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Delivering Innovative Transportation Solutions TSX.V: BUS March 2015

Grande West Transportation Inc. Investor Presentation

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Grande West Transportation Inc. (BUS:TSX-V) - Grande West manufactures the 27.5 foot Vicinity bus for the “mid-size” urban transportation market. The Vicinity costs 40% less than a regular 40 foot transit bus, burns less fuel, emits less harmful emissions and has lower maintenance costs. The Vicinity achieves a life span twice as long as cut-away buses, which are based on a truck chassis and are currently used by many transit operators. The Vicinity also has materially lower maintenance costs than a cut-away bus. In a large and unsaturated market segment, Grande West is focused on sales growth from both the replacement of cut-away buses and the right sizing of larger buses for better utilization of transit fleets across Canada and the United States. Grande West has delivered 31 Vicinity buses with another 7 to be delivered in May and June for a total of 38 buses. Presently, Vicinity buses are in operation in British Columbia, Quebec and Nova Scotia. The Company has also introduced a new 30 foot model with two doors for the Ontario market and airport shuttle bus applications.

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Page 1: Grande West Transportation Inc. Investor Presentation

Delivering Innovative

Transportation Solutions

TSX.V: BUS

March 2015

Page 2: Grande West Transportation Inc. Investor Presentation

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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 Company prospectus dated November 27, 2013 and which will be detailed from time to time in the Company’s interim and annual financial statements and management’s discussion and analysis of those statements, all of which are or will be available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements there may be other factors that cause its performance not to be as anticipated. These forward-looking statements relate only to events or information as of the date on which the statements are made. The Company neither intends nor assumes any obligation to update these forward-looking statements or information to reflect changes in assumptions or circumstances other than required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those currently anticipated. Accordingly, readers should not place undue reliance on forward-looking statements. 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.

Page 3: Grande West Transportation Inc. Investor Presentation

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• In 2008, Canadian transit agencies determined their fleets required modernizing to meet their ridership and transit needs

• The identified criteria and need was to replace many traditional 40 foot and smaller cutaway buses with compact, low emission, accessible buses

• Grande West designed and built the Vicinity bus based on those criteria with direct input by the transit industry

• As a result, one of the best salespersons in the transit industry knocked on Grande West’s door to join the team

Public Transit, the Opportunity

Page 4: Grande West Transportation Inc. Investor Presentation

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The Solution, Driven by Market Demand

Page 5: Grande West Transportation Inc. Investor Presentation

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The Vicinity has Proven to be:

Accessible 27.5 Feet

Compact

Non-Cutaway

Durable

Canadian

Fuel Efficient

Tested

Safety Certified

Kneeling Economical

Green

Recommended

Delivered

Ordered

Open Floor

Easy Handling

Available Innovative

Reliable

Customized

30.0 Feet

12 Year

Page 6: Grande West Transportation Inc. Investor Presentation

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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 and 60 foot articulated buses

Production of a new bus model would take over 3 years • Corporate constraints

• Government certification process

TSX.V: BUS

Page 7: Grande West Transportation Inc. Investor Presentation

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40 Foot buses do not address market need for compact, cost-efficient, easily

manoeuvrable bus

Vicinity buses have:

• 33% fuel efficiency advantage

• Same components and same 12 year life cycle: built with the same “monocoque” chassis standard and quality

• Lower sale price: $295,000 vs. $495,000

• Lower maintenance costs and noise

• “Right-sizing” creates cost savings or can be reinvested in improvements

• Vicinity buses are to the transit industry, what regional jets are to the aircraft industry

• Cost effective to connect neighbourhoods to mass transit, subways and trains

TSX.V: BUS

40 Foot Bus vs The Vicinity

vs competition

30 ft

40 ft

9 ft

10 ft

Page 8: Grande West Transportation Inc. Investor Presentation

8

Cutaway buses do not address market needs for comfort, easily accessible and

being a reliable vehicle Cutaway buses have:

• 5 year operational life at a cost of $190,000 vs. 12 years for the Vicinity

• Only 60% passenger capacity of the Vicinity

• Coach body affixed on frame of cutaway truck chassis

• High floor, wheelchair lifts, stairs and a low comfort passenger experience

• 10 year Life Cycle analysis results in an extra $192,500 in total costs vs. the Vicinity

• High maintenance costs and the requirement for extra spare buses due to excessive downtime

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Cutaway Bus

Vs competition

Page 9: Grande West Transportation Inc. Investor Presentation

Over $3M from founders for

design, production and certifications

Dec 2013 IPO,

oversubscribed

Completed all regulatory

certifications and testing

31 Buses in operation in 3

provinces

7 buses to be delivered

Pipeline growing

Secured assembly arrangement with Weichai – Yaxing

Group

Jean-Marc Landry, VP, Bus. Dev.

hired and Agency Agreement

entered into for Eastern Canada

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5 Year Achievements

Page 10: Grande West Transportation Inc. Investor Presentation

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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 maneuverability on narrow streets and within communities

• Lower capital costs

• Lower maintenance costs

• Minimizes emissions harmful to the environment

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

Target market is 700 Vicinity buses

per year in Canada (USA is 10 X)

Page 11: Grande West Transportation Inc. Investor Presentation

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Number Of Transit Buses

Page 12: Grande West Transportation Inc. Investor Presentation

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Assembly Quality and Cost Savings

Canadian designed and engineered

High quality, Brand Name, North American components

Cost-effectively assembled in China

Weichai – Yaxing Group • Large-scale bus assembler in China • Weichai Group, a $12 billion dollar

company • Unlimited access to a plant with annual

assembly capacity of 3,000 buses, total Weichai capacity is 30,000 buses

• Build on-demand and no factory standby fee

Quality controls by Grande West

Page 13: Grande West Transportation Inc. Investor Presentation

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Why Assemble in China?

- Turned away by the North American bus manufacturers as their production lines were too busy

- Canvassed Asian manufacturers and found Weichai - Yaxing Group who have a highly skilled workforce who previously manufactured Mercedes Benz buses in China

- Do similar as what Apple proudly states on the back of their iPhones “Designed and engineered by Grande West in Canada, assembled in China”

- Utilize the high quality skills in China for the labour intensive work to build the “monocoque” frame, fit the body parts and assemble the North American components

Page 14: Grande West Transportation Inc. Investor Presentation

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Accessible Affordable Innovative

Affordable 40% lower price than a 40 foot bus with same North American components , over twice the lifespan of a cutaway bus, and lower operating costs than both a 40 foot bus and cutaway bus

$295,000 compared to $345,000+

2 year bumper to bumper warranty, 12

year life span

Cleaner burning and improved fuel

savings

Page 15: Grande West Transportation Inc. Investor Presentation

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Accessible

Accessibility features to accommodate Canada’s aging population and mobility challenged individuals

Tiered theatre forward facing seating and open floor concept

Easy access, stable ramp

Full accessibility for wheelchairs, strollers

and walkers

Accessible Affordable Innovative

Page 16: Grande West Transportation Inc. Investor Presentation

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Innovative

Extremely low decibel rating

Offers the working features of a 40 foot bus with the compact packaging of a cutaway bus.

Accessible Affordable Innovative

Interior dehumidifier

Tight turning, easy handling and

maneuverability

Page 17: Grande West Transportation Inc. Investor Presentation

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Sales Process

Sales Model: $295,000 paid in two installments

Grande West does not use its own capital for the cost

to assemble and carries a small inventory of buses

25% Customer pays a 25% deposit of the sales price to Grande West at date of order. Grande West advances 25% of the cost to assemble to Weichai – Yaxing Group who carries the work-in-process costs

75% Customer pays Grande West the balance of 75% of sales price due on the delivery acceptance date. Then, Grande West pays Weichai - Yaxing Group their remaining cost to assemble

Opening of bid process to delivery

acceptance is approximately 9 to 12 months

Page 18: Grande West Transportation Inc. Investor Presentation

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• Scalability and agility with the capacity of production plant(s) = no additional hiring when production increases nor the ongoing burden of having a production workforce

• Global trade utilizing North American components assembled by highly skilled Chinese technicians = ongoing cost of production advantage

• Sales model that requires no capital for work-in-process costs = sales growth not constrained

• Management, Staff and G & A costs now in place and when sales grow multi-fold, small incremental increases in those costs = growth in earnings exponential

Scalability

Page 19: Grande West Transportation Inc. Investor Presentation

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Financial Projection Scenarios

Cautionary Note: These forward-looking financial projection scenarios reflect management's current expectations regarding future events and operating performance as of the date of this presentation.

Number of Vicinity Buses Sold per Year

(in 000's of CDN$)

60 100 200 400

Revenues $17,100 $28,500 $57,000 $114,000

Cost of Sales $13,500 $22,000 $43,000 $84,000

Gross Profit $3,600 $6,500 $14,000 $30,000

Expenses, Marketing & Overhead

$3,600 $4,200 $5,300 $6,800

Earnings before Income Taxes

- $2,300 $8,700 $23,200

Income Tax Expense - - $1,740 $6,960

Net Earnings - $2,300 $6,960 $16,240

Net Earnings Per Share (based on 46.1 million shares outstanding) - $0.05 $0.15 $0.35

Page 20: Grande West Transportation Inc. Investor Presentation

Shares % of Company

(Fully Diluted)

Founders, Directors and Officers 20,647,000 33.9% Private Placement

5,973,600 9.8% ($1,410,000 at $0.25 – April 2013)

IPO, concurrent PP and Loans settlement 12,370,900 20.3%

($6,100,000 at $0.50 – December 2013)

Private Placement 2,859,500 4.7%

($1,429,750 at $0.50 – August / October 2014)

Private Placement 4,286,000 7.0%

($1,733,250 at $0.25 – March 2015)

Total Issued and Outstanding Shares 46,137,000 75.7%

Convertible Debenture - March 12, 2020 4,000,000 6.6%

(unsecured $1,320,000, 8% coupon, 5 year)

Agents’ Options 2,047,615 3.4%

(8% on IPO Shares at $0.50; 7% on PP units at $0.50 and $0.40)

Warrants 4,996,332 8.2%

(1,529,832 at $0.65; 3,466,500 at $0.40)

Stock Options 3,748,400 6.1%

(priced at $0.50, vesting, five year term)

Fully Diluted 60,929,347 100.00%

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Capitalization Table

Page 21: Grande West Transportation Inc. Investor Presentation

Improve gross margins through

efficiencies

Obtain safety certifications for the Vicinity in

the U.S.

Actively market and demonstrate

the Vicinity

Increase sales, marketing and

operational staff

Secure purchase orders in jurisdictions across Canada

Provide highest level of customer

satisfaction

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Ongoing Objectives 2014 - 2015

Page 22: Grande West Transportation Inc. Investor Presentation

$7.5M in revenues from orders of 31 buses in operation + 8 buses now in

production

Sales pipeline constantly

growing, well positioned to capture large market share

Growing market demand for

compact, fuel efficient,

accessible transit vehicles

Experienced, committed and

invested management

team

Canadian product with N. American

components, utilizing global trade for cost efficiencies

Focused on targeted sales across Canada

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Summary

Page 23: Grande West Transportation Inc. Investor Presentation

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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, CEO,

CFO, Corporate Secretary and Vice President, Operations

• Director of numerous public companies with over 20 years of board 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

Jean-Marc Landry – Vice President, Business Development • Senior manager with over 20 years of experience in business development, focused on

the public transit industry, former head of Sales for Nova Bus • Instrumental in growing Nova Bus sales from 15% market share to over 50% in Canada

then focused on fast tracking Nova’s growth in the U.S.A.

Page 24: Grande West Transportation Inc. Investor Presentation

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Board of Directors – Independent Members

Joe Miller – Director & Chairman • 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

Yves Devin– Director • Former CEO of Montreal Transit System, second largest transit system in Canada

• Instrumental in improving Montreal Transit System to win the APTA award for being the Best Transportation Company in North America

• Mr. Devin serves or has served on every major transportation association in Canada and the USA

Don Siemens– Director • Independent financial advisor and corporate director with over 30 years experience

• Chartered Accountant and audit committee chair for six public companies and well experienced in corporate governance matters

• Expertise in corporate finance, take-overs, negotiations and strategic planning

Page 25: Grande West Transportation Inc. Investor Presentation

Thank-You

Contact:

William Trainer

[email protected]

604-607-4000