Grande West Announces Increase to Previously Announced Bought Deal Offering

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

VANCOUVER, Feb. 8, 2017 /CNW/ - Grande West Transportation Group Inc. (TSX-V: BUS) ("Grande West" or the "Company") is pleased to announce that it has amended the terms of its previously announced bought deal offering of common shares (the "Offered Shares") of the Company. Under the amended terms of the Offering (as defined below), Beacon Securities Limited("Beacon"), on its own behalf and on behalf of a syndicate of underwriters (together with Beacon, the "Underwriters"), have agreed to purchase, on a bought deal basis, 6,330,000 Offered Shares of the Company at a price of $1.90 per Offered Share (the"Issue Price"), for aggregate gross proceeds to the Company of $12,027,000 (the "Offering").

In addition, under the amended terms of the Offering, the Company has granted the Underwriters an option (the "Underwriters' Option), exercisable, in whole or in part by Beacon, on behalf of the Underwriters, giving notice to the Company at any time up to 48 hours prior to the Closing Date (as defined below), to purchase up to an additional 870,000 Offered Shares at the Issue Price for additional gross proceeds of up to $1,653,000. In the event the Underwriters' Option is exercised in full, the aggregate gross proceeds of the Offering will be $13,680,000.

The net proceeds from the Offering will be used for working capital and general corporate purposes.

The completion of the Offering is expected to occur on or about March 2, 2017 (the "Closing Date") and is subject to the completion of formal documentation and receipt of applicable regulatory approvals, including the approval of the TSX Venture Exchange ("TSX-V"). All securities issued in connection with the Offering will be subject to a four month hold period from the Closing Date in accordance with applicable Canadian securities laws.

The Offered Shares will be offered on a private placement basis in each of the provinces of Canada and may be offered in the United States on a private placement basis pursuant to an exemption from registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and such other jurisdictions as may be agreed upon by the Company and the Underwriters.

The Offered Shares have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Grande West Transportation Group

Grande West Transportation Group is a Canadian bus manufacturer which designs, engineers and manufactures mid-size buses for transit authorities and commercial enterprises. Grande West's Best-in-Class Vicinity bus is available in 27.5, 30 and 35 foot models powered by clean diesel or CNG 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.

The Company has been successful in supplying Canadian municipal transportation agencies and private operators with new buses and is receiving follow-on orders in many Canadian transit agencies. Grande West is Buy America certified and along with ABG, its exclusive US distributor, is actively pursuing opportunities to sell Vicinity into public and private transit fleet operations.

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 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 to differ materially from Grande West's expectations include uncertainties relating to 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.

SOURCE Grande West Transportation Group Inc.

For further information: Grande West Transportation: John LaGourgue, Ph: 1-604-607-4000, jlagourgue@grandewest.com, www.grandewest.com

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