Magellan Minerals Ltd.

Magellan Minerals Ltd.

August 14, 2008 09:00 ET

Magellan Minerals Ltd.: Exploration Update on Uniao Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2008) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to provide an exploration update on its Uniao project in northern Brazil. The project is located 100km SSW of Magellan's Cuiu Cuiu project, close to the town of Creporizao, and is accessible by road. Previous production from the Uniao concession area is estimated to be in the order of 1 million ounces of gold.

Magellan geologists have identified at least 16 separate primary gold showings at Uniao, most of which are ENE trending vein occurrences and none of which have been previously drill tested. Of these, three areas in particular; Malvinas, Gaspar and Cuiabano-Laje are considered to exhibit excellent potential.

Malvinas is a narrow high grade ENE trending vein system which is up to 1m wide and commonly contains visible gold. A recent sample across this structure returned 928.9g/t gold. Other samples taken from this vein have returned values of 35.7g/t, 47.3g/t and 157.5g/t gold. Local small scale mining of this structure suggests an average grade of at least 80-100g/t gold. The structure has so far been exploited to a depth of 80m and has been mapped for 150m along strike.

Gaspar is located 3km SE of Malvinas and was the most important high grade vein system in the district during the period of intense informal mining activity between 1978 and 1992. Artisinal miners reportedly exploited high grade vein mineralization with abundant visible gold at the bottom of a placer pit to a depth of 50m. Sampling of dump material by Magellan geologists returned values up to 29g/t gold.

Cuiabano-Laje is located 7km to the south of Malvinas and hosts several andesite dykes with associated silicification and pyrite-gold mineralization. Sampling of dump material by Magellan geologists returned values up to 25g/t gold. Magellan has identified a significant soil anomaly up to 400m and 1.3km in length which is open to the west.

Magellan is currently conducting a program of ground geophysics, mapping and sampling at Malvinas, Gaspar and Cuiabano-Laje in addition to several other showings at Uniao. Drilling is expected to commence during late August.

A detailed program of ground geophysics is also currently ongoing at Magellan's Cuiu Cuiu project in advance of follow-up drilling at the Central discovery and on other targets.

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 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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