News

July 28, 2010 -- Vancouver, British Columbia:

Arcus Development Group Inc. ("Arcus") announces that it has completed the non-brokered private placement previously announced on June 16, 2010.

The financing consisted of 7,670,000 flow-through common shares at a price of $0.20 per share for gross proceeds of $1,534,000. The private placement was oversubscribed by $34,000.
Of the 7,670,000 shares sold under this placement, 2,800,000 shares were purchased by the MineralFields Group. Following the completion of this placement, the MineralFields Group holds a total of 5,186,306 Arcus shares and 2,916,306 Arcus share purchase warrants. The MineralFields Group and Limited Market Dealer Inc. have provided the TSX Venture Exchange and Arcus with an undertaking not to exercise any Arcus warrants if doing so will result in the MineralFields Group acquiring greater than 20% of the issued Arcus share capital (a Control Person).

In connection with the private placement, Arcus paid cash finder's fees of $74,450 and issued 503,000 finder's warrants to arm's length finders. Each finder's warrant is exercisable at a price of $0.25 until July 27, 2011 and entitles the holder to acquire one non-flow-through Arcus common share. All securities issued as part of the placement, including the flow-through shares, the finder's warrants and any non-flow-through shares issued upon the exercise of the finder's warrants, are subject to a regulatory hold period and may not be resold until November 28, 2010.

On July 19, 2010, Arcus announced a $1 million non-brokered unit private placement. That placement is expected to be completed during the first week of August.

The ongoing mechanical trenching programs at the Green Gulch and Touleary properties are nearing completion. Final arrangements are being made for the mobilization of the crew and equipment to the Dan Man property where trenching is expected to begin in early August. Assay results from all trenching will be announced as soon as results are available.