Cervus Financial Launches Multi-Tiered Mortgage Partners Program To Access $8.5 Billion In Additional Deal Flow.

TORONTO -- Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), is a financial services company dedicated to providing mortgages through selected mortgage brokers. The Company announced today that it has launched a new Multi-Tiered Partners program to increase mortgage volume agreements from $21.5 billion to $30 billion. The new partners program introduces three levels of partnership: Direct Partner, Associate Partner and Affiliate Partner.

To qualify as a Direct Partner, the mortgage broker firm must be able to demonstrate that it has sufficient mortgage origination volumes to make a volume commitment of $100 million per year for five years to Cervus. Currently, Cervus has 15 Direct Partners that have committed $21.5 billion over the next five to seven years. It is estimated that there are 30 firms in Canada with the ability to make this level of volume commitment.

The next level of partnership is the Associate Partner which is typically a firm that originates $50 million to $100 million in annual residential mortgage volume and these are classified as mid-sized mortgage broker firms. Associate Partners form an alliance with up to 10 similar sized companies to aggregate their volume to make a minimum mortgage volume commitment to Cervus of $100 million per year for five years. The alliance is established as a corporation which earns Cervus shares as the volume is delivered. This corporation administers the distribution of the earned shares for the Associate Partners. Since Cervus has launched the Associate Partner Program, it has signed over 50 new mortgage broker firms. Cervus estimates there are 250 such firms in Canada.

The final level of partnership is the Affiliate Partner which is typically a firm that originates $25 million to $50 million in annual mortgage volume. Affiliate Partners access the Cervus products directly or through an alignment with a Direct Partner. The alignment with a Direct Partner provides advantages to the Affiliate Partner by leveraging the back office operations and volume agreements the Direct Partner has established. This also provides scale to the Affiliate Partner while maintaining their own brand and business control.

"Cervus has established $21.5 billion in mortgage volume commitments from the top major national and regional firms in the country. Our multi-tiered partners strategy will enable us to achieve our goal of $30 billion in mortgage origination volumes over the next five to seven years," states Gary Bartholomew, CEO of Cervus Financial Group. "With the launch of this program we have signed over 50 new firms in the last 60 days and this group has very quickly represented over 15% of our daily volumes. We have also seen the ramp up from these mid-sized firms to be much quicker with a greater percentage of brokers sending deals sooner."

Cervus has successfully rolled out the multi-tiered partners program in Ontario and is now focusing on Alberta and British Columbia.

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 $30B 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 accuracy of this release.

Cervus Financial Group Inc. (TSX:CFG)