Magellan Minerals Ltd.

Magellan Minerals Ltd.

May 18, 2010 09:15 ET

Magellan Options an Additional 1,917 Hectares East of Coringa Gold Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2010) - Magellan Minerals Ltd. (TSX VENTURE:MNM) is pleased to announce it has optioned a 100% interest in an additional claim of 1,917 hectares immediately adjacent to and east of the Coringa exploration claims.

Under the terms of the agreement Magellan will pay US$25,000 and issue 25,000 shares to the owners of the claim upon completion of its due diligence. Further payments of US$165,000 and 225,00 shares are required over a three year period in order for Magellan to earn a 100% interest.

This additional claim consolidates highly prospective ground where previous stream sediment sampling (pan concentrates) confirms anomalous gold values within the Coringa East area (see map on website: Anomalous stream sediment (pan concentrate) values ranging from 9940ppb to 57921ppb have been identified on the Coringa East claim block several kilometers east of the known veins at Coiringa. Additional follow-up stream sediment sampling, mapping, rock and soil sampling will be conducted to identify the source of the mineralization associated with the initial reconnaissance program.

The Coringa Project is a shear-vein system, hosted in mid-Proterozoic volcanic rocks and granites on the southern margin of the Tapajos Gold Province.

A recently completed preliminary economic assessment of Coringa (see press release of May 5th, 2010) indicates a robust IRR of 34% and a NPV at a 5% discount rate of US$41M using a gold price of US$950/troy ounce. The project payback period is 3.7 years. The PEA study used a cut-off grade of 3g/t gold and a Measured and Indicated resource of 830,460t @ 9.64g/t gold (257,388 oz) and an Inferred resource of 239,620t @ 11.86g/t (91,334 oz).

Ian Gendall (Pr. Sci. Nat.), Magellan's Chief Operating Officer and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.

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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