Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

April 18, 2011 09:15 ET

Grand Power Subsidiary Completed Registration and Initial Funding of Grand Power Logistics Development Limited

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - April 18, 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 that, further to its news release of March 1, 2011, the Company has completed the registration of its subsidiary, Grand Power Logistics Development Co. Ltd ("GPLD"), a Wholly Owned Foreign Enterprise ("WOFE") in Zhejiang Province of the People's Republic of China for its Logistics Park Project.

In addition, Grand Power is also pleased to report that the initial funding of US$3,000,000 as announced in the March 31, 2011 news release, which represents 20% of the US$15,000,000 in registered capital of GPLD, has been funded. The balance of US$12,000,000 is targeted to be contributed by the end of June 2011. US$15 million is the initial registered capital of GPLD. It is expected the total registered capital at completion of the project to be in the range of US$120 million and the total investment in the range of US$360 million (or approximately RMB 2.4 billion).

The Company holds its interest in GPLD through its currently 70% owned subsidiary, Harvest Alliance Holdings Ltd. ("Harvest Alliance"), which in turn holds 100% interest of GPLD. The principal purpose of the fund from the registered capital is used for the development and acquisition of the land for the Yangshan Logistics Park once the government has finalized the pricing of the land.

"GPLD's registration completion represents another major milestone in the development of the Yangshan Logistics Park. The funding for the balance of US$12,000,000 has already been arranged as announced in the March 1, 2011 news release, and it is expected that this balance of funding will be contributed on or prior to June 30, 2011. Once again, the Company is delivering a key milestone in its bid to become an important Yangshan's Deep-Sea Port logistics supplier. In addition, we are also very pleased that there's no dilution on Grand Power's current shareholders with this funding into GPLD" said Ricky Chiu, President and CEO, Grand Power Logistics Inc.

GPLD is currently owned 70% by Grand Power, with the balance owned by a group of private investors, including Ricky Chiu, Grand Power's President and CEO.

Grand Power is also please to announce its new website: http://www.grandpowerlogistics.com. Information regarding the Yangshan Deep-Sea Port logistics project can be found at:

http://www.grandpowerlogistics.com/project_logistics.php.

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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