Radius Arranges $3.5 Million Financing

VANCOUVER, May 25 /CNW/ - Radius Gold Inc. (TSX-V: RDU) is pleased to announce that it has negotiated, subject to stock exchange approval, a non-brokered private placement of up to 10 million units at $0.35 per unit, for gross proceeds of up to $3.5 million. Each unit will consist of one common share and one-half of a warrant, each whole warrant entitling the holder to purchase one additional common share at $0.50 exercisable for two years.

If at any time from four months and one day after the closing of the financing, the volume-weighted average trading price of the Company's common shares on the TSX Venture Exchange over a period of 20 consecutive trading days exceeds $0.75, the Company may, within five days after such an event, provide notice to the warrant holders that the warrants will expire early, namely, on the date which is 30 calendar days after the date of such notice to the warrant holders.

A finder's fee may be paid on a portion or all of the placement. The finder's fee will consist of 5% cash or shares, and 5% warrants, each such warrant entitling the holder to purchase one common share at $0.55 exercisable for one year.

The net proceeds of the financing will be used for drilling of the Company's HB Project in Eastern Guatemala, and for general working capital purposes.

About Radius

Radius has been exploring for gold in Latin America for nearly a decade, and has assembled interests in a portfolio of promising gold projects throughout the region, including two carried, small-scale gold productions in Guatemala and Nicaragua. Radius also has two 100% owned exploration plays, the HB property in Guatemala and Sixty Mile property in the Yukon territory - with drilling campaigns for 2010 in the planning stages.

ON BEHALF OF THE BOARD

    
        "Simon Ridgway"
    

Simon Ridgway, President & CEO

Investor relations: Ralph Rushton / Erin Ostrom

Symbol: TSXV-RDU; OTCBB-RDUFF

Shares Issued: 53.6-million

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

SOURCE Radius Gold Inc.

For further information: For further information: on Radius and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com)

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Radius Gold Inc.

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