Vancouver, B.C., Canada, April 1, 2010 - Magma Energy Corp. (TSX:MXY) Magma Energy Corp. reports that it has now closed a previously announced agreement to acquire from Geysir Green Energy a 2.16% stake in HS Orka, a large producing geothermal company in Iceland, for 625 million Icelandic Kronur ("ISK") (approximately $5 million).

Magma Energy also reports that it has contributed new equity to HS Orka in order to finance its continuing development and expansion. Magma Energy has contributed approximately $8.0 million and Geysir has contributed approximately $12 million for a total contribution of $20 million. Magma Energy now holds a 43.2% direct interest in HS Orka.

HS Orka is the largest privately owned energy company in Iceland. Installed geothermal power capacity is 175 megawatts ("MW") from the Svartsengi and Reykjanes power plants. In addition, HS Orka generates 150 MW of thermal energy for district heating. Expansions are planned that will increase HS Orka's geothermal power production to 405 MW by 2015. Much of the power is sold under US dollar contracts to a large aluminum smelter that is one of the world's lowest cost aluminum producers.