Magnum Energy Announces Private Placement Financing of up to $550,000

  MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to announce that it has arranged a non-brokered private placement (the "Private Placement") of up to 2,750,000 common shares in the capital of the Company (the "Shares") at a price of $0.20 per Share, for gross proceeds of up to $550,000.

The proceeds from the Private Placement will be used to provide working capital for the Company.

A finder's fee may, in the Company's discretion but subject to the policies of the TSX Venture Exchange, be paid to agents of the Company in an amount equal to 6% of the proceeds raised by such agents as part of this offering of Shares.

The private placement is subject to the acceptance for filing of the TSX Venture Exchange.

ON BEHALF OF THE COMPANY

Richard Nemeth, President

The TSX Venture Exchange has neither approved or disapproved the contents of this press release.

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