Mr. William Trainer reports

GRANDE WEST CLOSES FINAL TRANCHE OF PRIVATE PLACEMENT

Grande West Transportation Group Inc. has closed, subject to TSX Venture Exchange final approval, the final tranche of its brokered private placement originally announced on July 16, 2014. The closing of the first tranche occurred on Aug. 26, 2014. With the closing of the final tranche, a total of 2,859,500 units have been issued in two tranches for total proceeds of $1,429,750.

The net proceeds from the private placement will be used to finance the advance purchase of Vicinity buses, both 27.5- and 30-foot models, to be held as inventory available for sale, for general and administrative expenses and for working capital purposes.

In the final tranche, Grande West issued 785,500 units at a price of 50 cents per unit, for gross proceeds of $392,750. Each unit consists of one common share of the company and one-half of one non-transferable share purchase warrant. Each warrant entitles the holder thereof to acquire one additional common share for a period of 24 months from the closing date of the private placement, subject to an accelerated expiry provision as more particularly described below, at an exercise price of 65 cents. The common shares and warrants underlying the units are subject to a four month hold period expiring Feb. 21, 2015.

In the event that on any 20 consecutive trading days occurring after the date that is four months and one day following the closing date of the private placement, the closing price of the common shares on the TSX-V is greater than 95 cents, the expiry date of the warrants may be accelerated, at the sole discretion of the company, to the 30th day after the date on which the company gives notice to the warrantholders of such acceleration.

Pursuant to the agency agreement dated Aug. 26, 2014, Wolverton Securities Ltd. and Euro Pacific Canada Inc. acted as co-lead agents in the private placement. In connection with closing the private placement, agents' commission of $27,492 and agents' options to purchase 54,985 units were paid to arm's-length agents. Each agent's option is exercisable for a period of 24 months from the closing date of the private placement at an exercise price of 50 cents per agent's unit. Each agent's unit consists of one common share of the company and one-half of one non-transferable share purchase warrant. Each agent's warrant is exercisable on the same terms as the warrants underlying the units.

We seek Safe Harbor.