News

March 28, 2012 - Vancouver, British Columbia: Arcus Development Group Inc. ("Arcus" or the "Company") is pleased to provide the following corporate update.

Dawson Gold Option

Arcus has fully exercised its property option with ATAC Resources Ltd. ("ATAC") and acquired a 50% interest in the Dawson Gold project, located in the White Gold District of the Yukon Territory. In exercising the option, Arcus has: (i) incurred $3.5 million in exploration expenditures in the project area; (ii) issued one million shares to ATAC; and (iii) made total cash payments of $185,000 to ATAC. Future exploration will be carried out as a joint venture between Arcus and ATAC, with Arcus acting as the joint venture operator.

The Dawson Gold project is comprised of four separate claim blocks where exploration has been conducted at various levels for the past three years. Significant advancements have been made at the Touleary property, located immediately south of the Kinross Gold Corp. White Gold project and the Dan Man property, located immediately north of Kaminak Gold Corp.'s Coffee property. 

Work by Arcus at the Touleary property in 2011 resulted in the first volcanogenic massive sulphide ("VMS") discovery in the White Gold District. A five hole diamond drill program totaling 935 m targeted a 300 by 100 m area within a 1,200 m long zone of coincident magnetic and intermittent gold-in-soil geochemical anomalies. VMS mineralization was intersected in all five holes, with the most significant intersection containing 7.18% copper, 116 g/t silver, 3.55 g/t gold and 4.30% zinc over 2.25 m (see October 4, 2011 news release). A helicopter borne Versatile Time Domain Electromagnetic (VTEM) survey was flown subsequent to the discovery and a number of electromagnetic targets are currently being modeled for the 2012 exploration season. The major focus of the 2012 work program will be the drilling of high priority targets within the untested 900 m portion of the favorable zone at the Touleary property.

The Dan Man property hosts four separate gold-in-soil geochemical anomalies coincident with multiple structural features interpreted from a detailed airborne magnetic survey and air photo lineament analysis. Two of these zones were partially tested in 2011 as part of a 1,500 m diamond drill program and both identified structurally hosted gold mineralization (see December 7, 2011 news release).

Details for both properties can be viewed on the Arcus website at www.arcusdevelopmentgroup.com.

Private Placement

Arcus also announces that subject to regulatory acceptance, it will carry out a non-brokered unit offering. Up to 2 million units at a price of $0.75 per unit will be sold for gross proceeds of $1.5 million. Each unit will consist of four (4) flow-through shares, one (1) non-flow-through share and one (1) share purchase warrant. Each of the five (5) shares comprising a unit will be issued at a price of $0.15. Each warrant will entitle the holder to purchase one (1) additional Arcus share at a price of $0.25 at any time within one (1) year of the closing of this unit offering.

The flow-through proceeds from the unit offering will be used to fund the 2012 drill program at the Touleary property. The non-flow-through proceeds from the offering and from the exercise of warrants will be used as general working capital. Arcus may pay a finder's fee on the sale of a portion of the unit offering.

Board of Directors

The Arcus Annual General Meeting was held on March 27, 2012. All incumbent directors were re-elected with the exception of Eric B. Tweedie. Mr. Tweedie did not run for re-election. As a founding member of Arcus, the board would like to thank Mr. Tweedie for his contributions over the past five years and wishes him well as he embarks on his retirement.

The technical information in this news release has been prepared and approved by William A. Wengzynowski, P. Eng., a director of Arcus and a qualified person for the purposes of National Instrument 43-101.


On behalf of Arcus Development Group Inc.

"Ian J. Talbot"

Ian J. Talbot, President and CEO


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CAUTIONARY NOTE: This news release includes certain "forward-looking statements". Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Arcus Development Group Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Arcus Development Group Inc.'s expectations are the risks detailed herein and from time to time in the filings made by Arcus Development Group Inc. with securities regulators. Those filings can be found on the Internet at http://www.sedar.com.

For additional information contact:

Grant Longhurst, Corporate Communications
Arcus Development Group Inc.
grant@arcusdevelopmentgroup.com
Phone: (604) 506-2445
Fax: (604) 688-2578
Web: www.arcusdevelopmentgroup.com

Ian J. Talbot, President & CEO
Arcus Development Group Inc.
ian@arcusdevelopmentgroup.com
Phone: (604) 687-2522
Fax: (604) 688-2578
Web: www.arcusdevelopmentgroup.com