TP56 Demonstration Lease

Tractive Power is pleased to report that it has signed a demonstration lease for its prototype TP56 industrial locomotive with Parrish and Heimbecker, Limited (“P&H”), the major Canadian trader of grains and other foodstuffs. The lease is scheduled to commence on March 1, 2014.

With over 40 sites across Canada that require industrial switching, including interests in several locations in the Lower Mainland, P&H is an ideal initial customer for this locomotive, which will operate in P&H’s Cloverdale, BC facility. The locomotive will potentially replace the railcar mover that P&H currently utilizes in this facility in a service that we believe is ideal to demonstrate the greater pulling power, ease of use, and operational and environmental benefits of a locomotive which has been designed and customized for such applications.

P&H has an option to purchase this locomotive, dependent upon performance, and P&H has indicated that it intends to showcase the locomotive across its group and with its partners. TractivePower also has the ability to showcase the locomotive to other potential customers throughout the course of the demonstration, and it has generated strong interest with a number of operators with sites in the Lower Mainland.

Tractive Power has built a strong team with significant rail and related experience both Operationally, and at the business level. Its founder, Frank Donnelly, is a well-respected innovator in the rail industry with numerous rail related patents. Among his many accomplishments, Frank was the founder of RailPower, which introduced hybrid technology to the rail industry.

The TP56 is the Company’s initial product and it is its core focus. However, the Company also has additional intellectual property, and it will look to develop other locomotive products based on this intellectual property at the appropriate stage of its development.

The Company has launched an initial financing to raise up to $500,000. Members of management will be participating in the financing, and the Company has also received a lead order for this financing. If you would like more information about Tractive Power or the financing, please contact Tim Sanderson at 604-992-8844.