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


MAGNUM ENERGY INC. (the "Corporation") (TSX VENTURE:MEN) is pleased to announce
that it has engaged a Canadian investment dealer (the "Agent") to sell, on a
commercially reasonable efforts agency basis, a minimum of 2,307,692 and up to a
maximum of 6,634,615 class A common shares ("Common Shares") of the Corporation
(the "Offered Common Shares") and a minimum of 2,000,000 and up to a maximum of
5,750,000 Common Shares issued on a "flow-through" basis under the Income Tax
Act (Canada) (the "Offered Flow-through Shares") to the public at a price of
$0.13 and $0.15 per Offered Common Share and Offered Flow-Through Share
respectively (collectively the "Offered Shares") for aggregate gross proceeds of
a minimum of $600,000 and a maximum of $1,725,000 (the "Offering").


It is presently anticipated that the net proceeds from the issuance of Offered
Shares will be used by the Corporation for development of the Corporation's
Viking Oil producing property near Provost, Alberta. Proceeds from the issuance
of Offered Flow-through Shares under the Offering will be used by the
Corporation to incur Canadian Development Expenses which will be renounced to
subscribers as Canadian Exploration Expenses.


The Agent will be paid a cash commission equal to 10% of the gross proceeds of
the Offering. The Agent will also receive warrants to purchase such number of
Common Shares as is equal to 10% of the Offered Shares sold under the Offering
(the "Agent's Warrants"). The Agent's Warrants will be exercisable for a period
of 24 months following closing at a purchase price of $0.13 per Common Share.


The completion of the Offering is subject to, among other things, completion of
satisfactory due diligence by the Agent, formal documentation and regulatory
approval.


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.


Forward looking statements:

The information and statements in this news release contain certain
forward-looking information relating to: (i) the proposed issuance of the
Offered Shares; and (ii) the use of 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
proposed use of proceeds, and that historical costs and expenses will be
representative of future costs and expenses. The outcome and timing of the
proposed Offering, as well as the Corporation's actual results, performance or
achievement 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.


This news 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Magnum Energy Inc.
Richard Nemeth
President & CEO
604.218.1479
rnemeth@magnumenergyinc.com
www.magnumenergyinc.com