Highlights include:-

• Diamond drilling is in progress with two rigs currently drilling at depth and in the southern part of the Serra zone. The initial three holes have all intersected the Serra structure at depths in excess of 200m below surface
• Metallurgical test work is in progress at Testwork Desenvolvimento de Processo Ltda, a laboratory based in the state of Minas Gerais, Brazil. Two 250kg composite samples are currently undergoing testing
• Ausenco is currently engaged in backfill/tailings tradeoffs and geotechnical studies for the tailings site facilities as well as the plant site.
• Snowden is conducting an underground geotechnical study, their rock mechanics engineer will be on site at the end of the month
• Hydrogeological work is currently being completed under the direction of Global Resource Engineering Ltd

The Feasibility Study at Coringa is currently well advanced with two rigs currently operating on site with the objective of upgrading Inferred resources to the Measured and Indicated category at Serra, Meio – Come Quieto and Mae de Leite. Drill results are expected during May-June.

The results of metallurgical test work currently in progress at Testwork Desenvolvimento de Processo Ltda, in Brazil, are expected in late June.

The feasibility study is expected to be completed during October 2013.

Following the completion of the current drill program at Coringa, the rigs will move to the adjacent and contiguous Mato Velho property which is located 15km from Coringa and where previous drilling returned a number of high grade gold intercepts.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project is currently the subject of a Feasibility Study and contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).

For further information, please contact:
Alan Carter, President and CEO
Tel:  604.676.5663
Email:   info@magellanminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company. These statements are subject to risks due to regulatory, technical, economic and other factors. In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at http://www.sedar.com.

The drill program forms part of the ongoing feasibility study at Coringa (see press release dated 15th January 2013). The specific objectives of this program are to upgrade the inferred resources at the Serra, Come Quieto and Mae de Leite zones and expand the total resource base at Coringa. The program will consist of an initial 2500m with an option to increase the total to 5000m. A total of 16 initial holes are planned initially with results anticipated during the second quarter of 2013.

An update on the ongoing feasibility study at Coringa is planned for late March 2013, with an anticipated completion of September / October 2013.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail: info@magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, the preparation of a feasibility study on the project, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Readers should not assume that the company’s plans to prepare a feasibility study mean that a feasibility study can or will be prepared.  There is no guarantee that a feasibility study will be prepared or, if prepared, that it will be commenced in the timeframe set out in this news release.  

Highlights include:-

• The discovery of two additional mineralized zones at Ivo and Ratinho North at the Cuiu Cuiu project
• 7.5m @ 2.78 g/t gold including 0.5m @ 38.0 g/t gold in hole 169 which was drilled in the central part of the Ivo zone
• Numerous other mineralized intervals in hole 169 at Ivo including 8.8m @ 1.47 g/t and 4.2m @ 0.89 g/t gold
• Numerous mineralized intervals in two drill holes completed at the Ratinho North anomaly suggesting the potential for an additional mineralized body

Ivo

Four reconnaissance holes were drilled at Ivo over a 500m E-W strike length and under small surface workings which returned values of 2m @ 104 g/t gold and 5m @ 54.8g/t gold in recently completed channel samples (see press releases dated October 11th, 2012 and October 23rd 2012). Of the 4 holes, hole 169 cut the most significant values and intersected a number of mineralized intervals including 7.5m @ 2.78 g/t gold from 37.9 to 45.4m depth including 0.5m @ 38.0 g/t gold from 43.5 to 44.0m depth confirming the presence of high grade gold mineralization at depth at Ivo. Other intervals intersected in hole 169 include 8.8m @ 1.47 g/t gold from 81.2 to 90.0m depth, 1.9m @ 1.43 g/t gold from 100.5 to 102.4m depth and 4.2m @ 0.89 g/t gold from 117.9 to 122.1m depth

The other three holes drilled at Ivo also cut numerous mineralized intervals but of generally lower grade and are shown in the accompanying table of drill results. These drill results are not dissimilar to the initial drill results returned from the Moreira Gomes deposit located immediately to the south. Furthermore, the Ivo structure is interpreted to trend in a more NW-SE direction (see map on website) akin to the deposit at Central and the mineralized zone at Jerimum do Baixo which would explain why mineralization is stronger in hole 169. Hole 170 drilled 100m west of hole 169 bottomed in mineralized rock (0.22 g/t gold) which further supports this conclusion.

Further drilling to the NW and SE at Ivo will be required to define the limits of the mineralization identified in hole 169.

Drill hole intersections are summarized in the following table:

All holes were drilled at -50°. Dips of the intersected structures are not known, and intersection widths are not necessarily true width

Ratinho North

Two reconnaissance holes, 175 and 176 were drilled at the Ratinho North target over a 150m E-W strike length (see map on website). Ratinho North has never been previously drill tested and is a gold-in-soil anomaly which is located approximately 9km NNW of the Central gold deposit.

Ratinho North extends in a NW-SE direction over approximately 4km and is coincident with a major structure and a pronounced magnetic low. Numerous low grade mineralized intervals were intersected in both drill holes including 10m @ 0.30 g/t gold, 1m @ 1.59 g/t gold, 1m @ 0.7 g/t gold, 1.6m @ 0.8 g/t gold, 6.5m @ 0.50 g/t gold, 2m @ 0.70g/t gold and 1m @ 1.0 g/t gold as well as a number of other lower grade intervals all within the top 70m of hole 176.

The two holes drilled thus far at Ratinho North have tested a very small portion of the 4km long gold-in soil and coincident magnetic anomaly. The presence of numerous mineralized intervals in both holes strongly suggests the presence of a significant mineralized body at Ratinho North and further drilling is required to fully test this area particularly to the north-west of the current drilling

Ratinho South

Two additional holes, 173 and 174 were drilled at the Ratinho South target which has similarly never been previously drill tested. The gold-in-soil anomaly at Ratinho South is located approximately 8.5km NW of the Central gold deposit and extends in a NW-SE direction over approximately 2.5km.

The two holes reported here were drilled 100m apart and cut only narrow mineralized intervals. The source of the gold-in-soil anomaly at Ratinho South remains unexplained.

The discovery of significant mineralization at the Ivo and Ratinho North targets at Cuiu Cuiu demonstrates the potential for the discovery of additional mineralized bodies within the Cuiu Cuiu project areas and highlights the need for further drilling in order to expand the existing resources.

Holes were drilled at 50 degrees from horizontal.  All core samples (HQ diameter) were cut with a diamond saw and one-half of the core placed in bags, numbered and sealed then sent via a secure transport agency to the Company’s office in Itaituba before shipping via secure transport to ACME preparation laboratory in Itaituba for sample preparation.  Core samples were crushed down to 2 mm and a 1 kg split was pulverized to better than 85% minus 200 mesh.  From Itaituba, ACME sent the pulp samples to Santiago, Chile for assaying.  Gold analyses were conducted on 30g representative sample cuts using fire assay with an atomic absorption finish.  Other sample cuts were subjected to a 4 acid digestion and analysed for silver and an additional 35 elements using inductively coupled plasma mass spectrometry (ICP-MS).  ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes the insertion of standard, blank, and duplicate samples, as well as conducting repeat analyses.

Magellan’s QA/QC program also includes the insertion of standards, field duplicates and blank material in the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project is currently the subject of a Feasibility Study and contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).

For further information, please contact:
Alan Carter, President and CEO
Tel:  604.676.5663
Email:   info@magellanminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company. These statements are subject to risks due to regulatory, technical, economic and other factors. In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at http://www.sedar.com.

The private placement common shares and share purchase warrants are subject to a hold period expiring May 18, 2013.

The proceeds from the private placement will be used to fund work leading to the completion of a feasibility study on Magellan’s Coringa project, as well as further exploration at the Cuiu Cuiu project and the Company’s other projects, and also for general working capital.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).

For further information, please contact:

Alan Carter
President and CEO
Tel: 604.676.5663
Email: info@magellanminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward–looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company.  These statements are subject to risks due to regulatory, technical, economic and other factors.  In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates.  The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at  http://www.sedar.com.

Highlights

• Ausenco Solutions Canada Inc. (Ausenco), was chosen to lead the study based on their vast process and infrastructure capabilities worldwide, including projects in Brazil, such as the Tucano Gold Project and the Suraca project.  The Ausenco office in Vancouver will be responsible for the work, supported by staff in Belo Horizonte.

Also included as part of the team:

• Snowden Mining Industry Consultants (Snowden) of Vancouver, who will be responsible for Resource and Reserve estimates and mine design.
• Terra Meio Ambiente (Terra) of Belem, Brazil, who will manage the environmental components and permitting aspects of the study.  Terra has been involved in previous environmental and permitting work for this project, providing continuity in this critical area.
• Kovit Engineering Limited (Kovit) of Sudbury and Belo Horizonte, who will design and cost the tailings and backfill components of the project.
• Deswik Mining Consultants (Deswik) of Vancouver, who will be responsible for mine layout and scheduling, using their industry leading mine design software, which may ultimately be used at the Coringa operation should a construction decision be made.

The above group will be supported by Magellan staff in Vancouver and Brazil, and it is expected that the study will be complete near the beginning of Q4 2013.

Qualified Person

John Kiernan P.Eng, Magellan’s VP Project Development and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold); see news release dated March 22, 2012. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold); see news release dated March 8, 2011.

Cautionary Note to U.S. Investors Regarding Reserve and Resource Estimates:

This press release uses the terms "measured resources", "indicated resources", and "inferred resources" which are defined by the Canadian Institute of Mining, Metallurgy and Petroleum, and are required to be disclosed in accordance with Canadian National Instrument 43-101 (NI 43-101). The disclosure standards in the U.S. Securities and Exchange Commission’s (SEC) Industry Guide 7 normally do not recognize information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. In addition, resource that are classified as “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be converted into reserves. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves reported by the Company in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information presented by companies using only U.S. standards in their public disclosure.

For further information, please contact:
Alan Carter
President and CEO
Tel:     604.676.5663
Email: info@magellanminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward–looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company.  These statements are subject to risks due to regulatory, technical, economic and other factors.  In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates.  The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at  http://www.sedar.com.

The proceeds from the private placement will be used to fund work leading to the completion of a feasibility study on Magellan’s Coringa project, as well as further exploration at the Cuiu Cuiu project and Magellan’s other projects, and also for general working capital.

Closing of the private placement is subject to approval of the TSX Venture Exchange. All securities issued pursuant to the private placement will be subject to a four month hold period under Canadian securities laws.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold). The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).

For further information, please contact:
Alan Carter
President and CEO
Tel:     604.676.5663
Email: info@magellanminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward–looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company.  These statements are subject to risks due to regulatory, technical, economic and other factors.  In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates.  The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at  http://www.sedar.com.

Vancouver, BC, December 12, 2012 – Magellan Minerals Ltd. (TSX-V: MNM, OTCQX:MAGNF) (“Magellan”) is pleased to announce that the Preliminary Economic Assessment (“PEA”) on the Coringa gold project in northern Brazil has been filed on SEDAR. The PEA was prepared by Global Resource Engineering Ltd (“GRE”) and is based on the updated resource defined in the National Instrument (“NI”) 43-101 compliant technical report dated May 2012. The Report can be found on SEDAR at www.sedar.com and on Magellan's website at www.magellanminerals.com.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:
Alan Carter
President and CEO
Tel:     604.676.5663
Email: info@magellanminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward–looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company.  These statements are subject to risks due to regulatory, technical, economic and other factors.  In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates.  The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at  http://www.sedar.com.

• to test the down dip continuity of high grade gold mineralization at the previously untested Ivo target located 800m north of the Moreira Gomes gold deposit. Recent surface sampling at Ivo returned 2m @ 104 g/t gold and 5m @ 54.8g/t gold (see press releases dated 11th October 2012 and 23rd October 2012)
• to test the previously untested Ratinho North gold-in-soil anomaly which is located approximately 9km NNW of the Central gold deposit. Ratinho North extends in a NW-SE direction over approximately 4km and is coincident with a major structure and a pronounced magnetic low
• to test the previously untested Ratinho South gold-in-soil anomaly which is located approximately 8.5km NW of the Central gold deposit. Ratinho South extends in a NW-SE direction over approximately 2.5km

Cuiu Cuiu is located 180km SW of the town of Itaituba in northern Brazil and previously produced an estimated 1.5 - 2.0Moz of alluvial gold. On 8th March 2011, Magellan announced an initial resource for the Central and Moreira Gomes deposits at Cuiu Cuiu of 3.4Mt @ 1.0g/t gold (100,000oz) in the Indicated category and (31Mt @ 1.2g/t gold (1,200,000oz) in the Inferred category.

Recent trado soil sampling of the overburden at Ivo down to a maximum of 10m depth and east of the surface workings, has revealed abundant quartz and highly altered granitic chips suggesting that the Ivo zone extends an additional 200m to the east bringing the known strike length on the zone to 450m. The zone remains open to the east and west.

The current drill program comprises a minimum of 1,500m and is expected to be completed prior to the end of January 2013. Results are expected early in the New Year.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:
Alan Carter
President and CEO
Tel: 604.676.5663
Email: info@magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Highlights

1. PEA indicates an internal rate of return (IRR) of 33% for the project and a net present value (NPV) of $109.9 M at a 5% discount rate and assuming a gold price of $1,350 per ounce (all figures presented on an after-tax basis)
2. Low initial capital cost of $64.5 M with a Life of Mine (LOM) total including sustaining capital of $115 M, and projected operating costs of $106/tonne milled
3. Average gold production of 50,885 oz/yr at steady state, with LOM average cash cost of $531/oz, and a full cost including capital of $819/oz, over LOM
4. Project payback of 2.9 years and LOM of 8.5 years from 750t/d underground gold mine with a process recovery of 93.5%
5. Project economics using a current gold price of $1,720 per ounce indicate a project IRR of 52% and a NPV of $206.1 M at a 5% discount rate (all figures presented on an after-tax basis)
6. The study was based on the May 2012 NI 43-101 compliant updated mineral resource estimate compiled using a 1g/t gold cut-off which outlined Measured & Indicated resources containing 561,000oz gold (3.2Mt @ 5.5g/t gold) and Inferred resources  534,000oz gold (5.5Mt @ 3.0g/t gold)
7. The PEA included current Measured and Indicated resources and limited Inferred resources which will be upgraded in early 2013 through a planned drilling program in conjunction with a planned feasibility study.  Typical mining dilution and recovery of 5% and 94% respectively were estimated and a 4gpt cut-off was used to produce a mine plan
8. Given the robust economics of the PEA, the Company will commence a feasibility study and drill program in order to make a construction decision during Q4 2013.

MINERAL RESOURCES

The Coringa project is a shear-vein system, hosted in volcanic rocks from the Salustiano Formation (1.87 Ga), and in granites from the Maloquinha suite (1.86 to 1.88 Ga), located in the Tapajos Gold Province. The Mineral Resource estimate for the project was completed independently by GRE (see press release dated 22nd March 2012) using Magellan's exploration database available up to the 20th of December 2011. 

The National Instrument 43-101 compliant resource estimate for each zone and category are summarised in table 1 and 2.

Table 1 Coringa Mineral Resources, 1g/t Gold Cut - Off Grade (Undiluted).

Table 2 Coringa Mineral Resources, 2g/t Gold Cut - Off Grade (Undiluted).

NOTE: Mineral resources that are not reserves do not have demonstrated economic viability. An Inferred Mineral

Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. An Indicated Mineral Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.

I. MINING, PRODUCTION AND PROCESSING PLAN

The Coringa deposit is a narrow steeply dipping series of gold veins, located near good infrastructure, making it amenable to proven U/G mining and processing methods.

The overhand cut and fill mining method was selected for the PEA due to its ability to provide a high degree of grade control and lower pre-production development requirements.  The method also allows for the backfilling of stopes throughout the mine life with a hydraulic tailings product, reducing surface tailings facility storage requirements.

A conventional Merrill Crowe milling circuit is the most attractive method for treating the Coringa ores.  Metallurgical test work performed as part of the previous PEA on composite samples from the Serra and Meio blocks demonstrated that the ore is free milling producing laboratory gold recoveries of 99.0% and 97.7% respectively using this approach. For study purposes, assumed recoveries were 94% and 93% respectively.

II. OPERATING COSTS

Operating costs for the mine were based on cycle time calculations using Brazilian labour and productivities calculated by GRE.  The mining method using slushers and stoper drills in the stope is somewhat labour intensive on a $/tonne basis, but benefits significantly from low dilution and high mining recovery on a $/oz basis.  Plant operating costs were factored based on the plant design and GRE sources in Brazil.  The calculated average mine operating cost was $106/tonne, which included mining, milling and G&A.  Details are shown in the table below.

III. CAPITAL COSTS

The basis of the capital cost estimate was a 750 tpd Merrill Crowe plant operating in close proximity (22 km) to a paved road and a 138kV power line, with locally sourced material and labour where practical.

GRE developed the costs for each area shown in the table below, using a combination of equipment lists, design criteria, and equipment quotes, and included costs for indirect costs, contingency, owner’s costs and working capital to determine the funding requirements for a commercial operation.

On this basis, the project requires $64.5M of preproduction capital expenditure, followed by $50.6M of sustaining capital for a LOM total capital cost of $115M.

IV. FINANCIAL ANALYSIS

Cost estimates for construction and operation of the project were based on estimates made in Q2 2012 Brazilian Reals and US dollars. Conversions were made using an FX rate of 2.03 R/US$.  Estimates do not include inflationary factors or fluctuations in gold price or currency exchange.

Based on the cost inputs shown in the previous tables and the financial inputs shown in the table below, Coringa exhibits the strong financial characteristics of a robust project in a low political risk jurisdiction.

In terms of sensitivities to major project assumptions, the project is very robust and is still economic under any one of the following scenarios: either a gold price of US$1,000/oz, a capital cost increase of 50%, or an operating cost increase of 50%. The project NPV rises to $206M assuming a current gold price of $1,720 per ounce.

Sensitivity to gold price

Sensitivity to Operating and Capital Costs

V. FORWARD PLANNING

The PEA notes that “the vein system is open both at depth and along strike. It is highly probable that the main vein system comprised of the three resource blocks used in the study is more or less continuous between areas. It is probable that this vein system also continues along strike beyond the extents of the current resource blocks. There is also good potential to encounter additional parallel vein structures within the exploration area held by Magellan as demonstrated by the Serra resource block”.

Kevin Gunesch, Principal Mining Engineer with GRE and one of the main authors of the PEA, has advised Magellan that “the results for the Coringa PEA study are excellent and that the 33% IRR compares favorably with other gold projects at a similar stage of development, especially in view of the significant contingencies included within the Coringa study”.  

John Kiernan P.Eng, Magellan’s VP Project Development stated, “the robust economics shown in the PEA, indicate that Coringa is a project of merit and worth advancing expeditiously.  The project has good margins, is located near infrastructure and in a mining friendly jurisdiction, and has the potential to generate significant cash flow and earnings for Magellan’s shareholders in the near term.”

Based on the results of the PEA, Magellan plans to advance the project through a feasibility study, which will include a drilling program to upgrade resources and condemnation drilling at the chosen plant infrastructure and tailings sites. A decision regarding construction/production will be made at the conclusion of the feasibility study, currently targeted for Q4 2013.
Full details of the Coringa PEA in the form of a National Instrument 43-101 technical report will be filed on SEDAR within 45 days.

Qualified Person

The Coringa preliminary economic assessment was prepared under the supervision of Mr. Kevin J. Gunesch a registered Professional Engineer in the state of Alabama (27448) and Principal Mining Engineer of Global Resource Engineering Ltd. (GRE), Christopher K. Chapman a registered Professional Engineer in the State of Colorado (40679) and Principal Mining and Civil Engineer of GRE and Daniel Duché a registered Professional Engineer in the State of Ohio (71889) and Senior Mining Engineer of GRE.
Mr. Gunesch is an "independent" and "qualified person" as such terms are defined in NI 43-101.  Mr. Gunesch has reviewed and approved the comments of this press release.
John Kiernan P.Eng, Magellan’s VP Project Development and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

Cautionary Statements

This preliminary assessment is preliminary in nature.  It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.  There is no certainty that the results of the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Cautionary Note to U.S. Investors Regarding Reserve and Resource Estimates:

This press release uses the terms "measured resources", "indicated resources", and "inferred resources" which are defined by the Canadian Institute of Mining, Metallurgy and Petroleum, and are required to be disclosed in accordance with Canadian National Instrument 43-101 (NI 43-101). The disclosure standards in the U.S. Securities and Exchange Commission’s (SEC) Industry Guide 7 normally do not recognize information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. In addition, resource that are classified as “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “inferred mineral resource” will ever be converted into reserves. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of “reserves” are also not the same as those of the SEC, and reserves reported by the Company in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information presented by companies using only U.S. standards in their public disclosure.

For further information, please contact:

Alan Carter
President and CEO
Tel:     604.676.5663
Email: info@magellanminerals.com 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward–looking statements.  Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company.  These statements are subject to risks due to regulatory, technical, economic and other factors.  In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates.  The reader is referred to the Company's most recent annual and interim Management’s Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at  http://www.sedar.com.

Highlights include:-

• 5m @ 54.8g/t gold in a trench located approximately 110 m west and along strike from the area with previously reported gold values of 2m @ 104g/t gold. The mineralized zone remains open along strike to the east and west and is also open in terms of width
• 15m @ 2.3g/t gold including 5m @ 5.7g/t gold in a trench located 35-45m immediately north of the exposed surface workings at Ivo
• 10m @ 1.0g/t gold including 5m @ 1.7g/t gold in a trench 40-50m south of the exposed surface workings at Ivo

The results reported here are from three trenches which were designed to follow up the recently released channel sample results from surface workings at the Ivo target which is located approximately 800m north of the Moreira Gomes gold deposit (see press release dated 11th October 2012). Trenches were developed immediately to the north, south and west of the main east-west trending mineralized structure at Ivo in order to further test the continuity and width of the mineralization at Ivo.

The identification of 5m @ 54.8g/t gold in a trench 60m west of the Ivo showing extends the Ivo zone an additional 60m to the west and increases the total exposed strike length from 240 to 300m. These results are also located approximately 110 m west and along strike from the area with previously reported gold values of 2m @ 104g/t gold. The zone remains open both to the east and west and to the north since the high grade mineralization was returned from the most northerly sample in the trench (see map on website).

Of the trenches developed to the north and south of the Ivo showing, the most northerly trench returned 15m @ 2.3g/t gold including 5m @ 5.7g/t gold suggesting that the mineralized zone at Ivo may extend an additional 35-45m in terms of width to the north of the exposed surface workings. Similarly, the trench developed to the south of the Ivo showing returned 10m @ 1.0g/t gold including 5m @ 1.7g/t gold located 40-50m south of the exposed surface workings. This last sample was returned from the most southerly part of the trench and suggests that the zone remains open in terms of width to the south.

The results returned from the trenching suggest that the mineralized zone at Ivo could be 125m in width or at the very least, comprised of three parallel mineralized zones. The sheeted vein / stockwork mineralization exposed on surface is the most intense so far mapped on surface at Cuiu Cuiu.

Further work at Ivo will focus on additional trenching and trado sampling along strike from the surface workings.  Trado work is also in progress at the Ratinho and Ratinho South gold-in-soil anomalies which are located 8.5 to 9km NW of the Central deposit. Magellan is currently awaiting quotations for a diamond drill program to test these previously untested targets.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail: info@magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, the preparation of a feasibility study on the project, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Readers should not assume that the company’s plans to prepare a feasibility study mean that a feasibility study can or will be prepared.  There is no guarantee that a feasibility study will be prepared or, if prepared, that it will be commenced in the timeframe set out in this news release.  

Highlights include:

• 2m @104.0g/t gold 80m east of an area with previous maximum recorded grab samples of 2m @ 10.9 g/t gold
• 2m @ 31.0g/t gold immediately east of the above channel samples
• Numerous other high grade channel samples including 2m @ 16.1g/t, 2m @ 10.9g/t, 2m @ 8.8g/t, 1m @ 14.6g/t, 1m @ 9.7g/t, 0.5m @ 18.2g/t and 0.5m @ 13.1g/t gold over an exposed length of approximately 200m
• 20m @ 0.52g/t gold indicating that the narrow high grade zone at Ivo is surrounded by a wider more extensive lower grade envelope that remains open in all directions

The Ivo target is located approximately 800m north of the Moreira Gomes gold deposit and is characterized by a gold-in-soil anomaly and a pronounced E-W trending magnetic anomaly that closely resembles the geophysical and geochemical signature at Moreira Gomes (see map on website). No drilling has been conducted thus far on this target. Mapping of recent surface workings at Ivo have revealed a pronounced zone of quartz stockwork / sheeted veining extending over at least 240m along strike that is very similar to Moreira Gomes. The magnetic and geochemical data suggest that the structure may extend to the Quebrabunda prospect located 1.4km to the east where surface sampling recently returned a value of 203.5 g/t gold.

Surface mapping and sampling suggests the presence of a narrow high grade zone at Ivo surrounded by a lower grade envelope that may be 50 – 100m wide. Channel sampling of the narrow high grade structure returned values that include 2m @ 104.0g/t, 2m @ 31.0g/t, 2m @ 16.1g/t, 2m @10.9g/t, 2m @ 8.8g/t, 1m @14.6g/t, 1m @ 9.7g/t, 0.5m @ 18.2g/t, 0.5m @ 13.1g/t, 2m @ 4.7 g/t, 2m @ 4.2g/t, 2m @ 4.0 g/t and 2m @ 3.9 g/t gold (see map on website for complete set of results).

In addition, a series of 1 to 2m channel chip samples taken across part of the zone at the eastern end of the Ivo showing returned 20m @ 0.52 g/t gold. Mapping suggests that the mineralized zone is wider to both the north and south. The last sample of this series to the north returned 1m @ 1.4 g/t gold and two samples taken just to the south-east returned 1m @ 14.6 g/t gold and 1m @ 3.8g/t gold.

Given the indications that the zone may be significantly wider than the surface workings currently suggest, Magellan has excavated three trenches immediately north, south and west of the Ivo showing (see map on website). Results on channel samples from these trenches are expected by the end of October.

Guillermo Hughes, Chief Geologist, commented, “these surface results from Ivo are the most important so far at Cuiu Cuiu and indicate the possible presence of a significant mineralized zone only 800m north of the Moreira Gomes gold deposit. The combination of high grades and intense quartz stockwork veining mean that this is a high priority target for follow-up drilling”.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail: info@magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, the preparation of a feasibility study on the project, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Readers should not assume that the company’s plans to prepare a feasibility study mean that a feasibility study can or will be prepared.  There is no guarantee that a feasibility study will be prepared or, if prepared, that it will be commenced in the timeframe set out in this news release.

John Kiernan is a Mining Engineer with more than 25 years’ experience, and has a B.Sc. in Mining Engineering from Queens University, Ontario and an MBA from Laurentian University in Sudbury. His experience includes project implementation, mine design, ventilation network analysis, backfill trade-off studies, production engineering, project management and operations scheduling.  His most recent role was Manager Project Evaluation for Quadra FNX.

Mr. Kiernan has previously held a number of senior positions including Mine Planning Engineer for Inco in Sudbury, Principal Mining Engineer / Financial Analyst for AMEC / MRDI, Senior Mining Engineer for Wardrop Engineering Inc., and Mining Analyst for PI Financial Corp.   

An updated resource estimate for the Coringa project in Brazil was recently released (see press release dated 22nd March 2012) which resulted in a 108% increase in Measured and Indicated resources to 561,000oz of gold (3.17Mt @ 5.50g/t gold) and a 444% increase in the Inferred resources to 534,000oz of gold (5.51Mt @ 3.02g/t gold) using a 1g/t gold cut-off. A revised scoping study is currently in progress.

Alan Carter, President & CEO commented, “We are delighted that John has agreed to lead our project development team. The fact that we have been able to attract a professional of John’s caliber is a testament to the strength of our assets and the work performed by Magellan’s team thus far. His extensive underground experience will be a major asset going forward and we look forward to his leadership in advancing Coringa through feasibility”.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail: info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com 

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, the preparation of a feasibility study on the project, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.  Readers should not assume that the company’s plans to prepare a feasibility study mean that a feasibility study can or will be prepared.  There is no guarantee that a feasibility study will be prepared or, if prepared, that it will be commenced in the timeframe set out in this news release.  

An earlier PEA completed by GRE in early 2010 (see press release dated 5th May 2010) was based on the resource defined in the October 2009, National Instrument 43-101 compliant technical report consisting of a Measured and Indicated resource of 830,460t @ 9.64g/t gold (257,388 oz) and an Inferred resource of 239,620t @ 11.86g/t (91,334 oz). This study indicated a robust Internal Rate of Return of 34%, a Net Present Value of US$41M (assuming a 5% discount rate and a gold price of US$950/troy oz) and a project payback period of 3.7 years.

The updated PEA is expected to be completed within the next 4-5 months and will contemplate an expanded mine production rate based on the most recent resource estimate of 22nd March 2012.

Separately, Magellan is pleased to announce that it has expanded its land position at the Agua Azul project located in the Carajas mineral province of eastern Para, by signing a binding Letter of Intent with Horizonte Minerals plc to acquire a 70% interest in an exploration license held by Horizonte. The agreement expands Magellan’s current land position at the project from the current 11,458ha by an additional 1,553ha.  It involves payments totaling $320,000 over 3 years including a $20,000 initial payment and exploration expenditures of $1,500,000 over the 3 year period to earn an initial 51% in the property. Magellan has a second option to expand its interest from 51% to 70% by completing a 43-101 compliant pre-feasibility study and paying Horizonte an additional $500,000.

The Agua Azul project previously produced several hundred thousand ounces of gold from artisanal workings in minor drainages and shallow surface workings. Magellan has recently identified a series of soil anomalies and exposed quartz veins up to 8m in width. Surface rock chip sampling has resulted in values that include 5.4m @ 17.46 g/t Au (approximately 4.8m true width) and 4m @ 15.1g/t Au from two separate artisanal pits on parallel structures 500m apart.

Magellan expects to identify drill targets at Agua Azul within the next two months.

This press release was reviewed by Dennis Moore, B.Sc., M.Eng., a member of AIG, AUSIMM, and the SEG, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail: info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail: info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Vancouver, BC, May 11, 2012 – Magellan Minerals Ltd. (TSX-V: MNM)(OTCQX: MAGNF) (“Magellan”) is pleased to announce an agreement whereby Magellan will grant Sandstorm Gold Ltd. (“Sandstorm”) a 2.5% net smelter returns royalty (“NSR”) on the Coringa gold project (“Coringa”) and a 1.0% NSR on the Cuiu Cuiu gold project (“Cuiu Cuiu”) both of which are located in Para state, Brazil. As consideration, Sandstorm will provide an upfront cash payment of US$7.5 million and will subscribe for one million shares of Magellan at a price of $0.50 per share. The share subscription is subject to approval from the TSX Venture Exchange. 

As part of the agreement, Magellan has provided Sandstorm with a right of first refusal on any future royalty or gold stream financing for both the Coringa and Cuiu Cuiu projects.

This transaction follows the termination of the recently announced royalty financing with Global Royalty Corporation (see press release dated 30th March 2012) regarding the Cuiu Cuiu project.

As part of the transaction, Magellan acquired the existing 2.5% royalty on the Coringa project from the royalty holder on April 30, 2012 for total consideration of US$2.7 million. 

“We are extremely pleased to have concluded this arrangement with Sandstorm Gold, a company with a strong management team and existing assets in Brazil. The agreement results in minimal shareholder dilution and allows us to advance Coringa through a revised scoping study and feasibility, as well as continuing to expand the resource base at Cuiu Cuiu”, said Magellan President & CEO Alan Carter.

About Coringa and Cuiu Cuiu

The Coringa gold project is located in Para State, 20 kilometres east of the BR-163 highway. Coringa is a narrow, high grade vein system extending over an eighteen kilometre strike with significant exploration upside. Magellan released a positive preliminary economic assessment on Coringa in May 2010, which is in the process of being updated, and will commence a feasibility study in the third quarter of 2012.    

Cuiu Cuiu is located 180 kilometres southwest of Itaituba in northern Brazil. Exploration work has identified a series of major gold soil anomalies and Magellan anticipates conducting a drilling program during the second half of 2012 with plans to release a revised resource estimate in Q1 2013.

(1) Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Dennis Moore, B.Sc., M. Eng., is the Qualified Person under NI 43-101 responsible for reviewing and approving the technical information contained in this news release

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).  The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.35Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail:   info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com

Sandstorm Gold Ltd.
Denver Harris, Investor Relations
Tel: 604-628-1178
e-mail: dharris@sandstormltd.com
www.sandstormgold.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Separately, Magellan has granted stock options to directors, officers, employees and consultants of the Company. The options entitle the holders to purchase 2,455,000 common shares in the capital stock of the Company at a price of $0.50 per share.  The options are exercisable until April 26, 2017, subject to vesting over 24 months. 

Magellan Minerals (TSX-V: MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:
Alan Carter, President and CEO
Tel: 604.676.5663
e-mail: info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 604 676 5660
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Vancouver, BC, April 4, 2012 – Magellan Minerals Ltd. (TSX-V: MNM)(OTCQX: MAGNF) (“Magellan”) is pleased to report the results of continued prospecting work aimed at targeting high grade structures at its Cuiu Cuiu project located in the state of Para in northern Brazil. The Cuiu Cuiu project currently contains 3.4Mt @ 1.0 g/t (100,000oz) of Measured resources and 31Mt @ 1.2g/t gold (1,200,000oz) of Inferred resources (see press release dated 8th March 2011).

Highlights include:-

• 203.5 g/t gold in a grab sample from the previously unknown Quebrabunda showing located approximately 1km north of the Moreira Gomes deposit (0.7Moz comprising 14Mt @ 1.5g/t)  
• 46.4 to 128.6 g/t gold in linear 1 metre chip samples from the previously unknown 6 Irmaos zone which is located between 180 and 330m immediately south of the Moreira Gomes deposit
• 7.0 – 14.9 g/t gold in grab samples from the previously unrecognized Cuiabano zone located  500m north of Moreira Gomes and 300m NE of the Machiche showing which was previously tested with one hole (3.3m @ 7.4g/t gold)
• 10.9 g/t gold in a grab sample from the previously unknown Ivo zone located 800m north of Moreira Gomes and 900m east of the Jerimum de Baixo zone

Of 167 holes drilled at Cuiu Cuiu thus far, only 3 have targeted high grade vein structures at the Machiche (3.3m @ 7.4g/t gold) and Guarim showings (0.5m @ 30.2g/t gold). At least 20 high grade structures have been identified within the Cuiu Cuiu area to date.

The discovery of four new high grade and untested gold showings in the vicinity of the Moreira Gomes deposit confirms the potential for adding significant high grade resources at Cuiu Cuiu in the short term.

Of particular note are the Quebrabunda and Ivo showings which appear to be located on the same E-W trending structure. Quebrabunda returned a value of 203.5g/t gold and Ivo returned 10.9g/t gold. Both showings are located 1.4km apart along an E-W trending structure which is  parallel to Moreira Gomes and coincident with a magnetic low anomaly (see map on website). Previous sampling from nearby artisanal workings at the Cuiu-Cuiu showing 100m east of Ivo, returned 20.1 g/t gold.

The identification of the 6 Irmaos zone is perhaps the most significant discovery at Cuiu so far during 2012. Four samples from two separate structures located between 180 and 330m south of the Moreira Gomes deposit returned values of 46.4, 55.0, 122.2 and 128.6g/t gold. These results follow previous sampling from two other structures in the same area which returned 17.0 and 2.2 g/t gold. Hole 104 was previously drilled 250m east of the current samples and intersected 7.5m @ 18.8g/t gold.

Magellan has identified four distinct mineralized zones at Cuiu Cuiu which are anticipated to be amenable to open pit mining methods. These include Central, Central North, Moreira Gomes and Jerimum Baixo. The Central and Moreira Gomes deposits contain combined resources of 100,000oz of gold (3.4Mt @ 1g/t gold) in the Measured category and 1,200,000oz of gold (31Mt @ 1.2g/t) in the Inferred category. These resources were calculated on the basis of 25,957m of drilling. An additional 20,849m of exploration and step out drilling has been completed since the release of the initial resource.

Interpretation of data from the recently completed IP survey at Cuiu Cuiu together with surface prospecting and sampling at Cuiu Cuiu, is ongoing in advance of further drilling.

Magellan’s QA/QC program includes the insertion of standards, field duplicates and blank material into the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy.

This press release was reviewed by Dennis Moore, B.Sc., M.Eng., a member of AIG,  AUSIMM, and the SEG, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals (TSX-V: MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:
Alan Carter, President and CEO
Tel:  604.676.5663
Email:   info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
Email: Jennifer@magellanminerals.com

www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements

Highlights of the arrangement are as follows:

• GRC will pay Magellan a total of $4.75 million for a 1.5% NSR royalty pertaining to the Cuiu Cuiu property which comprises 44,163ha
• Magellan shall pay GRC an advance royalty of $250,000 per year following the delivery of a positive Feasibility Study. The advance royalty shall be credited toward the payment of the royalty
• GRC shall subscribe for 1 million shares of Magellan at a price of $0.50 per share for proceeds of $500,000

Alan Carter, President & CEO commented “We are extremely pleased with this financing with Global Royalty Corp on our Cuiu Cuiu project, as it results in minimal dilution to our existing shareholders and places the Company in an excellent position to add to the current resources at both Cuiu Cuiu and Coringa. This arrangement also confirms the potential of the Cuiu Cuiu project where 20,000m of drilling has been completed since the release of the initial resource estimate in April 2011”.   

The net proceeds of the offering will be used to fund exploration and development of Magellan Mineral's mineral projects and for general working capital purposes.

Completion of the offering is subject to a number of conditions including completion of satisfactory due diligence investigations and receipt of all necessary regulatory approvals.

Magellan Minerals (TSX-V: MNM) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold).  The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail:   info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com

Global Royalty Corp.
Mark Kucher, President and CEO
Tel:  604.696.9720
e-mail:   mkucher@globalroyaltycorp.net

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Highlights include:-

• Total resources of 561,000 Measured and Indicated ounces of gold representing 3.17Mt @ 5.50 g/t gold and 534,000 Inferred ounces of gold representing 5.51Mt @ 3.02 g/t gold on an undiluted basis and using a 1 g/t gold cut-off

• An increase of 108% in the Measured and Indicated category and an increase of 444% in the Inferred category.  Measured and Indicated resources for the three main zones have increased by 104% due to additional intercepts on the lower portions of the structures. Inferred resources for the three main zones have increased 273% due to additional strike length of 3.8 km from step-out drilling

• Resources are contained within five areas which include Serra (42% of Measured and Indicated, 19% of Inferred), Valdette (2% of Measured and Indicated, 13% of Inferred), Meio - Come Quieto (42% of Measured and Indicated, 35% of Inferred), Galena - Mae de Leite (15% of Measured and Indicated, 14% of Inferred) and Demetrio (18% of Inferred) 

• Using a 2g/t gold cut-off, resources total 516,000 ounces of gold in the Measured and Indicated category representing 2.26Mt @ 7.22 g/t gold and 409,000 ounces of gold in the Inferred category representing 2.72Mt @ 4.68 g/t gold

The total resource at Coringa has increased by 108% in the Measured and Indicated category representing 561,000 oz gold (3.17Mt @ 5.50 g/t gold) and 444% in the Inferred category representing 534,000 oz gold (5.51Mt @ 3.02 g/t gold) at a 1g/t cut-off. Five main zones now form the basis of the resources at Coringa which were calculated based on 157 drill holes, totaling 23,836 meters.

Magellan’s President and CEO, Alan Carter stated, "We are delighted with the updated resource estimate for Coringa which is a vindication of our efforts thus far. All of the mineralized zones remain open at depth and along strike, and the recent identification of large gold-in-soil anomalies which are untested, suggest that Coringa has the potential to expand significantly beyond the current estimate.” 

Tables 1 and 2 show the resources calculated for each zone and category at Coringa using 1g/t and 2g/t gold cut-offs respectively.

Table 1   Coringa Mineral Resource, 1 g/t Gold Cut-Off Grade (Undiluted)

Table 2  Coringa Mineral Resource, 2 g/t Gold Cut-Off Grade (Undiluted)

NOTE: Mineral resources that are not reserves do not have demonstrated economic viability. An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. An Indicated Mineral Resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.

The resource estimate used a density of 2.7 t/m3.  All numbers have been rounded to reflect their appropriate level of accuracy.

Magellan plans to update the preliminary economic assessment at Coringa which was released in May 2010 (see press release here) that returned a 34% Internal Rate of Return based on a 400tpd underground mine and a gold price of $950/oz.

Structural models for each of the mineralized gold veins or shear zones were created for each resource area.  Gold grades were confined to the mineralized zones and estimated using the inverse distance squared method capped at 50 g/t gold.

The Coringa mineral resource estimate was prepared under the supervision of Mr. Kevin J. Gunesch a registered Professional Engineer in the state of Alabama (27448) and Principal Mining Engineer of Global Resource Engineering Ltd. (GRE). Donald Hulse, associate of GRE, a registered Professional Engineer in the state of Colorado (35269), and Principal Mining Engineer for Gustavson and Associates participated in the Coringa NI 43-101 report preparation. The mineral resource estimate was prepared under Canadian Institute of Mining Metallurgy and Petroleum (CIM) Definition Standards (2010) and CIM Best Practice Guidelines for preparing mineral resources and mineral reserves. Mr. Gunesch is an "independent" and "qualified person" as such terms are defined in NI 43-101.

The complete NI 43-101 report on the Coringa project will be filed on SEDAR within the next 45 days.

Magellan Minerals (TSX-V: MNM) is a TSX Venture Exchange listed exploration and development company with a number of gold properties in the Tapajos Province of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects.

For further information, please contact:
Alan Carter, President and CEO
Tel:  604.676.5663
e-mail:   info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
e-mail: Jennifer@magellanminerals.com
www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

Vancouver, BC, February 21, 2012 – Magellan Minerals Ltd. (TSX-V: MNM, OTCQX: MAGNF) (“Magellan”) is pleased to announce the results of 14 additional exploration holes recently drilled at the Jerimum Cima, Jerimum Baixo and Moreira Gomes zones at the Cuiu Cuiu project in northern Brazil.

Highlights include:-

• 4m @ 5.49 g/t gold and 1m @ 4.30 g/t gold in hole 161 at Jerimum Cima  which was drilled 325m east of hole 26 which intersected 39m @ 5.13 g/t gold
• 41m @ 0.56 g/t gold in hole 141 and 18m @ 0.39 g/t gold in hole 146 from Jerimum Baixo
• 0.6m @ 8.44g/t gold in hole 145 from the Machiche area north of Moreira Gomes

Jerimum Cima

Five additional exploration holes were drilled at Jerimum Cima during late 2011. Jerimum Cima is a strong gold-in-soil anomaly located 3km NE of the Central deposit and 4km NW of the Moreira Gomes deposit. Previous reconnaissance drilling on this target returned values of 39m @ 5.13 g/t gold in hole 26 and 18m @ 1.17 g/t gold in hole 24 associate with sheeted veins in a granitic host rock. This area is also known to have contained some of the richest alluvial gold deposits in the Cuiu Cuiu area. No resource has been calculated thus far at Jerimum Cima.

Previous surface mapping and an interpretation of the airborne magnetic data suggest a ENE-WSW orientation to the zone of sheeted veins previously intersected in holes 24 and 26. Of the five exploration holes drilled during 2011, three were designed to test the eastern extension of the zone over a strike extent of 500m, one hole was designed to test a magnetic target and one hole was drilled approximately 1km east of holes 24 and 26 under an abandoned garimpo placer working.

Of the three holes drilled along strike to the east of holes 24 and 26, one hole (161) intersected 1m @ 4.30 g/t gold and 4m @ 5.49 g/t gold including 0.5m @ 35.1 g/t gold and was drilled 325m east of hole 26 which intersected 39m @ 5.13 g/t gold. Hole 162 which was drilled 500m east of hole 26 cut 4.5m @ 0.80 g/t gold (see map on website).

Gold mineralization at Jerimum Cima has now been traced over approximately 550m and appears to be confined to narrower high grade structures compared to mineralization identified at Central, Central North, Moreira Gomes and Jerimum Baixo. Further infill drilling will be required along the ENE-WSW trending Jerimum Cima structure which is sub-parallel to the Moreira Gomes zone located 4km to the south east.

Drill hole intersections are summarized in the following table:

*   All holes were drilled at -50°.  Dips of the intersected structures are not known, and intersection widths are not necessarily true widths

Jerimum Baixo

Results have also been received on six additional exploration holes from the Jerimum Baixo target zone which is located 3km ESE of the Central deposit and 1.5km NW of the Moreira Gomes deposit. This brings the total number of holes completed to date at Jerimum Baixo to fifteen.

Previous drilling on this target has returned values of 105m @ 0.60 g/t gold including 41m @ 1.29 g/t gold in hole 94, 38m @ 0.67 g/t gold in hole 98, 57.4m @ 0.51 g/t gold in hole 10 and 25m @ 0.49 g/t gold in hole 137 (see press release dated 15th November, 2010). Significant holes reported here include hole 141 which was drilled 50m SE of hole 94 (which cut 105.2m @ 0.60 g/t gold) and intersected 41m @ 0.56 g/t gold from 17.1 to 58.1m depth and 33m @ 0.28 g/t gold from 92.1 to 125.1m depth (see map on website).

Hole 146 also intersected 18m @ 0.39g/t gold from 202.5 to 220.5m depth which almost certainly represents the same zone cut in holes 91 (30.4m @ 0.40 g/t gold) and hole 95 (54m @ 0.39g/t gold).

The 2011 drill program at Jerimum Baixo has confirmed the existence of a mineralized body which is currently smaller and lower grade than the nearby Moreira Gomes deposit located 1.5km to the south-east. More significantly, gold mineralization above the 0.3g/t gold cut-off grade is consistent over a strike length of 450m and remains open to the east. Further drilling is required to fully define the dimensions of the mineralized zone.

Moreira Gomes

Results were returned on three additional holes from Moreira Gomes.  Hole 149 was drilled on the eastern edge of the known mineralization at Moreira Gomes, 115m east of the previous most easterly hole 122 (8.2m @ 0.37 g/t gold and 18.4m @ 0.46 g/t gold (see press release dated August 31, 2011) and intersected 9m @ 0.34 g/t gold and 16m @ 0.26 g/t gold (see map on website). This is almost certainly the same zone and indicates that the Moreira Gomes body continues to remain open to the east. Drilling has now extended the Moreira Gomes mineralized zone a total of 250m beyond the eastern limit to the orebody as defined in the 43-101 resource estimate of early 2011 (see press release dated 8th March 2011).

Hole 145 was an exploration hole drilled north of the main Moreira Gomes zone and east of the main body. It intersected a narrow high grade vein structure which returned 0.6m @ 8.44 g/t gold from 216.0 to 216.6m depth. This intersection is a narrow vein located 100m SE of the Machiche vein structure which returned 3.3m @ 7.43 g/t gold in hole 52 (see map on website).

The Moreira Gomes and Central deposits at Cuiu Cuiu currently comprise published resources of 1.2Moz (31Mt @ 1.2 g/t) of gold in the inferred category and 0.1Moz (3.4Mt @ 1.0g/t) of gold in the indicated category. The published block model inventory for the Central and Moreira Gomes deposits at a 0.30 g/t gold cut-off comprises 3.5Mt @ 1.0 g/t gold for 110,000 oz of contained gold and 45Mt @ 1.0 g/t gold for 1.4Moz of contained gold.

Holes were drilled at 50 degrees from horizontal.  All core samples (HQ diameter) were cut with a diamond saw and one-half of the core placed in bags, numbered and sealed then sent via a secure transport agency to the Company’s office in Itaituba before shipping via secure transport to ACME preparation laboratory in Itaituba for sample preparation.  Core samples were crushed down to 2 mm and a 1 kg split was pulverized to better than 85% minus 200 mesh.  From Itaituba, ACME sent the pulp samples to Santiago, Chile for assaying.  Gold analyses were conducted on 30g representative sample cuts using fire assay with an atomic absorption finish.  Other sample cuts were subjected to a 4 acid digestion and analysed for silver and an additional 35 elements using inductively coupled plasma mass spectrometry (ICP-MS).  ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes the insertion of standard, blank, and duplicate samples, as well as conducting repeat analyses.

Magellan’s QA/QC program also includes the insertion of standards, field duplicates and blank material in the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy.

This press release was reviewed by Dennis Moore, B.Sc., M.Eng., a member of AIG,  AUSIMM, and the SEG, a qualified person in compliance with National Instrument 43-101.

Magellan Minerals Ltd. (TSX-V: MNM)  is a TSX Venture Exchange listed exploration company with a number of gold exploration properties in the Tapajos region of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects.

For further information, please contact:
Alan Carter, President and CEO
Tel:  604.676.5663
Email:   info@magellanminerals.com

Jennifer Duthie, Corporate Communications Manager
Tel: 778.370.0519
Email: Jennifer@magellanminerals.com
www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news 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, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.