Magnum Energy Inc.: Shareholder Update

VANCOUVER, BRITISH COLUMBIA . As previously reported, the Cardium exploratory test well has now been completed and swabbed. The operator has advised Magnum that hydrocarbons were present in commercial quantities and they have elected to undertake a high pressure fracture in order to maximize production. This procedure is scheduled to be completed on or about December 10, 2007. Upon completion of the fracture a commercial flow rate will be determined over the ensuing four to five days and the well will be equipped for production. Production of light sweet crude is anticipated to begin by late December or early January dependent on permitting, equipment availability and weather.

In addition to the Cardium well, Magnum has now received the drilling license for the re-entry of the first of two Sedalia area natural gas wells. These wells were abandoned in the early 1990's due to low natural gas prices. The company anticipates fracturing and tying the wells into existing pipeline facilities. If successful, these re-entries will lead to infill drilling opportunities of up to an additional 6 wells. Production is estimated to range from 15 boe/d to 35 boe/d per well.

Magnum is currently averaging approximately 80 boe/d from existing operations. The company is currently exploring additional development opportunities as well as possible acquisitions.

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Contacts: Magnum Energy Inc. Ted Konyi [phone] Magnum Energy Inc. Allan Thompson [phone] Email: [e-mail]