VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2017) - Radius Gold Inc. (TSX VENTURE:RDU) is pleased to
announce the acquisition of the Bald Peak gold property from Ely Gold & Minerals Inc. (TSX VENTURE:ELY) and its wholly owned
subsidiary, Nevada Select Royalty Inc. ("Nevada Select"), adding to Radius's portfolio of epithermal gold prospects in the Aurora
gold camp, Nevada.
The Bald Peak Property consists of 38 unpatented mining claims in Mineral County, Nevada and one mineral prospecting licence
in Mono County, California. The Property overlies a 6 km long, NE-trending zone of gold-bearing quartz-chalcedony veins,
stockworks and hot spring silica sinters that has seen minimal historical exploration work.
Bald Peak Mountain is a rhyolite dome complex located 7 km WNW of the historic Aurora Gold mine that was recently acquired by
Klondex Mines Inc. The high level gold bearing veins/stockworks and sinters discovered on the Property occur in a rhyolitic
sedimentary unit intermittently exposed beneath more recent volcanic flows along a NE-trending depression, potentially a graben
structure. Previous explorers in the area collected rock chip samples along this trend. Historical exploration documentation
shows that within the Property boundaries, 201 rock chip samples from exposed outcrops returned assay values ranging from trace
to 7 g/t Au, with 40 samples returning assay values above 1 g/t Au. Rock chip samples also contain highly anomalous levels of Hg,
Sb, and As, elements typical of shallowly-exposed epithermal systems. The historical geochemical data suggest that these outcrops
may represent the upper portions of a productive hydrothermal system.
Radius intends to leverage its prior experience in these high level environments to advance the Bald Peak Property, exploring
for bonanza epithermal gold-silver veins similar to those seen within the Bodie-Aurora-Borealis district.
The historical results given here are from previous explorers' exploration summary documents, and have not been
independently verified by a Qualified Person. The exploration work summarized appears to have been done to an appropriate
technical standard, however, and Radius's Qualified Person believes them to be reliable. Radius will be selectively resampling
surface outcrop as part of its due diligence exploration work.
Acquisition Terms
Radius has acquired a 100% interest in the Bald Peak Property in consideration of the payment to Nevada Select of US$35,115,
the granting to Nevada Select and/or a former property owner, of a total 3% NSR royalty, and making annual advance royalty
payments to Nevada Select of US$25,000. Radius has the right to reduce either royalty by 1% by paying US$1.0 million to
Nevada Select, and/or US$500,000 to the former owner.
Tlacolula Sale
Radius has reached an agreement, subject to regulatory approval if required, with Fortuna Silver Mines Inc. ("Fortuna") for
the sale of Radius's Tlacolula property.
In 2009 Radius signed an option agreement with Fortuna whereby Fortuna could earn a 60% interest in the property by making
certain cash and share payments to Radius, as well as work expenditures. Fortuna advanced the property with sampling and
trenching but has been unsuccessful to date in obtaining social licence to conduct a drill testing program. As the deadline
for meeting the required expenditures has lapsed, Radius and Fortuna have agreed to amend the option so that Fortuna will acquire
a 100% interest in the property by issuing to Radius 250,000 shares of Fortuna and granting Radius a 2% NSR royalty. Fortuna
will retain the right to purchase 1% of the royalty by paying Radius US$1.5 million.
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
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 plans for the Bald Peak Property; the intended sale
of the Tlacolula Property to Fortuna; 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 Company's
plans for exploring the Bald Peak Property; the completion of the sale of the Tlacolula Property to Fortuna; 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 activities at the Bald Peak Property will proceed as
planned; that the intended sale of the Tlacolula Property to Fortuna will be completed 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.