Radius Signs Option Agreement On El Cancel Mining Concession, Chihuahua, Mexico

Radius Gold Inc. (RDU) has signed an option agreement through its Mexican subsidiary, Geometales del Norte – Geonorte, to earn a 100% interest in the El Cancel mining concession. The property spans approximately 761 hectares in Guadalupe y Calvo, Chihuahua, located immediately north of the company’s existing Amalia concessions.

The agreement grants Radius a three-year exclusive right to option and explore the land, with the company retaining the ability to terminate the deal at any time upon providing 30 days' notice. To earn the full interest, Radius must pay approximately US$90,000 in outstanding mining duties and make cash payments to the vendor totaling US$250,000. These payments are scheduled at US$50,000 at 12 months, US$75,000 at 24 months, and US$125,000 at 36 months. Additionally, the company is required to spend US$100,000 on exploration in Year 1 and US$250,000 in Year 2.

Upon exercise, the vendor retains a 1% net smelter return (NSR). Radius may buy back 0.5% of this NSR for US$1,000,000 within four years of the transfer, while the remaining 0.5% is not buyable. Two contingent payments of US$150,000 each are due upon the disclosure of an Indicated or Measured resource and the establishment of a Proven or Probable reserve.

Prior to finalizing the deal, Radius must offer the property to Pan American Silver for possible inclusion in the existing Amalia agreement. If Pan American declines, Radius holds 100% of the interest. The release notes that Pan American, as the Amalia operator, "has done no material work on the Amalia properties since 2023."

Initial sampling of veins at El Cancel returned rock samples with ">1 g/t Au and >10 g/t Ag." The company describes this sampling as limited, though NW–NNW structural orientations are inferred to be similar to the drilled veins at Amalia. Historical drilled results at Amalia include vein 44 m @ 12.39 g/t Au and 309 g/t Ag; California 26.9 m @ 2.59 g/t Au and 353 g/t Ag; and El Cuervo 13.55 m @ 10.25 g/t Au and 841 g/t Ag. None of this grade has been demonstrated at El Cancel.

Closing is conditional on notarisation in Parral, Chihuahua, and registration with the Public Mining Registry. The release provides no exploration start date, drill plan, or budget beyond the specified Year 1 and Year 2 expenditure minimums.

Radius Gold Inc. (RDU) has acquired a small, early-stage land parcel adjacent to an existing, dormant joint venture. The financial commitment totals approximately US$690,000 in combined duties, option payments, and minimum exploration spend over two to three years, with up to US$300,000 in contingent resource or reserve bonuses. This expenditure is notable relative to the company’s reported cash position of approximately C$1.22 million as of 30 September 2025, which was supplemented by a C$1.248 million gross placement in August 2026.

Technical data from the acquisition is limited. Surface grab samples returned greater than 1 g/t gold and greater than 10 g/t silver, figures that are two to three orders of magnitude below the Amalia drill grades cited in the release for comparison. The company described the findings as "minor showings at surface." The disclosure does not include continuous sampling, trenching, defined strike length, drill targets, or a timeline.

The most significant aspect of the transaction involves the Pan American clause, which affects Radius’s interest in the El Cancel discovery. Radius currently holds a 35% interest in Amalia, where the 65% operator has been inactive since 2023. If Pan American opts in, Radius’s effective interest in any El Cancel discovery drops from 100% to 35%, and funding remains controlled by a partner that has not worked the ground in three years. If Pan American declines, Radius must fund El Cancel independently while simultaneously supporting a approximately 3,000 m drill program at Tierra Roja, a US$4.15 million staged Jonco earn-in, and a second Tierra Roja program scheduled for early 2027.

News flow from January to November 2026 indicates that Radius has reliably executed permitting and administrative tasks. The Jonco binding letter of intent, dated 27 February 2026, was formalized by 15 July 2026. Tierra Roja moved from SBN provisional access, noted in releases on 18 March and 7 October 2026, to GREM authorization on 7 October 2026, with site preparation and drilling commencing in mid-November 2026, meeting the "before year-end" target set on 7 October. Conversely, progress at Amalia has stalled. A 21 January 2026 release stated Radius was "negotiating a path forward that reflects the asset's value," and a 27 July 2026 release noted no material work had been done since fall 2022 with "discussions ongoing." The current release confirms Pan American has still not worked the ground. Three years of discussion have yielded no resumption, JV restructuring, or monetization, even as Radius has added ground in the same area of influence.

Disclosures regarding share count and ownership structure contain inconsistencies. An investor brief lists 115.70 million shares, 6.52 million options, and "Warrants: None," while an August 2026 release confirms 10.4 million unit warrants plus 198,000 finder warrants at $0.20. Additionally, the brief lists Holly as "60% Radius / 40% Volcanic," whereas the 27 July 2026 release states Volcanic earned in and Radius retains 40%. These discrepancies may impact assessments of dilution.

The deal is terminable on 30 days' notice and is funded through staged payments beginning at month 12, converting a strategic land position north of Amalia into an option rather than an outright purchase. The optionality is unquantified, as the release provides no data on tonnage, grade continuity, or discovery.

The only as-reported financials available are for the nine months ended 30 September 2025, predating the current release by more than a year. These figures show a net loss of C$964,790, an operating loss of C$939,075, SG&A of C$358,403, an operating cash outflow of C$765,807, cash of C$1,219,680, total liabilities of C$546,050, and total equity of C$1,951,715. El Cancel has no bearing on revenue, earnings, or book value, and no revenue, resource, or reserve is disclosed for the asset.

Radius Gold Inc. (RDU), a Vancouver-based explorer listed on the TSXV, operates a project-generator model across the Americas. The company’s management team includes Simon Ridgway, who serves as CEO and Chairman, and Dr. Luke Longridge, who was appointed President on 16-Jun-2026. Longridge is the Qualified Person for recent releases. Bruce Smith continues as Director and Technical Advisor following the leadership transition in June 2026.

The company’s portfolio includes the Tierra Roja project in southern Peru, where it holds a 100% interest. Located on state-owned land, the copper porphyry target has received an environmental permit and GREM exploration authorisation granted on 7-Oct-2026. Site preparation is complete, and a first-pass reverse-circulation and diamond drilling program of approximately 3,000 meters is scheduled to begin in mid-November 2026, targeting depths of up to 500 meters. Copper oxides have been identified beneath one to three meters of caliche over an area described as greater than 4 km², with a 600 m by 800 m core zone. Multiple rock-chip samples have returned grades above 3% Cu. No resource estimate or drill results have been released for this asset.

In Chihuahua, Mexico, Radius holds a 35% interest in the Amalia project, with Pan American Silver (PAS) as the operator holding 65%. This high-grade gold-silver epithermal vein system saw 67 holes drilled for a total of 23,058 meters between 2019 and 2022. Work has been suspended since 2022 or 2023, and no resource estimate has been disclosed.

The Holly project in Guatemala is held at a 40% interest, according to a 27-Jul-2026 release. This figure corrects an earlier investor brief that cited 60%, which appears to be stale data. The La Peña project contains an inferred resource effective 7-Jun-2022, comprising 1.32 million tonnes at 6.46 g/t Au and 256 g/t Ag, equating to 9.57 g/t AuEq at a 3.0 g/t AuEq cut-off. Drilling at Holly has halted due to a loss of social licence.

Radius also holds an option for a 100% interest in the Jonco project in central Peru. This 3,830-hectare Ag-Au-Pb-Zn system includes 11 historical holes totaling 3,195 meters. Notable intercepts include 254.5 meters at 27.0 g/t Ag, 0.42% Pb, and 0.71% Zn from hole SAB-03. No resource has been defined, and drill permits and community surface access remain outstanding.

The company also holds an option for a 100% interest in the El Cancel project in Chihuahua, which is the subject of the current release.

Radius Gold currently has no production, revenue, reserves, or economic studies on any asset. The only resource in its portfolio is the 40%-held inferred resource in Guatemala, where drilling is suspended.