VANCOUVER, BRITISH COLUMBIA -- Magellan Minerals Ltd. ("Magellan" or the "Company") (TSX VENTURE:MNM) reports that its Board of Directors (the "Board") has implemented a Shareholder Rights Plan Agreement (the "Rights Plan") effective April 27, 2011.

The Rights Plan has been adopted to ensure the fair treatment of all Magellan shareholders in connection with any possible take-over bid for the outstanding common shares of the Company. If a take-over bid should occur the Rights Plan provides a mechanism to ensure that shareholders have adequate time to properly evaluate and assess a take-over bid without facing undue pressure. The Rights Plan also provides the Board with additional time to consider any take-over bid and, if applicable, to explore alternative transactions in order to maximize shareholder value. The Rights Plan is not designed to prevent take-over bids that treat the Company's shareholders fairly.

The Rights Plan has been approved by the TSX Venture Exchange and is subject to shareholder approval at the Company's annual general and special shareholders' meeting to be held on May 27, 2011. If ratified by the shareholders, the Rights Plan will have a term of 3 years. The Board is not currently aware of any pending or proposed take-over bid for Magellan. A summary of the Rights Plan is contained in the Company's information circular, a copy of which will be available at www.sedar.com.

Magellan has granted stock options to directors, officers, employees and consultants of the Company. The options entitle the holders to purchase 3,980,000 common shares in the capital stock of the Company at a price of $1.35 per share. The options are exercisable until April 20, 2016 subject to vesting over 18 months. A total of 1,740,000 stock options were granted to officers and directors of the Company. The Company provides management incentive stock options to directors, officers, employees and consultants as part of the Company's overall compensation package. The Board acknowledges and appreciates their individual and collective commitment to the Company.

Magellan is a TSX Venture Exchange listed exploration company with a number of gold exploration properties in the Tapajos Province of northern Brazil and is focused on the Cuiu Cuiu and Coringa projects where drilling is currently in progress.