Magnum Energy Announces Closing of Second Tranche and Closing of Private Placement

   MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to announce that it has closed the second and final tranche of its private placement (the "Private Placement") as announced in a news release dated May 28, 2010 and amended on June 14, 2010. Pursuant to the second tranche of the Private Placement, the Company has issued 750,500 Class A Voting common shares (the "Shares") at a price of $0.40 per Share for gross proceeds of $300,200.

Finder's fees consisting of 6,860 broker warrants (the "Broker Warrants") and $17,514 in cash were paid in accordance with the policies of the TSX Venture Exchange. Each Broker Warrant will entitle the holder to purchase one Share of the Company for a period of twelve months from the date of issuance at a price of $0.40 per Share.

All securities issued pursuant to the second tranche of the Private Placement are subject to a hold period expiring on or around November 29, 2010.

ON BEHALF OF THE COMPANY

Richard Nemeth, President

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 [e-mail] www.magnumenergyinc.com