Kallisto Starts Up Taps at Crossfield Well

Kallisto announced that its first Crossfield, Alberta Viking horizontal oil well has been placed on production. The well, located at 1-29-28-1 W5, was completed with 11 multi-stage fracture stimulations. Production rates will be released once stabilized rates have been established. Kallisto has a 50% working interest in this well. The Company owns in excess of 30 net sections at Crossfield that are prospective for Viking oil development and an additional 98 net sections of P&NG rights at Crossfield in zones other than the Viking. "We are excited about the Viking play," said Robyn Lore, President and CEO of Kallisto. "Our Crossfield capital program for the remainder of 2010 will be finalized in the coming weeks."

In addition, drilling operations at the Company's sixth Pembina, Alberta Cardium horizontal well, located at 12-33-47-3 W5, have concluded and the well is expected to be completed within the next two weeks with up to 16 multi-stage fracture stimulations. This is the sixth well of a planned 12 well drilling program at Pembina. Kallisto has a 30% interest in the Pembina wells.

Kallisto also announced that its lenders have agreed to increase the amount the Company can draw under its loan facility from $4,500,000 to $6,500,000. This increase is a result of the Company's very successful Pembina drilling program.