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Press release from CNW Group

Magma to Extend and Increase Credit Facility

Wednesday, December 15, 2010

Magma to Extend and Increase Credit Facility16:30 EST Wednesday, December 15, 2010VANCOUVER, Dec. 15 /CNW/ - Magma Energy Corp. (TSX:MXY) announces that it has extended its existing $10 million credit facility from Ross Beaty, its Chairman and CEO from a 12 month term to a 24 month term and has increased the amount available under the facility to $20 million. Draws will be made in tranches as necessary to meet working capital needs, particularly during the period that $28.8 million of Magma's cash resources are restricted under a four month bridging facility entered into in connection with Magma's final HS Orka purchase payment on December 7, 2010. Any funds drawn down by Magma from the facility will bear identical terms as per the original facility entered into on July 5, 2010.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