Kallisto Closes Property Acquisition in Alberta

Kallisto has acquired interests in two Alberta properties through the closing of several transactions.

The Company has acquired a 45% working interest in approximately six and one-half sections in its Crossfield, Alberta core area from two vendors. These lands are on the same trend as lands previously acquired by the Company and which it is believed to be prospective for development of Viking oil wells utilizing horizontal drilling and multi-stage fracture stimulation completions. In addition, the Company has acquired, through participation in public land sales, a 100% working interest in one and one-half sections at Crossfield which is also prospective for Viking oil development.

The Company has also acquired a 45% interest in two sections in the Ferrier, Alberta area. Included in the acquisition is a multi-zone, Cretaceous, liquids-rich gas well which the Company expects to commence to tie-in in the third quarter of 2010. Kallisto has granted the vendor a re-purchase option on this property until March 31, 2011.

The aggregate cash consideration paid in the above transactions totaled $2.565 million.

Following these acquisitions at Crossfield, Alberta, Kallisto owns approximately 23.5 net sections that are prospective for Viking oil development. The Company expects to participate in the drilling of up to five horizontal oil wells on these lands in 2010, the first of which is expected to spud in the first week of August.

Kallisto also announced that its fifth Pembina, Alberta Cardium oil well has been placed on production. Production from the well, located at 04-34-047-03W5, is in line with management expectations and will be reported once rates have stabilized. The Company has been very pleased with the results of the Pembina development program as the average gross production rates for the first 30 days from the first four wells was approximately 250 boe per day. These wells were drilled horizontally in the Cardium formation and completed with multi-stage fracture stimulations at an average gross cost of $2.485 million. Kallisto has a 30% working interest in its Pembina wells.