Kallisto provides Pembina update and announces the issuance of stock bonuses

CALGARY, Feb. 17 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) (formerly Arrow Energy Ltd. - AOF) ("Kallisto" or the "Company") is pleased to announce that the fourth well of its Pembina, Alberta drilling program has completed drilling operations. The well, located at 14-33-47-3 W5, was drilled to a total depth of 2,960 meters including a 1,499 meter horizontal lateral. Completion operations, which will include as many as 14 multi-stage fracture stimulations, are expected to commence within the next few days. Production from the Company's three Pembina horizontal wells drilled in 2009 totalled approximately 400 boe per day (59 boe per day net to Kallisto) during the month of January, which is in line with management's expectations.

The Company also announces that on February 3, 2010, the Board of Directors approved stock bonuses to certain officers of the Company in recognition of their performance for the Company during 2009. The Company has received approval from the TSX Venture Exchange to issue a total of 640,000 common shares at a deemed price of $0.50 per share, being the closing price of the Company's shares prior to the Board approving the bonuses. Following this transaction, the Company will have 16,775,937 common shares issued and outstanding.

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 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, 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.

For further information: Robyn Lore, President and CEO, Telephone: [phone], Facsimile: [phone]