Mr. Mackenzie Loree reports

PENNANT AREA, S.W. SASKATCHWAN PHASE 1 PROGRAM SPUD DATE - UPDATE

Cerus Energy Group Ltd.'s planned spud date for the first test well in the phase 1 drilling program located in the Pennant area in southwest Saskatchewan, is expected to be on or before Nov. 14, 2017. As described in previous news releases, the phase 1 drilling program in the Pennant area in southwest Saskatchewan consists of seven earning wells to be drilled and completed by Cerus on or before Dec. 31, 2017.

Cerus has financed its initial commitments under the previously announced CWI interest agreement with Vital Energy Inc. through Lomac Canada's syndicate to a non-arm's-length syndicate member. The syndicate is participating directly in the CWI on a retained 160-per-cent penalty as previously released in a news release dated Aug. 2, 2017.

Under the terms of the agreement and upon Cerus fulfilling its phase 1 obligations to Vital Energy, Cerus has granted the syndicated financer the first right of refusal to finance additional phases of development drilling on the balance of Vital's Pennant area project lands in southwest Saskatchewan (approximately 8,580 gross and net acres). The first right of refusal will be on the same terms and conditions as the initial commitment. Under the terms of the CWI agreement with Vital, Cerus or the syndicate will place the initial test well funds on deposit with Vital one week prior to the initial test well spud date.

Cerus will retain a 20-per-cent tailing margin and the retention of the 5-per-cent GORR (gross overriding royalty) as per the terms and conditions of the CWI agreement between Cerus and Vital Energy.

To date and in preparation to commence the phase 1 drilling program, Vital Energy has acquired four surface leases on four pad drilling sites. Each pad drilling site can accommodate four wells. Seven drilling licences have been acquired and two of the four multiwell drilling pads have been constructed. The remaining two drilling pads are in the process of being constructed.

About Cerus Energy Group Ltd.

Cerus is a Tier 2 Canadian-based oil and gas exploration company trading on the TSX Venture Exchange with property assets in both Alberta and Saskatchewan.

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