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RDU.V ·

Radius Gold options Guatemala gold/silver properties to Volcanic Gold Mines

Mergers & Acquisitions

news release

June 1, 2020

Radius Gold options Guatemala gold/silver properties to Volcanic Gold Mines

Vancouver, Canada: Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has granted to Volcanic

Gold Mines Inc. (TSXV:VG) an exclusive option to earn a 60% interest in Radius’s Holly-Banderas gold/silver

properties located in eastern Guatemala.

Under the terms of the option, which are subject to TSX Venture Exchange approval, Volcanic can earn a

60% interest in the Holly and Banderas Properties (details of the Properties are available on Radius’s

website) by spending US$7.0 million on exploration of the Properties withi n 48 months from the date

drilling permits are granted. An initial US$1.0 million must be spent on exploration within 12 months of

receiving the required drill permits, including a minimum 3,000m of drilling. Following the successful

completion of a minimum C$3 million financing, Volcanic will make a cash payment to Radius of C$100,000

to initiate the option. Upon completion of the exercise of the option, Volcanic will enter into a standard

60/40 joint venture with Radius in order to further develop the Properties.

Volcanic will also have the exclusive right for 24 months following the execution of the option to evaluate

the other property interests of Radius in eastern Guatemala and to enter into an agreement to acquire an

interest in any of such other properties on reasonable mutually agreed upon terms.

Simon Ridgway, President and CEO of Radius, commented, “The potential of this region of Guatemala for

significant gold/silver discoveries is proven. The country now has a pro-mining government that sees

value in creating employment for its people. Now is the right time for Radius to bring in Volcanic’s

focused, well financed, well managed exploration team to make the discoveries that will create wealth

for all the stakeholders in this region of Guatemala.”

Radius Gold Inc.

Radius has a portfolio of projects located in Mexico, United States and Guatemala which it continues to

advance, utilizing partnerships where appropriate in order to retain the Company’s strong treasury. At

the same time, managem ent is seeking out additional investment and project acquisition opportunities

across the globe.

RADIUS GOLD INC.

Simon Ridgway

President and CEO

Symbol: TSXV-RDU

-2-

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 ; the option granted on the Holly -Banderas Properties ; 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 plans for exploring the Holly-Banderas Properties and whether Volcanic will earn an interest therein ;

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 secur ities 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 th e exploration activities at the Holly-Banderas Properties 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.