Magnum Announces Non-Brokered Private Placement

MAGNUM ENERGY INC. ("Magnum" or the "Corporation") (TSX VENTURE:MEN) Magnum
announces that the company has arranged a non-brokered private placement of up
to 10 million units at a purchase price of 5 cents per unit for aggregate gross
proceeds to Magnum of up to $500,000.


PRIVATE PLACEMENT

Each unit will consist of one common share of Magnum Energy Inc. and one
non-transferable share purchase warrant. Each whole warrant will entitle the
holder to acquire one common share at an exercise price of 10 cents for a period
of 24 months from the closing date of the private placement. Cash finders' fees
may be paid in connection with the private placement. 


All of the securities issued pursuant to the private placement will be subject
to a minimum four-month hold period. The private placement and payment of any
finder's fee are subject to acceptance by the TSX Venture Exchange. 


The net proceeds of the private placement will be used principally to work over
wells in Provost and Sedalia with production behind pipe. These work-overs are
primarily maintenance work overs addressing mechanical issues that are cyclical
in nature. These work-overs require no permitting and can be completed within
the first two weeks of June. 


We seek Safe Harbor.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Magnum Energy Inc.
Richard Nemeth
President & CEO
604.948.2688
[e-mail]


Magnum Energy Inc.
Jon Bey
Corporate Development
604-375-4488
[e-mail]
www.magnumenergyinc.com