Arcus Development Group Inc.

Arcus Development Group Inc.

July 03, 2009 08:00 ET

Arcus to Carry Out $500,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2009) - Arcus Development Group Inc. (the "Company") (TSX VENTURE:ADG) announces that it will carry out a 3,333,333 unit non-brokered private placement for total proceeds of $500,000. Each unit will consist of one flow-through common share and one flow-through share purchase warrant. The price of the units will be $0.15. The warrants will be valid for a period of 12 months from the closing of the placement and will entitle the holder to purchase one additional flow-through common share at a price of $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. Research Capital Corporation will be paid a cash commission of 8% on a portion of the placement proceeds.

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 this placement by mid-July, 2009. The original requirement that the Company complete a $1,000,000 financing by August 1, 2009 has been waived by both ATAC and the Company.

The private 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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