Mr. Simon Ridgway of Radius Gold reports

RADIUS COMMENCES DRILLING AT BLUE HILL GOLD PROJECT, IDAHO

Radius Gold Inc. has commenced a diamond drill operation on the Blue Hill gold project in southeast Idaho. Radius holds an option to earn a 70-per-cent interest in the property from Otis Gold Corp., for cash payments of $525,000 (U.S.) and incurring exploration expenditures on the property totalling $5-million (U.S.) over a period of four years (see Radius news release of July 14, 2014). This first-phase drill program is expected to be completed within 30 to 50 days.

The property hosts an epithermal hot spring gold system in Cenozoic-aged volcanic and volcanosedimentary rocks, with surface and near-surface sinters assaying up to two parts per million gold. The Cenozoic rocks overlie deeper Paleozoic quartzite and limestone and are interpreted as being structurally emplaced on the basement rocks. Two drill programs in the 1980s and 1990s tested the near-surface sinters for bulk tonnage, low-grade gold mineralization, but the potential for deeper high-grade gold mineralization associated with a plumbing system to the sinters was not tested.

Radius has reinterpreted a 2008 CSAMT resistivity survey completed by Otis and has identified a number of resistivity anomalies its geophysicist believes are highly suggestive of structural feeder systems to the overlying hot-spring sinters. A 2,000-metre diamond drill program has been planned to test Radius's geological model, targeting resistivity anomalies at the Cenozoic/Paleozoic interface or deeper in the Paleozoic rocks, and at depths greater than 75 metres below the deepest previous drilling. A minimum of four 500-metre drill holes are planned for the first-phase program, with subsequent drilling to be undertaken if the initial program yields positive results.

Qualified person

David Clark, MSc, PGeo (APEGBC), is the company's qualified person as defined by National Instrument 43-101, and has approved the disclosure of the technical information contained in this news release.

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