KALLISTO PROVIDES OPERATIONS UPDATE

CALGARY, Jan. 31 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") announces its first Kallisto operated Crossfield, Alberta Viking horizontal well, located at 15-07-028-01 W5, has successfully finished drilling and the rig has been released.  A 1,200 meter liner was installed in the horizontal Viking section of the well and the Company is planning to complete the well with up to 15 multi-stage fracture stimulations utilizing GASFRAC Energy Services Inc's. proprietary Liquefied Petroleum Gas Fracturing Process. This is the same completion process that has been successfully used in other Viking horizontal wells in the Crossfield area. Kallisto has a 65% working interest in the 15-7 well.  Kallisto has participated in two previously announced non-operated Viking wells in the area; one of these is also awaiting completion.

The Company's seventh Pembina, Alberta Cardium horizontal oil well, 04-34-047-03 W5M, has been drilled, cased and is expected to be completed early in February. The Company's sixth Pembina horizontal oil well, 12-33-047-03 W5, continues to produce approximately 250 boe per day, including approximately 200 bbls of oil. Unlike earlier wells, production from the 12-33 well is purposely limited by pump capacity. Kallisto has a 30% working interest in its Pembina wells.

The Company's liquids-rich Ellerslie gas well at 10-34-027-01 W5M has been perforated and a gas analysis has been obtained which indicates a liquids content of approximately 60 bbls/mmscf of C3+. The well has been shut-in for pressure build up. Fracture stimulation and production testing are expected to commence in February. Kallisto has a 50% working interest in this well which has net pay of approximately twelve meters of 12% porosity.

Pipeline construction to tie-in the Company's multi-zone Cretaceous well at Ferrier, Alberta is completed. The Company is waiting for third-party pipeline work to be completed prior to the well being placed on production. The Company has a 45% interest in the well, which is expected to produce liquids-rich gas.

Kallisto's current production is approximately 300 boe per day, including approximately 145 bbls of oil.  In addition, the Company has 50 boe per day of shut-in gas production.

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

Forward Looking Information
The reader is advised that some of the information herein may constitute forward looking statements within the meaning assigned by National Instrument 51-102 and other relevant securities legislation. In particular these include, but are not limited to, statements with respect to current oil and gas production volumes, potential completion schedules, production results from drilling and completion operations and encountering commercial quantities of oil, natural gas and natural gas liquids. These statements are based on management's current expectations. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Kallisto at the time of preparation, may prove to be incorrect and readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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:

Robyn Lore
President and Chief Executive Officer
Telephone: (403) 237-9996
Facsimile: (403) 264-0416

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Kallisto Energy Corp.

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