NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


MAGNUM ENERGY INC. (the "Company") (TSX VENTURE:MEN) is pleased to announce the
closing of the first tranche of a private placement (the "Private Placement").
Pursuant to the Private Placement, the Company issued 2,900,000 flow-through
shares (the "Flow-Through Shares") at a price of $0.10 per share for gross
proceeds of $290,000 and 887,500 non-flow-through shares (the "Common Shares")
at a price of $0.08 per share for gross proceeds of $71,000. 


All securities issued pursuant to the private placement are subject to a four
month hold period and final approval from the TSX Venture Exchange.


Further to its press release dated April 15, 2012, Magnum announces that it has
filed an amended and restated preliminary short form prospectus dated May 18,
2012 (the "Amended & Restated Preliminary Prospectus") in connection with the
marketed public offering which now includes a minimum offering of $1,050,000 and
a maximum offering of $3,300,000 that is comprised of a minimum of $750,000 and
a maximum of $3,000,000 aggregate principal amount of 11% subordinated secured
convertible debentures (the "Debentures") at a price of $1,000 per Debenture
together with $300,000 or 3,750,000 common shares are a price of $0.08 per
common share (the "Offering"). Macquarie Private Wealth Inc. has been engaged to
sell the Debentures and common shares on a commercially reasonable efforts
agency basis. 


The Debentures have the same terms and conditions as previously announced and
will mature three years after the Closing Date (the "Maturity Date") and will
bear interest at an annual rate of 11%, payable semi-annually commencing six
months after the Closing date. Each Debenture will be convertible into Class A
common shares of the Corporation (the "Common Shares") at the option of the
holder at any time prior to the Maturity Date at a conversion price of $0.25 per
Common Share, being a conversion rate of 4,000 Common Shares per $1,000
principal amount of Debentures. Holders converting their Debentures will receive
accrued and unpaid interest thereon from the period of the last interest payment
date on their Debentures prior to the date of conversion to the date that is one
day prior to the date of conversion.


The Debentures will be redeemable by the Corporation at any time after two years
from issuance for a cash payment consisting of the outstanding principal amount
of the Debentures, the outstanding accrued and unpaid interest to the date of
redemption and a premium of 2% of the principal amount of the Debentures.


The Debentures will be secured against all of the assets of the Corporation and
will rank second after the Corporation's secured lenders. The net proceeds of
the Offering will be used primarily for expansion of the Corporation's oil
production and reserves in its Provost Viking Oil Project, where it has recently
added oil production from its first horizontal well.


Magnum has obtained a receipt for the Amended & Restated Preliminary Prospectus
filed with the securities regulatory authorities in each of the provinces of
Ontario, Saskatchewan, Alberta and British Columbia. Magnum has made application
to have the Debentures and the Common Shares issuable upon conversion of the
Debentures listed for trading on the TSX Venture Exchange. The Closing of the
Offering is subject certain closing conditions, including, but not limited to,
the issuance of a receipt by the securities regulatory authorities in each of
the provinces of Ontario, Saskatchewan, Alberta and British Columbia for a final
short form prospectus qualifying the distribution of the Debentures and the
approval of the TSX Venture Exchange.


About Magnum Energy Inc.

Magnum is a junior oil and gas producer with operations located in the Western
Canadian Sedimentary Basin. The Corporation produces from Viking oil operations
in Alberta, gas operations in Alberta and maintains a 100% ownership of the
Sedalia gas facility in East-Central Alberta. 


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any securities, nor shall there be any sale of securities in any
state in the United States in which such offer, solicitation or sale would be
unlawful. The securities referred to herein have not been and will not be
registered or sold under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration or an
applicable exemption from registration requirements. 


Forward looking statements:

The information and statements in this news release contain certain
forward-looking information relating to: (i) the proposed issuance of the
Debentures, closing of the Offering and the use of net proceeds of the Offering.
All statements other than statements of historical fact may be forward-looking
information. This forward-looking information is subject to certain risks and
uncertainties and may be based on assumptions that could cause actual results to
differ materially from those anticipated or implied in the forward-looking
information. These assumptions include market acceptance of the terms of the
Offering. The outcome and timing of the proposed Offering could differ
materially from those expressed in, or implied by, such forward-looking
information, and accordingly, no assurances can be given that any of the events
anticipated by the forward-looking information will transpire or occur or, if
any of them do, what benefits the Corporation will derive from them. The
Corporation's forward-looking information is expressly qualified in its entirety
by this cautionary statement. Except as required by law, the Corporation
undertakes no obligation to publicly update or revise any forward looking
information.