Radius Gold Inc. and joint venture partner, Volcanic Gold Mines Inc. present a further update on the ongoing drilling campaign at the Motagua Norte Project. As previously reported, drilling to date has confirmed that the broad area of boulder float with abundant bonanza grade assay results discovered by Volcanic geologists is underlain by a serpentinite package, and that all of the colluvial boulders of quartz and schists bearing the high- grade gold values have likely moved downslope from a major structural corridor that has been named the Veta Madre Fault Zone. To date two drill holes cutting across the broad Veta Madre Fault zone have been completed.

Both holes have cut wide zones of quartz veining and quartz stockwork at the fault contact between serpentinite in the hanging wall to the north, and schistose rock in the footwall to the south. The wide stockwork zones with associated intense silica-sericite alteration of the host rock appear to be best developed in the footwall schist, although stockwork veining has been recognized on both sides of the vein. Hole MIDD-24-004 targeted the Veta Madre above the central part of the colluvial field, drilling through 98 m of serpentinite before reaching the fault zone at a depth of approximately 120 m below surface.

The hole remained in veining and stockwork schists for 63 m before entering unaltered schistose rocks at 161 m. The hole was drilled at an inclination of -45 degrees; true width of the mineralized zone is yet to be confirmed as the dip of the fault, while thought to be steep, is as yet unknown. Hole MIDD-24-005 was drilled 100 m along strike to the west of MIDD-24-004, collared closer to the fault zone so that it intersected the fault at a slightly shallower depth of approximately 80 m below surface. This hole passed through 73 m of serpentinite before entering the targeted structure.

A wide zone, some 39 m of altered rock with strong stockwork quartz veining, was intersected before passing into unaltered schistose rock at 112 m drill depth. This hole was also drilled at an inclination of -45 degrees, and again, true width of the zone is at present unknown. Half-core samples from both drill holes have been sent for analysis at ALS Laboratory, Vancouver and assay results are expected in early May.

The present plan is to test the Veta Madre Fault Zone with a panel of holes, cutting the structure on 50 m horizontal and vertical grid spacing to a depth of up to 200 m below surface. Drilling will initially concentrate on a 250 m strike length immediately uphill of the thickest and most extensive concentration of gold-bearing colluvium. Drilling through the boulder colluvium is technically challenging.

Two attempts to drill into the structure at a shallower depth to test the weathered zone have been abandoned due to the rods getting stuck in the thicker colluvium pile adjacent to the fault zone (drillholes MIDD-006 and 007). In order to avoid these problems, the remainder of this drilling program will be restricted to fresh rock well below the colluvium, targeting mineralization 50 m or more below surface.