Mr. Paul Davey reports

MCW ENERGY GROUP ISSUES BONUS SHARES AND ADDITIONAL DRAWDOWN OF DEBENTURE

MCW Energy Group Ltd. has agreed to issue to each of Dalex Investments Inc. and Dalex Holding Inc., private California companies wholly owned and controlled by Alex Blyumkin, an officer and director of the corporation, 234,981 common shares in consideration for providing collateral to secure fuel advances of up to $2.1-million (U.S.) made by Phillips 66 Company to MCW Fuels Inc., a wholly owned subsidiary of MCW. The common shares issued will be subject to a U.S. restrictive legend, as well as a four-month statutory and TSX Venture Exchange hold period from the date of issuance. The issuance is subject to final approval of the exchange.

Mr. Blyumkin is an officer and director of MCW thereby making the issuance of the bonus shares a related-party transaction as defined under Multilateral Instrument 61-101. The issuance was exempt from the formal valuation approval requirements of MI 61-101 as none of the securities of MCW are listed on a prescribed stock exchange. The issuance was exempt from the minority shareholder approval requirements of MI 61-101 as at the time the transaction was agreed to, neither the fair market value of the transaction, nor the fair market value of the consideration for the transaction, insofar as it involves interested parties, exceeded 25 per cent of MCW's market capitalization.

Following completion of the noted share issuance, MCW will have a total of 46,918,577 common shares issued and outstanding.

In addition, MCW announces a second drawdown of $657,000 (U.S.) under the secured convertible debenture for up to a maximum aggregate principal amount of $2-million (U.S.) to Mr. Blyumkin, an officer and director of MCW, previously announced on June 25, 2014. The $657,000 (U.S.) will be convertible into common shares of MCW at $1 per common share. A total of $1,796,000 (U.S.) of the $2-million (U.S.) has now been borrowed by MCW from Mr. Blyumkin under the debenture.

We seek Safe Harbor.