TSX-V: MNM | www.magellanminerals.com

Building Gold Resources in Brazil Through Grass Roots Exploration

December 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, gold prices, actual performance of facilities, equipmentand 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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Investment Highlights

• Region with Excellent Potential: the Tapajos is the World’s third largest placer gold province, estimated to have produced 20-30 Moz from streams between 1978 and 1995 from artisanal, garimpeiro-type miners

• Experienced Management: 150+ years of mining experience, track record for discovery. Tocantinzinho deposit (2.5Moz), now owned by Eldorado Gold. 3 grass roots gold discoveries totaling 4.2Moz in 7 years.

• Projects: Advanced projects with significant upside:

• Cuiu Cuiu – 1.3Moz gold resource (100,000oz indic. + 1.2Moz inf.), drilling with 2 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: $10M in treasury

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Proven Management TeamJim StypulaChairman

• Previously CEO of Chapleau Resources, financier with 20years experience in mineral exploration

• Founding director of Far West Mining

Alan CarterPresident & CEO, Director

• 20 years of experience. Former Exploration Manager for RioTinto and Business Dev. Manager at BHP Billiton.

• Director and co-founder of Peregrine Diamonds and Peregrine Metals

Dennis MooreVP Business Development, Director

• Exploration geologist with 27 years experience, half of it in Latin America

• Responsible for discovery of the Tocantinzinho deposit, now owned by Eldorado Gold

Paul HansedChief Financial Officer

• 20+ years of accounting and finance experience including19 years with KPMG in Canada and Europe

Guillermo HughesChief Geologist

• 26 years experience in the mineral exploration industryincluding experience in Argentina, Peru and Brazil

Gordon AllenHead, Regional Exploration

• 35 years experience in the mineral exploration industry,predominantly in Latin America

• Responsible for discovery of the Santo Domingo IOCGdeposit of Far West Mining

Derek WhiteDirector

• Currently Executive VP Bus. Dev. of Quadra Mining andwith 20+ years financial experience in the mining andmetals industry

• Ex-Impala Platinum Ltd, Gencor and Billiton

Mario SzotlenderDirector

• Former CEO of Rusoro Mining, Director of Endeavour Silver and Radius Gold.

• 20 years experience financing and managing companies in Latin America

Richard ZimmerDirector

• Former senior mine engineer for Teck, general manager of Mount Edon Gold Mines, and project manager of POGO project.

• Most recent role was President & CEO of Far West Mining Ltd.

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Significant Gold Deposits in Brazil

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Key Land Position in Competitive Belt

Tapajos

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

Largest placer gold province in Brazil, 3rd largest placer gold province in world – previous placer production est. 20-30 Moz

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Cuiu Cuiu and 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)

• Road construction to site in progress

• 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

Rio Crepori

road

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Cuiú Cuiú – 2011 Developments

• Maiden resource estimate released in April of 1.3Moz (mineable), 1.5Moz (geological)

• Q3 - discovery of third mineralized zone at Jerimum Baixo, still open to east

• Three new targets :-

Central North; 39.6m @ 1.25g/t Central SE; 7.8m @ 8.44g/t

27m @ 6.94g/tBabi; results pending

• Exploration drilling and step-out drill program. 21,000m completed to date from 25,000m program

• Metallurgical work in progress – results expected Q1 2012

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)

??

?

?

Gold in soil anomaly 17km in length

Jerimum Baixo

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Cuiú Cuiú

Babi

Pau de Merenda30m @ 1.1g/t, 47m @ 1.8g/t

Jerimum Cima39m @ 5.1g/t

Ivo

Miraboa

Miraboa West

Central SE27m @ 6.9g/t, 8m @ 8.4g/t

Central North40m@ 1.3g/t

Central

Jerimum Baixo

Moreira Gomes

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Central – 1 of 3 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 at depthAerial 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 Area - Potential

Drilling in progress

Drilling in progress

Central 600,000oz

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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

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 their appropriate levelof accuracy.

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

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Moreira Gomes Area

Moreira Gomes area - aeromagenetic data, gold-in-soil geochemistry and structural interpretation

Jerimum Baixo

Moreira GomesGuarim target

Ivo target

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Jerimum Baixo

• Third discovery at Cuiu Cuiu

• Open in several directions

• Open to East

• Will add to resource base

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Cuiu Cuiu Catalysts

• 2011 drill program of 25,000m is currently 77% complete

• Third mineralized zone at Jerimum Baixo identified

• Strong indications of a fourth mineralized zone at Central North, Central SE and Babi. Additional results pending

• Metallurgical work in progress

• Drilling at Pau de Merenda, Central SE, Miraboa, Miraboa West and Ivo planned for early 2012

• Revised resource estimate planned for late Q2 / early Q3 2012

Jerimum Baixo discovery outcrop – sheeted / stockwork

vein system

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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

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Coringa

• Currently drilling with 3 rigs on deep extensions to Serra and Meio and at Come Quieto

• Initial resource estimate based on 81 holes (8,750m). 73 holes and 14,091m completed since resource estimate

370,000oz resource confined to:

Galena

Serra

Meio

Total Resources

TonnageAu g/t

Contained Au

Tonne x 1000

gpt oz.

Measured and Indicated

Resources982.3 8.53 269,450

Inferred Resources

327.1 9.34 98,224

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

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Coringa – Expanding Serra at Depth

Map View

Longitudinal section

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Coringa – Upside

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

• Updated resource estimate planned for Q1 2012.

• Feasibility study planned to commence mid-late 2012

New zones

Grab sample running 6g/t gold from surface 2.5km SE of Come Quieto

Au in streams

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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. Stockwork-style mineralization observed on surface

• Air mag survey completed. Drilling in progress

Placer gold workings at Bom

Jardim

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Mato Grosso JV

• Magellan has a 35% - 50% interest in 320,000ha of the Baixada Cuiaba gold belt in southern Mato Grosso

• 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. 40 small open pit mines are currently in production. +100 abandoned open pits. Rocks have very low work index

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

• RC drilling program expected to start early 2012

Oregon pit, Pocone; approx 1km in diameter

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Mato Grosso JV

Cangas area showing distribution of open pit gold mines along trend 6km SW of Cangas

Pocone area showing distribution of open pit gold mines along trend 4.8km SW of Pocone

Pocone

Ouro Fino

Cangas

Oregon

Beto Rondon

Jonas

Dei

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Corporate Information

Shares Issued and Outstanding 109.4 M

Options 7.7 M

Warrants* 8.8 M

Fully Diluted 127.4 M

Cash (Oct 30/11) $10 M

Mackie Research

National Bank

Share Price (Nov 30/11) $0.63

Market Cap (Nov 30/11) 69 M

Avg. Daily Volume (3 months) 182,000

Management 11%

Institutions 45 %

Newmont 2.5%

Kinross 1%

*18.3 Million warrants issued at $1.00 Dec. 2009 expire Dec. 2011

Capital Structure Investor Summary

Analyst Coverage

Shareholders

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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