Magellan Minerals Ltd.

Magellan Minerals Ltd.

July 26, 2011 09:30 ET

Magellan Commences Airborne Geophysical Survey at Bom Jardim Property, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2011) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce the start of an airborne magnetic and radiometric survey on its Bom Jardim project in the Tapajós region of Pará, Brazil.

Magellan has contracted Fugro Airborne Surveys (Lasa Prospecções S.A.) to fly a 2,300km combined magnetic and radiometric survey at its Bom Jardim property, located 35km northwest of Magellan's flagship Cuiú Cuiú project. The survey is projected to take approximately two weeks to complete. This survey will augment the program of geological mapping, soil sampling and ground magnetic surveys which are currently in progress. These data will be used to define an area of interest for follow up geophysics within the coming quarter. The information resulting from the combined surveys and ongoing surface geological work will be used to define drill targets for testing later in the year.

The Bom Jardim property hosts extensive areas of historic and active alluvial gold workings and comprises one of six significant placer gold camps along the "Tocantinzinho Trend", a 350km long crustal scale shear that hosts numerous large placer workings as well as Eldorado Gold Corp.'s Tocantinzinho gold deposit and Magellan's Cuiú Cuiú project.

Both placer and primary (hosted in bedrock) gold ore is currently being mined on the Bom Jardim property from approximately a dozen small-scale operations spread over a wide area. During the 1980s and early 1990s, approximately 5,000 artisanal miners worked the rich alluvial deposits in the Bom Jardim district, exploiting an estimated 500,000 to 1,000,000 ounces of gold.

Surface rock chip and soil geochemical sampling over the past two years have returned values up to 38.3g/t Au over 1m intervals, grab vein samples of up to 50.0g/t Au, and a north-northeast striking gold-in-soil geochemical anomaly that is 7km long and 300 to 800m wide.

Magellan is currently engaged in step-out drill programs at the Cuiú Cuiú and Coringa projects, also located in the Tapajós region and which are aimed at increasing the existing resources. Cuiú Cuiú contains resources which total 0.1Moz (3.4Mt @ 1.0g/t) of gold in the indicated category and 1.2Moz (31Mt @ 1.2g/t) of gold in the inferred category. Coringa contains resources which currently total 269,450oz of gold in the measured and indicated categories (0.98Mt @ 8.53g/t), and 98,224oz of gold in the inferred category (0.33Mt @ 9.34g/t).

This press release was reviewed by Gordon Allen, B.Sc., P.Geo., a Professional Geoscientist in British Columbia.

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 #2011-16

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