Magnus Energy Releases Second Quarter Results and Update on Transaction

Magnus Energy Inc. (TSx VENTURE:MEI.A) (TSX VENTURE:MEI.B) ("Magnus" or the
"Company") announces its financial and operating results for the period ended
June 30, 2007. The unaudited financial statements and related Management's
Discussion and Analysis for the period ended June 30, 2007 were filed yesterday
with Canadian securities regulatory authorities on SEDAR at www.sedar.com and
posted on the Company's website at www.magnusenergy.ca.


The Company also announces that it is proceeding with its previously announced
transaction (the "Transaction") entered into with Questerre Energy Corporation
("Questerre"). The Transaction is subject to shareholder approval and the
Company anticipates mailing a Notice of Meeting and Information Circular to all
shareholders before the end of September, 2007 and expects to schedule its
Annual and Special Shareholders Meeting before the end of October, 2007.


About Magnus Energy

Magnus Energy is a junior oil and gas company focused on the acquisition,
exploration, exploitation and development of oil and natural gas properties in
western Canada.


READER ADVISORY

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations, and capital expenditures
and the timing thereof, that involve substantial known and unknown risks and
uncertainties, certain of which are beyond the Company's control. Such risks and
uncertainties include, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, competition
from other producers, inability to retain drilling rigs and other services,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources, the
impact of general economic conditions in Canada, the United States and overseas,
industry conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are interpreted
and enforced, increased competition, the lack of availability of qualified
personnel or management, fluctuations in foreign exchange or interest rates,
stock market volatility and market valuations of companies with respect to
announced transactions and the final valuations thereof, and obtaining required
approvals of regulatory authorities. The Company's actual results, performance
or achievements could differ materially from those expressed in, or implied by,
these forward-looking statements and, accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur, or if any of them do so, what benefits, including the amount
of proceeds, that the Company will derive therefrom. Readers are cautioned that
the foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.


The term BOE or BOEs may be misleading, particularly if used in isolation. A BOE
(barrel of oil equivalent) conversion rate of 6 Mcf per one (1) BOE is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.


58,170,655 Class A Shares

1,044,000 Class B Shares