Magnum Energy Announces Closing of Non-Brokered Private Placement

  MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to announce the closing of its private placement (the "Private Placement") announced in its news releases of October 14, 2009 and October 16, 2009. Pursuant to the Private Placement, the Company issued 3,000,000 common shares (the "Shares") at a price of $0.20 per Share for gross proceeds of $600,000.

A Finder's fees of $13,500 in cash was paid in accordance with the policies of the TSX Venture Exchange.

All securities issued pursuant to the private placement are subject to a hold period expiring on February 24, 2010.

ON BEHALF OF THE COMPANY

Richard Nemeth, President and CEO

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.

Contacts: Magnum Energy Inc. Richard Nemeth President & CEO 604.669.3155 604.669.3177 (FAX) [e-mail] www.magnumenergyinc.com