Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc.

February 23, 2007 13:45 ET

Grand Power Announces Private Placement

CALGARY, ALBERTA and HONG KONG, CHINA--(CCNMatthews - Feb. 23, 2007) - Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation")(TSX VENTURE:GPW) announces that it plans to proceed with an additional non-brokered private placement, subject to regulatory approval, of a convertible debenture (the "Debenture") in the principal amount of up to $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 holders, 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 holders of the Debenture, the Corporation will issue 600,000 warrants to the Debenture holders, with each warrant allowing the holders to purchase one common share of the Corporation at a price of $0.65 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 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), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou, and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles.

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 does not accept responsibility for the adequacy or accuracy of this release.

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