| ||Vancouver, Canada: Simon Ridgway, the President of Radius Gold Inc., is pleased to announce that Radius has agreed to option its San Pedro epithermal gold project located in east-central Nicaragua to Vannessa Ventures Ltd. (VVV:TSX.V).|
Under the terms of the agreement, Vannessa can acquire a 50% interest in the property by spending a cumulative total of US$3,000,000 on exploration over a period of four years. Once it has exercised its option, Vannessa can earn an additional 20% by funding a bankable feasibility study, or may opt to further develop the property under a 50:50 joint venture with Radius. In the event that either party elects not to contribute, then standard dilution clauses will apply and if either party's interest drops below 10%, this will be converted
into a 1% Net Smelter Royalty.
Gold mineralization at San Pedro occurs as low-sulfidation epithermal quartz veins, breccias, and associated stockworks that have been identified over a 12km by 4km area. Mineralization appears to be associated with rhyolite domes associated with an eroded caldera that is cut by regional extensional structures.
The project was discovered by Radius' field teams investigating reports of old workings in the area. Gold anomalies have been defined by soil geochemistry and trenching over a 12 km extent (see Radius news release dated April 19, 2005). The initial program to be carried out by Vannessa will be to better define the geology and surface expression of the mineralization by additional surface trenching and extending existing trenches, followed by drilling. This initial work will be largely supported by infrastructure and staff that Radius Gold already has in Nicaragua.
The scientific and technical information in this release was prepared under the supervision of Mr. David Cass, Radius' 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 / Erin Ostrom
Symbol: TSXV-RDU; OTCBB-RDUFF
Shares Issued: 53.5-million
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