KALLISTO TO ISSUE FLOW THROUGH SHARES

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

CALGARY, Dec. 29 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") announces that it has applied to the TSX Venture Exchange for approval to complete a non-brokered private placement of up to 705,882 Flow Through Common Shares (the "Flow Through Shares") at a price of $0.85 per Flow Through Share for gross proceeds of up to $600,000.

The gross proceeds from the sale of the Flow Through Shares will be used to fund ongoing exploration activities eligible for Canadian exploration expenses ("CEE"), which will be renounced in favour of the subscribers of the Flow Through Shares effective on or before December 31, 2010.

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 the use of proceeds of the private placement and incurring and renouncing certain expenditures to investors on a flow-through basis. 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.

For further information:

Robyn Lore
President and Chief Executive Officer
Telephone: [phone]
Facsimile: [phone]