Mr. Bruce Smith reports

RADIUS GOLD GRANTED EXCLUSIVE RIGHT TO EXPAND TIERRA ROJA COPPER PROJECT BY 1,800 HA AND OPTION ADDITIONAL 4,500 HA OF EXPLORATION LICENSES

Radius Gold Inc. has expanded the potential for its Tierra Roja copper project, signing an exclusivity agreement and right to option an additional 1,800 hectares adjoining the project, which would increase the project total to 3,670 hectares. Furthermore, the company has the exclusive right to option an additional 4,500 hectares of exploration licences within the broader district, covering three additional targets. With the Tierra Roja project and three new properties to explore, Radius has rapidly consolidated a compelling land position in one of the world's top producing copper belts in southern Peru.

Option terms

Radius has signed a six-month exclusivity agreement with a local landowner to option, if it chooses, any or all of nine exploration concessions totalling approximately 6,300 hectares. Two of the claims (the Hidekel property), covering approximately 1,800 hectares, directly adjoin Radius's Gold's Tierra Roja copper project. The company has paid $2,500 (U.S.) on the signing of the exclusivity agreement. The agreement allows for Radius to conduct prospecting and evaluation of the licences and the exclusive right to enter into an option agreement for each property with the following terms:

1. Payments totalling $165,000 (U.S.) over 36 months to acquire 100 per cent per property;
2. At any time during five years from the signing of the option, if a resource estimate is made: $100,000 (U.S.); if there is a prefeasibility study: $200,000 (U.S.); if mine construction commences, with production to be generated from the concession: $200,000 (U.S.);
3. If the option is exercised, the property owner retains a 5-per-cent NSR (net smelter return) royalty that can be purchased by the company for $1-million (U.S.) per 1 per cent.

Radius is actively advancing exploration at Tierra Roja. Detailed geological mapping, geochemical sampling and ground-based magnetic surveys have been completed and compelling drill targets defined. Drill permitting is well advanced and induced polarization/resistivity surveys are scheduled to commence promptly. Plans are in place for a coming drill program to test high-priority targets.

Qualified person

Bruce Smith, MSc (geology), a member of the Australian Institute of Geoscientists, is Radius's qualified person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Smith has 30 years of mineral exploration experience and has prepared and approved the technical information contained in this news release.

About Radius Gold Inc.

Radius has a portfolio of projects located in Mexico, Guatemala and Peru, 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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