Mr. Bruce Smith reports

RADIUS SIGNS OPTION TO ACQUIRE 100% OF THE JONCO SILVER PROJECT, PERU

Radius Gold Inc. has entered into an option agreement to acquire a 100-per-cent interest in the Jonco silver project, a large-scale polymetallic silver-gold-lead-zinc system located in central Peru.

The Jonco silver project hosts a bulk-tonnage disseminated epithermal Ag-Au-Pb-Zn (silver-gold-lead-zinc) system associated with dacite flow domes and diatreme breccias. Historical drilling has confirmed extensive mineralization from surface and defined potential for a large-scale polymetallic system.

Project highlights

• 3,830 hectares covering multiple drill and geophysical targets;
• 11 historic drill holes (3,195 metres);
• Potential for a large polymetallic Ag-Au-Zn-Pb system;
• Disseminated open-pit style mineralization from surface to 250 m depth;
• Mineralization hosted in dacitic flow domes and diatreme breccias;
• Extensive geophysics includes over 30 line kilometres of combined ground magnetics and IP/resistivity surveys.

Historical drilling highlights include:

• Silver zone:
  • SAB-03: 254.5 m at 27.0 g/t Ag, 0.42 per cent Pb, 0.71 per cent Zn.
• Gold zone:
  • SAB-01: 85.5 m at 0.43 g/t Au, 14.1 g/t Ag, 0.56 per cent Pb, 1.26 per cent Zn.
• AND 90.0 m at 0.32 g/t Au, 31.3 g/t Ag, 0.20 per cent Pb, 0.56 per cent Zn.

Historical drill results are based on prior operator reporting and have not been independently fully verified by Radius. See "Historical Drill Data and QA/QC" below. Reported intervals are interpreted to approximate true widths; further works are required to confirm this.

Note: The cross section integrates historical drilling with a gross metal value (GMV) model used to outline the current interpreted extent and distribution of polymetallic mineralization. GMV values were calculated using assumed metal prices of Au $3,000 (U.S.)/oz, Ag $60 (U.S.)/oz, Zn $1.20 (U.S.)/lb and Pb 85 U.S. cents/lb.

The GMV model is a geological visualization tool only. It is not a mineral resource estimate, does not incorporate recoveries, mining or processing costs, and does not determine economic viability. Additional drilling and technical studies are required before any mineral resource can be defined.

Geological model and upside

Mineralization at the Jonco silver project is interpreted as a large-scale polymetallic disseminated and replacement-style Ag-Pb-Zn plus or minus Au epithermal system hosted within dacitic flow domes and diatreme breccias. Mineralization is both strata-bound and structurally controlled.

The company believes the system demonstrates characteristics consistent with a large polymetallic bulk-tonnage deposit. Geological modelling by the Radius Gold geological team suggests potential to initially define 50 million to 100 million tonnes of mineralized material through systematic drilling. Additional drilling and technical studies are required before any mineral resource can be defined.

Comparable disseminated polymetallic Ag-Pb-Zn (plus or minus Au) systems include Iska Iska in Bolivia, Penasquito in Mexico, Chinchillas in Argentina and Bowen's Silver deposit in Australia. These bulk-tonnage epithermal systems demonstrate that disseminated silver-rich polymetallic mineralization of similar grade tenor can achieve excellent economics where continuity and thickness are established. The Jonco silver property exhibits geological setting and grade characteristics consistent with this style of epithermal mineralization; however, additional drilling will be required to determine the extent and continuity of mineralization.

At Jonco Silver, multiple untested targets have been defined by property-wide magnetics and induced polarization surveys and geochemistry, with no significant exploration outside the central drilled zone that hosts these wide intercepts of polymetallic silver-rich breccia and veins.

Infrastructure and access

The project is in a well-established mining region of Peru with access via both coastal and highland routes from Lima. proximity to major ports including Callao, Chancay and Pisco provides long-term logistical advantages for future development scenarios.

Transaction terms

Under a binding letter of intent, Radius may earn a 100-per-cent interest in the Jonco silver project over five years through staged cash payments totalling $4.15-million (U.S.), $7.0-million (U.S.) in exploration expenditures and the issuance of 250,000 Radius common shares.

Key terms include:

• On signing of the formal option agreement (subject to TSX-V approval):
  • $50,000 (U.S.) and 50,000 Radius shares.
• Upon grant of drill permits (FTA and Inicio de Actividades):
  • $150,000 (U.S.) and 50,000 Radius shares.
• By the first anniversary following drill permit grant:
  • $1.0-million (U.S.) exploration expenditures and 50,000 Radius shares.
• By the second anniversary:
  • $250,000 (U.S.); 50,000 Radius shares; and $1.5 million (U.S.) exploration expenditures.
• By the third anniversary:
  • $1.0-million (U.S.); 100,000 Radius shares; and $2.0 million (U.S.) exploration expenditures.
• By the fourth anniversary:
  • $1.2-million (U.S.) and $2.5-million (U.S.) exploration expenditures.
• By the fifth anniversary:
  • Final payment of $1.5-million (U.S.) to earn 100-per-cent ownership.

Upon exercise of the option and acquisition of a 100-per-cent interest in the project, the vendor will retain a 2-per-cent net smelter return royalty. Radius may purchase up to 0.5 per cent of the NSR for $1.0-million (U.S.). Radius also holds an exclusive right to negotiate the purchase of an existing 1.25-per-cent NSR royalty.

Community and permitting

Previous drill permits associated with historical exploration programs have expired. Prior to commencing new drilling, the company will complete the standard permitting process applicable to regular mining concessions in Peru, including:

1. Community authorization for surface access;
2. Updated environmental approval through a Ficha Tecnica Ambiental (FTA);
3. Sectoral drill permits from the Ministry of Energy and Mines (MINEM).

The company has initiated formal engagement with the Comunidad Campesina de Cajamarquilla, which holds surface rights over portions of the project area. Meetings have been conducted with community leadership and sector representatives to present the exploration program, address questions and outline potential collaboration frameworks. Engagement to date has been constructive, and the company is working through the community's established internal procedures to obtain the required authorization. In parallel, technical and environmental preparations are advancing in anticipation of drill permitting.

Next steps

• Geological mapping and systematic surface geochemistry;
• Integration of historical drilling and geophysical data;
• Drill permit updates and preparation for initial drill program.

The Jonco silver project represents an advanced-stage Ag-Au-Zn-Pb exploration opportunity with substantial scale potential.

Additional geological and project information is available on the Radius gold website.

Historical drill data and QA/QC (quality assurance/quality control)

Historical drilling comprises three diamond drill holes completed in 1998 by Compania de Minas Buenaventura and nine diamond drill holes completed between 2004 and 2009 by Apex Silver Mines Ltd., a Canadian-listed issuer at the time. The 1998 drilling predates the implementation of NI 43-101, while the Apex drilling was completed following its adoption. Reported results from both programs are broadly consistent. Radius has reviewed available assay certificates and drill logs, relogged selected core, and confirmed that assay values correspond with observed mineralization. Site visits included verification of drill collar locations, review of mineralized trenches and confirmation of extensive hydrothermal alteration. While the historical data are considered relevant and reliable for exploration purposes, a qualified person has not independently verified all historical sampling and analytical procedures, and additional work will be required to confirm the results.

Tierra Roja copper project update

Radius continues to advance permitting for the Tierra Roja copper project in southern Peru, where the company is preparing for its first drill program. Significant progress has been made toward securing the final authorization to commence drilling, although the administrative process has taken longer than anticipated. All technical preparations are complete and the project is drill ready.

Alejandro Ly, Vice President Exploration, commented: "Advancing the Tierra Roja drill permit is a priority for Radius. Despite the bureaucratic process, we have made steady progress and the technical team is fully prepared. We look forward to commencing drilling as soon as the final authorization is received."

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 reviewed and approved the technical information contained in this news release.

About Radius Gold Inc.

Radius has a portfolio of exploration projects located primarily in Mexico and Peru, which it advances independently and through partnerships to preserve treasury strength. Management continues to evaluate new acquisition opportunities globally. Radius is a member of the Gold Group of Companies led by Simon Ridgway.

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