N@N

Recent soil sampling has identified several new gold-in soil anomalies which are parallel and immediately to the west of the main structure. One of these anomalies extends for 2.5km and is still open. None have been drilled previously and will be the focus of three additional diamond drill holes which will extend the total drill program by an additional 500m to a total of 3000m. Drilling at Coringa is expected to be completed by the end of June.

Ian Gendall, Chief Operating Officer of Magellan stated that, "we are very pleased to be able to report the southern expansion of the Meio zone at Coringa, and whilst some of the holes did not return economic values, the results returned to date will result in an expanded resource estimate. In addition, the recent identification of several parallel gold-in-soil anomalies raises the possibility of parallel, and as yet untested gold bearing structures."

Holes were drilled at angles of 50 to 60 degrees. All core samples (HQ diameter) were cut with a diamond saw and one-half of the core placed in bags, numbered and sealed then sent via a secure transport agency to the Company's office in Novo Progresso before shipping via secure transport to ACME preparation laboratory in Itaituba for sample preparation. Core samples were crushed down to 2 mm and a 1 kg split taken and pulverized to better than 85% minus 200 mesh. From Itaituba, ACME sent the pulp samples to Vancouver, Canada for assaying. Gold analysis was by fire assay of a 30 g sample and atomic absorption finish. Silver and additional 35 elements using a 4 acid digestion were analyzed by Inductively Coupled Plasma Mass Spectrometry (ICP-MS). ACME is an ISO 9001 registered laboratory and has a quality control program in place which includes standards, blanks, repeats, and duplicates.

Magellan's QA/QC program also includes the insertion of standards, field duplicates and blank material in the sample sequence with the normal core samples to monitor sampling variances, laboratory precision and accuracy, and to identify problems caused by poor sampling, preparation, assaying errors and possible sample contamination.

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 prepared and reviewed the technical information contained in this news release.

This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. 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.

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