Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

January 19, 2007 17:05 ET

Grand Power Announces Private Placement

CALGARY, ALBERTA and HONG KONG, CHINA--(CCNMatthews - Jan. 19, 2007) - Grand Power Logistics Group Inc. (TSX VENTURE:GPW) ("Grand Power" or the "Corporation") announces that it plans to proceed with a non-brokered private placement, subject to regulatory approval, of a convertible debenture (the "Debenture") in the principal amount of $1,000,000 with interest at the rate of 5% per annum payable semi-annually. The Debenture will have 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 $0.60 per share. In addition, the Corporation will have the option, at any time after the expiration of 12 months from the closing of the private placement, to force conversion of the Debenture into common shares of the Corporation at a price of $0.60 per share if the Corporation's shares trade at a price at least $0.75 per share for 10 or more consecutive trading days. In consideration of the advance of the principal amount by the holder of the Debenture, the Corporation will issue 600,000 warrants to the Debenture holder, with each warrant allowing the holder to purchase one common share of the Corporation at a price of $0.60 per share, which warrants will expire two years from the date of closing.

The proceeds from the sale of the Debenture will be used for working capital to expand Grand Power's business activities in Hong Kong, Macau and China.

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned subsidiary, Grand Power Express International Limited (GP Express) and GP Express' wholly-owned subsidiaries in Macau and China. GP Express commenced business in Hong Kong in March 2002 primarily as an airfreight forwarding service, but also provides sea freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services for clients. In May 2006, the company commenced business operations in China through a subsidiary office in Shanghai. The Grand Power Group is uniquely positioned in Asia, with its operating headquarters in Hong Kong and subsidiaries or supporting offices in Macau, Shanghai, Guangzhou, Taipei and Bangkok.

Forward-looking statements: 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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