NEWS RELEASE   |   Friday, April 21st, 2017

Land Acquisition and Completion of Initial Commitment towards Phase 1 Drilling Program

Cerus Energy Corp. (“Cerus”) announces that further to previously released News Release dated March 31, 2017 it has entered into an agreement with Vital Energy Inc. (“Vital”).

Cerus has agreed and committed to fund Vital for up to ten million five hundred thousand dollars ($10,500,000.00) to acquire land and drill, frac, test, complete and equip up to seven (7) one mile horizontal test wells on Vital’s 100% owned Pennant Area Project Lands located in S.W. Saskatchewan.

Phase 1 Drilling Program

The seven (7) well drilling program will be “Phase 1” on a project that has identified an additional 27 drilling locations on the current Pennant Area Project Lands (3,360 acres). The primary target is medium gravity (21 degree) oil from the Upper Shaunovan formation. Vital will be the Operator of the Phase 1 drilling program. Drilling is expected to commence immediately after spring break up 2017.

Under the terms of the agreement, Cerus will pay up to $10,500,000.00 for 100% of the costs incurred by Vital to acquire lands posted for sale by Vital at the April 11, 2017, Saskatchewan public crown land sale and to drill, hydraulic fracture ("frac"), test, complete and equip up to seven (7) wells on Vital’s current Pennant Area project lands as a condition of earning.

Cerus will be entitled to receive 80% of the Net Profits generated by the sale of Petroleum Substances from the Phase 1 wells and their respective drilling spacing units. Once Cerus has recovered 180% of its investment back from the 80% net profits interests, Cerus will convert its net profits interest to a non-convertible 5% gross overriding royalty in the Phase 1 wells and their respective drilling spacing units.

Under the terms of the agreement Cerus will have the first right of refusal to fund additional Phases of development drilling on all of Vital’s Pennant Area project lands, on the same terms and conditions as for the Phase 1 wells.

Completion of Initial Commitment

Vital announces that Cerus has made the first cash advance in the amount of $360,000.00 CAD to Vital under the terms of the agreement. Vital was successful in acquiring 4 leases at the April 11, 2017, Saskatchewan crown land sale. The lease acquisitions totaled 5,220 acres more than doubling Vital’s current Pennant Area project lands and bringing the total 100% owned Pennant Area project lands to approximately 8,580 contiguous acres.

For further information regarding Camarico, see the Company's profile on SEDAR at www.sedar.com.

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

Neither the Canadian Securities Exchange (CSE) 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.

FORWARD-LOOKING STATEMENTS: The purpose of forward-looking statements is to provide the reader with a description of management’s expectations, and such forward looking statements may not be appropriate for any other purpose. Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated.

Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While the information contained herein is believed to be accurate and reliable, no representation of warranty, express, implied or otherwise, as to the accuracy, completeness or reliability of this document is made.