Kallisto Announces Increase in Private Placement, Extension of
Over-Allotment, Closing of Property Transactions, Grant of Stock Options and
Conversion of Debenture

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

CALGARY, June 16 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") announces the following:

    
    1. The Company has agreed to increase the previously announced private
       placement by up to an additional 1,212,121 Common Share Special
       Warrants at a price of $0.825 for additional gross proceeds of up to
       $1,000,000. In addition, the Company has agreed to extend the time for
       exercise of the over-allotment option previously granted to the
       underwriters. The Company expects to issue up to an additional
       2,299,274 Common Share Special Warrants pursuant to the over-allotment
       option at a price of $0.825 for gross proceeds of up to $1,896,900. A
       fee of 6% of the gross proceeds will be paid to the underwriters.
       Kallisto expects to close this transaction on Tuesday, June 22, 2010.
       Following this second tranche closing, the Company expects to have
       issued a total of approximately 13,939,395 Common Share Special
       Warrants and 1,578,948 Flow-Through Special Warrants pursuant to the
       private placement of Special Warrants for aggregate proceeds of
       approximately $13,000,000.

    2. Kallisto has closed the sale of certain petroleum and natural gas
       rights in the Crossfield, Alberta area to a private Calgary-based
       company. Under the terms of the sale:

       a)  Kallisto sold a 50% working interest in 7 1/2 sections (1,920
           hectares) of petroleum and natural gas rights for cash
           consideration of $3,000,000;

       b)  Kallisto and the private company equalized their participation on
           a 50/50 basis in an additional 2 1/4 sections (576 hectares) of
           petroleum and natural gas rights owned by Kallisto and in 2
           sections (512 hectares) of petroleum and natural gas rights owned
           by the private company. As a result of this equalization, Kallisto
           paid the private company $58,302;

       c)  the parties agreed to a defined area of mutual interest (the
           "AMI") to jointly develop the lands described above; and

       d)  the parties executed a joint venture agreement governing the
           operation of the AMI lands.

       As a result of this transaction, Kallisto owns a 50% interest in
       11 3/4 sections (3,008 hectares) in the AMI. Kallisto expects to
       participate in the drilling of 4 - 6 wells (2 - 3 net) on these lands
       in 2010. The planned horizontal wells will be drilled into the Viking
       formation and are expected to be completed with multi-stage fracture
       stimulations.

    3. Kallisto has closed a second transaction involving Crossfield, Alberta
       petroleum and natural gas rights. In March 2010, Kallisto entered into
       a joint bid participation agreement with a second private company to
       purchase crown lands. Pursuant to the joint bid participation
       agreement, Kallisto paid a total of $884,154.14 for a 50% interest in
       3 sections (768 hectares). Kallisto and the second private company are
       currently negotiating a joint venture agreement to develop these
       Viking prospective lands.

    4. In addition to its interest in the Crossfield lands mentioned above,
       Kallisto has working interests in approximately 14 gross sections
       (3,572 hectares), 11 net sections (2,842 hectares) of lands that are
       prospective for Viking horizontal wells in the Crossfield area.
       Kallisto's total lands that have Viking potential in the Crossfield
       area are approximately 28 3/4 gross sections (7,348 hectares) gross,
       18 1/2 net sections (4,730 hectares).

    5. On June 16, 2010, the board of directors granted 680,000 stock options
       to directors, officers, consultants and employees of the Company. The
       options are exercisable at $0.91 per share, expire on June 16, 2015
       and vest over a two year period. The Company now has 2,972,500 stock
       options outstanding.

    6. On June 10, 2010, the 8% convertible debenture in the principal amount
       of $200,000 was converted into 701,754 Common Shares at a price of
       $0.285 per share. The debenture was originally issued on June 25, 2008
       to Angela Lore, the wife of Robyn Lore, prior to Robyn Lore becoming
       President and Chief Executive Officer of the Company. Certain
       amendments were made to the debenture on November 19, 2009 and were
       approved by the TSX Venture Exchange on December 8, 2009. The
       debenture (as amended) was convertible into Common Shares at a price
       of $0.285 per share until June 25, 2010 and at a price of $0.40 per
       share from June 26, 2010 until January 25, 2011. Kallisto now has
       29,975,957 Common Shares outstanding.
    

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 exploration, production and transportation, loss of market, volatility of oil and gas prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, ability to replace and expand oil and gas reserves, ability to generate sufficient cash flow from operations to meet its current and future obligations, risks associated with existing and potential future lawsuits and regulatory actions made against the Company, and risk associated with completing the private placement on the expected terms or at all; 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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