Radius Gold sells Interest in Guatemala Gold Property

    




 VANCOUVER, Aug. 31, 2012 /CNW/ - Radius Gold Inc.  hereby  announces the sale of its remaining interest in Exmingua S.A., the  Guatemala based company that holds 100% of the Tambor Gold Project.  Kappes, Cassiday & Associates ("KCA") has acquired the remaining  interest from Radius, giving KCA a 100% interest in and to the Project.  In consideration, KCA will repay to Radius approximately US$400,000  owing to the Company ($100,000 on signing, and approximately $300,000  once KCA has commenced shipment of gold produced from the property). 

 Also upon commercial production, KCA will make quarterly payments to  Radius based on the then price of gold and the number of ounces  produced from the property. Radius remains optimistic that commercial  production will be achieved at Tambor and the Company will be  reimbursed for the investment it has made in the region since  discovering gold at Tambor in the year 2000. 

 Ralph Rushton, the President of Radius, said: "The sale of our interest  in the Tambor Project is part of our corporate strategy to divest  problematic assets, allowing the Company to concentrate capital and  expertise on areas less conflicted regarding development in the  region." 

 About Radius  

 Radius has been exploring for gold in Latin America for over a decade.  More recently the Company has focused on selling non-core assets,  thereby raising the capital needed to succeed in making a discovery  with potential to give investors the return desired from a mineral  exploration company. 

 ON BEHALF OF THE BOARD "Simon Ridgway" Chairman and CEO 

 Investor relations:  Jaclyn Ruptash Symbol: TSXV-RDU; OTCBB-RDUFF Shares Issued: 86.6-million 

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

 Forward-Looking Statement Some of the statements in this news release contain forward-looking  information that involves inherent risk and uncertainty affecting the  business of Radius Gold Inc.  Actual results may differ materially from  those currently anticipated in such statement. 

Radius Gold Inc.


CONTACT:  Please call toll free 1-888-627-9378 or visit our web site(www.radiusgold.com) for more information. 


    

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