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Magnum Energy Closes Private Placement, Withdraws Prospectus

CALGARY, ALBERTA -- (Marketwire) -- 01/17/13 -- MAGNUM ENERGY INC. (TSX VENTURE:MEN) ("Magnum" or the "Corporation") -

Magnum is pleased to announce that it has closed its previously announced non-brokered private placement. The placement returned gross proceeds of $165,000 and the Company has issued an aggregate of 1,650,000 common shares, issued on a flow-through tax basis pursuant to the Income Tax Act (Canada).

The securities issued pursuant to the Offering are subject to a four (4) month hold period. Completion of the Offering is subject to the final approval of the TSX Venture Exchange.

Proceeds will be used for the completion of a horizontal Viking Oil well and additional work in the Provost Viking Oil property.

Finders acting in connection with this private placement received finder's fees in the total amount of $2,400.00.

Additionally, on November 26, 2012, Magnum withdrew the preliminary short form prospectus dated November 7, 2012. Notices to the Public from the ASC and OSC dated November 26, 2012 were issued regarding the withdrawn short form prospectus and are available for review on www.sedar.com.

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.

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.

Contacts:
Magnum Energy Inc.
Richard Nemeth
President & CEO
604-948-2688
rnemeth@magnumenergyinc.com
www.magnumenergyinc.com

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