Magnum Energy Inc. Provides Operations Update

MAGNUM ENERGY INC. (the "Corporation") (TSX VENTURE:MEN) is pleased to provide
an update on its planned operations. 


In Provost, the Company has fracture stimulated one of the producing vertical
wells which was drilled and perfed in February, 2010. The well was producing
approximately 5 barrels of oil per day prior to the frac and is currently being
prepared for clean up and flow testing. The results of this well, expected later
this week, will be evaluated to determine the future operations on other
vertical wells on the property.


As disclosed in Magnum's news release of February 3, 2011, our joint venture
partner is required to pay 100% of the costs to drill and complete to tie-in two
horizontal wells to earn a 50% working interest in certain lands in the Provost
area, with work to commence on the first well before June 30th. Technical work
and the drilling application are ahead of schedule and barring any unforeseen
adverse weather, the drilling of the first horizontal well should commence in
the next 7 to 10 days. Under the terms of the joint venture agreement, the
second horizontal well is to be spudded within 30 days of the completion of the
first well. 


The Company is also preparing to build a new battery that will be able to
service future increases in oil production from the Provost area wells. This is
a sweet light crude conventional oil battery. The planned facilities will
include about a 1500 bopd treater, a geotextile lined and diked tank farm
comprised of oil tanks and a fiberglass produced water tank, a pipeline header
system, a test separator and a water injection pump. Provision for future
expansion will include room for additional tanks and a future free-water
knockout vessel. By coordinating the completion of the battery with the
completion of the first horizontal well, the Company will recognize substantial
operating cost savings. 


In Sedalia, Magnum is planning one re-entry and four workovers. The operation
programs vary from a simple stimulation in a wellbore with bypass pay in a
proven zone, to fracture stimulations of existing producing zones. With break up
over and road bans removed, the Company plans to complete these operations over
the balance of the summer. 


During the past winter months, the Sedalia area experienced one of the worst
winter seasons on record. As a result, the Company shut in production in several
wells due to increased operational costs associated with these extreme
conditions. This production will be brought back on stream as we work through
our summer operations, as several of the wells that have been shut in also have
workover operations. With spot AECO gas prices currently at $4.25/mcf, Magnum's
inventory of twelve 100% owned horizontal drilling locations in the immediate
vicinity of its gas plant at Sedalia will be revisited. Gas prices consistently
in the $5.00/mcf range could result in a fall or winter horizontal gas drill
program to fill the plant capacity. 


Over the past few quarters the Company has completed the acquisition of the
Viking oil property, a joint venture partnership to minimize capital costs and
share dilution, and a financing in May for just over $3 million. The successful
completions of these corporate goals have provided the Company with the ability
to transition to a more balanced oil to natural gas production mix going
forward. Magnum will evaluate the results of its summer operations to determine
the size and focus of its fall and winter drilling operations. 


Forward looking statements

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations and capital expenditures
and the timing thereof, that involve substantial known and unknown risks and
uncertainties, certain of which are beyond Magnum's control. Such risks and
uncertainties include, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserves estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations, including
the adoption of new environmental laws and regulations, and changes in how they
are interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory bodies. Actual results could differ materially
from those expressed in or implied by these forward-looking statements. No
assurances can be given that any of the events anticipated by any
forward-looking statements will transpire or occur, or if any of them do so,
what benefits Magnum will derive therefrom. Readers are cautioned that the
foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to Magnum or persons acting on
behalf are expressly qualified in their entirety by these cautionary statements.
The forward-looking statements contained in this news release and the documents
referred to herein, are made as at the date of this news release, and Magnum
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.


Petroleum and natural gas volumes are converted to an equivalent measurement
basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6
thousand cubic feet of natural gas equaling 1 barrel of oil. This is based on an
energy equivalency conversion method applicable at the burner tip and does not
necessarily represent a value equivalency at the wellhead. Readers are cautioned
that boe figures may be misleading, particularly if used in isolation.