Magnum Energy Inc. Announces Signing of Purchase and Sale Agreement for Acquisition of Viking Oil Producing Assets

   Further to its press releases of November 2, 2010 and February 3, 2011, Magnum Energy Inc. (TSX VENTURE: MEN) (The "Company" or "Magnum")  is pleased to announce that all of the parties have now signed a definitive legal Purchase and Sale Agreement. Magnum, together with Nextraction Energy Corp. (TSX VENTURE: NE), will purchase the Viking oil assets of a private company in the Provost Area of Eastern Alberta. The acquisition is effective February 1, 2011 and is scheduled to close on March 15, 2011.

The private company is currently producing approximately 30 barrels of sweet light crude per day from its 100% owned and operated vertical wells situated on 3.25 sections of largely undeveloped land. The 100% owned infrastructure includes a battery, disposal well, and pipelines.

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 a gas facility in the Sedalia area in East-Central Alberta.

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 and CEO 604 669 3155 [e-mail] www.magnumenergyinc.com