Grande West Closes Brokered Private Placement Raising $1,766,339

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 18, 2015) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Grande West Transportation Group Inc. (TSX VENTURE:BUS) ("Grande West" or the "Company") is pleased to announce the completion of the previously announced brokered private placement totaling 2,848,935 units ("Units") at a price of $0.62 per Unit for gross proceeds of $1,766,339.70 (the "Offering").

The private placement was undertaken by a syndicate of agents co-led by Salman Partners Inc. and Jones, Gable & Company Limited (collectively, the "Agents").

Each Unit is comprised of one common share and one-half of one transferable common share purchase warrant of the Company. Each whole warrant entitles the holder thereof to purchase one additional common share of the Company at a price of $0.85 per common share for 24 months. The Warrants also contain an acceleration right in favour of the Company if, following one year and a day from the closing of the private placement, the closing price of the Company's common shares is at least $1.15 for 20 consecutive trading days.

In consideration for their services, the Agents received a cash commission equal to 8% cash. In addition, the Agents received a total of 227,915 Agent's compensation options (the "Compensation Options"). Each Compensation Option entitles the Agents to purchase one Unit for 24 months.

The Units and Compensation Options are subject to a four month hold period expiring on April 19, 2016.

The Offering will be exempt from prospectus and registration requirements of applicable securities laws. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Grande West Transportation Group

Grande West is a Canadian bus manufacturer who designed, engineered and manufactures Vicinity buses. With little competition in the "mid-size" bus range, Grande West has set itself apart from others with the Vicinity bus - a heavy duty mid-size, true community transit bus now in operation in many municipalities across Canada.

The Vicinity is designed with affordability, accessibility and global responsibility in mind. It costs significantly less than a regular 40 foot transit bus, burns less fuel and emits less harmful emissions. It is a Smart Choice for Right Sizing your transit fleet.

Reader Advisory

Neither the TSX-V nor its Regulation Service Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation, which are based on certain assumptions and reflects management's current expectations. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the completion of the Offering and the use of proceeds from the Offering, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Important factors that could cause actual results or events to differ materially from Grande West's expectations include uncertainties relating to general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; the ability to negotiate the Offering on acceptable terms; timing of closing; the ability to satisfy conditions of the Offering; receipt of approval from the TSX-V; completion of the Offering; and other risk and uncertainties disclosed in Grande West's reports and documents filed with applicable securities regulatory authorities from time to time. Grande West's forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made. Grande West assumes no obligation to update the forward-looking statements or beliefs, opinions, projections, or other factors, should they change, except as required by law.