Kallisto announces filing of Early Warning Report

CALGARY, Feb. 2 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd.) ("Kallisto" or the "Company") announces that Robyn Lore, President and CEO of Kallisto has filed an Early Warning Report containing transactions which have not been reported pursuant to the requirements of National Instrument 62-103 and Multilateral Instrument 62-104. The transactions being reported are as follows (all transactions reflect the 4:1 share consolidation completed on November 2, 2009):

    
    -   On November 20, 2007, a corporation controlled by Mr. Lore completed
        an arms-length sale to the Company of certain oil and gas properties.
        As part of the consideration for the properties, the Company issued
        400,000 units at a price of $2.20 per unit. Each unit was comprised
        of one common share and one share purchase warrant entitling the
        holder to purchase one common share at a price of $2.80 per common
        share exercisable until June 30, 2008. Following the transaction and
        assuming that the warrants held would be exercised, Mr. Lore held or
        controlled 11.6% of the equity securities of the Company;

    -   On November 5, 2008, a private placement was completed for 312,500
        units at a price of $0.80 per unit. Each unit was comprised of one
        common share and one share purchase warrant entitling the holder to
        purchase one common share at a price of $1.20 per share for a period
        of 24 months following closing. Following this transaction and
        assuming that the warrants and stock options held would be exercised,
        Mr. Lore held or controlled 15.8% of the equity securities of the
        Company; and

    -   On October 30, 2009, the Company acquired from a corporation
        controlled by Mr. Lore a 50% working interest in a wellbore located
        on Company lands in Southern Alberta in consideration for this
        issuance of 365,000 common shares of the Company at a price of $0.20
        per common share. The value of the transaction was determined by an
        independent evaluator. Following this transaction and assuming that
        the warrants and stock options held would be exercised, Mr. Lore held
        or controlled 18.9% of the equity securities of the Company.
    

As of the date hereof, Mr. Lore holds or exercises control over 15.8% of the equity securities of Kallisto, including 2,237,490 common shares, 312,500 share purchase warrants and 57,000 vested stock options. No warrants or stock options have been exercised.

These securities are being held as an investment. Mr. Lore may, depending on market and other conditions, increase or decrease his ownership position through participation in future financings completed by the Company or through transactions completed privately or through the public market. The Early Warning Report has been filed on SEDAR and with the Alberta Securities Commission.

This press release contains forward-looking statements which include, but are not limited to Mr. Lore's future acquisition or disposition of securities of Kallisto or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results may be affected by a variety of variables and risks associated with the price of the Company's common shares on the TSX Venture Exchange and Mr. Lore's financial situation; as a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

SOURCE Kallisto Energy Corp.

For further information: For further information: Robyn Lore, President and CEO, 350, 703 6th Avenue S.W., Calgary, Alberta, T2P 0T9, Telephone: (403) 237-9996, Facsimile: (403) 264-0416

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Kallisto Energy Corp.

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