Magnum Energy Inc.
TSX VENTURE : MEN

Magnum Energy Inc.

August 09, 2012 12:07 ET

Magnum Energy Inc. Completes Final Closing of Prospectus Offering

CALGARY, ALBERTA--(Marketwire - Aug. 9, 2012) -

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

Magnum Energy Inc. ("Magnum" or the "Company") (TSX VENTURE:MEN) is pleased to announce, that further to its press release dated June 20, 2012, it has completed a second and final closing pursuant to its previously announced public offering (the "Offering") by short form prospectus dated June 4, 2012 (the "Prospectus") and has issued $2,225,000 11% subordinated convertible secured debentures at a price of $1,000 per debenture on August 8, 2012 lead by Macquarie Private Wealth Inc. In addition, broker warrants were issued entitling the holder to acquire up to 1,483,833 common shares at a purchase price of $0.15 for a period of 12 months from the date of issuance. Together with the first closing, Magnum has raised aggregate proceeds of $3,300,000.

The Company has made final submissions to the TSX Venture Exchange ("TSXV") for the listing of the debentures and upon receipt of final approval from the TSXV, the debentures shall be listed and posted for trading on the TSXV.

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 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.

About Magnum Energy Inc.: Magnum is a Canadian oil and natural gas exploration, development and production company with operations based in the Province of Alberta, and an administrative office in Vancouver, British Columbia. The Company's mandate is to acquire and develop significant working interests in a variety of oil and natural gas prospects. The Company's public filings may be found at www.sedar.com. To find out more about Magnum visit our website at www.magnumenergyinc.com.

Forward looking statements:

The information and statements in this news release contain certain forward-looking information relating to listing of the debentures on the TSXV. 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. The outcome and timing of the listing of the debentures could differ materially from those expressed in, or implied by, such forward looking information, and accordingly, no assurances can be given that any subsequent closings or 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.

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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