Magellan Minerals Ltd.

Magellan Minerals Ltd.

February 07, 2011 09:00 ET

Magellan Minerals Increases Interest in Mato Grosso Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 7, 2011) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce that it has signed a formal agreement to acquire a further 9.5% interest in certain mineral rights located in Mato Grosso state in Brazil from Brasil Central Engenharia Ltda. ("Brasil Central") for consideration of US$2.5 million. This purchase follows from the purchase of an initial 25.5% interest in the rights announced in August 2011 (see press release dated August 11, 2010 here). Brasil Central is a private company incorporated under the laws of Brazil with a head office located in Cuiabá. Brasil Central is at arm's length to Magellan.

ECI Exploration Mining Inc. ("ECI") has also agreed to purchase a further 9.5% interest in the mineral rights from Brasil Central for identical consideration thereby also increasing their interest in the mineral rights to 35%.

Magellan, ECI Exploration Mining Inc. ("ECI"), and Brasil Central are currently evaluating their plans for these properties.

Magellan is a TSX Venture Exchange listed exploration company with a number of gold exploration properties in the Tapajos Province of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects where drilling is currently in progress.

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.

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

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