| ||Vancouver, Canada: Simon Ridgway, President of Radius Gold Inc., is pleased to announce that the Company has expanded its ground holdings and acquired a new gold project called La Flor, located 8km south of its new Trebol discovery in northeast Nicaragua (see press release dated May 29, 2007). The La Flor project is contiguous with Radius's Amapola and El Trebol concessions, and brings the Company's total landholding in northeastern Nicaragua to approximately 60,000 hectares.|
La Flor is an early-stage exploration project and comprises 15,605 hectares. The concession hosts several known low sulphidation quartz-adularia vein systems hosted within Tertiary-aged volcanic andesites and pyroclastic rocks. The property is located some 320 km NE of Managua and some 60 km west of the coastal town of Puerto Cabezas. An all-weather dirt road transects the central part of the property.
Subject to exchange approval, Radius has purchased a 100% interest in La Flor and will pay US$50,000 and issue 50,000 shares of the Company to Novaterra Resources Inc., a private company. Novaterra retains a 1% NSR which can be purchased by Radius for US$250,000.
The main area of known mineralization consists of at least two parallel veins spaced some 15m apart that strike northeast. The eastern-most vein, known as the Linda Ventura vein, has received most attention to date and comprises a central banded chalcedony-adularia vein approximately 6m-wide and a surrounding quartz-stockwork envelope. Three rock chip samples taken from old trenches and pits along this vein by Radius returned values of 2.6 g/t Au, 8.5 g/t Au and 8.0 g/t Au respectively, with visible gold observed by Company geologists. In addition to Linda Ventura, there are 6 other prospects on the concession, El Cabo and El Bufalo to the southwest, Truslaya, Vallejo and Osmar to the west and Ebo to the south. Truslaya, Vallejo and Osmar are within 1 kilometer of the road.
Records show that the property was explored in a cursory fashion in the 1930's by Neptune Mining Ltd., a joint venture between Asarco and Rosario, who completed trenching along the main vein over a strike length of 800m. Although there are no records of gold production, limited underground mining took place via two vertical shafts. In 1997, some seventeen of the old trenches were re-sampled by Intrepid Minerals along the main vein. Two of the trenches gave 15.6 g/t and 21.4 g/t Au over 6.5 m, with all trenches returning an average of 3.3 g/t Au over a true width of 7.6 m along a 750m strike length. The full results of this work are not available.
Intrepid also undertook property-wide reconnaissance program including prospecting, stream sediment and soil sampling. A total of 70 stream sediments were collected, 14 were above detection and ranged up to 4875 ppb Au. Reconnaissance soil sampling was carried out at 100 meter intervals along 61 linekilometers at 1 to 2 kilometer spacing. A total of 59 samples were above detection and ranged from trace up to 1,525 ppb Au. Three highly anomalous rock samples were collected, one of which returned 53.6 g/t Au. In addition, values of 32.0 and 23.0 g/t Au were collected at the same site. All of these samples are within 1.5 kilometers of the Osmar prospect.
A work program is being planned to evaluate the known vein systems by trenching and drilling. The remainder of this large concession will be explored by systematic sampling and prospecting to evaluate the other known mineralized prospects and identify new vein trends.
Widespread damage was caused throughout northeastern Nicaragua as a result of last week's Category 5 storm and the communities surrounding Radius's Trebol project were severely affected, with few buildings remaining standing. Radius's Trebol field camp was also extensively damaged. Fortunately the Company reports no injuries to field personnel.
Radius is participating in the relief effort and will be doing everything possible to help arrange supplies o aid to the affected communities. Two aid organizations that are currently receiving donations of money or goods to assist in the aid effort are:
The Caribbean Red Cross http://www.caribbeanredcross.org/donate.htm
World Vision Canada http://www.worldvision.ca/home/index.cfm
The technical information in this release was prepared under the supervision of Mr. David Cass, Radius's Vice-President of Exploration, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with National Instrument 43- 101.
For further information on Radius Gold Inc., please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release
ON BEHALF OF THE BOARD
Simon Ridgway, President
Investor relations: Ralph Rushton
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 53.3-million
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