Magnum Energy Inc.
TSX VENTURE : MEN

Magnum Energy Inc.

January 02, 2008 17:53 ET

Magnum Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 2, 2008) - Magnum Energy Inc. (TSX VENTURE:MEN) is pleased to announce closing of the flow-through private placement announced December 12, 2007. An aggregate of 367,500 units at a price of $0.50 per unit for total gross proceeds of $183,750.00 were issued. Each unit consists of one flow-through common share in the capital of the Company and one non-transferable share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share on or before December 31, 2008 at a purchase price of $0.75 per share.

The Company did not use an exclusive agent in connection with this financing. A finder's fee, payable in cash, of $13,100.00, equal to 8% of the gross proceeds of the units sold by it, was paid to Wolverton Securities Inc.

All securities issued pursuant to the private placement are subject to a hold period until May 1, 2008.

The Company will be using the proceeds of this private placement to develop its 2008 drilling program in the Company's properties.

Magnum Energy Inc.

Magnum Energy Inc. is a junior oil and gas exploration company operating in the Western Canadian Sedimentary Basin. The company is headed by Ted Konyi, CEO who has had extensive experience in the financing of oil and gas projects in Western Canada. The company has established an initial core area in South Eastern Alberta which it believes will produce significant cash flow for the company upon completion of a comprehensive drilling program.

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