Mr. Alan Carter reports

MAGELLAN RECOMMENCES FEASIBILITY STUDY AT CORINGA PROJECT, BRAZIL

Magellan Minerals Ltd. has recommenced the feasibility study on its 100-per-cent-owned Coringa gold project in Brazil which had been suspended since August, 2013. The study is being led by Ausenco Engineering Canada Inc. and Snowden Mining Industry Consultants, and is expected to be completed during March, 2015.

Also included as part of the team are Terra Meio Ambiente, which will continue to manage the environmental components and permitting aspects of the study, Kovit Engineering Ltd., which is designing and costing the tailings and backfill components of the project, and Deswik Mining Consultants, which is responsible for mine layout and scheduling. The above group is supported by Magellan staff in Vancouver and Brazil.

Coringa is one of the highest-grade undeveloped gold deposits in Brazil. The PEA which was completed in November, 2012, returned a posttax internal rate of return of 33 per cent on a 750-tonne-per-day underground mine producing an average of 51,000 ounces per year with a capital cost of $65-million and a life-of-mine grade of 6.7 grams per tonne gold.

Commenting on the recommencement of the feasibility study, Alan Carter, president and chief executive officer, said: "We are very pleased to be able to recommence the feasibility study on Coringa during extremely difficult market conditions. The recently announced financing is a testament to the quality of the project and the tenacity of the management team and we look forward to keeping shareholders appraised of developments on the feasibility study as they occur."

Qualified person

John Kiernan, PEng, Magellan's vice-president, project development and a qualified person within the definition of that term in National Instrument 43-101, has reviewed the technical information contained in this news release.

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