Magnum Energy Closes Private Placement of Flow-Through Financing Totalling $595,660

   MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to announce the closing of the second and final tranche of its private placement (the "Private Placement") announced in its news release dated December 8, 2010. In connection with the Private Placement, the Company issued a total of 2,054,001 flow-through shares at a price of $0.29 per share for gross proceeds of $595,660.

Finder's fees of $33,576 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 16 and 30, 2011.

ON BEHALF OF THE COMPANY

Richard A. 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