Trenching Returns 5m @ 54.8g/t Gold from the Ivo Zone at Cuiu Cuiu

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/23/12 -- Magellan Minerals Ltd. (TSX VENTURE: MNM)(OTCQX: MAGNF) ("Magellan") is pleased to announce the results of follow up trench sampling at the recently identified Ivo prospect located at the Cuiu Cuiu project in the state of Para in northern Brazil. The Cuiu Cuiu project currently contains 3.4Mt @ 1.0g/t gold (100,000oz) of Indicated resources and 31Mt @ 1.2g/t gold (1,200,000oz) of Inferred resources (see press release dated 8th March 2011).

Highlights include:-

--  5m @ 54.8g/t gold in a trench located approximately 110 m west and along
    strike from the area with previously reported gold values of 2m @ 104g/t
    gold. The mineralized zone remains open along strike to the east and
    west and is also open in terms of width
--  15m @ 2.3g/t gold including 5m @ 5.7g/t gold in a trench located 35-45m
    immediately north of the exposed surface workings at Ivo
--  10m @ 1.0g/t gold including 5m @ 1.7g/t gold in a trench 40-50m south of
    the exposed surface workings at Ivo

The results reported here are from three trenches which were designed to follow up the recently released channel sample results from surface workings at the Ivo target which is located approximately 800m north of the Moreira Gomes gold deposit (see press release dated 11th October 2012). Trenches were developed immediately to the north, south and west of the main east-west trending mineralized structure at Ivo in order to further test the continuity and width of the mineralization at Ivo.

The identification of 5m @ 54.8g/t gold in a trench 60m west of the Ivo showing extends the Ivo zone an additional 60m to the west and increases the total exposed strike length from 240 to 300m. These results are also located approximately 110 m west and along strike from the area with previously reported gold values of 2m @ 104g/t gold. The zone remains open both to the east and west and to the north since the high grade mineralization was returned from the most northerly sample in the trench (see map on website).

Of the trenches developed to the north and south of the Ivo showing, the most northerly trench returned 15m @ 2.3g/t gold including 5m @ 5.7g/t gold suggesting that the mineralized zone at Ivo may extend an additional 35-45m in terms of width to the north of the exposed surface workings. Similarly, the trench developed to the south of the Ivo showing returned 10m @ 1.0g/t gold including 5m @ 1.7g/t gold located 40-50m south of the exposed surface workings. This last sample was returned from the most southerly part of the trench and suggests that the zone remains open in terms of width to the south.

The results returned from the trenching suggest that the mineralized zone at Ivo could be 125m in width or at the very least, comprised of three parallel mineralized zones. The sheeted vein / stockwork mineralization exposed on surface is the most intense so far mapped on surface at Cuiu Cuiu.

Further work at Ivo will focus on additional trenching and trado sampling along strike from the surface workings. Trado work is also in progress at the Ratinho and Ratinho South gold-in-soil anomalies which are located 8.5 to 9km NW of the Central deposit. Magellan is currently awaiting quotations for a diamond drill program to test these previously untested targets.

This press release was reviewed by Guillermo Hughes, B.Sc., a member of the AIG and the AUSIMM, a qualified person in compliance with National Instrument 43-101

Magellan Minerals (TSX VENTURE: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold).

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, the preparation of a feasibility study on the project, 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. Readers should not assume that the company's plans to prepare a feasibility study mean that a feasibility study can or will be prepared. There is no guarantee that a feasibility study will be prepared or, if prepared, that it will be commenced in the timeframe set out in this news release.

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
www.magellanminerals.com