Mr. Simon Ridgway reports

FUNDING SECURED TO COMMENCE DRILLING AT PLATA VERDE SILVER PROJECT WITH DRILLING TEAM MOBILIZED TO FIELD

Minera San Julian SA de CV, a wholly owned subsidiary of Fresnillo PLC, and Geometales del Norte-Geonorte SA de CV, a wholly owned subsidiary of Radius Gold Inc., have signed an option agreement in order to mobilize field teams and drill equipment to the Plata Verde project. The option agreement replaces the exclusivity agreement signed in July, 2022, under which the companies had been co-operating on exploration. The new agreement provides for an initial investment of $250,000 (U.S.) to mobilize drilling and field teams, and a second investment of $250,000 (U.S.) will be made on the day the drilling commences, with further financing provided as approved by the technical committee under the terms of the option agreement.

Bruce Smith, president and chief executive officer of Radius Gold, commented: "We were pleased to deploy the joint geological team to initiate our maiden drilling program at Plata Verde. This project has many of the qualities that companies look for when assessing the potential to make a discovery. Plata Verde is located in a prolific silver mining district; it has never been drill tested and has demonstrated significant silver mineralization in surface and underground rock-chip sampling, excellent recoveries in metallurgical testing, and has a history of bulk-tonnage production. Fresnillo is one of the largest silver producers in the world and has significant expertise in Mexico and the Sierra Madre, and, with a joint team to define the exploration program, we have the best chance to make a discovery."

Plata Verde project

The Plata Verde project located in Chihuahua, Mexico, was rediscovered by Radius Gold and is a historic, large-scale, underground, bulk tonnage silver mining operation. Plata Verde is located east of the historic Batopilas silver mining district (1708 to 1920), which reputedly produced over 300 million ounces of silver from high-grade veins and structures. In 2022 and 2023, Radius and Fresnillo completed a geophysical, rock channel sampling and metallurgical program, and a new road was constructed to enable access to the property.

Option agreement summary

Minera San Julian would spend, over a four-year period, a minimum cumulative amount of $4,762,000 (U.S.) on exploration activities at the Plata Verde project.

Minera San Julian would make option payments to Geonorte totaling $2,825,000 (U.S.), which includes $825,000 (U.S.) to cover underlying property agreements.

Minera San Julian would have the right to earn a 70-per-cent interest in the Plata Verde project.

If the option is exercised, a new company (NewCo) would be set up to own the Plata Verde project, and Newco would be owned 70 per cent by Minera San Julian and 30 per cent by Geonorte.

Any additional financing required by NewCo would be provided by Minera San Julian and Geonorte in proportion to their respective ownership interests in NewCo.

Should either party's interest fall below 10-per-cent interest in NewCo that interest would convert to a 2-per-cent net smelter return royalty.

Each party will have the right of first refusal to acquire the other party's shares in NewCo if the other party receives a firm offer for its interest in NewCo that the other party would propose to accept.

About Radius Gold Inc.

Radius has a portfolio of projects located in Mexico and Guatemala, which it continues to advance, utilizing partnerships where appropriate to retain the company's treasury. At the same time, management is seeking out additional investment and project acquisition opportunities across the globe. Radius is a member of the Gold Group of companies, led by Simon Ridgway.

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