MEN

MAGNUM ENERGY INC. ("Magnum") (TSX VENTURE:MEN) - 

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


Further to its press release dated April 2, 2012, Magnum is pleased to announce
that it has filed a preliminary short form prospectus (the "Preliminary
Prospectus") in connection with the marketed public offering of up to a maximum
of $2,500,000 aggregate principal amount of 11% subordinated secured convertible
debentures (the "Debentures") at a price of $1,000 per Debenture (the
"Offering"). Macquarie Private Wealth Inc. has been engaged to sell the
Debentures on a commercially reasonable efforts agency basis.


The Debentures 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. The Debentures will be redeemable by
the Corporation at any time after two years from issuance. The Debentures will
be secured against all of the assets of the Corporation and will rank second
after Magnum's primary secured lenders. 


The net proceeds of the Offering will be used 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 Preliminary Prospectus filed with the
securities regulatory authorities and 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 to certain 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.

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