Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to provide an update on recent activities including ongoing target generation and exploration work, the status of the Tambor gold mine in Guatemala in which Radius holds a royalty interest, and the value of present equity and cash holdings and other royalty interests.

Tambor Gold Mine

On May 11, 2016, KCA informed Radius that mining operations were suspended by the Supreme Court of Guatemala reportly due to a lack of consultation by the Government with local indigenous peoples when the mine was permitted in 2011. The Supreme Court is now evaluating the issue, but pending the Court's decision the mine has remained closed. The suspension was in response to an Amparo (essentially a lawsuit brought as a guarantee of protection of an individual's constitutional rights) brought against the mine by CALAS (Centro de Acción Legal Ambiental y Social de Guatemala), an NGO focused on environmental and social issues.

To date, the Supreme Court has still not made a decision on when the mine may re-open. An unfortunate consequence of the delay in delivering a final decision is that KCA, which has been left with no choice in the absence of cash flow from gold sales, has now given lay-off notices to hundreds of local employees. KCA have retained a small crew on-site to maintain the plant. More than 300 employees recently travelled to the offices of the Constitutional Court, the Supreme Court, and the President of Guatemala, to deliver the message that they want and need the jobs provided by the Tambor mine.

Ironically, CALAS's legal action for 'social justice' has now resulted in the loss of hundreds of permanent jobs at a fully-permitted mine that was regularly inspected by the Guatemalan government and was operating in full compliance with the local mining and environmental regulations. KCA and Radius have invested many millions over the years on this property, establishing a significant gold resource and a fully permitted mining operation. Unless some clarity on the situation is given soon by the courts, KCA and Radius will be seeking legal advice on restoring operations, including the much-needed jobs, at Tambor.

Exploration Update

Spring Peak Property, Nevada

We are pleased to announce that Radius has acquired an option to earn a 100% interest in the Spring Peak gold property in Mineral County, Nevada, from Kinetic Gold (US) Inc. The Spring Peak Property consists of 37 contiguous US Federal Mineral Claims comprising 309 hectares located approximately 37 km southwest of the town of Hawthorne, NV; access is good.

The Property is situated in the historic Aurora-Borealis-Bodie mining district which lies within the Walker Lane gold trend of western Nevada. The gold deposits in the Aurora-Borealis-Bodie district occur as both high grade vein-hosted low sulphidation deposits (Aurora, Bodie), and as high-sulphidation alunite-kaolinite gold-deposits (Borealis). Total historical precious metal production along this trend, from the mid-19th century to the mid-1990s, has been estimated at 4.0 million ounces Au, and 11.2 million ounces Ag (MDA, 2002).

The Spring Peak Property is approximately 6 km southeast of the historical open pit mines at Aurora. At Spring Peak, a sinter terrace is exposed overlying altered volcaniclastic deposits and basement Cretaceous granites (USGS, 2012). The sinter system contains anomalous concentrations of Au, Ag, Hg, Sb, and As. Recent ash fall deposits cover much of the area, but frequent vein float with multi-ppm gold concentrations can be found across the Property. The area was drilled with shallow holes in the 1980s, the majority of which were vertical. The sinter terrace and potential structures beneath it were never adequately drill tested. Radius believes the Property has the potential to host subvertical high grade veins as feeders to the sinter terraces.

Radius plans to conduct a CSAMT geophysical survey over the Property to test the hypothesis that subvertical high grade vein deposits may exist in 'feeder' structures below the sinter terraces.

Spring Peak Option Terms

The Company can earn a 100% interest in the Spring Peak Property by making a cash payment to Kinetic of US$15,000 on signing (paid) and further expenditures as follows:

• cash payments to Kinetic totalling US$430,000 over the first five years following the issuance of a drill permit for the Property, and then US$250,000 in each subsequent year until the option is exercised or terminated; and
• a total of US$725,000 in permitting and exploration work on the Property, over three years following the issuance of the drill permit.

At any time while the option is in good standing, the Company may elect to deliver to Kinetic a technical report, complying with NI 43-101 standards, which documents a minimum 500,000 ounce gold equivalent inferred resource on the Spring Peak Property, and upon said delivery, the Company will have the right for one year thereafter to purchase from Kinetic an outright 100% interest in the Property for the sum of US$500,000.

If the Company completes the purchase of the Spring Peak Property, a combined 3.0% net smelter returns royalty will be granted to Kinetic and the underlying property owner. Up to one-half of the royalty may be purchased for up to US$1.5 million.

Other Properties

The Company continues to evaluate projects in various jurisdictions and with various commodities but with a focus on gold and silver in Nevada and Mexico. Our Guatemala concession holdings at Banderas remain in good standing and the exploration potential on those properties is high, but with recent developments at Tambor, it appears the pro-mining rhetoric of the new government is yet to be confirmed.

In Mexico, Radius has a silver project optioned to Fortuna Silver Mines.

Equity and Other Holdings

Radius currently has just over $5 million cash in the treasury. Present equity holdings are listed below:

No. of Shares	Current Value
B2Gold	300,000	$834,000
Focus	3,433,406	$274,000
Medgold	8,040,000	$924,000
Southern Silver	2,000,000	$880,000
Rackla	2,973,275	$237,000
		$3,149,000

Radius also holds a 2% NSR on 70% of the Bayovar12 Phosphate deposit owned by Focus Ventures Ltd.

Qualified Person

David Clark, M.Sc., P.Geo., is Radius's Qualified Person under the terms of National Instrument 43-101, 'Standards of Disclosure for Mineral Projects' and has approved the technical information in this news release.

About Radius

Radius has been exploring for gold in Latin America for over a decade. The Company has a strong treasury and is looking for investment and project acquisition opportunities across the globe. 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
President and CEO

Symbol: TSXV-RDU

Contact: Simon Ridgway
200 Burrard Street, Suite 650
Vancouver, BC V6C 3L6
Tel: 604-801-5432; Toll free 1-888-627-9378; Fax: 604-662-8829
Email: [email protected]
Website: www.radiusgold.com

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 Statements

Certain statements contained in this news release constitute forward-looking statements within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, are forward-looking statements which include, without limitation, statements about the Company's intentions respect to the Tambor mine; the Company's plans for the Spring Peak Property; the Company's business strategy, plans and outlook; the merit of the Company's investments and properties; timelines; the future financial performance of the Company; expenditures; approvals and other matters. Often, but not always, these forward looking statements can be identified by the use of words such as 'estimate', 'estimates', 'estimated', 'potential', 'open', 'future', 'assumed', 'projected', 'used', 'detailed', 'has been', 'gain', 'upgraded', 'offset', 'limited', 'contained', 'reflecting', 'containing', 'remaining', 'to be', 'periodically', or statements that events, 'could' or 'should' occur or be achieved and similar expressions, including negative variations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by forward-looking statements. Such uncertainties and factors include, among others, the status of the Tambor mine; the plans for exploring the Spring Peak Property; changes in general economic conditions and financial markets; the Company or any joint venture partner not having the financial ability to meet its exploration and development goals; risks associated with the results of exploration and development activities, estimation of mineral resources and the geology, grade and continuity of mineral deposits; unanticipated costs and expenses; and such other risks detailed from time to time in the Company's quarterly and annual filings with securities regulators and available under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.

Forward-looking statements contained herein are based on the assumptions, beliefs, expectations and opinions of management, including but not limited to: that the Company's exploration plans for the Spring Peak Property will proceed as planned; that the Company's activities will be in accordance with its public statements and stated goals; that all required approvals will be obtained; that there will be no material adverse change affecting the Company or its investments or properties; and such other assumptions as set out herein. Forward-looking statements are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by law. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on forward-looking statements.