A magneto-resistance effect element includes a first magnetic layer of which a magnetization direction is fixed; a second magnetic layer of which a magnetization direction is fixed; an intermediate layer which is provided between said first magnetic layer and said second magnetic layer; and a pair of electrodes for flowing a current perpendicular to a film surface of the resultant laminated body comprised of said first magnetic layer, said second magnetic layer and said intermediate layer. The intermediate layer includes insulating portions and metallic portions containing at least one selected from the group consisting of Fe, Co, Ni, Cr and the metallic portions are contacted with the first magnetic layer and the second magnetic layer.