Mr. Bruce Smith reports

DRILL PERMITS GRANTED AND IP SURVEY IDENTIFIES KEY TARGETS AT RADIUS GOLD'S TIERRA ROJA COPPER PROJECT

Radius Gold Inc. has received permits for drilling at its 100-per-cent-owned Tierra Roja copper project. In parallel, results from the recently completed induced polarization and resistivity geophysical surveys have defined a large coherent zone of high-resistive and high-chargeable material at depth below the copper mineralization defined by surface mapping and sampling. The combination of significant surface copper oxide copper mineralization, hosted in highly altered (silica and sericite) intrusive and volcanics, with a large resistive and chargeable geophysics response at depth, defines compelling drill targets.

Bruce Smith, president and chief executive officer of Radius Gold, commented: "With drill permits in hand and compelling geophysical targets now defined, Radius looks forward to commencing the first ever drill program at Tierra Roja. The IP results align well with our surface mapping and sampling, and we believe Tierra Roja has the potential to host a significant copper discovery and look forward to the start of drilling."

The phase 1 drill program is expected to commence in third quarter and will test geophysical targets, located directly below outcropping alteration and copper oxide mineralization.

About the IP/resistivity survey

The IP/resistivity survey consisted of three north-south-oriented lines and totalled 4.8 kilometres covering the core 800-metre diameter system. Initial interpretation indicates a broad and coincident resistivity and chargeable anomaly dipping south to depth from the main outcropping copper oxide mineralized zones. The geophysical chargeable and resistive anomaly is consistent line to line across 500 m of tested strike extension.

Geological interpretation

Radius has completed detailed geological mapping at Tierra Roja, along with geochemistry and both magnetic and IP/resistivity surveys. Several zones of structurally controlled east-west-oriented zones of intense silica, sericite-dominant alteration between 50 to 150 m wide are associated with copper mineralization. Higher-grade mineralization (greater than 2 per cent copper) is often completely brecciated and replaced by silica. The larger zones of intense alteration are surrounded by wide zones of moderate to weak alteration and then relatively fresh rock. The outer margins of the system have chlorite epidote alteration. Mineralization occurs as copper oxides, dominantly malachite, chrysocolla and atacamite, hosted within structures and broadly disseminated. The host rocks regionally are andesitic volcanics of the Jurassic age. The core of the target is composed of a multiphase intrusive complex dominantly of dacite composition, but also andesite and quartz-feldspar porphyry of the Cretaceous age. There is widespread faulting, brecciation and replacement of large areas (50 to 150 m wide) by silica sericite alteration.

The origins of the intense alteration and copper oxide mineralization observed at surface are uncertain. Drilling is required. There has been some debate amongst the experienced Peruvian team and several visitors to the project as to whether the observed characteristics are related to porphyry copper or iron oxide copper/gold mineralization. Tierra Roja lies 120 kilometres south of the large IOCG deposits Mina Justa, Marcona, Pampa de Pongo and farther north Mina Raul Contestable. Two hundred kilometres south of Tierra Roja occur very large porphyry copper deposits in La Tapada, Tia Maria, Cerro Verde and Chapi.

Tierra Roja has a significant scale alteration system, abundant copper oxide mineralization occurring over a large area and a strong coincident IP -- chargeable and resistivity anomaly extending to depth below the outcropping alteration and mineralization -- and has never been drill tested. The Radius team looks forward to drilling this compelling target.

Drill permits

Radius's local subsidiary in Peru has been granted FTA (ficha tecnica ambiental) authorizations that approve drilling and the construction of 20 drill pads and access roads. From each platform, several drill holes can be completed. The FTA also covers land access, and, in the case of Tierra Roja, the land is federally owned with no registered occupants and access approved. There is no drilling water available on site, and water will need to be purchased and trucked in from an approved mining supply, of which there are several available sources within the district. The alternative for drilling without water is RC (reverse circulation). Radius is currently negotiating drill contracts with potential suppliers.

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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