Magnum Energy Announces Private Placement Financing of Up to $1,500,000.30

  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 3,333,334 Class A Voting common shares in the capital of the Company (the "Shares") at a price of $0.45 per Share, for gross proceeds of up to $1,500,000.30.

The proceeds from the Private Placement will be used for the purposes of drilling and recompleting wells, possible land acquisitions and general working capital.

The Company may, in its sole discretion but subject to the policies of the TSX Venture Exchange, pay a finder's fee to agents of the Company consisting of (i) a cash fee in an amount of up to 7.0% of the proceeds raised by the agent as part of this offering of Shares, and (ii) a number of agent's warrants, entitling the holder thereof to purchase that number of common shares that is equal to 7.0% of the number of Shares placed through the agent as part of this offering of Shares, for a period of 12 months from the date of issuance.

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