Cervus Financial Closes its First Residential Mortgage in Ontario.

TORONTO -- Cervus Financial Corp. ("Cervus"), a subsidiary of Cervus Financial Group Inc. (CFG:TSX-V), a financial services company dedicated to providing mortgages through mortgage brokers, announced today that it has successfully closed its first residential mortgage in Ontario.

"This is a significant milestone for the company and all its partners, demonstrating a fully operational, end-to- end solution used to scale this business nationally", states Gary Bartholomew, Chairman and CEO of Cervus Financial Group Inc. "The national rollout to the mortgage broker partners has commenced and already our mortgage broker partners have stated that the service levels being provided are unprecedented in the industry."

"My client enjoyed a very good experience with Cervus. The approval was given in minutes, the closing process was smooth, clear and concise and at the best mortgage rate in the business" said Ms. Karen Monteiro, Senior Mortgage Agent, The Mortgage Alliance Company of Canada. "I have now a relationship with the customer, for life and through continued good service, expect to retain this client with an annuity payment stream for 15 to 20 years."

Cervus has now demonstrated a complete end to end, processing solution that provides, for the first time, cost and performance advantages in the residential mortgage marketplace. From origination to fulfillment, closing and servicing, all systems, including Cervus' proprietary systems, are operational.

Additionally, our technology and infrastructure partners have aligned themselves with our transaction business model, greatly reducing the start up and ongoing fixed costs typically associated with legacy systems. The transaction model compensates our infrastructure partners as part of the transaction revenue earned on the sale and servicing of the loans under administration.

Cervus is now receiving origination volumes in Ontario from multiple mortgage broker partners and will begin accepting high-ratio residential mortgages from British Columbia in October.

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 mortgage producer and the largest mortgage broker lender of AAA mortgages in Canada. Our new and innovative business model demonstrates contracted asset accumulation of $30 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(TM)" 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 service and related businesses. Cervus is focused on funding and servicing high-ratio and conventional residential mortgages originated through mortgage brokers. Cervus is currently licensed under mortgage broker legislation in Ontario and British Columbia and is seeking similar regulatory approvals in Alberta and Quebec. Cervus' head office and Ontario operations centre is located in Toronto, with additional planned offices in Vancouver (2005) serving Western Canada and in Montreal serving Quebec (2005). Cervus Financial Group Inc., will carry on 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 Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Cervus Financial Group Inc. (TSX VENTURE:CFG)