MEN

MAGNUM ENERGY INC. (TSX VENTURE:MEN) - 

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES OF AMERICA 


MAGNUM ENERGY INC. (the "Corporation") is pleased to announce that construction
of the pipeline required to tie-in the 14-7 horizontal well at the Provost
Viking Oil Project has been completed and the well was placed on production this
past week. Management anticipates that stabilized rates from the horizontal oil
and natural gas well will be established during the second quarter of 2012. 


The Corporation is also in the process of securing licenses for two existing
vertical wellbores for re-entry operations with Viking oil potential similar to
the Provost 5-7 vertical recompletion performed in the spring of 2011. The
Provost 5-7 had initial production rates of over 40 barrels of oil per day, and
stabilized production of approximately 20 gross barrels (10 net barrels) of oil
per day. The Corporation is planning to re-enter the wells as soon as possible,
subject to weather and crew and equipment availability.


Successful re-entry operations will provide the Corporation with increased
production, cash flow, and new reserves in the proved producing and probable
categories. Magnum will also acquire technical data that will assist in the
future horizontal development of two sections where no reserves have been
assigned. 


The Corporation has acquired a drilling license for a second horizontal location
and expects to have a third licensed shortly. Magnum continues to survey
additional locations for future drilling operations and intends to maximize oil
production from, and add reserves to, the Provost Viking oil project as quickly
as is prudently possible. 


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. 


ON BEHALF OF THE CORPORATION 

Richard Nemeth, President & CEO

Forward looking statements: 

This news release contains certain forward-looking statements, including
management's assessment of future plans and operations and capital expenditures
and the timing thereof, that involve substantial known and unknown risks and
uncertainties, certain of which are beyond Magnum's control. Such risks and
uncertainties include, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserves estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations, including
the adoption of new environmental laws and regulations, and changes in how they
are interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory bodies. Actual results could differ materially
from those expressed in or implied by these forward-looking statements. No
assurances can be given that any of the events anticipated by any
forward-looking statements will transpire or occur, or if any of them do so,
what benefits Magnum will derive therefrom. Readers are cautioned that the
foregoing list of factors is not exhaustive. All subsequent forward-looking
statements, whether written or oral, attributable to Magnum or persons acting on
behalf are expressly qualified in their entirety by these cautionary statements.
The forward-looking statements contained in this news release and the documents
referred to herein, are made as at the date of this news release, and Magnum
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.

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