MAGNUM ENERGY INC. (the "Corporation") (TSX VENTURE:MEN) is pleased to announce
that it has closed its previously announced financing (the "Offering"). Pursuant
to the Offering, the Corporation has issued a total of 10,219,000 Units (the
"Unit(s)") at a price of $0.30 per Unit for gross proceeds of $3,065,700. Each
Unit consists of one Class A Voting Common Share of the Corporation (a "Class A
Common Share") and one-half of a non-transferable Class A Common Share purchase
warrant (each whole warrant a "Warrant"). Each whole Warrant will entitle the
holder thereof to purchase one Class A Common Share (a "Warrant Share") at an
exercise price of $0.45 per Warrant Share until May 18, 2012, subject to
acceleration. If the closing sales price of the Class A Common Shares (or the
closing bid, if no sales were reported on a trading day) as quoted on the TSX
Venture Exchange is greater than $0.60 for 20 consecutive trading days, the
Corporation may, within 5 days of such event, accelerate the expiry date of the
Warrants to the 30th day on which the Corporation gives notice of such
acceleration in accordance with the Warrants.


The Corporation has agreed to pay to Wolverton Securities Ltd. (the "Agent") a
commission equal to 8% of the gross proceeds raised plus a corporate finance fee
in addition to the reimbursement of legal fees and incidental expenses it
incurred with respect to the Offering. As additional compensation, the
Corporation has granted to the Agent and its sub-agents non-transferable options
to purchase 817,520 Units (equal to 8% of the total Units issued), at $0.30 per
Unit, until May 18, 2013. The Agent has also been granted the right of first
refusal to participate in and act as an agent of the Corporation with respect to
subsequent public or private equity or debt financings undertaken by May 18,
2012.


The proceeds from the Offering will be used to partially pay for the
Corporation's share of the consideration paid in the recent acquisition of a
Viking oil producing property in Provost, Alberta. Proceeds will also be used to
partially repay bank indebtedness, for capital expenditures to be incurred in
the Provost and Sedalia areas of Alberta, and for general working capital. See
the Corporation's short form prospectus dated May 3, 2011 for further details.


ON BEHALF OF THE CORPORATION

Richard A. Nemeth, President

Forward-looking Statements

This news release contains certain forward-looking information and statements
that are based on the Corporation's current expectations, estimates, projections
and assumptions in light of its experience and its perception of historical
trends. In this news release, such forward-looking information and statements
can be identified by terminology such as "will", "to be", "expected",
"anticipated" and similar expressions.


In particular, this news release contains forward-looking statements and
information relating to the planned use of proceeds of the financing. These
forward-looking statements and information are being made by the Corporation
based on certain assumptions that the Corporation has made in respect thereof as
at the date of this document. These forward-looking statements are not
guarantees of future performance and are subject to a number of known and
unknown risks and uncertainties, including, but not limited to: non-performance
of agreements in accordance with their terms; the impact of competition;
commodity prices; regulatory environment and inability to obtain required
regulatory approvals; fluctuations in operating results; the ability of the
Corporation to raise sufficient capital to complete future projects and satisfy
future commitments; labour and material shortages; and certain other risks
detailed from time to time in the Corporation's public disclosure documents
including, among other things, those detailed under the heading "Risk Factors"
in the annual information form of the Corporation for the year ended August 31,
2010, dated March 18, 2011 and in its short form prospectus, both of which can
be found at www.sedar.com.


Accordingly, readers are cautioned that events or circumstances could cause
results to differ materially from those predicted, forecasted or projected. Such
forward-looking statements are expressly qualified by the above statements. The
Corporation does not undertake any obligation to publicly update or revise any
forward-looking statements or information contained herein, except as required
by applicable laws.


This press release shall not constitute an offer to sell or a solicitation of an
offer to buy these securities in any jurisdiction. The securities have not and
will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold in the United States or to any U.S. person except in certain
transactions exempt from the registration requirements of the U.S. Securities
Act and applicable state securities laws.