Arcus Development Group Inc.
TSX VENTURE : ADG

Arcus Development Group Inc.

February 27, 2009 06:30 ET

Arcus Development Group Inc.: Mexican Gold Exploration to Commence on Chapalota Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2009) - Arcus Development Group Inc. (TSX VENTURE:ADG) and Riverside Resources Inc. (TSX VENTURE:RRI) are pleased to announce that work on the Chapalota gold prospect will commence in the first week of March, 2009. The Chapalota property is located approximately 50 km northeast of the city of Mazatlan in south-central Sinaloa, Mexico, immediately north of Geoinformatics' Azulitas polymetallic sulphide deposit (5.6 million tonnes of 0.9% Cu-Eq.). The Chapalota property covers an area of 8,073 hectares and is located on the western margin of the Sierra Madre Occidental Belt.

Small scale hard rock and placer gold mining has occurred intermittently in the region for more than two centuries. However, other than work by Kennecott and Geoinformatics on La Noria project south of Chapalota, there is no record of any modern exploration work having been carried out in the area to date.

The property was acquired by Riverside through staking in 2008 and is unencumbered by any third party mineral interests or royalties. Arcus acquired an option to earn up to a 65% interest in the property under the terms of an option agreement (previously announced on Sept. 12, 2008) which includes spending $6.5M over six years. By amendment dated February 12, 2009, the Arcus commitment to incur $350,000 in exploration expenditures on the property has been extended from September 12, 2009 to March 12, 2010 and Arcus has paid Riverside $50,000 to cover the required September 2009 payment. All other terms of the original agreement remain unchanged.

The initial 2009 work program at Chapalota will consist of data compilation, geological mapping, regional stream sediment and soil sampling, hand trenching and follow-up work on existing gold anomalies. The budget for the initial program will be approximately $200,000 and Riverside will act as operator.

Ian Talbot, President of Arcus stated, "We look forward to starting our exploration program at the Chapalota property and working with Riverside's Mexican team. In response to current global equity market conditions, Arcus has been diligent in preserving its working capital. We have adequate financial resources to fund the 2009 program without having to undertake additional equity financings."

"Riverside is delighted that Arcus Development Group is able to fund the committed work program and Riverside's on the ground teams will begin field work immediately to progress the Chapalota property exploration," stated John-Mark Staude, President & CEO of Riverside Resources. "We at Riverside look forward to adding value to the partnership by using our extensive exploration experience in Mexico to provide the onsite exploration work on the Chapalota 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. (TSX VENTURE:RRI). Arcus is a well structured Vancouver based mineral exploration company operated by experienced management.

About Riverside:

Riverside Resources is focused on capitalizing on its technical team's extensive experience and on the ground local approach of mineral exploration through active joint ventures and cost effective exploration work. By partnering with other companies on the majority of the projects Riverside minimizes exploration risk and ensures that various projects are taken forward each year. The generative program is based on the team's more than 60 years of collective exploration experience and participation in over a half dozen ore body discoveries.

On behalf of Arcus Development Group Inc.

Ian J. Talbot, President & CEO

On behalf of Riverside Resources Inc.

John-Mark Staude, President & CEO

Certain statements in this press release may be considered forward-looking information, which statements can be identified by the use of forward looking terminology (e.g., "expect" or "plans"). Such information involves known and unknown risks -- including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Arcus or Riverside in their respective public securities filings -- that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Arcus and Riverside each disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

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