Magellan Minerals Ltd.

Magellan Minerals Ltd.

July 07, 2008 09:00 ET

Magellan Samples 5.8m @ 16.02 g/t Au At Machiche Zone, Cuiu Cuiu Project, Brazil

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2008) - Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce the identification of a sixth target area at its Cuiu Cuiu project in northern Brazil. The Machiche zone is a high grade quartz-sulphide vein system located between the Jerimum Baixo and Moreira Gomes soil anomalies at Cuiu Cuiu all of which have yet to be drill tested. The Machiche zone is located approximately 5km east of the Central discovery.

Surface sampling at Machiche returned a number of high grade results including 225.76 g/t gold and 20.37 g/t gold from grab samples and channel samples which included 5.8m @ 16.02 g/t, 2.8m @ 29.55 g/t, 2.2m @ 12.28 g/t and 1.5m @ 8.7 g/t gold. This vein system, which has not been previously drilled, has so far been traced for 200m along strike and is between 1 and 3m in width (see map on website).

Magellan is currently conducting an extensive program of ground geophysics over the five previously known gold-in-soil anomalies at Central, Pau de Merenda, Jerimum Cima, Jerimum Baixo and Moreira Gomes, as well as the Machiche zone, in advance of drilling. Much of the geophysical work is focused on the area of the Central discovery and the soil anomaly which extends 1.5km to the north-west of the discovery zone. The forthcoming drill program at Cuiu Cuiu will be expanded to include drill testing of the high grade vein mineralization at Machiche.

A drill contract has been signed with Kluane Drilling Ltd of Canada and drilling at Cuiu Cuiu is expected to commence within the next 2-3 months.

Magellan is also currently exploring its Bom Jardim and Uniao concessions where a number of drill targets have also been identified and are slated for drill tested during the third and fourth quarters of 2008.

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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