MAGELLAN COMPLETES PLAN OF ARRANGEMENT WITH CHAPLEAU

Vancouver, BC, September 1, 2009 - Magellan Minerals Ltd. (TSX-V: MNM) (?Magellan?) has completed a plan of arrangement with Chapleau Resources Ltd. (?Chapleau?) pursuant to a special resolution passed by the Chapleau shareholders on August 26, 2009 and final court approval obtained on August 27, 2009.  The business combination became effective on September 1, 2009.

Pursuant to the terms of the plan of arrangement, Magellan acquired all the issued and outstanding shares of Chapleau, with each Chapleau shareholder receiving 0.267 Magellan shares for each Chapleau common share.  Upon the exercise of outstanding Chapleau stock options and share purchase warrants, the holders are entitled to receive common shares of Magellan in an amount and at exercise prices adjusted in accordance with the same exchange ratio.

As a result of the plan of arrangement, approximately 26,038,600 shares of Magellan were issued to shareholders of Chapleau.  Approximately 3,237,375 Magellan shares were reserved for issuance upon exercise of Chapleau stock options and approximately 2,787,480 Magellan shares were reserved for issuance upon exercise of Chapleau share purchase warrants.  

Prior to the plan of arrangement, Magellan owned 3,333,333 shares and 3,333,333 share purchase warrants of Chapleau.  These shares and share purchase warrants will be cancelled.

Upon completion of the plan of arrangement, Chapleau became a wholly-owned subsidiary of Magellan.  Effective on the close of business on September 1, 2009, the common shares of Chapleau will be delisted from the TSX Venture Exchange.  Ian Gendall, formerly the President of Chapleau, became a director of Magellan and Jim Stypula, formerly Chapleau?s CEO, became Chairman of the Board of Directors of Magellan.

For further information, please contact:

Alan Carter, President and CEO, at 604 676 5663 or info@magellanminerals.com

Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the corporations? periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available.  Statements in this press release other than purely historical information, including statements relating to the companies? future plans and objectives or expected results, constitute forward-looking statements. Forward looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the companies? business, including risks inherent in mineral exploration and development. The companies do not assume the obligation to update any forward-looking statement.  In particular, no representation is made in this release as to the timing of the plan of arrangement, whether the plan of arrangement will complete on the terms described herein or at all, the success or value of the combined companies after the plan of arrangement.  In addition, there are numerous risks and other factors that will influence a development decision, including concluding resource evaluations on mineral properties, mine design limitations, permitting risks and economic factors, all of which may be beyond our control.

U.S. Cautionary Statements:  The securities issued by Magellan pursuant to the plan of arrangement have not been and will not be registered under any federal or state securities law of the United States and will not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

TSX Venture Exchange:  Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.