Reactivation of Yangshan Logistics Port Project and Private Placement

HONG KONG, CHINA and CALGARY, ALBERTA--(Marketwired - Aug. 24, 2015) -

Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE:GPW) is pleased to announce that it and some other shareholders of the Yangshan Logistics Port project ("Yangshan Project") have agreed to work together to reactivate the Yangshan Project. This initiative is as a result of the inability of the investor group to complete the acquisition of the Yangshan Project as announced in the Corporation's press release of March 13, 2014.

As a part of its contribution to this new initiative, the Corporation has agreed to temporarily advance HK$15,000,000 (approximately Cdn$2.5 million) to the Yangshan Project company so it can carry out a refinancing and a share ownership restructuring program. In addition to the advance by the Corporation, the Corporation's CEO, Ricky Chiu, will also personally advance HK$60,000,000 (approximately Cdn$10 million) to the Yangshan Project company. It is expected that the Yangshan Project company will complete its refinancing program within 3 months and will return the advances to the Corporation and Ricky Chiu respectively at the outcome of its refinancing program whether the refinancing program is successfully completed or not. For its advance contribution, the Corporation has an option to acquire additional share ownership interest of approximately 7% of the Yangshan Project company at a price and value to be determined subject to further due diligence.

As a result of the reactivation of the Yangshan Project and the development of the e-commerce business as announced in the Corporation's press release of June 22, 2015, the Corporation plans to proceed with a non-brokered private placement, subject to requisite regulatory and shareholder approval, of a convertible debenture (the "Debenture") in the principal amount of up to $5,000,000 with interest at the rate of 10% per annum payable quarterly. The Debenture will have a maturity date of two years from the date of closing and will be convertible, at the option of the holder, into common shares of the Corporation at a conversion price of $0.08 per share within the first year of the term of the Debenture for a total of 62,500,000 common shares and at a conversion price of $0.10 per share within the second year of the term of the Debenture for a total of 50,000,000 common shares. In consideration of the advance of the principal amount by the holder of the Debenture, the Corporation will issue 31,250,000 warrants to the Debenture holder, with each warrant allowing the holder to purchase one common share of the Corporation at a price of $0.12 per share, which warrants will expire two years from the date of closing.

The proceeds of the private placement will be used to purchase the additional share ownership interest in the Yangshan Project company as announced in this press release, to develop the e-commerce business as announced on the Corporation's press release of June 22, 2015, and for general working capital for the Corporation's other business activities.

It is intended that Ricky Chiu, the President and CEO of the Corporation, will acquire the Debenture to be issued under this Private Placement.

About Grand Power Logistics Group Inc.

Grand Power 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, please visit http://www.grandpowerlogistics.com.

Forward-looking Information

This press release contains forward-looking information. This forward-looking information relates to the reactivation of the Yangshan Project and its refinancing program. Since forward-looking information addresses future events, by its very nature it involves inherent risks and uncertainties. In this regard, there is a risk that the intended activities will not be carried out as planned.

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.