Building Gold Resources in Brazil’s Tapajos Region

TSX-V: MNM | www.magellanminerals.com

October 2011

2

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.

3

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 – 370,000oz 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: $12M in treasury

4

Proven Management Team

• Jim Stypula, Chairman - previously CEO of Chapleau Resources, financier with20 years 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 BHPBilliton. Director and co-founder of Peregrine Diamonds and Peregrine Metals.Raised +$100M in 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. Explorationexperience Far West Mining Ltd., and the discovery of the Santo Domingo IOCGdeposit in northern Chile.

5

Independent Directors

• Derek White, B.A., Director - currently Executive VP Bus. Dev. ofQuadra Mining and with 20+ years financial experience in the miningand metals industry. He worked for Impala Platinum Ltd, Gencor andBilliton, where he was CFO of the Base Metals Division

• Mario Szotlender, Director - former CEO of Rusoro Mining, Director ofEndeavour Silver and Radius Gold. 20 years experience financing andmanaging companies in Latin America

• Richard Zimmer, P. Eng., MBA., Director – former senior mineengineer for Teck, mine manager of Afton Mines, general manager ofMount Edon Gold Mines, and project manager of POGO project. Hismost recent role was President & CEO of Far West Mining Ltd. 30+years of experience in mining and metals industry.

6

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

7

Key Land Position in Competitive Belt

8

Eldorado Developments at Tocantinzinho

• Tocantinzinho (2.5Moz) produced an est. 200,000oz of placer gold from artisanal surface workings. Cuiu Cuiu produced 1.5 – 2Moz of placer gold **

• Eldorado’s announced PFS in May 2011 on 160,000oz/yr OP mine, Capital costs of $383M, Cash costs of $559/oz and 11.8% IRR (14.4% with tax breaks)

• EIA expected to be submitted during Q3 2011.

• FS study on Toca currently in progress and expected to be completed during Q2 2012

* 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

9

Cuiú Cuiú – recent developments

• 1.2 Moz (inferred) + 0.1 Moz(Indicated) of gold identified to date at Central and Moreira Gomes at avg. grade of 1.2g/t

• Exploration drilling with 3 rigs in progress at Central North, Babi and Jerimum Baixo;15,084m (47 holes) so far completed during 2011

• Recent drill results include:- Central North ; 39.6m @ 1.25g/t gold, Central SE; 7.8m @ 8.44g/t gold &27m @ 6.94g/t gold

Aerial view of village of Cuiu Cuiu

10

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)

??

?

?

Gold in soil anomaly 17km in length

11

Cuiú Cuiú….1.3Moz and Counting

12

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

13

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.

14

Central North – Significant New Discovery

Drilling in progress

Drilling in progress

Central 600,000oz

15

Moreira Gomes – Recent Developments

• Bulk tonnage open pittable deposit

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

• MG deposit extended additional 300m along strike to 1.8km

• Recent drill results include 24m @ 4.06g/t gold from 40m E of hole 79, and 18m @ 0.46 g/t gold from hole 122 drilled 400m E of hole 79

• Narrow high grade zone (0.5m @ 30.2g/t gold) identified at Guarim 500m to south of MG

Aerial view of Moreira Gomes deposit looking north

Moreira Gomes

Total Resources

Tonnes Au Contained Au

Tonne x 1000 gpt oz

Inf. Resource

14,000 1.5 700,000

* 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.

16

Cuiú Cuiú – Moreira Gomes/Guarim

Map shows airborne magnetic data, grade

contours, and drill hole

locations

17

Cuiú Cuiú – Moreira Gomes/Guarim

0.5m @ 30.2g/t

24m @ 4.06g/t

18.4m @ 0.46g/t

Target

Target

18

Bom Jardim

• Located 25km NW of Cuiu Cuiu along main Tocantinzinho trend, 15,385 ha

• Historic placer gold production of 0.5 – 1Moz. No previous drilling. 500 soil samples and 200 rock samples collected by Magellan

• Major structural intersection. Gold-in-soil anomaly 7km in length

• Air mag survey completed and ground geophysics planned in advance of drilling late 2011 / early 2012

Placer gold workings at Bom

Jardim

19

Coringa – a Reminder

• Good infrastructure: 20km east of main road and mains power

• Existing high grade resource of 270,000 oz Ind. (1Mt @ 8.5g/t) + 100,000 oz Inf. (0.3Mt @ 9.3g/t)

• Last resource estimate was completed in September 2009 and requires updating.

• Scoping study of April 2010 gave a project IRR of 34% + NPV @ 5% of $41.3M @ $950 per oz

• Scoping study based on 400t/d u/g mine prod. 36,000oz / yr. Capex of US$26.4M + Op cost of US$418/oz

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

20

Coringa – Growing

• Currently drilling with 3 rigs on deep extensions to Serra and Meio and on new structure at Domingo

• New major structures identified: Valdette, Demetrio and Domingo, adding +5km of total strike length to structures

• Widely spaced drilling (9 holes to date) returned values of 37m @ 0.79g/t and 28m @ 0.64 g/t at Valdette and 5.5m @ 6.49g/t gold at Demetrio

• Soil sampling in progress aimed at identifying additional targets

370,000oz resource confined to:

Galena

Serra

Meio

0 1km

Valdette

Demetrio

21

Meio Block – Consistently High Grades

Drill plan

22

Coringa – Expanding Serra at Depth

Map View

Longtitudinal section

23

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

24

Coringa – Domingo

• New mineralized structure identified and traced over 350m

• Located 4km W of Meioand 2.3km SW of Demetrio

• Gold-in-soil anomaly is 3.8km x 0.3km

• Surface rock chip results average 8.3 g/t gold

• Drilling in progress

Gold-in soil anomaly,and surface sampling results at Domingo zone

25

Coringa – Upside

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

• 10,000m step-out drill program began March 2011 & is aimed at expanding resources, 5192m completed to date

• Updated resource estimate planned for Q1 2012.

• Feasibility study planned to commence mid-late 2012

Drilling in progress

Grab sample from surface 2.5km SE of Come Quieto

Demetrio

26

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

• 4000m drilling program in progress –Initial drill results expected September 2011

Oregon pit, Pocone; approx 1km in diameter

27

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 $12M

Market Cap. $65M

Major shareholders

Management 11%

Institutions 45%

Newmont 2.5%

Kinross 1%

Analyst Coverage

National Bank Financial

Shane Nagle

Mackie Research

Dale Mah

28

Valuation Considerations

Current Market Cap. $65M

Cash $12M

Value on per oz basis* (1.7Moz) no cash $38/oz

Value on per oz basis* (1.7Moz) with cash $29/oz

Coringa NPV @ US$1200/oz $82M

Step-out drilling program in progress (6 rigs).....25,000m planned at Cuiuand 10,000m planned at Coringa for 2011.

Recce drilling in progress or planned on other projects for late 2011 / early 2012, i.e. Mato Grosso, Mato Velho, Agua Azul, Bom Jardim

29

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