MAGNUM ENERGY INC. (the "Company") (TSX VENTURE:MEN) is pleased to announce the
closing of the second and final tranche of its private placement (the "Private
Placement") announced in its news release dated December 8, 2010. In connection
with the Private Placement, the Company issued a total of 2,054,001 flow-through
shares at a price of $0.29 per share for gross proceeds of $595,660.


Finder's fees of $33,576 were paid in accordance with the policies of the TSX
Venture Exchange.


All securities issued pursuant to the private placement are subject to hold
periods expiring between April 16 and 30, 2011.


ON BEHALF OF THE COMPANY

Richard A. Nemeth, President