Arcus Closes $1 Millon Private Placement

   Arcus Development Group Inc. ("Arcus") (TSX VENTURE: ADG) 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 a price of $0.35 any time prior to February 5, 2012. 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."

On behalf of Arcus Development Group Inc.

Ian J. Talbot, President & CEO

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.

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.

Contacts: Arcus Development Group Inc. Grant Longhurst Corporate Communications [phone] [e-mail] Arcus Development Group Inc. Ian J. Talbot President & CEO [phone] [phone] (FAX) [e-mail] www.arcusdevelopmentgroup.com