Magellan Minerals Ltd.

Magellan Minerals Ltd.

February 19, 2008 16:59 ET

Magellan Minerals Ltd. Closes IPO and Raises $11 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 19, 2008) - Magellan Minerals Ltd. is pleased to announce that on February 15, 2008, it successfully completed its initial public offering ("IPO") by way of Prospectus dated effective January 22, 2008.

A total of 11,000,000 units were issued by Magellan at a price of $1.00 per unit for proceeds of $11,000,000. Each unit is comprised of one common share and one-half share purchase warrant. Each whole Warrant entitles the holder thereof to acquire one common share at a price of $1.50 per share exercisable on or before 18 months from the closing date. Newmont Mining Corporation of Canada Limited ("Newmont") purchased 2,500,000 units of the IPO.

Blackmont Capital Inc. and Salman Partners Inc. acted as agents. In consideration they received non-transferable warrants entitling them to purchase up to a total of 637,500 common shares of Magellan at $1.00 per share on or before 18 months from the closing date. In addition, a cash commission of $595,000 was paid to the agents. No cash commission was paid and no agent's warrants were issued in connection with the units purchased by Newmont.

Proceeds from the IPO will be used to advance Magellan's mineral exploration properties in Brazil, particularly the Cuiu Cuiu project, and for general working capital purposes. Drilling is currently underway at Cuiu Cuiu, Magellan's principal gold property in Brazil.

Magellan's common shares will commence trading on the TSX Venture Exchange on February 20, 2008 under the trading symbol "MNM".

Magellan is a mineral exploration company with a principal focus on exploring for gold in the Tapajos province of northern Brazil where Magellan controls a number of prospective projects.

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

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