Mr. Mackenzie Loree reports

PENNANT PROJECT WELL 14-15-18-17 W3M PRELIMINARY RESULTS

Cerus Energy Group Ltd. has provided a drilling, completion and production update on the well Vital Pennant 14-15-18-17 W3M.

The 14-15 well was initially put on pump in early December, 2017, and has now recovered over 100 per cent of the fluids used in completion operations. The 14-15 well is currently producing fluids at a rate of 40 cubic metres per day (252 barrels per day). The water/oil ratio is currently averaging 80 per cent to 90 per cent water and 10 per cent to 20 per cent oil.

The operator of the 14-15 well has conducted laboratory testing of the water produced from the 14-15 well and compared it with other wells in the immediate area and has concluded that the completion operations resulted in the Upper Shaunavon zone and the Lower Shaunavon zone becoming connected. It is suspected that the vast majority of the water produced from the 14-15 well is coming from the Lower Shaunavon formation. The operator and Cerus are examining different potential solutions to isolate exactly where in the horizontal section of the 14-15 well the majority of the water is coming into the wellbore. Once identified, remedial operations will be undertaken to attempt to decrease the water production percentage and increase the oil production percentage in the 14-15 well.

Cerus will be entitled to receive 80 per cent of the net revenue generated by the sale of petroleum substances from the 14-15 well. Once Cerus has recovered 180 per cent of its investment back from 80 per cent of the net revenues from the 14-15 well, Cerus will then convert from its revenue interest to a non-convertible 5-per-cent gross overriding royalty in the 14-15 well and its drilling spacing unit.

The operator drilled a second well for its own account based on the very positive preliminary results of the 14-15 well the operator commenced the drilling of the well Vital Pennant 15-20-18-17W3M. The operator has informed Cerus that 15-20 well has been drilled and is currently awaiting completion. The operator drilled the 15-20 well at 100 per cent its own cost and Cerus has no interest in the 15-20 well. However, if the 15-20 well becomes a successful producer, it greatly enhances the entire Pennant project and Cerus's rights to continue participating with the operator in the project.

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.

We seek Safe Harbor.