Magnum Energy Inc. Announces Debt Settlement

Magnum Energy Inc. (TSX VENTURE:MEN) (the "Company") announces that it has
entered into an agreement with Red Tree Ventures Ltd. ("Red Tree") as of
December 5, 2008 to settle $64,217.50 in debt by way of the issuance of 214,058
common shares at a deemed price per share of $0.30 per share. All of the common
shares to be issued in connection with the debt settlement are subject to a four
month hold.


The debt settlement is subject to acceptance for filing by the TSX Venture
Exchange. After giving effect to the debt settlement, the Company will have
25,143,572 common shares issued and outstanding.


In the event that the shares of Magnum do not trade at a price of $0.30 or more
within 12 months from the date of issuance of the shares, Magnum will pay to Red
Tree a cash amount equal to the difference in value between the highest trading
price and the sum of $0.30 per share multiplied by the number of share issued
hereunder. The potential cash payment to Red Tree will be subject to a minimum
price per share of $0.13 per share. This cash payment is also subject to the
approval of the TSX Venture Exchange.