Radius Gold Inc. Sets Post-Spin Out Warrant Exercise Prices

VANCOUVER, Jan. 31, 2012 /CNW/ - Radius Gold Inc. (TSX-V: RDU) announces that as a result of the completion of Radius's spin out of assets to Rackla Metals Inc., the common share purchase warrants of Radius have been adjusted based on the fair market value of Radius and Rackla at the time of completion of the spin out.

Accordingly, the exercise price of all common share purchase warrants outstanding in Radius have been reduced to 73% of the original exercise price, namely:

Original Exercise Price Per Share  Adjusted Exercise Price Per Share
           $0.50                                  $0.37
           $0.70                                  $0.51
           $0.75                                  $0.55

About Radius

Radius has been exploring for gold in Latin America for nearly a decade. It has assembled interests in a portfolio of promising gold projects throughout the region, including carried stakes in two small-scale gold mine development projects in Guatemala and Nicaragua, and a number of 100% owned exploration plays, including the HB property in Guatemala.


ON BEHALF OF THE BOARD

"Ralph Rushton"
Ralph Rushton, President



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.


For further information:

For further information on Radius and its properties, please call toll free 1-888-627-9378 or visit our web site (www.radiusgold.com).