Magnum Energy Announces Private Placement Financing of Up to $2,040,000

  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 4,000,000 Flow Through Shares in the capital of the Company (the "Flow Through Shares") at a price of $0.51 per Flow Through Share, for gross proceeds of up to $2,040,000.

The proceeds from the Private Placement will be used for further exploration and development on the Company's properties.

Finders' fees may be payable on the private placement and are subject to the acceptance for filing by the TSX Venture Exchange.

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 604.669.3177 (FAX) [e-mail] www.magnumenergyinc.com