MAG Copper Limited Announces Private Placement

130 Adelaide Street West, Suite 1010 Toronto, ON M5H 3P5

NEWS RELEASE

October 12, 2011 CNSX: QUE For Immediate Release Shares Outstanding: 40,004,494 Toronto, Canada

MAG COPPER LIMITED ANNOUNCES PRIVATE PLACEMENT

October 12, 2011 – Mag Copper Limited (the “Company”) (CNSX: QUE) is pleased to announce a non-brokered private placement for gross proceeds of $1,004,850 through the issuance of 2,871,000 flow-through common shares (“Flow-Through Shares”) of the Company at a price of $0.35 per Flow-Through Share.

The Company has also issued an aggregate of 503,225 units (“Units”) in settlement of an aggregate of $155,999.75 of indebtedness at a price of $0.31 per Unit. Each Unit consists of one common share (a “Common Share”) of the Company and one half of one common share purchase warrant (each whole Warrant, a “Warrant”), with each whole Warrant exercisable into a Common Share at a price of CDN$0.40 for a period of 18 months from the date of issuance.

In connection with the issuance of the Flow-Through Shares, the Company has agreed to pay Aberdeen Gould Capital Markets Ltd., (i) a cash commission equal to 8% of the aggregate proceeds of the offering attributable to such finders; and (ii) warrants (the “Compensation Warrants”) equal to eight (8%) of the number of Units and Flow-Through Shares issued and sold under the offering attributable to such finders. Each Compensation Warrant will entitle the holder thereof to purchase one Common Share of the Company at an exercise price of $0.31 per Common Share for a period of eighteen (18) months. The securities to be issued are subject to a four month hold period.

Insiders of the Company acquired a total of 277,419 units in the private placement. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 based on the fair market value of insider participation not exceeding 25% of the Company’s market capitalization and the fact that the common shares of the Company are listed on the CNSX. A material change report in connection with the private placement will be filed less than 21 days before the closing of the private placement. This shorter period is reasonable and necessary in the circumstances as the Company wished to complete the private placement in a timely manner.

The Company will use the proceeds of the offering for exploration and development work at its Magusi River Project and for general working capital purposes.

For further information contact:

Mani Verma Mag Copper Limited, President & CEO Telephone: (647) 524-5135 Facsimile: (416) 361-2519

The Canadian National Stock Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this news release.

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