VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2012) - Magellan Minerals Ltd. (News - Market indicators)(OTCQX:MAGNF) ("Magellan") is pleased to announce the results of continued surface 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 @ 1.0 g/t gold (100,000oz) of Indicated resources and 31Mt @ 1.2 g/t gold (1,200,000oz) of Inferred resources (see press release dated 8th March 2011).

Highlights include:-

• 2m @ 104.0 g/t gold 80m east of an area with previous maximum recorded grab samples of 2m @ 10.9 g/t gold
• 2m @ 31.0 g/t gold immediately east of the above channel samples
• Numerous other high grade channel samples including 2m @ 16.1 g/t, 2m @ 10.9 g/t, 2m @ 8.8 g/t, 1m @ 14.6 g/t, 1m @ 9.7 g/t, 0.5m @ 18.2 g/t and 0.5m @ 13.1 g/t gold over an exposed length of approximately 200m
• 20m @ 0.52g/t gold indicating that the narrow high grade zone at Ivo is surrounded by a wider more extensive lower grade envelope that remains open in all directions

The Ivo target is located approximately 800m north of the Moreira Gomes gold deposit and is characterized by a gold-in-soil anomaly and a pronounced E-W trending magnetic anomaly that closely resembles the geophysical and geochemical signature at Moreira Gomes (see map on website). No drilling has been conducted thus far on this target. Mapping of recent surface workings at Ivo have revealed a pronounced zone of quartz stockwork / sheeted veining extending over at least 240m along strike that is very similar to Moreira Gomes. The magnetic and geochemical data suggest that the structure may extend to the Quebrabunda prospect located 1.4km to the east where surface sampling recently returned a value of 203.5 g/t gold.

Surface mapping and sampling suggests the presence of a narrow high grade zone at Ivo surrounded by a lower grade envelope that may be 50 - 100m wide. Channel sampling of the narrow high grade structure returned values that include 2m @ 104.0 g/t, 2m @ 31.0 g/t, 2m @ 16.1 g/t, 2m @ 10.9g/t, 2m @ 8.8 g/t, 1m @ 14.6 g/t, 1m @ 9.7 g/t, 0.5m @ 18.2 g/t, 0.5m @ 13.1 g/t, 2m @ 4.7 g/t, 2m @ 4.2 g/t, 2m @ 4.0 g/t and 2m @ 3.9 g/t gold (see map on website for complete set of results)

In addition, a series of 1 to 2m channel chip samples taken across part of the zone at the eastern end of the Ivo showing returned 20m @ 0.52 g/t gold. Mapping suggests that the mineralized zone is wider to both the north and south. The last sample of this series to the north returned 1m @ 1.4 g/t gold and two samples taken just to the south-east returned 1m @ 14.6 g/t gold and 1m @ 3.8 g/t gold.

Given the indications that the zone may be significantly wider than the surface workings currently suggest, Magellan has excavated three trenches immediately north, south and west of the Ivo showing (see map on website). Results on channel samples from these trenches are expected by the end of October.

Guillermo Hughes, Chief Geologist, commented, "these surface results from Ivo are the most important so far at Cuiu Cuiu and indicate the possible presence of a significant mineralized zone only 800m north of the Moreira Gomes gold deposit. The combination of high grades and intense quartz stockwork veining mean that this is a high priority target for follow-up drilling."

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 (News - Market indicators)(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 @ 1.0 g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt @ 1.2 g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt @ 5.5 g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt @ 3.0 g/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.