Magellan Minerals Ltd.
TSX VENTURE : MNM

Magellan Minerals Ltd.

November 19, 2008 09:00 ET

Magellan Minerals Commences Drilling at Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 19, 2008) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") announces that it has commenced a limited drill program of approximately 1200m at its 100% owned Cuiu Cuiu project. The Cuiu Cuiu project comprises 470km2 of mineral exploration claims over one of the most prolific alluvial gold fields within the Tapajos Mineral Province of northern Brazil. Historic alluvial production is estimated to be 1.5 to 2.0 Moz gold. Four drill holes are planned to test the lateral and strike extent of the gold mineralization discovered by Magellan earlier this year beneath and adjacent to the historic Central pit.

The previous drilling campaign at Cuiu Cuiu, completed in April of this year, included intercepts of 220.7m @ 2.02g/t at the Central target, 47.1m @ 1.76g/t at Pau de Merenda (3km NW of Central), and 39m @ 5.13g/t at the historic Jerimum Cima workings (located 3.2km ENE of Central).

Magellan has recently completed a ground magnetic survey over the Central area, which resulted in identification of a number of drill targets. Ground magnetometer surveys over the other primary targets identified to date within the central part of the Cuiu license (Pau de Merenda, Jermim de Cima, Jerimum de Baixo, Machiche and Moreira Gomes) are ongoing. The data generated will help define extensions to known mineralization, identify possible new mineralized areas, and aid in targeting future drill programs.

Uniao

Eight holes totaling 1231m have been completed at the Uniao project, located 100km SSW of Cuiu Cuiu. Six of the holes were drilled at the Cuiabano-Laje target, while two holes targeted the Gaspar vein. Drill results are pending. At the regional scale, interpretation of high resolution satellite images and an extensive ground magnetic survey totaling 165 line kilometers, has identified several new target areas which will be subject to follow-up mapping and sampling.

Cost cutting measures

In view of the current global financial crisis, Magellan has implemented a program of cost-cutting measures aimed at reducing its monthly cash expenditures. These include significant reductions in the drill programs at Uniao and Cuiu Cuiu, as well as a 70% reduction of the Brazil-based work force.

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

Magellan is a well financed mineral exploration company with a principal focus on exploring for gold in the Tapajos Mineral Province of northern Brazil.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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