Magnum Energy Announces Acquisition of Producing Property in Sedalia Area

MAGNUM ENERGY INC. (the "Company") (TSX VENTURE:MEN) is pleased to announce that
it has closed an acquisition (the "Acquisition") of 13 gross (9.24 net) sections
of land in the Sedalia area of Alberta with existing natural gas production of
415 mcf/d (70 BOE/D) as previously announced on September 30, 2009. The
Acquisition also includes a 30% working interest in a gas processing plant and a
100% interest in a compressor facility which will be operated by the Company.


The Company is also pleased to report that it has obtained a $5,000,000
Operating Loan Facility from the Alberta Treasury Branch. This loan facility has
been used in part to repay indebtedness to the Company's previous lender and to
fund the Acquisition. The balance of the loan available of $1,000,000 in
addition to cash flow will be used to upgrade the current facilities and to
bring further production on in the Sedalia area and for general corporate
purposes.


The Company intends to enhance the capacity of the gas plant to enable it to
commence production which is currently behind pipe in 100% owned wells. The
Company's after acquisition current total production of 255 boe/d is anticipated
to increase to 500 boe/d by the end of 2009 as a result of the planned Sedalia
plant upgrades.


Reader Advisory

This news release and the documents referred to therein contain 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 Magnum'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 reserves
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 bodies.
Actual results could differ materially from those expressed in or implied by
these forward-looking statements. No assurances can be given that any of the
events anticipated by any forward-looking statements will transpire or occur, or
if any of them do so, what benefits Magnum will derive there from. Readers are
cautioned that the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to Magnum or
persons acting on behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements contained in this news
release and the documents referred to herein, are made as at the date of this
news release, and Magnum 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.


Petroleum and natural gas volumes are converted to an equivalent measurement
basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6
thousand cubic feet of natural gas equaling 1 barrel of oil. This is based on an
energy equivalency conversion method applicable at the burner tip and does not
necessarily represent a value equivalency at the wellhead. Readers are cautioned
that boe figures may be misleading, particularly if used in isolation.


ON BEHALF OF THE COMPANY

Richard Nemeth, President