Kallisto announces closing of private placement, grant of stock options and
update of drilling program

CALGARY, Nov. 9 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") is pleased to announce that it has closed the previously announced non-brokered private placement of 3,750,000 common shares at a price of $0.20 per common share for gross proceeds of $750,000. The common shares issued in connection with the private placement are subject to a hold period under applicable securities laws of four months, expiring on March 10, 2010. Insider participation in the private placement totalled $268,000 or approximately 36%. Kallisto now has 13,635,937 common shares issued and outstanding.

Kallisto also wishes to announce that it has issued 856,500 stock options to its directors, officers and employees. The stock options have an exercise price of $0.22 per share, vest over a two-year period and expire five years from the date of issue. The Company currently has 1,011,500 stock options issued. Options to purchase 155,000 shares at an exercise price of $1.28 per share are expected to expire without being exercised on or before January 17, 2010.

The Company would also like to provide an update on its Pembina, Alberta drilling program. The first well of the drilling program, located at 6-4-48-3 W5M, has been tied in and placed on production. Production rates to date have met with managements expectations and Kallisto will be reporting production rates after a period of regular production has occurred and rates have stabilized. Completion operations on the 16-34-47-3 W5M were successful and completion of the 6-33-47-3 W5M well is expected to commence this week. Management expects both the 16-34-47-3 W5M well and, assuming a successful completion, the 6-33-47-3 W5M well to be on stream by mid-December.

Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of natural gas and oil 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, such as 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, and risks associated with existing and potential future lawsuits and regulatory actions made against the Company; 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, Telephone: (403) 237-9996, Facsimile: (403) 264-0416

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Kallisto Energy Corp.

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