Grand Power Subsidiary Signed Funding Agreement for the Yangshan Project

CALGARY, ALBERTA and HONG KONG, CHINA--(Marketwire - March 1, 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 January 17, 2011, its Yangshan project subsidiary, Harvest Alliance Holdings Ltd. ("Harvest Alliance"), has signed a subscription agreement ("Agreement") pursuant to which Harvest Alliance had agreed to issue a convertible note ("Note") to Star Galaxy Capital Ltd. The principal amount of the Note is approximately US$15.38 million, of which an initial payment of approximately US$3.08 million has to be received on or prior to the end of February and the balance payment of approximately US$12.3 million to be received on or before June 30, 2011. The Note has a maturity date of December 31, 2012 and carries zero coupons.

As a part of the Agreement, the whole of the outstanding amount of the Note will automatically be converted into shares ("Conversion Shares") of Harvest Alliance within two business days after Harvest Alliance has entered into a binding agreement to acquire the land for the Yangshan project at a share price such that the Conversion Shares shall not exceed 50% of the shares outstanding of Harvest Alliance after the conversion.

In addition, the note holder has a right to exchange up to 10% of the principal amount of the Note into common shares of Grand Power at an exchange price of Cdn$1.50 per share. This exchange right, which is subject to regulatory approval, is exercisable prior to the maturity date of the Note.

The initial equity investment (registered capital) for the Yanshan project is US$15 million. It is expected that the total equity investment at the completion of the project will be in the range of US$120 million and the total investment in the range of US$360 million.

"With the signing of this Agreement, we have accomplished another major milestone in the development of the Yangshan Park and further enhancing the potential of completing this mega project. Upon project completion, Grand Power would gain significant equity value for its interest in the project." said Ricky Chiu, President and CEO of the Company. "Nevertheless, there are still a number of milestones we need to accomplish over the next 9 to 12 months, including completing an independent valuation of the project, raising equity capital for the purchase of the land, and securing debt financing for building the Yangshan Park."

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 goal 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 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.