Mr. Ian Talbot reports

ARCUS ANNOUNCES A FURTHER INCREASE TO PRIVATE PLACEMENT AND SHARE CONSOLIDATION

Arcus Development Group Inc., further to its news releases of Nov. 4, 2025, and Oct. 15, 2025, will increase the size of its continuing private placement to up to a maximum of $1.65-million.

Subject to TSX Venture Exchange acceptance, the increased financing will close concurrently with an Arcus share consolidation, as described below:

1. Immediately prior to the closing of the financing, Arcus will complete the consolidation on the basis of one postconsolidation Arcus common share for 10 existing Arcus common shares. The issued Arcus share capital following the consolidation and prior to the closing of the financing will be 7,387,807 common shares.
2. The closing of the financing will immediately follow the consolidation and will consist of two separate, but concurrent tranches as set out below:
   1. The first tranche of the financing will consist of a $500,000 offering of postconsolidation units at a price of 25 cents per unit. Each of these units will consist of one Arcus postconsolidation common share and one Arcus share purchase warrant. Each of these warrants will entitle the holder to purchase one Arcus postconsolidation share for a period of two years at a price of 40 cents per share. Up to two million postconsolidation Arcus shares and up to two million warrants will be issued under the first tranche offering.
   2. The second tranche of the financing will consist of a $1.15-million offering of postconsolidation units at a price of 30 cents per unit. Each of these units will consist of one Arcus postconsolidation common share and one Arcus share purchase warrant. Each of these warrants will entitle the holder to purchase one Arcus postconsolidation share for a period of two years at a price of 40 cents per share. Up to 3,833,333 postconsolidation Arcus shares and up to 3,833,333 warrants will be issued under the second tranche offering.

Following the completion of the share consolidation and the successful closing of both tranches of the financing, Arcus will have 13,221,140 common shares issued and outstanding. The proceeds from the financings will be used by Arcus as general working capital and to finance work at its wholly owned Touleary project, located in the White Gold district of Yukon.

Arcus will apply to list its common shares on the TSX Venture Exchange as a Tier 2 company concurrently with the share consolidation and the financing.