Building Gold Resources in Brazil’s Tapajos Region

TSX-V: MNM | www.magellanminerals.com

August 2011

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Safe Harbor Statement

The material presented herein is private and confidential. The contents are not to bereproduced or distributed to any third party, including the public or press.

Certain statements contained in this presentation constitute forward-lookingstatements. These statements relate to future events or the Corporation's futureperformance, business prospects or opportunities. All statements other than statementsof historical fact may be forward-looking statements. Forward-looking statements areoften, but not always, identified by the use of words such as "seek", "anticipate", "plan","continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting","intend", "could", "might", "should", "believe" and similar expressions. These statementsinvolve known and unknown risks, uncertainties and other factors that may cause actualresults or events to differ materially from those anticipated in such forward-lookingstatements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that theseexpectations will prove to be correct and such forward-looking statements should not beunduly relied upon. These statements speak only as of the date specified. TheCorporation does not intend, and does not assume any obligation, to update theseforward-looking statements.

These forward-looking statements involve risks and uncertainties relating to, among otherthings, results of exploration activities, the Corporation's limited experience withdevelopment-stage mining operations, uninsured risks, regulatory changes, defects intitle, availability of materials and equipment, timeliness of government approvals, changesin commodity and, particularly, diamond, prices, actual performance of facilities,equipment and processes relative to specifications and expectations and unanticipatedenvironmental impacts on operations. Actual results may differ materially from thoseexpressed or implied by such forward-looking statements.

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Why Invest in Magellan?• Region with Excellent Potential: the Tapajos is the World’s third

largest placer gold province, estimated to have produced 20-30 Mozfrom streams between 1978 and 1995 from artisanal, garimpeiro-type miners

• Experienced Management: 150+ years of mining experience, track record for discovery. Management is previously responsible for discovery of the nearby Tocantinzinho deposit (2.5Moz), now owned by Eldorado Gold

• Projects: two organic, grass roots gold discoveries so far - and building…

• Cuiu Cuiu – 1.3Moz gold resource (100,000oz indic + 1.2Moz inf), drilling with 3 rigs

• Coringa – 370,000 oz gold resource (270,000oz indic + 100,000oz inf), drilling with 3 rigs

• Key Stakeholders: Newmont Mining owns 2.5%; Kinross owns 1%

• Strong Cash Position: $20.5 M in treasury – Q2, 2011

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Proven Management Team

• Jim Stypula, Chairman - previously CEO of Chapleau Resources, financier with 20years experience in mineral exploration. Founding director of Far West Mining

• Alan Carter, B.Sc., Ph.D., President & CEO, Director - 20 years of experience.Former Exploration Manager for Rio Tinto and Business Dev. Manager at BHP Billiton.Director and co-founder of Peregrine Diamonds and Peregrine Metals. Raised +$100Min capital for mining and exploration companies since 2004

• Dennis Moore, B.Sc., P.Eng., VP Business Development, Director - explorationgeologist with 27 years experience, half of it in Latin America. Responsible fordiscovery of the Tocantinzinho deposit, now owned by Eldorado Gold

• Paul Hansed, C.A., B.A., Chief Financial Officer - 20+ years of accounting andfinance experience including 19 years with KPMG in Canada and Europe. CFO ofMagellan Minerals since March 2008

• Guillermo Hughes, B.Sc., P.Eng., - Chief Geologist - 26 years experience in themineral exploration industry including experience in Argentina, Peru and Brazil

• Gordon Allen, B.Sc., - Head, Regional Exploration - 35 years experience in themineral exploration industry, predominantly in Latin America. Exploration experienceFar West Mining Ltd., and the discovery of the Santo Domingo IOCG deposit innorthern Chile.

• Derek White, B.A., Director - currently Executive VP Bus. Dev. of Quadra Mining andwith 20+ years financial experience in the mining and metals industry. He worked forImpala Platinum Ltd, Gencor and Billiton, where he was CFO of the Base MetalsDivision

• Mario Szotlender, Director - former CEO of Rusoro Mining, Director of EndeavourSilver and Radius Gold. 20 years experience financing and managing companiesin Latin America

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The Tapajos : World’s third largest placer gold belt

• Site of the world’s largest ever gold rush from 1970’s to 1990’s

• Largest alluvial gold province in Brazil, third largest alluvial gold province in world – previous production from streams estimated at 20-30 Moz of gold

• Geology is similar to other prolific gold belts (e.g. Eastern Canada, Western Australia). World-class potential

• Under-explored province. One mid-size deposit discovered so far: Tocantinzinho (2.5 Moz)

• Kinross, Eldorado and Newmont are active. Eldorado acquired Tocantinzinho for $122M during mid 2010. Eldorado also spent $5M on a 27% stake in Serabi Mining in 2010

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Key land position in competitive belt

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Cuiú Cuiú’s Relation to Tocantinzinho

• Cuiú Cuiú is one of the two largest historic garimpeiro gold producers in the Tapajós*

• Tocantinzinho deposit is 1.5 km (2.5Moz resource) long and produced an est. 200,000oz of gold from artisanal surface workings **

• Cuiú Cuiú is 12 km long and 25 km NW of Tocantinzinho and produced 2Moz from streams

• Eldorado’s PFS complete with an 11.8% IRR. A FS is the next step. Will make a construction decision by the end of 2011

* Source : DNPM

** Source: Melho, R. 2007. A preliminary assesment of the Tocantinzinhop gold project, Tapajos gold province, Para Brazil. NCL Brazil 43-101 report

Cuiu Cuiu2Moz from streams+1.3Moz resource

to date

Tocantinzinho0.2Moz from streams

2.5Moz resource

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Cuiú Cuiú

• 1.2 Moz of Inferred resources and 0.1 Moz of Indicated goldidentified to date at Central and Moreira Gomes at grade of 1.2g/t

• 470 Sq km concession, 100% owned

• 12 km long gold-in-soil anomaly based on 10,000 soil samples

• 25,000m of drilling planned for 2011, 3 rigs currently operating

Aerial view of village of Cuiu Cuiu

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Cuiú Cuiú – a district rather than a project

Placer gold workings

Placer gold workings

Central deposit 0.6Moz

Moreira Gomes deposit 0.7Moz

Placer workings and soil anomalies

Au in soils (ppb)

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Cuiú Cuiú….1.3Moz and counting

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Central – 1 of 2 deposits so far at Cuiú Cuiú

• Bulk tonnage open pittable deposit

• Inferred resources to date at Central total 17Mt @ 0.9 g/t gold (0.5Moz) + Indicated resources of 3.4Mt @ 1.0 g/t (0.1Moz)

• Central deposit currently extends over approx. 1,000m strike and 450m depth

• Deposit remains open to north, south and at depth

• Additional drilling is in progress

Aerial view of Central deposit looking north

Stockwork mineralization on surface at Central

Outline of mineralized

zone at Central

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CentralSE-NW section through Central

Typical mineralized interval Central zone – hole CC-55-10, 2.15g/t Au

Central Total Resources

TonnageAu g/t

Contained Au

Tonne x 1000 gpt oz.

Indicated Resources

3,400 1.0 100,000

Inferred Resources

17,000 0.9 500,000

* Mineral resources are not mineral reserves and do not have demonstrated economic viability. Please note that all figures have been rounded to reflect theirappropriate level of accuracy.

* These resources are constrained by mineable shapes and cut-off grades to meet the requirement that resources must have reasonable prospects for economicextraction. The mineable shapes are either Lerch-Grossman pits or conceptual underground stopes. Resources falling within the pits are reported at cut-off gradesof 0.3 gpt Au for fresh rock or 0.4 gpt Au for saprolite. Stope shapes only include blocks above a cut-off grade of 1.3 gpt Au. The cut-off grades consider a goldprice of $1,250 per ounce and metallurgical recoveries of 91% for fresh rock and 66% for saprolite.

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Central – potential extensions

New soil anomaly to SE of Central

Untested soil anomaly

3D and map views of Central body and gold–in-soil anomaly

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Moreira Gomes – 5km from Central

• Bulk tonnage open pittable deposit

• Inferred resources to date at MG total 14Mt @ 1.5 g/t gold (0.7Moz)

• MG deposit currently extends over approx. 1,500m strike and 350m depth

• Deposit remains open to east and at depth. Potential for parallel structures currently being tested, e.g 7.5m @ 18.8g/t gold

• Drilling currently in progress

Aerial view of Moreira Gomes deposit looking north

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Cuiú Cuiú – Moreira Gomes/Guarim

* Mineral resources are not mineral reserves and do not have demonstrated economic viability. Please note that all figures have been rounded to reflect theirappropriate level of accuracy.

* These resources are constrained by mineable shapes and cut-off grades to meet the requirement that resources must have reasonable prospects for economicextraction. The mineable shapes are either Lerch-Grossman pits or conceptual underground stopes. Resources falling within the pits are reported at cut-offgrades of 0.3 gpt Au for fresh rock or 0.4 gpt Au for saprolite. Stope shapes only include blocks above a cut-off grade of 1.3 gpt Au. The cut-off gradesconsider a gold price of $1,250 per ounce and metallurgical recoveries of 91% for fresh rock and 66% for saprolite.

Moreira Gomes

Total Resources

TonnesAug/t

Contained Au

Tonne x 1000

gpt oz

Inf. Resource

14,000 1.5 700,000

Map shows airborne magnetic data, grade

contours, and drill hole

locations

Drill Targets

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Cuiú Cuiú – Moving forward in 2011

• Drilling with four rigs (25,000m program) – extensions to MG and Central. Also drilling at J Baixo, J Cima, Babi, Miraboa and Miraboa W targets

• Metallurgical test work

• Follow up of other areas with extensive alluvial gold workings to NW and E

• Updated resource estimate by end 2011

Drilling at Central

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Coringa

• 0.3 Moz of Indicated resources and 0.1 Moz of Inferred gold identified within three zones, Serra, Meio and Galena – average grade of 9g/t gold

• PEA returned NPV of US$82.5M and IRR is 59% @ US$1200 per oz

• 1.8km of 10km of structures drilled in detail to date. Recent soil sampling suggests potential for additional +7km of untested structures

• 235 sq km concession, 100% owned

• 10,000m of drilling (3 rigs) planned outside existing resources for 2011

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Coringa – excellent infrastructure

• Located 200km SE of Cuiu Cuiu

• Magellan controls 23,500 ha at Coringa and has a ROFR on surrounding 180,000 ha

• Located 65km SE of town of Novo Progreso, 21km E of main BR-163

• Mains power (138kv line) occurs 21km to west of project

• Ease of permitting due to municipal zone designation

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Coringa – largely untested

• Sub-vertically dipping quartz veins within volcanics and granites

• Diamond drilling (11,000m) has defined >10 km of gold-bearing veins, of which only 1.8km have detailed drilling information

• Resource identified in three high grade zones: Galena, Serra, Meio

• Vein system is open in all directions

• Two new zones discovered recently: Valdette and Demitrio

• Currently drilling with 3 rigs370,000oz resource

confined to;

Galena

Serra

Meio

0 1km

Valdette

Demetrio

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Meio Block – consistently high grades

Drill plan

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Coringa – Resource Estimate

Assumes 2g/t Au cut-off, SG of 2.7t/m3 and minimum mining width of 1.5m

Resource represents less than 20% of vein system discovered to date.

Raising the cut-off grade to 5 g/t gold results in a M&I resource of 0.563 Mt @ 12.37 g/t gold (223,914oz) and an inferred resource of 0.178 Mt @ 14.65 g/t gold (83,873oz) on a diluted basis

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Coringa – Scoping Study

• Scoping study indicates a project IRR of 34% and an NPV @ 5% of $41.3M assuming $950 per oz

• Based on 400t/d cut and fill underground mine producing 36,000oz / yr. Processing via crushing and CIL circuit

• Initial Capex of US$26.4M. Operating cash cost of US$418/ozand payback period of 3.7 years

• Process recovery = 93.8%. Actual recoveries at Serra and Meio are 99.0% and 97.7% respectively

• NPV @ $1200 per oz is US$82.5M and IRR is 59%

Mineralized intercept DDH 62 Meio zone

Coringa Camp

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Coringa – Upside

• Recent soil sampling has identified two major new and untested gold in soil anomalies

• 10,000m drill program began March 2011 & is aimed at expanding resources

• Recon. work in progress on other gold drainage anomalies and showings

Drilling in progress

Grab sample from surface 2.5km SE of Come Quieto

Demetrio

Come Quieto Sur

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Coringa – Moving forward in 2011

• Drilling with two rigs (10,000m program) outside existing resources

• Follow up sampling of other target areas on project, e.g. Sal, Pista, Jatoba, Come Quieto Sur

• Updated resource estimate by end 2011

• Commencement of feasibility study –early 2012

Drilling at Coringa project

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Mato Grosso JV

• Magellan has acquired a 35% - 50% interest in 320,000ha of the BaixadaCuiaba gold belt in southern MatoGrosso

• Excellent access with power and water. Flat terrain - cattle farming

• The belt is characterised by an E-W Proterozoic fold and thrust schist belt extending 100km in length

• Approx. 20 small open pit mines are currently in production. +100 abandoned open pits

• Belt has potential to host several large low grade (0.5 – 1.0g/t) Au deposits

Oregon pit, Pocone; approx 1km in diameter

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Corporate Information

Recent Financings

Closing No. of shares Price Warrants Amount

Feb 2008 (IPO) 11M $1.00 expired $11M

Dec 2009 18.3M $0.70 ½ @ $1.00 $12.8M

June 2010 10M $0.75 none $7.5M

Oct 2010 19.2M $1.20 none $23M

Capital Structure

Shares outstanding 109.4M

Options 7.7M

Warrants 8.8M

Fully Diluted 127.4M

Cash $18.5M

Market Cap. $86M

Major shareholders

Management 11%

Institutions 45%

Newmont 2.5%

Kinross 1%

Analyst Coverage

National Bank Financial

Shane Nagle

Mackie Research

Dale Mah

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Further Information

Alan Carter

President & CEO

Suite 1650 – 409 Granville St., Vancouver, BC, V6C 1T2

Tel. + 1 604 676 5663

Fax + 1 604 676 5664

alan@magellanminerals.com

Auditors

PricewaterhouseCoopers

700-250 Howe StreetVancouver, BCCanada V6C 3S7

Lawyers

Morton & Company

1200-750 West Pender StreetVancouver, BCCanada V6C 2T8

Jennifer Duthie

Corporate Communications

Suite 1650 – 409 Granville St., Vancouver, BC, V6C 1T2

Tel. + 1 778 838 3990

Fax + 1 604 676 5664

jennifer@magellanminerals.com