RB

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS.


Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") is pleased to announce
that it has signed a binding Letter of Intent with Ross Beaty ("RB") to partner
on its interests in the Pocone gold belt in the state of Mato Grosso in western
Brazil.


Magellan holds interests in two joint ventures in the Pocone area that include
approximately 64,090ha which are held in a 50:50 joint venture with a private
Canadian company, ECI Exploration and Mining Limited ("ECI"). In addition,
Magellan owns a 35% interest in Pocone Gold Mineracao Ltda ("Pocone Gold"), a
private Brazilian company which is also 35% owned by ECI, and a private
Brazilian company called Brasil Central Engenharia Ltda which owns a 30%
interest. Pocone Gold controls approximately 122,390 ha in the Pocone region. 


The principal terms of the agreement are as follows:-



--  RB will pay Magellan a total of $1M in cash including $250,000 on
    execution of a definitive agreement within 30 days, and a further
    $250,000 on the first anniversary 
--  An additional $250,000 will be paid to Magellan once ECI and Magellan
    complete the transfer of their claims to Newco, and the remaining
    $250,000 will be paid on the first anniversary of this transfer 
--  ECI will sell its interests in the Pocone belt to RB according to the
    same terms 
--  In addition, RB will invest a total of $5M into Newco on signing a
    definitive agreement for a 60% interest. Magellan and ECI will each
    retain a 20% interest in Newco. In the event that Magellan's interest
    drops below 10% it shall convert to a 0.5% NSR on any future gold
    production 
--  RB will also reimburse Magellan and ECI up to a maximum of $80,000 to
    cover the annual cost of holding the properties 



The Pocone gold belt extends for at least 90km and is located in the southern
part of the state of Mato Grosso. It is characterized by a series of highly
deformed schists that are cut by gold-bearing vein swarms. Approximately 50
small open pit gold mines are currently in operation throughout the belt which
has an estimated historic production of 6-12Moz of gold. 


Commenting on the agreement, Alan Carter, President and CEO of Magellan said "we
are extremely pleased to have Ross Beaty as a partner in the Pocone gold belt
which we believe has world class potential. Ross brings significant resources
and technical expertise to the venture, as well as a highly respected team that
has a proven track record in creating significant shareholder value". 


The agreement is subject to approval of Magellan's Board of Directors and the
TSXV exchange. A definitive agreement will be executed within 30 days.


Ross Beaty is a geologist and mining entrepreneur with more than 38 years of
experience in the international minerals industry. 


Magellan Minerals Ltd. (TSX VENTURE:MNM) is a TSX Venture Exchange listed
exploration and development company with two advanced gold properties in the
Tapajos Province of northern Brazil. The Coringa project contains Measured and
Indicated resources of 561,000oz of gold (3.2Mt @ 5.5g/t gold) and Inferred
resources of 534,000oz of gold (5.5Mt @ 3.0g/t gold) and is currently undergoing
a bankable feasibility study. The Cuiu Cuiu project contains 100,000oz of gold
in the Indicated category (3.4Mt @ 1.0g/t gold) and 1,200,000oz of gold in the
Inferred category (31Mt @ 1.2g/t gold).


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release. 


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, and 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. 


News release #2014-1

FOR FURTHER INFORMATION PLEASE CONTACT: 
Magellan Minerals Ltd.
Alan Carter
President and CEO
604.676.5663
info@magellanminerals.com

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