Radius Gold Inc. Joint Venture, Nicaragua
(B2Gold option to earn 60%)

B2Gold has an option to acquire a 60% interest in the Trebol, Pavon and San Pedro properties in Nicaragua, as part of its joint venture with Radius Gold, by spending a total of US$4 million on exploration on any one or more of the properties within 4 years from the date of the agreement. When B2Gold has spent the US$4 million, it will own a 60% interest in all of the properties and a joint venture will be formed whereby which each party will contribute its pro-rated share of the exploration costs.

The Trebol property, located in northeastern Nicaragua, is a low sulphidation epithermal hot springs district consisting of numerous strong gold anomalies spanning over 14 kilometres of strike length. Work crews continue to define the extent of the gold anomaly, using detailed surface sampling and trenching. Results are pending. In addition soil sampling has confirmed another anomaly 5 kilometres to the southwest, also along trend, in which float boulders have returned similar grades up to 4 grams per tonne gold. Both of these new areas will be developed in the coming months with trenching and more sampling.

The Pavon resource property, located 200 kilometres by road north of the Limon Mine, is a low sulphidation system discovered by Radius in 2003. Several veins occurring over a strike length of 6 kilometres have been explored. Closely spaced trenching has been completed over the Ahumada Vein at Pavon Sur. Channel and saw-cut sampling are being utilized to determine open pit potential on the oxidized surface enriched zone at both the Pavon Sur and Norte targets. Trenching at Pavon Norte is currently underway.

Following the granting of a concession, B2Gold will have the option to earn a 70% interest in any such designated project area by expending US$2 million on exploration of it within 3 years from the date of the granting of the concession. Once B2Gold has spent US$2 million exploring the designated project, it will be vested with a 70% interest in the project and a joint venture will be formed.