ADG Arcus Development Group Inc

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Arcus Development Group Inc. Grant Longhurst Corporate Communications (604) 506-2445 (604) 688-2578 (FAX) www.arcusdevelopmentgroup.com Arcus Development Group Inc. Ian J. Talbot President & CEO (604) 687-2522 (604) 688-2578 (FAX) info@arcusdevelopmentgroup.com www.arcusdevelopmentgroup.com