MEN

NOT FOR DISTRIBUTION 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 filed a preliminary short form prospectus with the securities
regulatory authorities in the provinces of British Columbia, Alberta,
Saskatchewan and Ontario in connection with a public offering (the "Offering")
of a minimum of 8,333,334 units and a maximum of 13,333,334 units (each a
"Unit") at a price of $0.30 per Unit (the "Offering Price"), for minimum total
gross proceeds of $2,500,000.20 and maximum total gross proceeds of
$4,000,000.20. Each Unit will consist 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 for a period of
one year from the date of issuance. The Warrant Share will be subject to an
acceleration clause whereby if, on any 20 consecutive trading days occurring
after four months and a day have elapsed following issuance of the Warrants, the
closing sales price of the Corporation's 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, the Corporation may 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 8.0% of the gross proceeds of the Offering (the "Agent's
Fee"), payable in cash, Units (based on the Offering Price), or any combination
thereof, at the Agent's election. As additional compensation, the Corporation
has agreed to grant to the Agents non-transferable options (the "Compensation
Options") to purchase that number of Units which is equal to 8.0% of the number
of Units sold under the Offering, at $0.30 per Unit, until that date which is 24
months after the closing of the Offering. The Corporation has also agreed to pay
to the Agent a corporate finance fee of $30,000 (plus applicable taxes) of which
$10,000 has been paid and the remaining $20,000 will be paid upon closing of the
Offering in cash, Units or a combination thereof, at the Agent's election.
Additionally, all reasonable expenses of or incidental to the issue of the
Units, including legal fees, will be reimbursed to the Agent whether or not the
financing is completed. The Agent will also be granted a right of first refusal
for a period of 12 months from the closing of the Offering to participate in and
act as an agent of the Corporation with respect to subsequent public or private
equity or debt financings undertaken by the Corporation.


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
Viking oil producing property and other assets in Provost, Alberta (see further
details in News Releases dated February 3, March 10 and March 16, 2011 and the
preliminary short form prospectus). Proceeds will also be used to partially
repay bank indebtedness, for capital expenditures to be incurred in the Provost
and Sedalia area of Alberta, and for general working capital.


The Offering will be subject to certain conditions, including but not limited to
the receipt of all necessary approvals from the TSX Venture Exchange and the
securities regulatory authorities of British Columbia, Alberta, Saskatchewan and
Ontario.


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 and timing for the Offering.
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 preliminary 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 nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such 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.

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