Radius Gold Inc. provided an update from joint venture partner, Volcanic Gold Mines Inc., on progress at the Holly property: Government Progress: The Presidential Commission for Peace and Human Rights held the first coordination meetings with institutions and authorities at the national, departmental, and municipal levels during the past few weeks regarding the incidents that took place at the Holly property on February 23rd of this year. From these meetings it is clear that the Central government and Departmental government of Chiquimula support the Holly project and will work with Volcanic to regain the social license. Volcanic looks forward to a resolution of the issues and a resumption of work at the project and corresponding news flow.

Holly Project Gold Discovery and New Exploration Opportunities: The gold and silver discovery Volcanic Gold Mines Inc. have made at Holly is significant. It is a high-grade vein deposit that could be mined from underground, causing very little surface disruption. It will not require a processing plant as in the near future there will likely be two mills in operation within trucking distance.

Volcanic is in the process of concluding an inferred resource calculation and from that Volcanic Gold Mines Inc. will generate an approximate value of the deposit that has been discovered to date. Further, the deposit is open in all directions. Volcanic Gold Mines Inc. will continue to move forward at a pace that will protect the investment Volcanic Gold Mines Inc. have made and the value Volcanic Gold Mines Inc. have created.

Elsewhere in the country Volcanic is actively reviewing the land position it optioned from Radius in June 2020. Several of the areas have been reviewed, some have been rejected and the concession applications cancelled. To date, three have shown significant promise and Volcanic Gold Mines Inc. are going through the process of getting these concessions granted.

There are many more areas to review and the work is ongoing. Pursuant to an option agreement signed in May 2020, Volcanic can earn a 60% interest in Radius's Holly and Banderas projects by spending the cumulative amount of USD 7.0 million on exploration of the properties within 48 months from the date of the agreement. An initial USD 1 million must be spent on exploration within the 12 months of receiving the required drill permits, which expenditure will include a minimum 3,000m of drilling on the properties.