HS Orka hf - Company Announcement

Magma Energy Completes Purchase of a Further Interest in Icelandic Geothermal Energy Producer HS Orka

Magma Energy Corp. (TSX: MXY) announces that its wholly-owned subsidiary, Magma
Energy Sweden A.B., today has closed a portion of a previously announced
agreement to acquire further shares of Iceland geothermal company HS Orka hf.
Magma Sweden now holds an 84.21% interest in HS Orka. The acquisition was
originally announced in a press release dated May 17, 2010.