Mr. Ian Talbot reports

ARCUS ANNOUNCES EFFECTIVE DATE OF SHARE CONSOLIDATION AND CLOSING OF FINANCING

Further to Arcus Development Group Inc.'s news releases of Nov. 13, 2025, Nov. 4, 2025, and Oct. 15, 2025, effective at the opening of trading on Dec. 30, 2025, the company's listed common shares will be consolidated on the basis of one postconsolidation share outstanding for every 10 preconsolidation shares and the shares will trade under the trading symbol ADG. The company's name remains unchanged.

The consolidation reduces the company's shares, prior to the financing (defined below), from 73,878,065 to 7,387,807 shares, subject to adjustments for rounding. Including the postconsolidation shares issued in the financing, the company will have 13,221,140 shares issued and outstanding. No fractional shares will be issued in connection with the consolidation. Any fractional postconsolidation share that is less than one-half of a share will be rounded down and any fractional postconsolidation share that is at least or greater than one-half of a share will be rounded up to one whole share.

The exercise or conversion price and the number of shares issuable under any of the company's outstanding convertible instruments will be proportionately adjusted upon the effectiveness of the consolidation in accordance with their respective terms.

A letter of transmittal with respect to the consolidation will be mailed to registered shareholders of the company with instructions on how to exchange existing DRS statements or share certificate(s) for new DRS statements or postconsolidation share certificate(s).

The company further announces that its two previously announced non-brokered private placements for combined gross proceeds of $1.65-million is expected to close on Dec. 30, 2025.

The first financing includes a non-brokered private placement of two million postconsolidation units at a price of 25 cents per unit for aggregate proceeds of $500,000. Each unit consists of one postconsolidation share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one postconsolidation share at a price of 40 cents per share for a period of two years from the closing date.

The second financing includes a non-brokered private placement of 3,833,333 postconsolidation units at a price of 30 cents per unit for aggregate proceeds of $1.15-million. Each unit consists of one postconsolidation share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one postconsolidation share at a price of 40 cents per share for a period of two years from the closing date.

All securities issued in connection with the financing will be subject to a four-month statutory hold period expiring on May 1, 2026, in accordance with applicable securities legislation.

The company intends to use the net proceeds from the financing for general working capital and to finance work at its wholly owned Touleary project, located in the White Gold district of Yukon.

We seek Safe Harbor.