Magellan Minerals Ltd MAGNF

Financing with Sandstorm Gold

[DSurfer]

Magellan Closes Financing with Sandstorm Gold

Vancouver, BC, May 15, 2012 – Magellan Minerals Ltd.(TSX-V: MNM)(OTCQX: MAGNF) (“Magellan”) is pleased to announce the closing of the previously announced transaction with Sandstorm Gold Ltd. (“Sandstorm”) (see press release dated May 11, 2012) whereby Magellan will grant Sandstorm Gold Ltd. a 2.5% net smelter returns royalty (“NSR”) on the Coringa gold project (“Coringa”) and a 1.0% NSR on the Cuiu Cuiu gold project (“Cuiu Cuiu”) both of which are located in Para state, Brazil. As consideration, Sandstorm paid Magellan a cash payment of US$7.5 million and subscribed for one million common shares of Magellan at a price of
.50 per share for total proceeds of $500,000.

Magellan Minerals (TSX-V: MNM)(OTCQX: MAGNF) is a TSX Venture Exchange listed exploration and development company with two advanced gold properties in the Tapajos Province of northern Brazil. 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). 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).

For further information, please contact:

Magellan Minerals Ltd.
Alan Carter, President and CEO
Tel: [phone]
e-mail: [e-mail]

Jennifer Duthie, Corporate Communications Manager
Tel: [phone]
e-mail: [e-mail]
www.magellanminerals.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this 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.