Magellan Reports Initial Resource Estimate at Coringa Project, Brazil

VANCOUVER, BRITISH COLUMBIA, Oct 08 (MARKET WIRE) --
Magellan Minerals Ltd. (TSX VENTURE: MNM) ("Magellan") is pleased to
report the results of an initial National Instrument (NI) 43-101
compliant resource estimate on its Coringa project, Brazil which has been
completed by independent consultants, Global Resource Engineering (GRE)
Ltd. The work was originally commissioned by Chapleau Resources Ltd.
prior to completion of the business combination with Magellan.

Highlights

- The resource estimate completed by GRE includes 269,500 measured and
indicated troy ounces of gold representing 982,291 tonnes at an average
grade of 8.53 g/t gold and 98,224 inferred troy ounces of gold
representing 327,054 tonnes at an average grade of 9.34 g/t ton gold on a
diluted basis and using a 2 g/t gold cut-off.

- Of the total gold resource reported here, 73% of the total are measured
and indicated resources and 27% of the total are inferred resources.
Table 1 below presents the Coringa mineral resource by block at a 2 g/t
gold cut-off grade.

- Raising the cut-off grade to 5 g/t gold results in a measured and
indicated resource of 0.563 Mt @ 12.37 g/t gold (223,914 troy ounces
gold) and an inferred resource of 0.178 Mt @ 14.65 g/t gold (83,873 troy
ounces gold) on a diluted basis. Table 2 below presents the Coringa
mineral resource by block at a 5 g/t gold cut-off grade.

-
Preliminary metallurgical test work showed that a combination of gravity
separation and flotation should result in an estimated 85 to 90% gold
recovery.

- GRE concluded that "the vein system is open both at
depth and along strike" and that "it is highly probably that the main
vein system comprised of the 4 resource areas (see plans on Magellan
Minerals website) is continuous between blocks".

Geology and Mineralization

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. An estimated 10 tonnes of gold has reportedly been produced
from alluvial and primary sources at the property.

The main shear structure at the project is approximately 7 km in length,
trends 345 degrees and is open both to the north and south. Sub-parallel
and parallel shear structures add at least another 2.7 km to the total
strike length. The mineralized shear and vein structures vary in width
from 15 cm to 4.0 m. Pyrite is the most common sulphide, followed by
sphalerite, galena, chalcopyrite, and in a smaller amount covellite. The
alteration is mainly sericitization, with some silicification and
chloritization which generally occurs as narrow haloes.

Table 1

Coringa Mineral Resource, 2 g/t Gold Cut-Off Grade (Diluted)
October 8, 2009

----------------------------------------
Resource Au Au
Area Tonnes (troy oz) (g/t)
----------------------------------------
MEASURED
----------------------------------------
Serra 210,405 58,120 8.59
----------------------------------------
Meio 173,710 50,343 9.01
----------------------------------------
Galena 96,012 23,001 7.45
----------------------------------------
Eloy Juara 17,708 3,884 6.82
----------------------------------------
INDICATED
----------------------------------------
Serra 336,004 103,611 9.59
----------------------------------------
Meio 92,917 19,757 6.61
----------------------------------------
Galena 38,142 8,098 6.60
----------------------------------------
Eloy Juara 17,393 2,636 4.71
----------------------------------------
TOTAL MEASURED & INDICATED
----------------------------------------
All Areas 982,291 269,450 8.53
----------------------------------------
INFERRED
----------------------------------------
Serra 280,794 94,294 10.44
----------------------------------------
Meio 41,715 3,594 2.68
----------------------------------------
Galena 3,735 268 2.23
----------------------------------------
Eloy Juara 810 68 2.61
----------------------------------------
TOTAL INFERRED
----------------------------------------
All Areas 327,054 98,224 9.34
----------------------------------------

Table 2

Coringa Mineral Resource, 5 g/t Gold Cut-Off Grade (Diluted)
October 8, 2009

----------------------------------------
Resource Au Au
Area Tonnes (troy oz) (g/t)
----------------------------------------
MEASURED
----------------------------------------
Serra 120,931 48,131 12.38
----------------------------------------
Meio 114,833 44,141 11.96
----------------------------------------
Galena 60,232 19,058 9.84
----------------------------------------
Eloy Juara 9,551 3,059 9.96
----------------------------------------
INDICATED
----------------------------------------
Serra 184,051 86,659 14.64
----------------------------------------
Meio 39,118 14,254 11.33
----------------------------------------
Galena 27,188 7,076 8.10
----------------------------------------
Eloy Juara 7,142 1,536 6.69
----------------------------------------
TOTAL MEASURED & INDICATED
----------------------------------------
All Areas 563,046 223,914 12.37
----------------------------------------
INFERRED
----------------------------------------
Serra 177,718 83,805 14.67
----------------------------------------
Meio 405 68 5.22
----------------------------------------
Galena 0 0
----------------------------------------
Eloy Juara 0 0
----------------------------------------
TOTAL INFERRED
----------------------------------------
All Areas 178,123 83,873 14.65
----------------------------------------

NOTE: Mineral resources that are not reserves do not have
demonstrated economic viability. An Inferred Mineral
Resource is that part of a mineral resource for which
quantity and grade can be estimated on the basis of
geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade
continuity. An Indicated Mineral Resource is that part
of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics,
can be estimated with a level of confidence sufficient
to allow the appropriate application of technical and
economic parameters, to support mine planning and
evaluation of the economic viability of the deposit.

The resource estimate used a density of 2.7 t/m3 and dilution
representing a minimum mining width of 1.5 m.

Magellan's President and CEO, Alan Carter stated, "We are very pleased
with the results of this initial resource estimate at Coringa which
covers only 20% of the mineralized structures identified thus far. Both
the grade, and the ongoing identification of additional high grade zones
and previously undiscovered structures, suggest that Coringa will grow
into a major gold deposit."

Further drilling aimed at adding to the known gold resource and testing
new targets at Coringa is planned and will be initiated once all
outstanding soil sampling results and additional rock sampling of new
identified structures have been received and evaluated. Magellan is
committed to the completion of a scoping study at Coringa during early
2010.

Coringa Mineral Resource Estimation Methodology

The Coringa mineral resource estimate was prepared under the supervision
of Mr. Kevin J. Gunesch a registered Professional Engineer in the state
of Alabama (27448) and Principal Mining Engineer of Global Resource
Engineering Ltd. (GRE). Christopher K. Chapman a registered Professional
Engineer in the State of Colorado (40679) and Principal Mining and Civil
Engineer of GRE and Terry A. Lane associate of GRE, AusIMM registered,
and Principal Mining Engineer for Gustavson and Associates participated
in the Coringa NI 43-101 report preparation. The mineral resource
estimate was prepared under Canadian Institute of Mining Metallurgy and
Petroleum (CIM) Definition Standards (2005) and CIM Best Practice
Guidelines for preparing mineral resources and mineral reserves. Mr.
Gunesch is an "independent" and "qualified person" as such terms are
defined in NI 43-101.

GRE developed a block model using the drill-hole data from 8,785 m of
core drilling in 81 exploration holes, assay results, and geological
structure of the deposit. Gold grades were estimated using the inverse
distance squared method and were confined to the mineralized zones, which
are comprised of gold veins within the "shear" areas of the project. The
Mineral Resource estimate for the project was completed independently by
GRE using Chapleau's exploration database. Prior to completing the
calculation, GRE verified the data contained within the database. This
included taking firsthand measurements of the drill holes and comparing
them to the database; comparing original handwritten geologic logs to the
database and onsite core; completing a review of the quality assurance
data gathered from the blanks, standards, and duplicated used in the
Quality Assurance/Quality Control (QA/QC) sample program; reviewing the
chain of custody sample documentation for completeness; and sending two
additional core samples chosen by GRE to verify laboratory assay results.
A site visit was performed by Mr. Kevin J. Gunesch P.E. of GRE in May
2009. It is GRE's opinion that the data used for the resource calculation
describes the deposit sufficiently to support this technical assessment
of the resource. GRE utilized all drill holes to develop continuity of
different veins. The veins are sub-parallel, in echelon. Five vein
horizons have been modeled. A mine grid was created to simplify the
modeling of the steeply dipping deposit. A gridded model covering the
Coringa area was built in the mine grid coordinate system, in meters,
using Techbase software. The gridded model was defined sufficiently large
to cover all drilling and known deposits. The grid size was 10 by 10
meters, orientated vertically. The x coordinate of the hangingwall and
footwall contacts was modeled, and the horizontal vein thickness
determined by subtracting the footwall coordinate from the hangingwall
coordinate. Topography was based on ground survey data provided by
Chapleau (comprised of a digital elevation model produced during airborne
geophysical surveys combined with the drill-hole collar surveys) and was
used to constrain the upper limit of the block model. It should be noted
that detailed survey of the artisanal surface workings has not been
performed and is recommended for future work. Grade was estimated
separately for the vein, hangingwall, and footwall using the composite
data for each of these regions. Grade was estimated using the inverse
distance squared relationship and a search distance of 100 m. The tonnage
of each block was estimated using a global average density of 2.7 t/m3.

Resources were calculated for gold cutoff grades of 2 g/t, 3 g/t, 4 g/t,
and 5 g/t, for both undiluted and diluted conditions. Blocks located
within 1/3rd of the variogram range (33 meters) of composites exceeding
the cutoff grade were classified as measured resources, those falling
between 1/3rd and 2/3rds of the variogram range (33 meters and 67 meters)
were classified as indicated resources, and those falling between 67
meters and 100 meters were classified as inferred resources. Dilution
calculations considered a minimum mining width of 1.5 meters and a
minimum 0.3 meters dilution on both the hangingwall and footwall This
means that for vein thicknesses equal to or greater than 0.9 meters,
dilution is taken equally from the hangingwall and footwall at 0.3 meters
thickness. For vein thicknesses less than 0.9 meters, greater than 0.3
meters of dilution must be taken from either the hangingwall or footwall
in order to achieve a minimum mining width of 1.5 meters. In this case,
the grades of the hangingwall and footwall were compared and greater
dilution taken from the side with the higher grade.

The complete NI 43-101 report on the Coringa project will be filed on
SEDAR within the next 45 days.

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.

Contacts:
Magellan Minerals Ltd.
Alan Carter
President and CEO
604.676.5663
info@magellanminerals.com

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