Kallisto announces final approval to amend Convertible Debenture terms

CALGARY, Dec. 8 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") announces that it has received final approval from the TSX Venture Exchange to restructure the terms of its $200,000 Convertible Debenture (the "Debenture"). Conditional approval was granted by the TSX Venture Exchange and announced by the Company on December 1, 2009.

Under the terms of the Debenture Amending Agreement:

    
    -   the maturity date of the Debenture is extended from June 25, 2010 to
        January 25, 2011;
    -   the conversion price of the Debenture is reduced from $0.25 per
        common share ($1.00 on a post 4:1 share consolidation basis) to:
        -  $0.285 per common share (on a post 4:1 share consolidation basis)
           if the exercise date is on or before June 25, 2010;
        -  $0.40 per common share (on a post 4:1 share consolidation basis)
           if the exercise date is between June 26, 2010 and January 25,
           2011;
    -   the interest rate paid on the Debenture remains at 8% per annum;
    -   the Debenture holder waived the default that existed under the
        Debenture and confirmed that the Debenture is in good standing; and
    -   the Debenture holder agreed to remove from the list of events of
        default in the Debenture any default under the Company's operating
        credit facility with its primary lender (other than if the primary
        lender exercises its enforcement rights).
    

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

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, Telephone: (403) 237-9996, Facsimile: (403) 264-0416

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Kallisto Energy Corp.

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