News

August 25, 2010 -- Vancouver, British Columbia:

Arcus Development Group Inc. ("Arcus") provides an update on the 2010 trenching programs at its Touleary, Dan Man and Green Gulch properties, all located in the White Gold area, Yukon Territory.

To date, a total of 13 trenches have been initiated as part of the 2010 program (four at Green Gulch, six at Touleary and three at Dan Man). The three trenches at the Dan Man property and five of the trenches at the Touleary property have not been excavated to bedrock and work is ongoing. The four trenches at Green Gulch and one trench at Touleary have been completed and have been sampled. The results from the Green Gulch trenches are pending.

Samples from the completed trench at the Touleary property (TL 10-04) were collected over a trench length of 204 m. A 34 m section of that trench yielded a weighted average grade of 0.82 g/t gold and 14.3 g/t silver. Within the 34 m section were two 5 m sample intervals which assayed 2.59 g/t gold with 20.0 g/t silver and 1.025 g/t gold with 28.8 g/t silver.

The 2.59 g/t gold sample was collected from an iron stained (oxidized) and decomposed kaolinite-muscovite schist. The 1.025 g/t gold sample was taken from a silicified zone with broken, blocky quartz. Two parallel trenches, approximately 100 m to the east and west of TL 10-04 are being excavated to test for possible strike extensions of the gold zone exposed in TL 10-04. The mapping and sampling of these two additional trenches is expected to be completed by the first week in September.

"We are encouraged by the geology and the gold numbers in the one completed trench at the Touleary property", reported Ian Talbot, the Arcus President. "However, the heavy permafrost at all three of our properties has resulted in our sampling programs being eight to ten weeks behind schedule. We anticipate that most of the proposed trenches at the Touleary and Dan Man properties will be excavated to bedrock and sampled by mid-September."

Excavating exploration trenches to bedrock in areas of permafrost is a multiple step process. A trench is initially excavated to the maximum depth possible and then abandoned for a period of time to allow the frozen organic and soil layers to thaw. The process is repeated as many times as is required to extend the trench to bedrock. Once at bedrock, the geology is mapped and the rocks are sampled. The information obtained through the mapping and sampling of the bedrock in trenches is the basis upon which drill targets are selected.

Analytical work is being done by ALS Chemex with sample preparation in Whitehorse and assays and geochemical analyses in North Vancouver. The samples were initially analyzed for gold by fire assay followed by atomic absorption (Au-AA24) and 35 other elements by inductively coupled plasma-atomic emission spectroscopy (ME-ICP41).

The Arcus exploration program is being conducted by Archer, Cathro & Associates (1981) Limited. The technical information in this news release has been reviewed by Heather Smith, B.Sc., PGeo, a qualified person for the purposes of National Instrument 43-101.