MAGELLAN COMMENCES PRELIMINARY ECONOMIC ASSESSMENT AT CORINGA PROJECT, BRAZIL

Vancouver, BC, January 5, 2010 - Magellan Minerals Ltd. (TSX-V: MNM) ("Magellan") has initiated a preliminary economic assessment (PEA) study at its Coringa project in northern Brazil. The study will be completed by Global Resource Engineering (GRE) Ltd. and should be completed by the end of March 2010.  

GRE recently completed a resource estimate for the Coringa Project in October 2009  which estimated the total resource at 367 674 troy ounces of gold using a cutoff grade of 2 g/t and a minimum mining width of 1.5m (see press release on October 08).  This resource included 269,500 oz (982,291 tonnes at an average grade of 8.53 g/t gold) in the measured and indicated category and 98,224 oz (327,054 tonnes at an average grade of 9.34 g/t ton gold) in the inferred category. This resource estimate, which will be the basis for the PEA study, is based on less than 20% of the mineralized structures identified thus far on the property. Recent surface sampling at Coringa (see press release dated 3rd November) suggests the presence of additional high grade zones within the existing vein system. Additional exploration drilling is planned for the first quarter of 2010 to further delineate additional gold mineralization both at depth and along strike of the known resources.

The Coringa Project is a shear-vein system, hosted in mid-Proterozoic volcanic rocks and granites on the southern margin of the Tapajos Gold Province. A non-compliant, NI 43-101, estimate of 320,000 ounces of gold has reportedly been produced from historical alluvial and primary sources at the property.

The main shear structure at the project is approximately 7 km in length, trends 345� and is open both to the north and south. Sub-parallel and parallel shear structures add at least another 3km to the total strike length. The mineralized shear and vein structures vary in width from 15 cm to 4m.

The complete National Instrument 43-101 report on the Coringa project can be found on SEDAR at www.sedar.com and on Magellan's website at www.magellanminerals.com

Ian Gendall (Pr. Sci. Nat.), Magellan's Chief Operating Officer and a "qualified person" within the definition of that term in NI 43-101, has reviewed the technical information contained in this news release.

For further information, please contact:

Alan Carter

President and CEO

Tel:     604.676.5663

Email: info@magellanminerals.com