Magellan Minerals Ltd. Vancouver, BC, TSX.V : MNM., is a well financed Canadian-based junior exploration company focused on mineral exploration for gold & bauxite and its development in the state of Para in northern Brazil.

Cuiú Cuiú

• Gold deposit hosted by quartz stockwork in granite, discovered in March 2008 - 65m @ 3.54 g/t Au
• Arguably the most famous garimpo in the Tapajós,
• etimated historic gold production in the order of 1.5 to 2M oz
• Second zone identified at Pau de Merenda, 3km • north of Central - 47m @ 1.8 g/t Au
• Magellan property holdings cover the entire district • totaling over 47,000 hectares (> 470 km2)
• Five major soil anomolies identified
• Potential for discovery of multiple deposits in close • proximity

União

• Drill program commenced late September 2008
• Intensely mineralized area that historically
• produced in excess of 1Moz of gold
• 6 separate gold showings identified so far
• High grade vein system at Malvinas showing • returned gold values of 35.7 - 928.9 g/t Au
• Significant soil anomaly 400m x 1300m identified • at Cuiabano-Laje

Highlights: The third quarter of 2008 was highlighted by the following activities:

• At September 30, 2008, the Company had a cash balance of $7,794,573
• A drill program commenced at Uniao in September 2008
• A sixth target area at the Cuiu Cuiu property was identified
• $759,845 was incurred on exploration activities during the quarter ended September 30, 2008 of which $355,488 was incurred in respect of Cuiu Cuiu and $358,900 in respect of Uniao.

The Company has interests in a number of properties in the Tapajos region which has a historic gold production estimated at 20-30Moz of gold. Magellan is searching for the source of this gold and is primarily focused on the Cuiú Cuiú project where numerous areas with anomalous gold values have been identified on surface. Drilling is currently aimed at identifying the source of these anomalies.

• Strong partnership with Newmont Mining - owns 8.1% of Magellan
• The Company has made a significant new discovery at the Central anomaly at its Cuiú Cuiú project - 220m @ 2.02g/t Au
• Magellan’s projects are all located in the Tapajós province which has an estimated historic production of 20 to 30Moz of gold from streams
• Recent drilling on other targets at Cuiú Cuiú suggests the strong possibility for additional discoveries, - 47m @ 1.76 g/t Au at Pau de Merenda and 39m @ 5.13g/t at Jerimum Cima
• Magellan has intersected ore grade bauxite intercepts in 6 out of 10 wide spaced auger holes at the Nhamundá project

The Company has a well managed treasury with C$8.M in cash:

• The Company has a sound management team with a proven track record of discovery and value creation
• Magellan has a significant discovery at Central (220m @ 2.02g/t Au) and has also cut a second zone at Pau de Merenda, 3km to the north
• Excellent upside exists at Cuiú Cuiú (Central and Pau de Merenda are two of six targets) Additional drilling is planned for Q3 2008
• Ore grade bauxite intercepts in 6 our of 10 wide spaced auger holes have recently been returned at the Nhamundá project

OUTLOOK

The Company’s long-term strategy will focus on the further exploration and potential development of the Cuiu Cuiu and Uniao properties. The Company will also continue to explore its remaining properties and also identify and evaluate other prospective mineral properties for acquisition on a selective basis. The Company eventually seeks to generate positive cash flow from its properties in Brazil in order to underpin its business development and geological strategies.

The Company has made a number of changes to its programs in order to minimize its expenditure as a consequence of the recent events in global financial markets. These include a decision to close the Belem office in early 2009, the elimination of a second drill rig which was originally planned for Cuiu Cuiu and the reduction in the number of daily labourers employed in Brazil

Magellan remains well positioned to capitalize on opportunities arising from current market conditions and continues to examine a number of opportunities.