Grande West Significantly Improves Manufacturing Terms as Production Ramps Up

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 1, 2016) - Grande West Transportation Group ("Grande West" or the "Company") (TSX VENTURE:BUS) announced today that it has entered into a new long-term production contract with the Weichai Group's International Export Bus Factory for the manufacture of the company's Vicinity buses.

Under the terms of the new agreement, Grande West has committed to expanding the production schedule to manufacture a minimum of 15 buses per month throughout 2017. This equates to over CND $60,000,000 in revenue, and management is confident it can comfortably meet or exceed minimum requirements under the new agreement.

Current firm orders for 2017 deliveries are now at 108 buses. This expansion will help Grande West meet the substantially increased demand for its Vicinity models and assure government authorities and private operators of the company's ability to manufacture and deliver Vicinity buses on a large scale.

The increased production also allows for significant cost reduction on both parts and shipping, thus increasing end margins. Contingent on whether 30' or 35' models are manufactured, savings to Grande West will range from $10,000 to $15,000 per bus.

CEO William Trainer stated that, "with the new agreement terms and recent debenture financing, we see no need for further equity financing and share dilution for current orders."

"2016 continues to be a busy year for Grande West. There are 20 units currently in production for delivery in Q4/16 and the sales pipeline across Canada and the U.S. continues to grow. With 2017 production now currently pre-booked with a minimum of 15 buses per month for delivery, we are prepared for this continued growth," says William Trainer, the Company's President and CEO.

"Since signing an LOI in November 2015, Grande West's relationship with the Weichai Group of companies continues to strengthen. Both parties will benefit from the Vicinity's growing footprint in the North American market. This is an exciting time in the evolution of Grande West."

About Grande West Transportation Group

Grande West is a Canadian bus manufacturer which designs, engineers and manufactures Vicinity buses for transit authorities and commercial enterprises. 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 for the North American market.

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.

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. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the use of proceeds from the Private Placement, 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 to differ materially from Grande West's expectations include uncertainties relating to the receipt of final approval from the TSX-V; 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.