Magnum Energy Inc. Does Not Proceed With Non-Flow-Through Financing and Amends Flow-Through Financing

   Magnum Energy Inc. (the "Company" or "Magnum") (TSX VENTURE: MEN) announces that the Board of Directors has determined it is not in the best interests of the Company and its shareholders to proceed with the non-flow-through private placement announced on November 15, 2010.

The Company is, however, proceeding with the flow-through offering of $1,000,000 as also announced on November 15, 2010, but it has been amended to 3,448,276 common shares at a price of $0.29 per share.

The proceeds of the flow-through offering will be used for drilling and completions at the Company's Sedalia property.

The Company may pay a finders fee in connection with this offering as set out in the November 15, 2010 release.

This private placement is subject to TSX Venture Exchange acceptance for filing.

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.

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 Boardmarker Group Dean Stuart 403 517 2270 [e-mail]