 2016) - Grande West Transportation Group Inc. (TSX VENTURE:BUS) ("Grande West" or the "Company"), a manufacturer of medium-duty mid-sized transit buses for sale in the United States and Canada, announced today that BC Transit awarded Grande West a contract for up to 112 medium-duty Vicinity® buses.

The 5 year contract value if fully exercised is estimated at over $35 million CAD. The initial order is firm for a total of 41 Vicinity buses valued at approximately $13 million. The contract has options for an additional 71 units and also allows for quantities to be increased during the 5 year term. The initial order will replace older vehicles in BC Transit's current fleet with new fuel efficient cleaner burning diesel Vicinity buses. Optional orders may also include the new 35' Vicinity bus model and compressed natural gas powered buses.

All 41 buses are expected to be delivered in fiscal 2017.

From small towns to large urban centres, BC Transit connects over 50 million customers in communities across the province every year, with its fleet of over 1,000 buses.

"We are extremely proud of this important award from one of Canada's largest and most respected transit systems," said William Trainer, Grande West President and CEO. "This order comes after Grande West received its first order from BC Transit in 2012 for 15 Vicinity buses and their solid performance record". The Vicinity buses were engineered here in British Columbia and are a great fit for the diverse operating conditions across British Columbia."

This order reinforces Grande West' strong momentum and growing market share in Canada and provides a solid base for continued expansion in the USA market.

About Grande West Transportation Group

Grande West is a Canadian bus manufacturer who designed, engineered and manufactures Vicinity buses. With little competition in the "mid-size" bus range, Grande West has set itself apart from others with the Vicinity bus - a medium duty mid-size, true community transit bus now in operation in many municipalities across Canada.

The Vicinity is designed with affordability, accessibility and global responsibility in mind. It costs significantly less than a regular 40 foot transit bus, burns less fuel and emits less harmful emissions. It is a Smart Choice for Right Sizing your transit fleet.

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
Dan Courtney
1-604-607-4000
dcourtney@grandewest.com
www.grandewest.com

The Howard Group
Jeff Walker
1-888-221-0915
jeff@howardgroupinc.com
www.howardgroupinc.com

Paradox Public Relations
Carl Desjardins
1-866-460-0408
carldesjardins@paradox-pr.ca
www.paradox-pr.ca