Arcus Dawson Gold Project Update

Arcus Development Group Inc. (TSX VENTURE:ADG) ("Arcus") is pleased to provide
an update on the exploration program at its Dawson Gold project. Work commenced
in early June 2011 and has consisted of grid auger soil sampling and diamond
drilling at each of the Touleary and Dan Man properties.


Diamond drilling commenced at the Touleary property to follow up significant
excavator trench results reported in 2010 (see August 25, 2010 news release)
coupled with several well defined soil geochemical and geophysical anomalies
identified in early 2011. Phase I drilling consisted of five holes totaling 935
meters from which assay results and a full geological interpretation are
expected near the end of August. The Touleary property is located immediately
south of Kinross Gold Corp.'s White Gold project.


Diamond drilling and auger soil sampling are currently ongoing at the Dan Man
Property, located immediately north of Kaminak Gold Corporation's Coffee
property. Drilling at Dan Man is testing four separate zones of interest along a
2.5 km portion of the property with up to ten holes. To date, four drill holes
have been completed at two of the zones of interest but no assays have been
received.


All four zones of interest at the Dan Man property are interpreted to be
structurally related based on the combined results from airborne geophysics, air
photo lineament analysis, rock and soil geochemistry and surface mapping. The
results from detailed 2011 auger soil sampling and mapping have enabled Arcus to
more accurately define drill targets in several of the Dan Man zones of
interest. All visually significant drill intersections will be assayed on an
expedited basis.


Contingent upon results from the Touleary and Dan Man properties, Arcus intends
to undertake additional drilling and/or geophysical work during the latter part
of the 2011 field season. All 2011 exploration is being financed using existing
flow-through funds. Arcus will not be required to carry out any additional
financing to complete the 2011 work program or to fully exercise its earn-in on
the Dawson Gold project.


The technical information in this news release has been reviewed 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, 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.