Magnum Energy Inc.
TSX VENTURE : MEN

Magnum Energy Inc.

December 21, 2011 12:53 ET

Magnum Energy Inc. Announces Closing of First Tranche of Private Placement

CALGARY, ALBERTA--(Marketwire - Dec. 21, 2011) - MAGNUM ENERGY INC. (the "Company") (TSX VENTURE:MEN) is pleased to announce the closing of the first tranche of its private placement (the "Private Placement") announced in its news release dated November 18th, 2009. Pursuant to the Private Placement, the Company issued 2,819,785 flow-through shares (the (the "Flow-Through Shares") at a price of $0.20 per Share for gross proceeds of $563,957.

Finder's fees of $15,974 were paid in accordance with the policies of the TSX Venture Exchange. Additionally, 46,620 Finder's Warrants to acquire Class A common shares of the Corporation at a price of $0.20 per share for a period of one year were also issued.

All securities issued pursuant to the private placement are subject to a hold period expiring on April 19, 2012.

ON BEHALF OF THE COMPANY

Richard Nemeth, President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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