Annual run rate total revenue and EBITDA in excess of $125 million and $14.5 million

Woodbridge, ON – Titanium Transportation Group Inc. (TSX-V:TTR) (“Titanium” or the “Company”) is pleased to provide highlights of the Company’s first quarter 2016 financial results.

Revenue and EBITDA Summary

• Revenue for the quarter rose to $28.1 million, a 17% increase over the first quarter of 2015
• EBITDA for the quarter was $2.5 million, an 11% decrease from the first quarter of 2015
• EBITDA was lower due to the integration of ProNorth Transportation and a weaker quarter in Logistics
• Annual run rate remains unchanged, total revenue and EBITDA in excess of $125 million and $14.5 million

Segment Highlights

• Truck transportation revenue rose to $21.4 million, a 46% increase over the first quarter of 2015
• Truck transportation EBITDA margin decreased to 13.6%, from 15.9% in the first quarter of 2015 due to ProNorth integration; increased from 12% in the fourth quarter of 2015
• Logistics revenue was $7.2 million, a 27% decrease over the first quarter of 2015
• Logistics EBITDA margin decreased to 4.1%, from 10.5% in the first quarter of 2015; while Q1 is typically the weakest quarter seasonally, results were further impacted by overall economic conditions
• Logistics volumes and margins have improved in Q2 to levels in-line with historical norms

Mergers & Acquisitions Summary

• Technology integration of ProNorth Transportation completed in Q1 2016
•  Full integration of ProNorth expected to be completed in Q3 2016
• High visibility of M&A targets, continuing to target two acquisitions per year
• The Company has $28 million of undrawn credit facilities
• Net debt² to equity of 1.22 and net debt² to EBITDA of 2.85¹
• Fully funded to execute our acquisition strategy in 2016

Mr. Ted Daniel, CEO of Titanium commented: “We increased margins in our Truck Transportation division relative to Q4 2015 as a result of continuing margin improvement post the integration of Muskoka.  It was a challenging quarter in our Logistics division due to an oversupply of trucks; however, we are seeing significant improvements in the second quarter as industry conditions continue to improve.”

Full financial results are available on www.sedar.com.

¹Based on run rate EBITDA of $14.5 million
²Net of finance lease receivables

Conference Call

The Company will also hold a conference call for analysts and investors on Wednesday, May 18, 2016, at 8:00 a.m. Eastern Time, to discuss these results.  Business media are also invited to listen to the call.  Interested parties can join the call by dialing 1-877-291-4570 (North America) or 1-647-788-4919 (International).  A recording of the call will be available until midnight, June 1, 2016 by dialing 1-800-585-8367 (North America) or 1-416-621-4642 (International) and entering passcode 12384769.

About Titanium

Titanium is a leading asset-based transportation and logistics company servicing Canada and the United States, with approximately 420 power units, over 1,300 trailers and over 500 employees and independent owner operators. Titanium provides truckload, dedicated, and cross-border trucking services, freight logistics, and warehousing and distribution to over 1,000 customers. Titanium is a recognized consolidator of asset-based transportation companies in Ontario, having completed eight asset-based trucking acquisitions since 2011. Titanium has also been ranked by PROFIT magazine as one of Canada’s Fastest Growing Companies for seven consecutive years.

CONTACT INFORMATION

Titanium Transportation Group Inc.
Ted Daniel, CPA, CA
Chief Executive Officer
(905) 266-3011
ted.daniel@ttgi.com
www.ttgi.com

For Investor Relations
Kin Communications Inc.
+1 (604) 684.6730 or +1 (866) 684.6730
TTR@kincommunications.com
www.kincomm.staging.wpengine.com

NON-IFRS FINANCIAL MEASURES

The following financial measures do not have any standardized meaning under IFRS and may not be comparable to similar measures employed by other companies:

“Earnings before interest, income taxes, depreciation and amortization” (“EBITDA”) is calculated as net income before depreciation, amortization, asset impairments, gains or losses on the sale of equipment, finance income and costs, gains or losses on foreign exchange, income tax expense and reverse takeover costs.
“EBITDA margin” is calculated as EBITDA as a percentage of revenue before fuel surcharge.

Management of the Company believes that these financial measures are useful for investors and other readers when used in conjunction with other IFRS financial measures. However, these financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of financial performance prepared in accordance with IFRS.

Cautionary statement regarding forward-looking statements

Certain statements contained in this press release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking statements are provided for the purposes of assisting the reader in understanding Titanium’s current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking information may relate to Titanium’s future outlook and anticipated events, and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Titanium. Particularly, statements regarding performance, achievements, prospects or opportunities for Titanium or the industry in which it operates are forward-looking statements. In some cases, forward-looking information can be identified by terms such as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “predict”, “forecast”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts. For greater certainty and notwithstanding the foregoing, annualized run rate total revenue and EBITDA are not presented herein as forward-looking statements. These annualized figures are based solely on historical data and are included to allow readers to understand the current size of the Company, and should not in any circumstance be construed as projections or forecasts of the Company’s future performance.

Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management’s perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While management considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

The forward-looking statements made in this press release are dated, and relate only to events or information, as of the date of this press release. Except as specifically required by law, Titanium undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.