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Delivering Innovative Transportation Solutions TSX.V: BUS December 2013

Delivering Innovative Transportation Solutions TSX.V: BUS December 2013. Forward-Looking Statements.

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Delivering Innovative Transportation Solutions TSX.V: BUS December 2013

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  1. Delivering Innovative Transportation Solutions • TSX.V: BUS • December 2013

  2. Forward-Looking Statements This presentation contains ''forward-looking statements'', which reflect the expectations of management regarding Grande West Transportation Group Inc.’s (the “Company”) future growth, results of operations, performance and business prospects and opportunities. The words ''believes'', ''anticipates'', ''plans'', ''expects'', ''intends'', ''projects'', ''estimates'' and similar expressions are intended to identify forward-looking statements. These forward-looking statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this presentation. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner to the availability of sufficient working capital to market the Company's products and provide after-sales maintenance and support services to the Company's customers, access to adequate services and supplies to operate the Company's business, economic conditions, commodity prices, foreign currency exchange rates, interest rates, access to capital and debt markets and associated costs of funds, availability of a qualified work force, and the ultimate ability to develop, manufacture and sell the Company's products on economically favourable terms. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under ''Risk Factors'' in the prospectus dated November 27, 2013 of the Company on SEDAR at www.sedar.com. Although the forward-looking statements contained in this presentation are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward-looking statements relate only to events or information as of the date on which the statements are made and, except as required by securities legislation, the Company assumes no obligation to update or revise them to reflect new events or circumstances. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this cautionary statement. Disclaimer This presentation does not form part of any offer of securities, or constitute a solicitation of any offer to purchase or subscribe for securities. The sole purpose of this presentation, in paper or electronic form, is strictly for information. TSX.V: BUS

  3. Canadian transit agencies are seeking to modernize transit fleets by replacing traditional 40 foot, and smaller cutaway buses with compact, low emission, easier accessible vehicles. Public Transit in Canada TSX.V: BUS

  4. Introducing a New Kind of Bus Fuel Efficient Durable Kneeling Economic Open Floor Customized Compact Accessible Delivered 27.5 Feet Easy Handling Recommended Proven Non-Cutaway Ordered Tested Available Safety Certified Innovative Green Canadian TSX.V: BUS

  5. We’ve Hit the Road Running August 2013 15 Vicinity’s Delivered to BC Transit. $3.8 Million Revenues from initial order. TSX.V: BUS

  6. Our Beginnings • Grande West was formed in 2008 as a response to an RFI from BC Transit. • 1,030+ • fleet size. • $47.6 million • total capital expenditures • in fiscal year ending • March 31, 2013. TSX.V: BUS

  7. Money and Time Well Spent Over $3.0 Million Raised by Grande West’s 5 original partners, which funded engineering, design and testing. 3 Years R&D Designed and developed based upon critical input and feedback by BC Transit. TSX.V: BUS

  8. Quality & Cost Savings Canadian designed & engineered. High quality North American equipment. Cost-effectively assembled in China. Quality controls by Grande West. • Yaxing Motor Coach • Large-scale bus manufacturer in China. • Listed on Shanghai Stock Exchange (SHA:600213). • 2012 Revenues: USD $149 M • (USD $1 = RMB 6.6315) TSX.V: BUS

  9. 21 Month Beta Tour and Results TSX.V: BUS

  10. Market Opportunity • Public Transit • Essential service with predictable funding. • Budgets approved years in advance. • Replaceable product. • Small Sized Buses • Ability to match capacity with demand. • Higher manoeuvrability on narrow streets and within communities. • Lower capital costs. • Lower maintenance costs. • Minimizes environmental impact. • 2010 = 18,000 transit buses • Avg. bus service life = 10 years • Rate of replacement/year = 10% • ~1,800 buses in need of replacing each year in Canada TSX.V: BUS

  11. Additional Market Opportunities Public Transit Airport Shuttles Senior Centres Tour Groups School Buses Disability Services TSX.V: BUS

  12. Market Competition • Motivation to build a competing product is low. • Already successfully building larger sized bus models. • Most companies are much larger in size with production backlogs for 40 foot buses. • Production of a new bus model would take ~3 years. • Corporate constraints. • Government safety regulations. Investor Presentation 2013

  13. Standard Sized 40 Foot Buses Smaller Buses On A Cutaway Chassis Do not address market need for compact, cost-efficient, easily manoeuvred bus. Do not address market need for lower emission, easily accessible, longer lasting bus. • Only 60% capacity of the Vicinity. • Built upon incomplete truck chassis by second stage manufacturers. • High floor, wheelchair lifts, ramp issues. Investor Presentation 2013

  14. Competition Matrix Note: Comparables in size of bus and information obtained from public sources except for prices as noted as estimated. TSX.V: BUS

  15. The Grande West Difference Affordable Innovative Accessible TSX.V: BUS

  16. Affordable Accessible Innovative Affordable Half the price of a 40 foot bus, over twice the lifespan of a cutaway bus, and lower operating costs than both a 40 foot bus and cutaway bus. Cleaner burning and improved fuel efficiencies. 2 year bumper to bumper warranty, 10 year life span. $250,000 compared to $300,000+. TSX.V: BUS

  17. Affordable Accessible Innovative Accessible Accessibility features to accommodate Canada’s aging population and mobility challenged individuals. Full accessibility for wheelchairs, strollers and walkers. Tiered theatre forward facing seating and open floor concept. Easy access, stable ramp. TSX.V: BUS

  18. Affordable Accessible Innovative Innovative Offers the working features of a 40 foot bus with the compact packaging of a cutaway bus. Tight turning, easy handling and manoeuvrability. Interior dehumidifier. Extremely low decibel rating. TSX.V: BUS

  19. Sales Process Sales Model: $250,000 paid in three installments. Opening of bid to delivery acceptance is approximately 9 to 12 months. • Grande West does not use its own capital for the cost to manufacture and a carries a minimal inventory of buses. TSX.V: BUS

  20. Business Model • Low Inventory Costs • Low Overhead Costs • High • Gross Margins • Buses manufactured • to order upon confirmation of a purchase order. • Less than 20 people required to handle $50 million in sales. • Grande West - 20%* • *Estimated for fiscal • year-end Aug 31/14 TSX.V: BUS

  21. Cross-Country Sales and Marketing Western Canada Grande West acting as its own distributor. Eastern Canada City View Sales & Service appointed as distributor. Sales Pipeline Pending potential sales following extensive discussions and current product testing. Sales and Marketing strategies planned for additional transit authorities across Canada. TSX.V: BUS

  22. Capitalization Table TSX.V: BUS

  23. Initial Public Offering • Completed December 2013 • Initial target $3 to 4M • Raised $5.3M • Oversubscribed TSX.V: BUS

  24. 5 Year Achievements • Designed, produced and received certifications for the Vicinity. • Secured manufacturing arrangement with Yaxing Motor Coach. • Successfully completed 21 month beta tour. • Awarded and completed initial order from BC Transit. • Secured Eastern Canadian Distribution Agreement and new orders. • Oversubscribed IPO and successful completion of public listing. TSX.V: BUS

  25. 2014 Objectives • Completion of a parts/service center in Ontario. • Actively market and demonstrate the Vicinity. • Secure purchase orders in jurisdictions across Canada. • Increase sales, marketing and operational staff. • Obtain safety certifications for the Vicinity in the U.S. • Reach profitability in calendar 2014. TSX.V: BUS

  26. Summary • $3.8 million in revenues from BC Transit’s initial order of 15 buses (delivered). • Growing market demand for compact, fuel efficient, easy accessible transit vehicles. • Quality built, Canadian product. • Increasing sales opportunities as Vicinity’s now on the road. • Experienced, committed and invested management team. • Focused on targeted sales across Canada. TSX.V: BUS

  27. Management William Trainer – Chief Executive Officer / President • 25 years of business leadership with extensive import and export experience. • Successfully pioneered and brought new products to Canada from Asia for 20 years. • Owned and managed heavy construction dealerships across Western Canada. • Extensive knowledge in business dealing with major manufacturers in Japan and Korea. • John Sutherland – Chief Financial Officer • Held executive positions in a number of public companies, including President, CFO, Corporate Secretary, Vice President, and Treasurer. • Director of numerous public companies with over 20 years of experience. • Co-founded Tekion, Inc. and served as its Vice President and CFO. • Certified General Accountant with an Engineering Diploma. John Wang – Vice President, Chief Engineer • Certified Engineer with previous positions as mechanical engineer and designer and project manager for various companies in China and Canada. • Extensive knowledge of the import and export business in the construction attachment industry and Chinese business practices. TSX.V: BUS

  28. Board Of Directors • Joe Miller – Director • Global businessman with over 30 years in the construction field. • Manages a large diverse construction company in the Greater Vancouver area with projects across North America. • Brings vast knowledge in negotiation skills and customer relationship building. • Michael Evans – Director • Principal of Evans & Evans, Inc., a boutique Investment Banking Firm. • Brings over 25 years of corporate finance, M&A and public company management experience. • Chartered Financial Analyst, Chartered Business Valuator and Accredited Senior Appraiser • Director and founder of several TSX Venture Listed Issuers. • Joanne Yan – Director • More than 15 years experience in managing public companies. • A senior corporate executive and an audit committee member with a number of publicly traded companies in Canada. TSX.V: BUS

  29. Thank-You • Contact: • William Trainer • wtrainer@grandewest.com • 604-607-4000

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