Mr. Bruce Scafe reports

DEBT SETTLEMENT AGREEMENTS

Cerus Energy Group Ltd. has entered into eight debt settlement agreements dated Jan. 12, 2017, in order to settle an additional $1,698,325.20 in outstanding debt through the issuance of 13,046,040 Cerus Energy Group common shares at deemed prices of 13 cents per share.

This announcement amends the earlier announcement of Jan. 16, 2017, for amended price of shares and the number of shares to be issued. These shares-for-debt settlements will replace the shares-for-debt settlements that were previously announced Dec. 7, 2015, as those settlements were never finalized after the announcement and no shares were issued.

The company elected to complete the new debt settlement in light of its current working capital position and in order to preserve cash to finance the development of its continuing projects. Any shares issued in connection with the debt settlement will be issued in reliance on certain prospectus and registration exemptions under applicable securities legislation and will be subject to a hold period of four months and a day. The completion of the debt settlement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

About Cerus Energy Group Ltd.

Cerus is a Tier 2 Canadian-based oil and gas exploration company with property assets in both Alberta and Saskatchewan.

We seek Safe Harbor.