Arcus Development Group Inc. (TSX VENTURE:ADG) ("Arcus") is pleased to announce
the discovery of the first significant volcanogenic massive sulphide (VMS)
system in the White Gold District of north central Yukon at its Touleary
property. 2011 diamond drilling targeted a 300 by 100 m area within a 1,200 m
long zone of coincident geophysical and intermittent gold-in-soil geochemical
anomalies. Highlights from the five hole (935 m) drill program include:




--  High-grade copper-silver-gold-zinc mineralization grading up to 7.18%
    Cu, 116 g/t Ag, 3.55 g/t Au and 4.30% Zn across 2.25 m; 
    
    
--  Near surface intersections starting at 64.21 m; 
    
    
--  Excellent lateral continuity within the initial 300 m area drill tested;
    and 
    
    
--  Onsite road access.
    



Results for the five Touleary drill holes are shown below:



---------------------------------------------------------------------------
             From        To   Interval       Cu       Ag       Au       Zn 
Hole #         (m)       (m)     (m)(i)      (%)    (g/t)    (g/t)      (%)
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
TL-11-01    85.61     91.70       6.09     1.37     14.5     0.80     0.41 
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
TL-11-02   124.00    127.17       3.17     2.38     32.9     2.01     1.38 
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
TL-11-03    64.21     64.80       0.59     1.42     36.4     1.15     2.81 
---------------------------------------------------------------------------
            90.36     90.97       0.61     4.01     73.9     2.18     0.93 
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
TL-11-04    93.88    106.75      12.87     0.21     7.69     0.55        - 
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
TL-11-05   115.62    117.87       2.25     7.18      116     3.55     4.30 
---------------------------------------------------------------------------
           124.50    138.65      14.15     1.44     16.5     0.77     0.29 
---------------------------------------------------------------------------
including  128.25    134.92       6.67     1.99     27.3     1.22     0.58 
---------------------------------------------------------------------------
(i) Intervals reported are drilled thicknesses believed to represent       
approximately 70 to 90% of the true thickness.                             



The Dawson area, including the White Gold District is underlain by rocks of the
Yukon Tanana Terrane and is considered highly favorable for VMS style
mineralization. A cluster of VMS deposits in the Finlayson District, 450 km to
the southeast are hosted in the same Yukon Tanana Terrane stratigraphy. Certain
parts of the Dawson area and the Finlayson District are believed to have been
linked as part of a concurrent back-arc/basinal environment prior to
displacement along the Tintina Fault.


The most notable deposit in the Finlayson District is Yukon Zinc Corporation's
Wolverine Deposit where a NI 43-101 measured and indicated mineral resource is
reported at 4.46 Mt grading 12.14% zinc, 354.8 g/t silver, 1.16% copper, 1.70
g/t gold and 1.58% lead (Yukon Zinc Corporation Technical Report, 2007).


"Exploration activity in the Dawson area, including the White Gold District in
the early 1990's was largely directed toward VMS potential in response to the
discovery of various VMS deposits in age equivalent rocks in the Finlayson
District," stated Ian Talbot, the Arcus President. "The Touleary discovery
represents the first significant VMS mineralization reported in the White Gold
District. Having only drilled 25% of the 1,200 m trend of coincident geophysical
and geochemical anomalies, the exploration potential at the Touleary property
remains largely untested."


Arcus is currently completing a 740 line km close spaced airborne Vertical Time
Domain Electromagnetic (VTEM) survey at the Touleary property to identify areas
of high chargeability that may represent thicker accumulations of massive
sulphide along the current mineralized trend.


Host rocks at Touleary are pervasively sericitized fine tuffaceous
felsic-to-intermediate volcaniclastic units with narrow intervals of weakly
preserved fragmental textures. These rocks coincide with a laterally continuous
linear magnetic low feature identified by a detail airborne magnetic survey
completed by Arcus in the spring of 2011. This feature, although structurally
offset at a number of locations, can be traced along strike from the discovery
for a distance in excess of 5 km.


Sulphide mineralization within the volcaniclastic horizon(s) is dominantly
pyrite and occurs as moderate to heavily disseminated concentrations and rarer
semi-massive to massive bands. Much of the mineralization is coarsely
recrystallized and remains roughly parallel to foliation but evidence of primary
finely laminated textures has largely been destroyed. Copper mineralization is
present as chalcopyrite and rarer covellite. These sulphides preferentially
occur in the middle to lower portion of the felsic volcaniclaistic intervals as
fine foliaform wisps, clots and aggregates plus coarsely recrystallized masses
believed to be strain induced near the apex of folds.


Updated maps, sections and photos of the Touleary project can be viewed on the
Arcus website (www.arcusdevelopmentgroup.com).


Dan Man Update

The 2011 diamond drilling and auger soil sampling programs on the Dan Man
property were completed in late August. The Dan Man property is located
immediately north of Kaminak Gold Corporation's Coffee property. The 10 hole
(1,500 m) drill program was designed to test four separate structural zones
along a 2.5 km portion of the property. Results will be reported once all assays
have been received and interpreted.


QA/QC

Samples were forwarded to ALS Minerals in Whitehorse, Y.T. where they were fine
crushed before a 250 gram split was pulverized to better than 85% passing 75
microns. Pulps were then analyzed at ALS Minerals in North Vancouver, B.C. where
splits of the pulverized fraction were dissolved in aqua regia and analyzed for
35 elements using inductively coupled plasma (ICP) together with atomic emission
spectroscopy (AES). Over limit analyses for specific elements were further
analysed to completion using the OG 46 method. Gold analyses were by the Au-AA24
procedure that involves fire assay preparation using a 50 gram charge with an
atomic absorption spectroscopy finish. 


Rigorous procedures are in place regarding sample collection, chain of custody
and data entry. Certified assay standards, duplicate samples and blanks are
routinely inserted into the sample stream to ensure integrity of the assay
process.


The technical information in this news release has been prepared and approved 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 and 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.
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