Magnum Energy Announces Private Placement Financing of Up to $7,000,000

   MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to announce that, subject to the approval of the TSX Venture Exchange, it has arranged a non-brokered private placement (the "Private Placement") of up to 22,222,222 non-flow-through units ("Unit") at a price of $0.27 per Unit for gross proceeds of up to $6,000,000. Each Unit will consist of one Class A Voting common share in the capital of the Company (the "Shares") and a half warrant. Each full warrant plus $0.35 will entitle the holder to purchase one Share within one year of issuance.

Additionally, the Company will raise up to $1,000,000 through the issuance of up to 3,030,303 flow-through Shares at a price of $0.33 per Share.

Proceeds from the Private Placement will be used for the acquisition of the Viking Oil asset announced on November 3, 2010, the drilling of horizontal wells in the Viking Oil asset, potential 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 Shares that is equal to 7.0% of the number of Units placed through the agent as part of this offering of Units at a price of $0.27 per Share, for a period of 12 months from the date of issuance.

About Magnum Energy Inc.

Magnum is a junior oil and gas producer with operations located in the Western Canadian Sedimentary Basin. The Company produces from operations in Alberta, and maintains 100% ownership of the Sedalia gas facility in East-Central Alberta.

ON BEHALF OF THE COMPANY

Richard Nemeth, President & 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 604.218.1479 [e-mail] www.magnumenergyinc.com Boardmarker Group Dean Stuart 403.517.2270 [e-mail]