Mexican Mining

[Tackler]

Arcus options La Ventosa from Riverside Resources

2008-04-17 06:37 MT - News Release

Mr. Ian Talbot reports

ARCUS DEVELOPMENT GROUP ACQUIRES SECOND MEXICAN PROJECT FROM RIVERSIDE RESOURCES

Arcus Development Group Inc. has concluded an agreement with Riverside Resources Inc. under which Arcus has been granted an option to acquire a majority interest in La Ventosa property, located in Oaxaca, Mexico. La Ventosa property covers an area of 10,175 hectares and is 15 kilometres northeast from Juchitan city.

La Ventosa property is located in a relatively unexplored area of southeastern Oaxaca. Infrastructure in the area is very good, and unlike much of Oaxaca, which is mountainous and contains a large number of small villages, La Ventosa property is located on easily accessible, semi-arid flatlands near the Pacific coast. The property was acquired by Riverside through staking and is not subject to any underlying royalty or third party interests.

Subject to TSX Venture Exchange acceptance, Arcus can earn up to a 65-per-cent interest in the property under a staged option. To exercise an initial option and acquire a 51-per-cent interest in La Ventosa property, Arcus is required to pay Riverside $150,000 cash, issue 200,000 Arcus shares to Riverside and incur exploration expenditures of $2-million prior to the third anniversary of the option agreement. Exploration expenditures in year one of the initial option include a firm commitment of $250,000. After exercising the initial option, Arcus will have a second option to acquire an additional 14-per-cent interest in the property by incurring a further $2-million in exploration expenditures within a two-year period and by paying Riverside $300,000.

Ian Talbot, the president of Arcus, stated: "We are very pleased to have concluded a second Mexican project agreement with Riverside. La Ventosa property is an excellent early stage exploration target in an area that has not been exposed to extensive modern exploration. Work at La Ventosa should be very cost-effective and progress rapidly as the area is easily accessible and has excellent infrastructure. Our Mexican property portfolio, which now contains the Chapalota (April 14, 2008, new release), and La Ventosa properties, exposes Arcus to gold exploration projects in both Oaxaca and Sinaloa."