Mr. Simon Ridgway reports

RADIUS SIGNS OPTION AGREEMENT ON EL CANCEL MINING CONCESSION, CHIHUAHUA, MEXICO

Radius Gold Inc. has signed an option agreement to acquire a 100-per-cent interest in the El Cancel mining concession in the municipality of Guadalupe y Calvo in Chihuahua, Mexico.

El Cancel concession

The El Cancel concession covers approximately 761 hectares and is located immediately to the north of the company's current Amalia concessions. Rock samples taken of veins within the concession returned elevated gold and silver grades (greater than one gram per tonne gold and greater than 10 grams per tonne silver), similar to surface samples from the veins that have been drilled at Amalia.

Limited sampling indicates northwest-to-north-northwest-trending structures within El Cancel, with orientations similar to those drilled on the Amalia project. At Amalia, significant results have included:

• Amalia vein: 44 metres at 12.39 g/t Au and 309 g/t Ag (AMDD19-010) and five m at 14.71 g/t Au and 1,378 g/t Ag (AMDD18-009);
• California vein: 26.9 m at 2.59 g/t Au and 353 g/t Ag (AMDD21-039) and individual samples up to 33.1 g/t Au and 4,210 g/t Ag;
• El Cuervo vein: 13.55 m at 10.25 g/t Au and 841 g/t Ag (AMDD22-066) and 96 m at 0.54 g/t Au and 167 g/t Ag (AMDD21-047).

Several undrilled extensions of these Amalia structures remain to be tested.

Transaction terms

Under the agreement, Radius (through its Mexican subsidiary, Geometales del Norte -- Geonorte SA de CV) has the exclusive right to option and explore the property for three years. The company may terminate the agreement at any time on 30 days of notice.

To earn a 100-per-cent interest, the company must:

• Pay outstanding mining duties for the property in the amount of approximately $90,000 (U.S.);
• Make cash payments to the property owner totalling $250,000 (U.S.), as follows:
  • $50,000 (U.S.) at 12 months;
  • $75,000 (U.S.) at 24 months;
  • $125,000 (U.S.) at 36 months;
• Incur exploration expenditures of $100,000 (U.S.) in Year 1 and $250,000 (U.S.) in Year 2.

Upon exercise of the option, the vendor will retain a 1-per-cent net smelter return (NSR) royalty. The company has the right, at its sole discretion, to purchase 0.5 per cent of the NSR royalty for $1-million (U.S.) within four years of completing the transfer of the 100-per-cent interest. The remaining 0.5-per-cent NSR royalty is not subject to a buyout right.

Additional payments to the vendor of $150,000 (U.S.) are due upon public disclosure of a National Instrument 43-101 (or equivalent) indicated and measured mineral resource and a further $150,000 (U.S.) upon disclosure of a proven and probable mineral reserve.

The company will also be responsible for maintaining the concession in good standing during the term of the agreement.

The option agreement is subject to customary closing conditions, including ratification before a Mexican notary and registration with the public mining registry. Notarization has been arranged in Parral, Chihuahua. The company is also under the obligation to present this property to Pan American Silver Corp. for possible inclusion in the existing Amalia project agreement between the company and Pan American as it is within the area of influence. If Pan American declines to include El Cancel in the Amalia agreement, Radius will have sole rights and interest in the El Cancel concession. As the operator of the Amalia joint venture, Pan American has done no material work on the Amalia properties since 2023.

Simon Ridgway, chief executive officer of Radius, commented: "I am excited to get back in this district again. We have proven the district can produce bonanza grades over very minable widths following up on minor showings at surface. With minimal work, we have identified showings at El Cancel that certainly warrant follow-up."

Qualified person

Dr. Luke Longridge, PhD, PGeo, is the president of Radius and is Radius's qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects. Dr. Longridge has reviewed and approved the technical information contained in this news release.

About Radius Gold Inc.

Radius Gold is an exploration company focused on the discovery and advancement of high-quality projects in the Americas. The company's strategy is to identify, acquire and advance exploration opportunities with strong discovery potential.

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