Magellan Minerals Limited provided an update regarding the ongoing feasibility study at its Coringa project, located in the state of Para in northern Brazil. Highlights include:- Diamond drilling is in progress with two rigs currently drilling at depth and in the southern part of the Serra zone. The initial three holes have all intersected the Serra structure at depths in excess of 200m below surface. Metallurgical test work is in progress at Testwork Desenvolvimento de Processo Ltda, a laboratory based in the state of Minas Gerais, Brazil. Two 250kg composite samples are currently undergoing testing. Ausenco is currently engaged in backfill/tailings tradeoffs and geotechnical studies for the tailings site facilities as well as the plant site. Snowden is conducting an underground geotechnical study, their rock mechanics engineer will be on site at the end of the month. Hydrogeological work is currently being completed under the direction of Global Resource Engineering Ltd. The Feasibility Study at Coringa is currently well advanced with two rigs currently operating on site with the objective of upgrading Inferred resources to the Measured and Indicated category at Serra, Meio - Come Quieto and Mae de Leite. Drill results are expected during May-June. The results of metallurgical test work currently in progress at Testwork Desenvolvimento de Processo Ltda, in Brazil, are expected in late June. The feasibility study is expected to be completed during October 2013. Following the completion of the current drill program at Coringa, the rigs will move to the adjacent and contiguous Mato Velho property which is located 15km from Coringa and where previous drilling returned a number of high grade gold intercepts.

Magellan Minerals Limited announced the commencement of diamond drilling at its Coringa project located in the southern part of Para state in Brazil. The drill program forms part of the ongoing feasibility study at Coringa. The specific objectives of this program are to upgrade the inferred resources at the Serra, Come Quieto and Mae de Leite zones and expand the total resource base at Coringa. The program will consist of an initial 2500m with an option to increase the total to 5000m. A total of 16 initial holes are planned initially with results anticipated during the second quarter of 2013. The company announced two advanced gold properties in the Tapajos Province of northern Brazil. The Cuiu Cuiu project contains 100,000oz of gold in the Indicated category (3.4Mt at1.0g/t gold) and 1,200,000oz of gold in the Inferred category (31Mt at 1.2g/t gold). The Coringa project contains Measured and Indicated resources of 561,000oz of gold (3.2Mt at 5.5g/t gold) and Inferred resources of 534,000oz of gold (5.5Mt at 3.0g/t gold).

Magellan Minerals Limited announced the results of eight additional exploration holes recently drilled at the previously untested Ivo, Ratinho South and Ratinho North targets at the Cuiu Cuiu project. Ivo is located 800m north of the Moreira Gomes gold deposit (comprising 14Mt @ 1.5 g/t of gold for 700,000oz in the Inferred category). The Ratinho North and Ratinho South anomalies are located 9km NNW and 8.5km NW of the Central gold deposit respectively which comprises 3.4Mt @ 1.0 g/t of gold for 100,000oz in the Indicated category and 17Mt @ 0.9 g/t of gold for 500,000oz in the Inferred category. Highlights include: The discovery of two additional mineralized zones at Ivo and Ratinho North at the Cuiu Cuiu project; 7.5m @ 2.78 g/t gold including 0.5m @ 38.0 g/t gold in hole 169 which was drilled in the central part of the Ivo zone; Numerous other mineralized intervals in hole 169 at Ivo including 8.8m @ 1.47 g/t and 4.2m @ 0.89 g/t gold; and Numerous mineralized intervals in two drill holes completed at the Ratinho North anomaly suggesting the potential for an additional mineralized body. Four reconnaissance holes were drilled at Ivo over a 500m E-W strike length and under small surface workings which returned values of 2m @ 104 g/t gold and 5m @ 54.8g/t gold in recently completed channel samples. Of the 4 holes, hole 169 cut the most significant values and intersected a number of mineralized intervals including 7.5m @ 2.78 g/t gold from 37.9 to 45.4m depth including 0.5m @ 38.0 g/t gold from 43.5 to 44.0m depth confirming the presence of high grade gold mineralization at depth at Ivo. Other intervals intersected in hole 169 include 8.8m @ 1.47 g/t gold from 81.2 to 90.0m depth, 1.9m @ 1.43 g/t gold from 100.5 to 102.4m depth and 4.2m @ 0.89 g/t gold from 117.9 to 122.1m depth. The other three holes drilled at Ivo also cut numerous mineralized intervals but of generally lower grade and are shown in the accompanying table of drill results. These drill results are not dissimilar to the initial drill results returned from the Moreira Gomes deposit located immediately to the south. Furthermore, the Ivo structure is interpreted to trend in a more NW-SE direction akin to the deposit at Central and the mineralized zone at Jerimum do Baixo which would explain why mineralization is stronger in hole 169. Hole 170 drilled 100m west of hole 169 bottomed in mineralized rock (0.22 g/t gold) which further supports this conclusion. Further drilling to the NW and SE at Ivo will be required to define the limits of the mineralization identified in hole 169. reconnaissance holes, 175 and 176 were drilled at the Ratinho North target over a 150m E-W strike length. Ratinho North has never been previously drill tested and is a gold-in-soil anomaly which is located approximately 9km NNW of the Central gold deposit. Ratinho North extends in a NW-SE direction over approximately 4km and is coincident with a major structure and a pronounced magnetic low. Numerous low grade mineralized intervals were intersected in both drill holes including 10m @ 0.30 g/t gold, 1m @ 1.59 g/t gold, 1m @ 0.7 g/t gold, 1.6m @ 0.8 g/t gold, 6.5m @ 0.50 g/t gold, 2m @ 0.70g/t gold and 1m @ 1.0 g/t gold as well as a number of other lower grade intervals all within the top 70m of hole 176. The two holes drilled thus far at Ratinho North have tested a very small portion of the 4km long gold-in soil and coincident magnetic anomaly. The presence of numerous mineralized intervals in both holes strongly suggests the presence of a significant mineralized body at Ratinho North and further drilling is required to fully test this area particularly to the north-west of the current drilling. Two additional holes, 173 and 174 were drilled at the Ratinho South target which has similarly never been previously drill tested. The gold-in-soil anomaly at Ratinho South is located approximately 8.5km NW of the Central gold deposit and extends in a NW-SE direction over approximately 2.5km. The two holes reported here were drilled 100m apart and cut only narrow mineralized intervals. The source of the gold-in-soil anomaly at Ratinho South remains unexplained. The discovery of significant mineralization at the Ivo and Ratinho North targets at Cuiu Cuiu demonstrates the potential for the discovery of additional mineralized bodies within the Cuiu Cuiu project areas and highlights the need for further drilling in order to expand the existing resources.