Medgold Resources and Radius Gold Sign Strategic Alliance Agreement on Medgold's Portuguese Assets

Medgold Resources Corp. (TSX VENTURE:MED), the European focused gold exploration
company, is pleased to announce that it has entered into a strategic alliance
agreement with Radius Gold Inc. (TSX VENTURE:RDU) whereby Radius will have the
right to option one of Medgold's properties located in Portugal. As well, Radius
has agreed to participate in Medgold's current private placement financing as to
$500,000. 


For a period of 18 months, Radius may select one of Medgold's Portuguese
properties in which Radius will be granted the option to earn a 51% interest by
spending $3.0 million on exploration and development of that property. Upon
exercise of the option, a joint venture will be formed between Medgold and
Radius to further develop the property.


The agreement is subject to TSX Venture Exchange approval. 

About Medgold

Medgold is aiming to become the leading Mediterranean-focused gold exploration
and project development company, with an extensive portfolio and pipeline of
projects across Portugal, Italy and Spain, targeting economically stressed, but
politically stable European countries that are seeking foreign investment to
invigorate the mining sector.


Additional information on Medgold can be found on the Company's website at
www.medgoldresources.com and by reviewing the Company's page on SEDAR at
www.sedar.com.


ON BEHALF OF THE BOARD

Daniel P. James, President & Director 

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

This press release may contain forward-looking statements including, but not
limited to, comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral
recovery processes, and other related matters. Forward-looking statements
address future events and conditions and therefore involve inherent risks and
uncertainties. Medgold's projects in Europe are at an early stage and all
estimates and projections are based on limited, and possibly incomplete, data.
More work is required before the mineralization and the projects' economic
aspects can be confidently modelled. Actual results may differ materially from
those currently anticipated in this news release. No representation or
prediction is intended as to the results of future work, nor can there be any
promise that the estimates and projections herein will be sustained in future
work or that the projects will otherwise prove to be economic.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Investor Relations
Ralph Rushton (Vancouver)
[e-mail]
[phone]


President
Dan James (UK and Portugal)
[e-mail]
[phone]