Cervus Financial Group Inc.

Cervus Financial Group Inc.

March 11, 2005 15:17 ET

Cervus Financial Group Inc.: Stock Options Granted


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CERVUS FINANCIAL GROUP INC.

TSX VENTURE SYMBOL: CFG

MARCH 11, 2005 - 15:17 ET

Cervus Financial Group Inc.: Stock Options Granted

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - Cervus Financial
Group Inc. ("Cervus"), (TSX VENTURE:CFG), which is a financial services
company dedicated to providing mortgages through selected mortgage
brokers, announced today that it has granted certain officers, a total
of 400,000 stock options with 200,000 issued at a strike price ranging
from $1.68 to $2.04 expiring January 26, 2010 and 200,000 issued at
strike price ranging from $1.62 to $1.97 expiring February 26, 2010.

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' 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. 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).

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Cervus Financial Group Inc.
    Jan Moir
    Investor Relations
    (416) 860-5230
    IR@cervus.com
    or
    Cervus Financial Group Inc.
    Gary Bartholomew
    Chairman and CEO
    (416) 861-1315 ext 226
    gbartholomew@cervus.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.