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News Release

August 31, 2012

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Radius Gold sells Interest in Guatemala Gold Property

Vancouver , Canada : Radius Gold Inc. (TSX-V: RDU) hereby announces the sale of its remaining interest in Exmingua

S.A.

, the

Guatemala

based company that holds 100% of the Tambor Gold Project. Kappes, Cassiday & Associates (�KCA�) has acquired the remaining interest from Radius, giving KCA a 100% interest in and to the Project. In consideration, KCA will repay to Radius approximately US$400,000 owing to the Company ($100,000 on signing, and approximately $300,000 once KCA has commenced shipment of gold produced from the property).

Also upon commercial production, KCA will make quarterly payments to Radius based on the then price of gold and the number of ounces produced from the property. Radius remains optimistic that commercial production will be achieved at Tambor and the Company will be reimbursed for the investment it has made in the region since discovering gold at Tambor in the year 2000.

Ralph Rushton , the President of Radius, said: �The sale of our interest in the Tambor Project is part of our corporate strategy to divest problematic assets, allowing the Company to concentrate capital and expertise on areas less conflicted regarding development in the region.�

About Radius

Radius has been exploring for gold in Latin America for over a decade. More recently the Company has focused on selling non-core assets, thereby raising the capital needed to succeed in making a discovery with potential to give investors the return desired from a mineral exploration company. Please call toll free 1-888-627-9378 or visit our web site ( www.radiusgold.com ) for more information.

ON BEHALF OF THE BOARD

� Simon Ridgway �

Chairman and CEO

Investor relations: Ja clyn Ruptash

Symbol: TSXV-RDU; OTCBB-RDUFF

Shares Issued: 86.6-million

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement
Some of the statements in this news release contain forward-looking information that involves inherent risk and uncertainty affecting the business of Radius Gold Inc. Actual results may differ materially from those currently anticipated in such statement.

Western Pacific Resources

Emerick Resources

Wesgold Minerals

Radius Gold Inc.

	DEVELOPMENT STAGE
	CODE : RDU.V
	ISIN : CA7504681007

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Radius Gold is a gold exploration company based in Canada.

Radius Gold holds various exploration projects in Guatemala, in Nicaragua and in Peru.

Its main asset in development is TAMBOR in Guatemala and its main exploration properties are EL PAVON, TREBOL and LA PATRIOTA in Nicaragua, BANDERAS and HB in Guatemala, 60 MILE in Canada, TLACOLULA in Mexico and RUBI PROJECT in Peru.

Radius Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 10.4 millions as of today (US$ 7.6 millions, € 7.1 millions).

Its stock quote reached its highest recent level on November 21, 2003 at CA$ 2.03, and its lowest recent point on December 05, 2008 at CA$ 0.04.

Radius Gold has 86 675 617 shares outstanding.

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