Arcus Development Group Inc.

Arcus Development Group Inc.

June 10, 2009 09:35 ET

Arcus Acquires Project Adjacent to Underworld's White Gold Discovery

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 10, 2009) - Arcus Development Group Inc. (TSX VENTURE:ADG) is pleased to announce that ATAC Resources Ltd. (TSX VENTURE:ATC) has granted Arcus an option to acquire a 50% interest in the Green Gulch, Touleary, Dan Man and Shamrock gold prospects, collectively referred to as the Dawson Gold Project. The four claim blocks cover an area of approximately 7,000 hectares and are located in west-central Yukon.

The Green Gulch claims are wholly surrounded by Underworld Resources Inc.'s White Gold discovery property. The Touleary claims are immediately adjacent to the western boundary of Underworld's Black Fox property.

The exploration target at the Dawson Gold Project is orogenic gold mineralization within highly strained metamorphic rocks of the Yukon Tanana Terrane. The project lies within a northwest trending belt of gold rich mineral deposits that extends from the Mount Nansen and Freegold Mountain areas, through the Sonora Gulch and Casino deposit areas and toward the Pogo Mine in Alaska.

The focus of the 2009 exploration program will be geological mapping, prospecting and auger soil sampling of areas of geological interest. Follow-up work will include trenching of anomalous areas to identify potential drill targets. ATAC is mobilizing crews and by starting the program as early as possible, the parties have maintained the option of drilling later in the 2009 field season.

Eric Tweedie, the Arcus VP of Exploration stated, "The Dawson Gold Project represents an excellent exploration opportunity for Arcus based on the geological setting and the proximity of the claim blocks to Underworld's White Gold discovery. ATAC was able to assemble a prospective land package in the area relatively early and cost effectively."

To exercise the option and acquire a 50% interest in the project, Arcus is required to make aggregate payments to ATAC of $185,000 cash and 1,000,000 Arcus shares and incur exploration expenditures of $3,500,000 prior to December 31, 2011. The option is subject to Arcus completing a financing of not less than $1,000,000 prior to August 1, 2009. The terms of the financing have not been finalized and will be announced at a later date.

Upon the completion of its financing, Arcus will reimburse ATAC for costs incurred by ATAC as part of the 2009 program. All reimbursement costs and Arcus expenditures following the closing of the financing will be applied against the Arcus expenditure requirements.

If Arcus does not complete the financing by August 1, 2009, the option will terminate and ATAC will complete the 2009 program on its own behalf. Prior to completing its financing, Arcus will not have access to exploration results from the 2009 work program at the Dawson Gold Project.

About Arcus:

The Arcus business model is to acquire interests in quality mineral prospects by way of joint venture or other collaborative arrangement with exploration groups recognized in the industry as superior project generators. Current Arcus projects include two Mexican gold prospects held under option from Riverside Resources Inc. Arcus is a well structured, Vancouver based mineral exploration company operated by experienced management.

The technical information in this news release has been reviewed by Robert C. Carne, M.Sc., P.Geo., a qualified person for the purpose 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

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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