Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

May 11, 2011 09:00 ET

Grand Power Subsidiary Announces Independent Valuation for Yangshan Logistics Park

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - May 11, 2011) - Grand Power Logistics Group Inc. ("Grand Power" or the "Company") (TSX VENTURE:GPW), a leading China-based international logistics provider, is pleased to announce its subsidiary, Grand Power Logistics Development Limited ("GPLD") has recently assigned an independent real estate evaluator, Savills Valuation Professional and Services Limited, a subsidiary of Savills Plc. ("Savills"), to evaluate the Yangshan International Container Transit Logistics Park project ("the Yangshan project"). According to the valuation report, the current market value for the completed (post construction) project value is RMB 2.8 billion (USD 431 million) while the current site value in a clear and formed state is RMB 1.4 billion (USD 215 million). For further information on this valuation report, visit http://www.grandpowerlogistics.com/project_park.php.

Savills, founded in 1855 is a well-known global real estate advisor and evaluator and has an international network of more than 200 offices and associates throughout the Americas, UK, Continental Europe, Asia Pacific, Africa and the Middle East.

Savills applied the two most common and reliable evaluation matrix to determine the market value of the Yangshan Project: the Direct Comparison Method (comparing sales and rental revenues of similar projects) and the Direct Capitalization Method (based on the project's expected future operating income). Similar evaluation results are obtained by using a Discounted Cash Flow Model (a method of valuing a project by using the concept of the time value of money on the future cash flow from the Yangshan project) by the Company.

"The Savills report confirms our internal valuation model, both pre-construction and post completion of the Yangshan Deep-Sea Logistics Port. Further, it recognizes the tremendous potential and future value for the Company and its shareholders. We are excited about closing the purchase of this strategic real estate transaction and should have additional news soon." said Ricky Chiu, President and CEO of Grand Power Logistics Group Inc.

About Yangshan Deep-Sea Port:

Located 26 kilometers off of Shanghai's southern coast, China's leaders consider the Yangshan Deep-Sea port project very important in Shanghai's bid to become a dominant shipping logistics centre and global economic player. When the port is fully developed in 2020, it will be lined with over 50 berths capable of accommodating up to 15 million twenty foot equivalent containers.

The entire project will be completed in four phases at a total estimated cost of US$12 to $18 billion. Phases 1 and 2 have already been completed, including the Donghai Bridge which, at 32.5 kilometers and six lanes, is the second longest cross Sea Bridge in the world. The goal of the Port is to ultimately become the biggest international shipping hub in the world, facilitating China's ever growing trade with an internationally competitive and state of the art facility.

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 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 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.

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