VANCOUVER, April 28 /PRNewswire-FirstCall/ – Magma Energy Corp. (TSX: MXY) (“Magma”) is
pleased to announce that its shareholders approved at a special meeting
held yesterday all resolutions in connection with its proposed merger
with Plutonic Power Corporation (“Plutonic”) announced on March 7, 2011
(the “Arrangement”).

In particular, Magma’s shareholders approved the issuance of up to
156,202,213 common shares of Magma (the “Arrangement Resolution”) in
connection with the Arrangement which, if completed, will result in
Magma acquiring all of the outstanding common shares of Plutonic in
exchange for 2.38 common shares of Magma and $0.0001 in cash for each
share of Plutonic. In addition, all outstanding stock options to
purchase Plutonic shares will be exchanged for options to acquire
common shares of Magma in accordance with the same exchange ratio.
Magma shareholders also voted to approve the change of Magma’s name to
“Alterra Power Corp.”, to increase the size of the board of directors
of Magma to seven, and to elect Donald A. McInnes, Walter T. Segsworth
and David S. O’Brien to the Magma board of directors.

The Magma shareholders approved the resolutions by well in excess of the
required majorities: (a) 99.91% voted in favour of the arrangement
resolution; (b) 99.70% voted in favour of the name change resolution;
(c) 99.72% voted in favour of the board composition resolution; and (d)
99.90% voted in favour of electing each of the three new Magma board
members.

Completion of the arrangement remains subject to certain conditions,
including, the approval of the Plutonic shareholders at a meeting to be
held today, and the approval of the British Columbia Supreme Court. An
application for court approval is currently scheduled to be heard by
the British Columbia Supreme Court on May 3, 2011.

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, Italy and Latin America, including one operating power plant
in Nevada and two in Iceland.

Cautionary Note Regarding Forward-Looking Information

This news release contains certain “forward-looking information” within
the meaning of Canadian securities laws, which may include, but is not
limited to, statements with respect to future events or future
performance, the timing and prospects for Plutonic shareholder approval
of the Arrangement, the timing and prospects for court approval of the
Arrangement, the timing and prospects for closing or completing the
Arrangement, and the implementation of the Arrangement and the
Resolutions.

These statements reflect the current views of Magma with respect to
future events and are necessarily based upon a number of assumptions
and estimates that, while considered reasonable by Magma, are
inherently subject to significant business, economic, political and
social uncertainties and contingencies. Many factors, both known and
unknown, could cause actual results to be materially different from the
results or expectations that are or may be expressed or implied by such
forward-looking statements contained in this press release, and Magma
has made assumptions based on or related to many of these factors. Such
factors include, without limitation: the risk that the Arrangement will
not be approved by Plutonic shareholders or by the court; the risk that
all required regulatory and third party approvals to complete the
Arrangement will not be obtained; and the risks that may affect the
implementation of the Arrangement, or the Resolutions. Forward-looking
information and statements are also based upon the assumption that none
of the identified risk factors that could cause actual results to
differ materially from the forward-looking information and statements
will occur.

Although Magma has attempted to identify important factors that could
cause actual results to differ materially, there may be other factors
that cause results not to be as anticipated, estimated, described or
intended. There can be no assurance that the forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, prospective investors should not place undue
reliance on forward-looking information.

Other than as required by applicable securities laws, Magma assumes no
obligation to update or revise such forward-looking information to
reflect new events or circumstances.

SOURCE Magma Energy Corp.