APR 2011 TSX : MXY

A GLOBAL GEOTHERMAL POWER COMPANY

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

These slides and the accompanying oral presentation contain 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, management’s expectations regarding our growth, results of operations, estimated future revenues, requirements for additional capital, production costs and revenue, future demand for and prices of electricity, business prospects, opportunities and estimates of recoverable geothermal energy “resources” or “reserves” or energy generation capacities (at either P90 or based on the Geothermal Code for Public Reporting). Such forward-looking information reflects management’s current beliefs and is based on information currently available to management.

A number of known and unknown risks, uncertainties and other factors, may cause our actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. Such factors include, among others, those discussed in the section of our prospectus entitled “Risk Factors”. These factors should be considered carefully. The forward-looking information is also based upon what management believes to be reasonable assumptions, including, but not limited to, assumptions about: the success and timely completion of planned exploration and expansion programs, including expansion and improvements to operations in Iceland and to our Soda Lake Operation in Nevada; the growth rate in net electricity consumption; support and demand for non-hydroelectric renewables; government initiatives to support the development of renewable energy generation; the accuracy of resource and reserve estimation methodology and probabilistic analysis used to estimate the quantity of potentially recoverable energy; geological, geophysical, geochemical and other conditions at our properties; the reliability of technical data, including extrapolated temperature gradient, geophysical and geochemical surveys and geothermometer calculations; capital expenditure estimates; availability of capital to fund exploration, development and expansion programs; the differences in financial results reported under IFRS and Canadian GAAP; and general economic conditions. 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.

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, we assume no obligation to update or revise such forward-looking information to reflect new events or circumstances.

2

MAGMA ENERGY - STRATEGY & VALUE CREATION

Magma’s mission: to build a leading global geothermal power company

Geothermal power can be the lowest cost and cleanest form of electricity generation Potentially a great cash generator without incentives

Incentives (USA, Europe, Chile) greatly improve margins

Magma’s strategy: broad asset portfolio and scale =

“discovery returns” and “utility cash flows”

Reduces drilling risk and high front-end capital risk

Improves margins with lower cost of capital

Better multiples

We are a power company and an energy resource company

3

DISCOVERYRETURNS

UTILITYCASH FLOWS

ACQUISITIONEXPLORATION

FEASIBILITY

PERMITTING

FINANCING

CONSTRUCTION

OPERATIONS

TIME

PR

OJE

CT

VA

LU

E $

Capital G

rowth

Income Growth

BALANCED PORTFOLIO: GLOBAL EXPLORATION & OPERATIONS

ICELAND:

2 power plants with 175 MW capacity

80 MW of expansions underway

Additional 150 MW of defined expansion plans

USA:

23 MW power plant with expansion potential

Steady, predictable and long-life cash flow

Excellent government support for geothermal projects

12 other exploration properties

CHILE / PERU / ARGENTINA:

Huge (320 MW) inferred resource discovered at low cost

Emerging geothermal markets with world-class potential

Strong government support for geothermal projects

Active exploration concessions covering in excess of 184,922 ha in Argentina, Chile and Peru

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From 2008 startup, the world’s fastest growing geothermal power company

2008 2009 2010 2011e0

250

500

750

1000

1250

1500

0

50

100

150

200

250

16 91

1,023

1,334

23

190 191

POWER GROWTH

Prod

uctio

n (G

Wh)

Inst

alle

d Ca

paci

ty (M

W)

MAGMA ENERGY – EXECUTION TO DATE

5

2008 2009 20100

400

800

1200

1600

199555

99011

86

195

60

181

GEOTHERMAL RESERVES & RESOURCES GROWTH

InferredIndicatedReserves

MW (1)

(1)Geothermal Reporting Code verified MW

POWER GROWTH

GEOTHERMAL RESERVES & RESOURCES GROWTH

MAGMA ENERGY – GROWING FINANCIAL STRENGTH

6

(1) 2009/2010 reflects Magma’s equity portion in HS Orka(2) 2011 is an estimate with assumed aluminum price of USD 2,300/tonne and 111 ISK/USD(3) See page 7 footnote for definition

Jan-Jun/08

Jul/08 - Dec/09

2010 2011e $(10)

$(5)

$-

$5

$10

$15

$20

$25

EBITDA

Mill

ion

s U

SD

Jan-Jun/08

Jul/08 - Dec/09

2010 2011e $-

$10

$20

$30

$40

$50

$60

$70

$80

REVENUE

Mill

ion

s U

SD

REVENUE

(1)

(1)

(1)

(1)

(2)

(2)

(3)

EBIDTA

Magma gained control of HS Orka during Q1, full consolidation of results occurred in Q2

Q2 - 2011 OPERATING AND FINANCIAL HIGHLIGHTS

Expressed in thousands of US dollars, except for MWh and per share amounts

ACTUAL

2011-Q2 2011- H1 Year EndJune 30-2010

NET PRODUCTION (MWh) 351,461 688,707 62,072

TOTAL REVENUE 18,751 26,795 5,056

GROSS PROFIT 5,485 6,295 625

EBITDA (1) 6,155 13,050 (3,261)

TOTAL ASSETS 656,222 656,222 198,703

TOTAL LIABILITIES 427,093 427,093 56,633

7

(1) EBITDA is defined by the Company as earnings before interest and other financing costs, taxes, depreciation and amortization, as well as before deductions for non-cash charges related to employee compensation, equity earnings/losses, loss on re-measurement of equity interest, gain on bargain purchase and changes to the balance sheet carrying value of long-term debt and derivatives. The Company discloses EBITDA as it is a measure used by analysts and by management to evaluate the Company's performance. As EBITDA is a non-GAAP measure, it may not be comparable to EBITDA calculated by others. In addition, as EBITDA is not a substitute for net earnings, readers should consider net earnings in evaluating the Company's performance.

Ram Power U.S. Geo NGP Magma Ormat0

100

200

300

400

500

600

700

Operating Development through 2013

MW

NORTH AMERICAN PUBLIC GEOTHERMAL COMPANIES

(1) Geothermal Reporting Code verified MW

Source: Jacob Securities Inc

8

(1)

PROGRESS AND NEXT STEPS

OUR PROGRESS Now the 2nd largest public geothermal

developer in North America

Existing Iceland infrastructure allows for rapid, low cost expansions

Major discovery in Chile

NEXT STEPS Complete Iceland expansions

Fulfill potential at Soda Lake, NV and develop other US assets

Develop Mariposa, Chile and explore other Chile/Peru assets

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2008 2009 2010 2011 2012 2013 2014 2015+0

100

200

300

400

500

600

700

0

1000

2000

3000

4000

5000

6000

Soda Lake Iceland Other USAChile

INST

ALLE

D C

APAC

ITY

(MW

)

GW

h

CREATING VALUE

VALUE PROPOSITION Renewable production and steady cash flow

Strong inventory of development prospects

Sufficient resources to increase existing company proved reserves six-fold

Growing portfolio size reduces risk

Large team of geothermal experts - core asset

10

248

11

84

190

307

443

643

191

EXPECTED ORGANIC GROWTH

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APPENDIX

MAGMA ENERGY - GLOBAL PROJECT PIPELINE

STAGE PROPERTYAREA RESERVES RESOURCES

(HA)PROVE

D INDICATED INFERRED

Operations Soda Lake - USA1 2,881 20 41 Iceland 2 560 175 90

Advanced Mariposa - Chile3 104,000 320McCoy - USA4 4,621 80Eldvorp - Iceland 2 50Krysuvik - Iceland 2 30,507 500

Early Stage Argentina 26,922Chile 158,000Italy 48,446Peru TBDUSA 34,977 90

410,914+ 195 MW 181 MW 990 MW

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(1) Reporting Code Estimate GeothermEx(2) Reporting Code Estimate Mannvit Engineering (3) Reporting Code Estimate SKM(4) Reporting Code Estimate Geo Hills Associates

operationsproperties

STP MXY CLL $-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

EV/BOE RESERVES & RESOURCES

EV/BOE Reserves EV/BOE Resources

CD

N $

/ B

OE

STP MXY CLL

(400)

(200)

-

200

400

600

800

1,000

1,200

CO2 Credits (Penalties) From Reserves & Resources

Me

ga

To

nn

es

STP MXY CLL -

500

1,000

1,500

2,000

2,500

boe RESERVES & RESOURCES

BOE Reserves BOE Resources

MM

BO

EMAGMA IS AN UNDERVALUED ENERGY COMPANY

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. . . . . @ $15/tonne

≈ $14 billion credit over 30 years

TSX symbols: STP Southern PacificMXY Magma EnergyCLL Connacher Oil & Gas

Assumptions:

0.62 bbl/MWh(th)

0.1 MW(e) / MW(th)

30 years of assumed project life430 kg CO2 emitted per BOE

ICELAND EXPANSION HIGHLIGHTS

Potential to expand from 175 MW to 405 MW

PPA discussions with Nordural and others on-going

46% of HS Orka’s revenue currently indexed to aluminum price Future PPA’s with smelters and/or other power off-takers will impact HS Orka’s on-going sensitivity

to aluminum prices

Signing of new PPA that is not Al price-linked

50 MW phase expansion commenced; as of Dec 2010 $39 MM already invested

Next 30 MW phase requires no additional drilling

~CapEx for full 230 MW expansion is ~$642 MM; will be staged

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Reykjanes & Svartsengi

Reykjanes 3Reykjanes 4Krýsuvík 1Krýsuvík 2Eldvörp

2009 2010 2011 2012 2013 2014 2015 +0

100

200

300

400

MW

Reykjanes 3 $131 MM

Reykjanes 4 $ 66 MM

Krýsuvik 1 $ 155 MM

Krýsuvik 2 $ 145 MM

Eldvörp $ 145 MM

CONCEPTUAL PRODUCTION GROWTH EXPANSION BUDGET

PRODUCTION - SODA LAKE, NEVADA

Ramping up to capacity of 23 MW Current throughput is 84,000 GWh/yr

Phase 2 expansion - achieve reservoir capacity 61 MW

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320 MW Inferred Resource discovered by Magma in 2009

50 MW Phase 1 exploitation plan approved in April 2010

Completed $21 MM slim hole drill program for resource confirmation

>$100/MWh power rates and drilling incentives available

<25 km from 2 transmission lines under development

ADVANCED DEVELOPMENT - MARIPOSA, CHILE

MP- 03 DRILL SITE

MP- 01MP- 02

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MP- 03

WORLD CLASS MANAGEMENT TEAM

Monte Morrison: USACountry Manager Professional Engineer with 25 years experience managing the operations and maintenance of geothermal power plants

John Selters: CHILE & ARGENTINACountry ManagerMining engineer with over 40 years experience in Latin America

Dick Benoit: USAExploration Manager Over 35 years experience in the geothermal industry both nationally and internationally

Mark Kumataka: USAChief EngineerProfessional Engineer with over 30 years experience in geothermal resource management in U.S. & Latin America

Lyle Braaten: Secretary & General CounselLawyer. Extensive experience negotiating commercial agreements and implementing large infrastructure projects

Annette Cusworth: Chief Financial OfficerChartered Accountant with over 20 years experience in the public and private sectors

Dr. Catherine Hickson: VP Exploration & Chief GeologistWorld renowned volcanologist with over 25 years experience in Canadian and international geosciences

Anders Kruus: VP Corporate RelationsFinance professional with over 20 years international experience in capital markets and corporate finance

Asgeir Margeirsson: VP Operations & Development, An extensive career in geothermal power development both within Iceland and internationally

Ross Beaty: Chairman & CEOGeologist and resource company entrepreneur with 38 years experience in the international minerals industry. Founder and chair of Magma Energy Corp and Pan American Silver Corp. (TSX: PAA, NASDAQ: PAAS) and several other resource companies that were successfully built and divested.

MAGMA ENERGY GLOBAL OPERATIONSMAGMA ENERGY CORP

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John Carson: Executive Vice PresidentMr. Carson is a highly experienced renewable energy business leader with a core expertise in structuring and leading financial transactions. His financing experience includes senior positions held with GE Energy Financial Services, Terra-Gen Power and Noble Environmental Power, and he has closed over US$2 billion of transactions, primarily in the renewable energy space.

INSTITUTIONAL QUALITY BOARD OF DIRECTORS

Ross Beaty - Chairman and CEO

David W. Cornhill - [Independent] Member Compensation and Governance Committees

Mr. Cornhill is the founder, Chairman and Chief Executive Officer of AltaGas Income Trust, one of Canada’s largest energy infrastructure groups, focused on gas and power infrastructure and renewable energy (wind and hydro). With more than 25 years of experience in the energy industry, Mr. Cornhill also sits on several private and public boards including AltaGas Utility Group and Ivey Business School.

Robert Pirooz - [Independent] Chair Corporate Governance Committee, Member Audit and Compensation Committee

Mr. Pirooz studied commerce at Dalhousie University and received a Juris Doctor degree from the University of British Columbia in 1989. From May 1990 to February 1998, Mr. Pirooz practiced law primarily in the areas of corporate, commercial and securities law. Mr. Pirooz' extensive legal and business background spans over 20 years and includes the role of General Counsel for the BCR Group of companies and Pan American Silver Corp., a role in which he currently serves, and as principal in the Lumina group of resource companies. Currently a director of 5 public companies, Mr. Pirooz has worked with Ross Beaty since early 1998.

Donald Shumka - [Independent] Chair Audit Committee, Member Governance Committee

Mr. Shumka is Managing Director of Walden Management Ltd., a financial consulting firm. Mr. Shumka received his Bachelor of Arts degree from the University of British Columbia and a Master of Business Administration from Harvard University. From 1966-979 he worked in a variety of positions in the forest industry, from 1979-989 he was Vice President and Chief Financial Officer of West Fraser Timber Co. Ltd. and from 1989-2004 he headed the Forest Products Group for two Canadian investment banks. Mr. Shumka is active in the not for profit sector and is currently the Chair of the British Columbia Arts Council.

Paul Sweeney - [Independent] Chair Compensation Committee, Member Audit Committee

Mr. Sweeney has over 30 years experience in financial management of mining and renewable energy companies. He is currently Executive Vice-President, Business Development, of Plutonic Power Corporation, a run-of-river hydro developer. He has served as CFO of a number of successful mineral resource companies including Canico Resources and Sutton Resources and is a Director of several resource companies including Pan American Silver Corp. where he chairs the audit committee.

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NEWS - FLOW CATALYSTS

LOCATION GOALTARGET

DATE(CALENDAR YEAR)

Peru Concession Awards On-Going

Iceland Subsidiary Sale of 25% to Pension Funds On-Going

Canada Proposed Merger with Plutonic Power Q-2

Mariposa, Chile Investment Partner for Advanced Development Q-2

Soda Lake, Nevada Receipt of US Treasury Grant Q-2

Soda Lake, Nevada New PPA with NV energy Q-2

Reykjanes, Iceland PPA negotiations with Nordural and others Q-3

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CAPITAL STRUCTURE: AS OF DEC 31/2010

ISSUED & OUTSTANDING

313.9 MM

OPTIONS 3.5 MM

LONG TERM DEBT US $284.4 MM

CASH * US $ 48.6 MM

SHAREHOLDERS’ EQUITY

US $229.1 MM

* INCLUDES RESTRICTED CASH

OWNERSHIP, CAPITAL STRUCTURE & COVERAGE

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ANALYST COVERAGE CONTACT

Canaccord Genuity Jared Alexander

Cormark Securities MacMurray Whale

Jacob Securities John McIlveen

Mackie Research Capital Matthew Gowing

National Bank Financial Jeremy Mersereau

Pritchard Capital Partners Veny Aleksandrov

Raymond James Securities Steven Li

Salman Partners Mike Plaster

Wellington West Capital Mgmt Sean Peasgood

INDEX COVERAGE

Ardour Global Alternative Energy Index

S&P/TSX Clean Technology Index

40%

5%29%

26%

Magma Energy Shareholders(Dec 2010)

Board and Management

Strategic Partner (AltaGas)

Estimated Institutional

Estimated Retail

5%

46%

11%

12%

26%

Regional Representation of Shareholders (Dec 2010)

USA Canada

Europe Other

Unknown Retail

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Blue Lagoon & Svartsengi Power Plant

22

TSX MXY

6-Apr-11

www.magmaenergycorp.com