Arcus Development Group Inc.

Arcus Development Group Inc.

July 29, 2009 20:18 ET

Arcus Increases Size of Flow-Through Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 29, 2009) - Arcus Development Group Inc. (TSX VENTURE:ADG) (the "Company") announces that further to its news release of July 3, 2009, it has increased the size of its non-brokered flow-through private placement from 3,333,333 units to 4,650,000. The price of the units has been reduced from $0.15 to $0.13. Gross proceeds from the placement will be approximately $600,000. The exercise price of the associated flow-through warrants remains unchanged at $0.20.

Proceeds from the placement and any proceeds from the exercise of the warrants will be used to fund the Company's work programs on the Dawson Gold project. Finders' fees of up to 8% will be paid on a portion of the placement proceeds. Finder's options equal to 8% of a portion of the units sold will be issued at closing.

As previously announced (see June 10, 2009 news release), ATAC Resources Ltd. granted the Company an option to acquire a 50% interest in the Dawson Gold project. The project consists of four claim blocks covering an area of approximately 77 square kilometres adjacent to or near the Underworld Resources Inc. White Gold and Black Fox properties in west-central Yukon.

The Company anticipates closing the placement in early August, 2009. The placement and the Dawson Gold option are both subject to TSX Venture Exchange acceptance.

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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