Magellan Drills 108.5m @ 0.93 g/t Gold at Central Target, Cuiu Cuiu
and Extends Mineralization to 350m Below Surface

Vancouver B.C., January 5th, 2011 - Magellan Minerals Ltd. (TSX-V: MNM) ("Magellan") is pleased to report the results for six additional diamond drill holes which were recently completed at the Central target at the Cuiu Cuiu project.

The six holes reported here were designed to test the down-dip continuity of the northern part of the mineralized structure at Central between 50 and 70m vertically below previous drill intersections (see figures on website at www.magellanminerals.com).

Drill hole 99 was drilled 52m SE of hole 55 (136.2m @ 0.91g/t), and returned 108.5m @ 0.93g/t from 199m to 307.5m including 53m @ 1.63g/t gold. This hole extended the mineralized zone vertically another 55m below the previous intersection.

Drill hole 96 was drilled 45m to the NW of hole 55, and returned four mineralized intervals. The first intersection from 0 to 92.4m returned 92.4m @ 0.71g/t of gold including 35m @1.29 g/t gold. The second interval returned 44.7m @ 0.72g/t of gold from 290m to 334.7m, and the third interval returned 60m @ 0.63g/t gold from 344.3m to 404.3m depth, confirming the continuity of gold mineralization intersected in hole 55. A fourth mineralized interval was intersected from 437.9m to 469m and returned 31.1m @ 0.77g/t and is believed to represent a new structure that has not been drilled before which appears to be located immediately to the west of the main Central zone. This structure was intersected at a true vertical depth of 350m below surface.

A table of results for all six holes is shown below.

Results are currently pending on an additional two diamond drill holes: 102 and 103, from the Central zone and drilling is continuing.

Commenting on the results, Alan Carter, President & CEO stated, "The discovery of what we believe to be a new zone at depth at Central opens up the possibility of another mineralized structure immediately west of the main zone. Further drilling will be required to test both this feature and other targets immediately NW, SE and NE of Central early in 2011"

Drilling is also ongoing at the Moreira Gomes zone which is located 5km SE of Central, in order to test the down-depth continuity of the mineralized structure. This drilling will continue early in the New Year.

Pincock, Allen and Holt are currently engaged in an independent 43-101 compliant resource estimate for both the Central and Moreira Gomes zones which is expected early during the first quarter of 2011. Further drilling is also planned in 2011 on the recently discovered Jerimum Baixo zone which is located mid-way between Central and Moreira Gomes.

Holes were drilled at angles of 50 to 60 degrees. All core samples (NTW and BTW diameter) were cut with a diamond saw and one-half of the core placed in bags, numbered and sealed then sent via a secure transport agency directly to ACME preparation laboratory in Itaituba for sample preparation. Core samples were crushed down to 2 mm and a 1 kg split taken and pulverized to better than 85% minus 200 mesh. From Itaituba, ACME sent the pulp samples to Santiago, Chile for assaying. Gold analysis was by fire assay of a 50 g sample and atomic absorption finish. ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes standards, blanks, repeats, and duplicates.

Magellan's QA/QC program also includes the insertion of standards, field duplicates and blank material in the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy, and to identify problems caused by poor sampling, preparation, assaying errors and possible sample contamination.

Ian Gendall has advised the Board of his decision to resign his position of Chief Operating Officer and Director in order to pursue other business interests. The Board thanks Mr Gendall for his efforts and wishes him luck in his future endeavours.

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.


For further information, please contact:
Alan Carter, President and CEO
Tel: 604.676.5663
Email: info@magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this 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.