News

August 5, 2010 -- Vancouver, British Columbia:

Arcus Development Group Inc. ("Arcus") announces that it has completed the $1 million non-brokered private placement announced on July 19, 2010. The financing consisted of 3,750,000 flow-through shares and 1,250,000 non-flow-through units. Each unit was comprised of one common share and one-half of a share purchase warrant. Each whole warrant will entitle the holder to purchase one Arcus share at any time prior to February 5, 2012 at a cost of $0.35. The flow-through shares and the non-flow-through units were each sold at a price of $0.20.

In connection with the private placement, Arcus has paid cash finder's fees of $60,000 and issued 400,000 finder's warrants to arm's length finders. Each non-transferable finder's warrant may be exercised at a price of $0.35 at any time prior to February 5, 2012 and entitles the holder to acquire one Arcus share. All securities issued as part of the private placement are subject to a hold period and may not be resold until December 6, 2010.

The flow-through proceeds from this financing will be used to fund ongoing work programs at the Dawson Gold project, located in the White Gold area of the Yukon Territory. The non-flow-through portion of the private placement will be used as general working capital.

"Assay results from the trenching programs already completed on the Green Gulch and the Touleary properties are expected within the next 10 days, reported Ian Talbot, the Arcus President. "The crew and equipment has been mobilized to the Dan Man property and that trenching program should begin this week".