Kallisto exercises option to purchase Pembina working interests and issues
stock options

CALGARY, March 12 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") is pleased to announce that it has exercised its option to acquire additional working interests in two of its three producing Pembina, Alberta Cardium horizontal oil wells. These interests are being acquired pursuant to the terms of farmout agreements whereby the Company farmed out a portion of its interest in the two wells. The acquisitions to be completed are as follows:

    
    1. An 8.333% working interest in the 16-34-47-3W5, effective as of
       February 1, 2010. Following the acquisition, Kallisto will have a 25%
       working interest in this well; and
    2. An 8.333% working interest in the 6-33-47-3 W5 well, effective as of
       February 1, 2009. Following the acquisition, Kallisto will have a 25%
       working interest in this well.
    

Closing of the transaction is scheduled for April 27, 2010.

On March 10, 2010, the Board of Directors granted 110,000 stock options to a director and a consultant of the Company. The stock options have an exercise price of $0.72 per share, vest over a two-year period and expire five years from the date of issue. The Company currently has 1,566,500 stock options issued.

Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas 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 imprecision of reserve estimates, environmental risks, competition from other producers, ability to access sufficient debt and equity capital from internal and external sources, and ability to generate sufficient cash flow from operations to meet its current and future. 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.

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

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Kallisto Energy Corp.

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