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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2009) - MAGNUM ENERGY INC. (the "Company")(TSX VENTURE:MEN) is pleased to announce that it has closed an acquisition (the "Acquisition") of 13 gross (9.24 net) sections of land in the Sedalia area of Alberta with existing natural gas production of 415 mcf/d (70 BOE/D) as previously announced on September 30, 2009. The Acquisition also includes a 30% working interest in a gas processing plant and a 100% interest in a compressor facility which will be operated by the Company.

The Company is also pleased to report that it has obtained a $5,000,000 Operating Loan Facility from the Alberta Treasury Branch. This loan facility has been used in part to repay indebtedness to the Company's previous lender and to fund the Acquisition. The balance of the loan available of $1,000,000 in addition to cash flow will be used to upgrade the current facilities and to bring further production on in the Sedalia area and for general corporate purposes.

The Company intends to enhance the capacity of the gas plant to enable it to commence production which is currently behind pipe in 100% owned wells. The Company's after acquisition current total production of 255 boe/d is anticipated to increase to 500 boe/d by the end of 2009 as a result of the planned Sedalia plant upgrades.

Reader Advisory

This news release and the documents referred to therein contain certain forward-looking statements, including management's assessment of future plans and operations and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Magnum's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserves estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations, including the adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory bodies. Actual results could differ materially from those expressed in or implied by these forward-looking statements. No assurances can be given that any of the events anticipated by any forward-looking statements will transpire or occur, or if any of them do so, what benefits Magnum will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Magnum or persons acting on behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release and the documents referred to herein, are made as at the date of this news release, and Magnum does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Petroleum and natural gas volumes are converted to an equivalent measurement basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6 thousand cubic feet of natural gas equaling 1 barrel of oil. This is based on an energy equivalency conversion method applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead. Readers are cautioned that boe figures may be misleading, particularly if used in isolation.

ON BEHALF OF THE COMPANY

Richard Nemeth, President

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.