Kallisto announces filing of short form prospectus and licencing of first
Crossfield Viking well

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, July 5 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that it has filed a final short form prospectus dated June 30, 2010 and obtained a receipt (the "Receipt") dated July 2, 2010 from securities commissions in the Provinces of Alberta, British Columbia and Ontario qualifying for distribution 15,518,343 common shares of Kallisto ("Common Shares") issuable pursuant to the exercise of 15,518,343 special warrants of Kallisto ("Special Warrants"). The Special Warrants were issued by way of a bought deal private placement completed on June 8 and June 22, 2010 for aggregate gross proceeds of $13,000,001. The private placement was completed by a syndicate of underwriters led by Acumen Capital Finance Partners Limited and including Canaccord Genuity Corp. and Versant Partners Inc.

Each Special Warrant entitles the holder thereof to receive one Common Share on the exercise of each Special Warrant. All Special Warrants will be deemed to be exercised in accordance with the terms of the special warrant indenture governing the terms of the Special Warrants, for no additional consideration and without any further action on the part of the holder, immediately prior to 5:00 pm (Calgary time) on July 9, 2010, being the date that is the fifth business day following the date on which the Receipt was issued.

Kallisto also announces that the Company and its joint venture partner have licensed the first well on its Crossfield, Alberta prospect. The horizontal well will target the Viking formation and is expected to be completed using multi-stage fracture stimulations. The well, which the Company will have a 50% working interest in, is expected to spud within the next 30 days.

Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas primarily in Alberta.

This press release contains forward-looking statements which include, but are not limited to, operations plans and outlook, expectations, opinions, forecasts, projections, guidance 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 of the Company may be affected by a variety of variables and risks associated with oil and gas drilling, production and transportation, loss of market, volatility of oil and gas prices, imprecision of reserve estimates, environmental risks, competition from other producers. 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. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Kallisto Energy Corp.

For further information: For further information: Robyn Lore, President, Telephone: (403) 237-9996, Facsimile: (403) 264-0416

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Kallisto Energy Corp.

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