Magellan Closes Financing With Sandstorm Gold

Magellan Minerals Ltd. (TSX VENTURE: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 $0.50 per
share for total proceeds of $500,000. 


Magellan Minerals (TSX VENTURE: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).


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. 


News Release #2012-13