Magma Energy Announces Extension in Deadline to Hold Annual Meeting

VANCOUVER, Aug. 3 /CNW/ - Magma Energy Corp. (TSX: MXY) ("Magma" or the "Company") today announced that it has extended the deadline for holding its annual general meeting from September 2, 2010 to December 2, 2010 in order to provide sufficient time for the Company, and its external auditors, to finalize the Company's audited annual financial statements.

The Company held an annual general meeting on June 2, 2009 prior to its initial public offering. Pursuant to corporate law, the Company is required to hold its annual general meeting for the year ended June 30, 2010 on or before September 2, 2010. This requirement does not provide sufficient time to prepare audited annual financial statements and to meet the filing and mailing requirements under applicable securities laws. The Company has already sought and received the acknowledgement and consent of the Registrar of Companies of British Columbia with respect to the extension to the deadline for holding its annual general meeting. The Toronto Stock Exchange has also indicated that it has no objections in Magma extending the deadline. The extended meeting deadline will allow the Company to meet certain filing and mailing requirements under applicable securities laws relating to the Company's audited annual financial statements.

About Magma Energy Corp.

Magma Energy Corp. is a global 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 a significant interest in two in Iceland.

For further information: Alison Thompson, Vice President, Corporate Relations, Magma Energy Corp., Phone: [phone], Email: [email protected]