Cervus Achieves Top 10 Broker Lender Status in Canada in the month of August.

TORONTO -- "Cervus Ranks 10th out of 47 Broker Lenders in Canada"

Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), is a financial services company dedicated to providing mortgages through select mortgage brokers. The company is pleased to announce it has increased its market share and now ranks 10th out of 47 broker lenders as at August 31, 2005. The company moved up from 14th out of 44 broker lenders as at June 30, 2005. Cervus has achieved an average market share growth rate of 62% for the three months ended August 31, 2005.

"We are very pleased with the adoption results of the 'Customer for Life' Model by our selected mortgage broker partners signified by reaching top 10 among broker lenders in Canada in unprecedented time", states Gary Bartholomew, CEO of Cervus. "This has been accomplished with only one mortgage product, high ratio insured mortgages."

The Filogix Canadian Mortgage Broker Market Report (TM) reports all mortgage originations processed through the Filogix technology platform utilized by the majority of Canadian mortgage brokers. Cervus has recorded $181 million in mortgage originations in the third quarter of fiscal 2005 and it is expected the company will achieve mortgage originations of over $345 million in the fourth quarter generating assets under administration greater than $600 million.

Cervus's unique model compensates the broker with a one time origination fee, a trailer fee for each year the mortgage remains with Cervus and a renewal fee upon renewal of the mortgage for another term. The model allows mortgage brokers to build their own book of business and provide the tools and products they need to retain the Customer for Life. Cervus has continued to see increasing adoption rates of the "Customer for Life" business model.

About "Customer for Life"

The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates profitable relationships for the borrowers, mortgage professionals, institutional investors and for Cervus.

About Cervus

Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks to become a high-yield residential mortgage producer and the largest mortgage broker lender of conventional insured and insurable mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $22.5 billion in mortgages over five to seven years by fusing industry ownership, technology, service delivery and long term recurring revenue for the mortgage brokers.

Cervus works on the basis of a "Customer for Life" model, where the borrower is the client of the mortgage broker and Cervus is effectively the "Back Office - Servicer" between borrowers and investors. Cervus has assembled an experienced management team and board of directors who are knowledgeable in banking, financial services and related businesses. Cervus is focused on funding and servicing insurable conventional and high ratio insured residential mortgages originated through mortgage brokers. Cervus is currently licensed under Ontario, Quebec, British Columbia and Alberta mortgage broker/lender legislation and is seeking similar regulatory approvals in other Canadian Provinces as required. Cervus's head office and Ontario operations centre is located in Toronto, with additional sales offices in Vancouver, Calgary and in Montreal. Cervus Financial Group Inc. conducts all lending operations through its wholly-owned subsidiary, Cervus Financial Corp.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Additional information about Cervus is available on SEDAR (www.sedar.com).

The TSX does not accept responsibility for the adequacy or accurac y of this release.

Cervus Financial Group Inc. (TSX:CFG)