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.