CHI Chapleau Resources Com Npv

Magellan Minerals Ltd. (TSX VENTURE:MNM) ("Magellan") and Chapleau Resources
Ltd. (TSX VENTURE:CHI) ("Chapleau") have entered into a binding arrangement
agreement ("Arrangement Agreement") dated effective as of July 9, 2009 regarding
their intention to merge to form a combined gold exploration and development
company focused on the mineral potential of northern Brazil. Subject to the
satisfaction of certain conditions, Magellan will acquire all of the issued and
outstanding common shares of Chapleau through a plan of arrangement.


A special (and annual general) meeting of Chapleau shareholders has been
scheduled for August 26, 2009 to seek shareholder approval for the proposed plan
of arrangement.


Pursuant to the terms of the Arrangement Agreement, Magellan has agreed to offer
Chapleau shareholders 0.267 Magellan shares for each Chapleau common share. Upon
the exercise of outstanding Chapleau options and warrants, the holders will be
entitled to receive common shares of Magellan in an amount and at exercise
prices adjusted in accordance with the same exchange ratio.


Highlights

Relevant highlights regarding the plan of arrangement are as follows:

- Chapleau's key asset is the Coringa project which is located 250 kilometres
south of Magellan's Cuiu-Cuiu discovery in northern Brazil, and comprises a
series of gold bearing veins which extend over a combined strike extent of 10
kilometres (8,785 metres). Drilling to date along 2 kilometres of these
structures, has defined high-grade gold mineralization over strike lengths up to
400 metres with values up to 65.77 grams per tonne gold over 3 metres. Numerous
as yet untested geophysical and geochemical anomalies exist over a 300 square
kilometre area.


- Coringa has excellent road access and is located 21 kilometres from the local
grid power. Chapleau is currently engaged in discussions with a number of
parties regarding the completion of a 43-101 compliant resource estimate for
Coringa.


- Magellan's key asset is the Cuiu-Cuiu project where an extensive soil sampling
program has identified five major gold-in soil anomalies. Drilling at the
Central anomaly returned values of up to 220m @ 2.02 grams per tonne gold during
2008. Reconnaissance drilling at the nearby Pau de Merenda anomaly, 3 kilometres
to the NW, returned values up to 47 metres @ 1.76g/t Au, and limited drilling at
the Jerimum Cima anomaly returned values up to 39 metres @ 5.13 grams per tonne
gold.


- The plan of arrangement will result in an expanded land position of 840 square
kilometres in the Tapajos Gold Province of Brazil, a region which produced an
estimated 30 million ounces of gold between 1978 and 1995, largely from alluvial
sources.


The plan of arrangement will bring together a management group with considerable
experience and several significant gold and copper discoveries in South America.
Alan Carter, who recently guided Magellan to a successful IPO and raised C$11M
in the process, will remain as President and CEO of Magellan. Dennis Moore will
remain the VP Exploration of Magellan. Dennis was responsible for the initial
identification and later discovery of the Tocantinzinho gold deposit (2.1Moz),
currently the largest known gold deposit in the Tapajos region.


Ian Gendall (currently President of Chapleau) will become COO of Magellan and is
credited with the discovery of several new porphyry copper-gold deposits in
southern Ecuador. Jim Stypula, currently Chapleau's CEO, will become Chairman of
Magellan.


Completion of the plan of arrangement is conditional upon:

1. Chapleau shareholders having approved the plan of arrangement;

2. receipt of all necessary regulatory approvals, including approval of the TSX
Venture Exchange;


3. the absence of a material adverse change with respect to each party; and

4. certain other customary conditions.

About Magellan

Magellan is a TSX Venture Exchange listed exploration company with a number of
gold exploration properties in the Tapajos Province of northern Brazil.
Magellan's key asset is the Cuiu Cuiu project where recent drilling has
identified a new gold deposit at the Central zone.


About Chapleau

Chapleau is a TSX Venture Exchange listed mineral exploration company with a
principal focus on gold exploration in Brazil. Chapleau's gold projects in
Brazil include Coringa and Mato Velho, totaling 37,128 hectares in the Tapajos
Gold Province.


Cautionary Statements Regarding the Plan of Arrangement: Completion of the
transaction is subject to a number of conditions, including regulatory approval,
shareholder approvals, completion of satisfactory due diligence, a definitive
agreement and approval of the British Columbia Supreme Court. There can be no
assurance that the transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the Management Information
Circular to be prepared in connection with the transaction, any information
released or received with respect to the plan of arrangement may not be accurate
or complete and should not be relied upon. Trading in the securities of
exploration and development stage resource companies should be considered highly
speculative.


Forward-Looking Statements: Statements in this release that are forward-looking
statements are subject to various risks and uncertainties concerning the
specific factors disclosed under the heading "Risk Factors" and elsewhere in the
corporations' periodic filings with Canadian Securities Regulators. Such
information contained herein represents management's best judgment as of the
date hereof based on information currently available. Statements in this press
release other than purely historical information, including statements relating
to the companies' future plans and objectives or expected results, constitute
forward-looking statements. Forward looking statements are based on numerous
assumptions and are subject to all of the risks and uncertainties inherent in
the companies' business, including risks inherent in mineral exploration and
development. The companies do not assume the obligation to update any
forward-looking statement. In particular, no representation is made in this
release as to the timing of the plan of arrangement, whether the plan of
arrangement will complete on the terms described herein or at all, the success
or value of the combined companies after the plan of arrangement. In addition,
there are numerous risks and other factors that will influence a development
decision, including concluding resource evaluations on mineral properties, mine
design limitations, permitting risks and economic factors, all of which may be
beyond our control.


U.S. Cautionary Statements: We advise US investors that while the terms
"measured resources", "indicated resources" and "inferred resources" are
recognized and required by Canadian regulations, the US Securities and Exchange
Commission does not recognize these terms. US investors are cautioned not to
assume that any part or all of the material in these categories will ever be
converted into reserves.

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