MAGELLAN MINERALS ANNOUNCES UP TO $7.5 MILLION EQUITY FINANCING

TORONTO, May 13, 2010 /CNW/ - Magellan Minerals Ltd. (TSX-V: MNM) ("Magellan") is pleased to announce that it has entered into an agreement with Dundee Securities Corporation on behalf of itself and Toll Cross Securities Inc. (collectively, the "Agents") under which they have agreed to offer for sale, on a best efforts basis, common shares of Magellan ("Shares") at a price of $0.75 per Share for aggregate gross proceeds of up to $7.5 million. The Shares will be offered on a private placement basis pursuant to exemptions from the prospectus requirements of applicable Canadian securities laws.

The net proceeds will be used for exploration and general working capital purposes.

Closing is anticipated to occur on or about June 2, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The Agents will be entitled to a cash commission equal to 6% of the gross proceeds of the offering.  Magellan has also agreed to issue broker warrants to the Agents equal to 6% of the number of Shares sold under the offering. Each broker warrant is exercisable to acquire one Share of the Company at the issue price for a period of 12 months following the Closing Date.

All securities issued pursuant to the offering will be subject to a four month hold period under Canadian securities laws.

This news release contains forward-looking statements. 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. Particular risks applicable to this press release include risks associated with achieving production on the project within the parameters identified in the economic assessment, the ability of the project to generate significant cash flow to the company and earnings to the shareholders of the company. These statements are subject to risks due to regulatory, technical, economic and other factors. In addition there is no guarantee that additional exploration work will result in significant increases to resource estimates. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through SEDAR at http://www.sedar.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the ?U.S. Securities Act?) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

For further information, please contact:

Alan Carter

President and CEO

Tel:     604.676.5663

Email: info@magellanminerals.com