Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

June 28, 2011 09:30 ET

Magellan Adds Third Drill Rig at Coringa Project and Identifies New Mineralized Zone 5km South of Meio Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 28, 2011) -Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to report that it has added a third diamond drill rig at the Coringa project in Brazil and has discovered a new mineralized zone called Filao da Porteira which is located approximately 5km south-east of the Meio zone.

Drilling is currently in progress at Coringa on the recently identified Valdette and Demetrio structures with initial drill results expected within the next two weeks. The third rig will initially target the Come Quieto zone which is not part of the current resource and is located 2km south of Meio. Surface sampling at Come Quieto previously returned several values above 5g/t gold including two samples of 71.2 g/t and 306.0g/t gold (see map on website).

The rig will then move to test the down dip depth extensions of the main mineralized zones; Meio, Serra and Galena that have been discovered to date and form approximately 98% of the resource at Coringa which currently totals 269,450oz Measured and Indicated and 98,224oz Inferred. The bulk of the resources defined to date at Coringa are located between surface and 125m depth. No deep drilling has been previously conducted on any of the main mineralized zones.

Recent reconnaissance work and surface sampling aimed at defining the southern extension to the main mineralized structure at Coringa has identified outcropping gold mineralization in quartz veins 3.3km south-east of the Come Quieto zone. Come Quieto was the southern-most extent of the main mineralized structure at Coringa which extends 7km in a NW-SE direction. Surface grab samples from this new area called Filao da Porteira which is located on the strike extension of the main structure, returned gold values up to 6.61 g/t gold.

The identification of the Filao da Porteira zone suggests that the main structure at Coringa now extends for 10.3km in a NW-SE direction. A road is currently being constructed to this area in order to facilitate drill access. Soil sampling is also in progress elsewhere within the Coringa concession aimed at following up on several other gold in stream anomalies.

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

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.

News Release #2011-12

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