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Press release from CNW Group

MAGMA ENERGY COMPLETES FINAL PAYMENT FOR HS ORKA PURCHASE

Tuesday, December 07, 2010

MAGMA ENERGY COMPLETES FINAL PAYMENT FOR HS ORKA PURCHASE16:35 EST Tuesday, December 07, 2010VANCOUVER, Dec. 7 /CNW/ - Magma Energy Corp. (TSX:MXY) advises that Magma Energy Sweden A.B. ("Magma Sweden") has provided a payment of approximately ISK 3.08 billion (USD 27 million) to Geysir Green Energy ehf ("GGE") to fund the final payment owing under the share purchase agreement between Magma Sweden and GGE pursuant to which Magma Sweden acquired its 98.53% interest in HS Orka hf.  Magma has arranged a short term loan to provide funding for this payment which loan is secured by a Letter of Credit posted by Magma Energy Corp.  The Letter of Credit is secured by cash on deposit in Magma's bank account.About Magma Energy Corp.Magma Energy Corp. is a geothermal power company which operates, develops, explores and acquires geothermal energy projects.  We have an extensive portfolio of properties throughout the western United States, Iceland and Latin America, including one operating power plant in Nevada and two in Iceland. For further information: Alison Thompson, Vice President, Corporate Relations Magma Energy Corp. Phone: 604.646.1882 Email: athompson@magmaenergycorp.com