Camarico and One Eleven Inc. Partner to Fast Track Entrance to Cannabis Market

NEWS RELEASE   |   Monday, August 27th, 2018

Camarico and One Eleven Inc. Partner to Fast Track Entrance to Cannabis Market

Cerus Energy Group (TSX-V:CEA) (“Cerus” or the “Company”) is pleased to announce that its subsidiary Camarico Group Ltd. (“Camarico”) and One Eleven Inc. (“One Eleven”), have executed a term sheet outlining a funding arrangement for the development of One Eleven’s marijuana development near Wynyard, Saskatchewan.

One Eleven is a late-stage licensee with Health Canada, under the Access to Cannabis for Medical Purposes Regulations (ACMPR). One Eleven is managed by a team of experienced commercial agricultural producers and professional technology developers with an extensive background in the United States licensed cannabis industry. One Eleven has based their initial operation’s plan on 20-acres of company-owned land and they are “permitted” to start construction immediately.

Cerus/Camarico’s subsidiary Lomac Canada Ltd. and One Eleven have agreed to enter into an arms length term sheet consisting of a Convertible Debenture of $5,000,000 CAD (0% interest for 24 months) to One Eleven. In return, Lomac Canada will receive 48% of the issued outstanding shares, upon receipt of One Eleven’s license to produce and sell marijuana from Health Canada. In addition, Lomac Canada will provide a Balloon Loan of $2,500,000 CAD on a 5-year term at a 10% interest rate with a 12-month interest holiday, to fund One Eleven’s start-up and initial operating expenses. No finders/referral fees are applicable.

Furthermore, One Eleven has agreed to provide “license extensions” through its primary license and facility management, to facilities owned and held within the Camarico Group and its subsidiaries, including the recently approved Georgetown Development located in Vulcan County, Alberta. In exchange for the licensing and management services, One Eleven will be paid a management fee and receive a 10% share of the Net Profits from the managed operation.

Camarico Chief Executive Officer R. Mackenzie Loree stated:

"We are extremely pleased and excited to work with One Eleven Inc. and their dedicated team of professionals. Their agricultural roots in crop production and management services, combined with the technological experience for advanced production and management systems, is a unique combination in this emerging market. We look forward to working with One Eleven through the development and production phases of our mutually beneficial relationship. This strategic relationship with One Eleven, will fast track our combined business objectives while sharing in the benefits of commercial success.”

For further information on Cerus and Camarico Group operations, please visit the Camarico website at: www.camarico.ca.

About Cerus Energy Group

Cerus Energy Group 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.

About Cerus Energy Group's Subsidiary Companies

Texalta Industries Ltd. and Lomac Canada Ltd. are wholly owned subsidiary company's serving various sectors of the oil and gas industry in the Province of Alberta. Maverick Northstar is a private joint venture company between Petrostar Petroleum Corp. of Alberta, Canada and Maverick Synfuels Inc of North Carolina, USA. Maverick Northstar is a chemical processing company focused on improving the value of methane through the production and utilization of methanol in Western Canada located in the province of Alberta. Petrostar holds 60% ownership of Maverick Northstar shares. For further information, please contact:

Primary Contact:
Bruce Scafe
1-877-737-8864
bscafe@cerusenergy.com

Alternate Contact:
Mackenzie Loree, CEO
1-403-861-6779
mloree@cerusenergy.com

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

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company’s beliefs, plans, expectations, anticipations, estimates and intentions. The words “may”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “target” and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company’s expectations as of the date of this news release. The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from a conclusion, forecast or projection in such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events.

When relying on forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION ON AT ANY PARTICULAR TIME.