Magnum Energy Announces Private Placements of Flow-Through Financings Totalling $1,935,960

  MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to announce the closing of the second tranche of its private placement (the "Private Placement") announced in its news release dated December 2nd, 2009. Pursuant to the Private Placement, the Company issued a total of 3,795,999 flow-through shares (the "Flow-Through Shares") at a price of $0.51 per Unit for gross proceeds of $1,935,960.

Finder's fees of $102,082 were paid in accordance with the policies of the TSX Venture Exchange.

All securities issued pursuant to the private placement are subject to hold periods expiring between April 11 and 17, 2010.

The Company is currently in the process of re-entering or recompleting eight wells in the Sedalia area which will be performed prior to the end of December. Two additional wells will be drilled, also in the Sedalia area, early in 2010. Magnum is currently reviewing its lands and drilling opportunities to determine the locations for additional drilling or re-entry opportunities to incur the balance of qualifying flow-through expenditures.

ON BEHALF OF THE COMPANY

Richard A. Nemeth, President

Forward Looking Statements:

Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various risks. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events may differ materially from those anticipated in such statements. The Company undertakes no obligation to update such forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on such forward-looking statements.

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