Kallisto Files Annual Information Form

CALGARY, ALBERTA--(Marketwired - May 8, 2013) - Kallisto Energy Corp. (TSX VENTURE:KEC) ("Kallisto" or the "Company") is pleased to announce that is has filed its Annual Information Form ("AIF") dated April 30, 2013. Included in the Annual Information Form is the oil and gas annual disclosure required under National Instrument 51-101.

The Company wishes to highlight the following items discussed in the AIF:

Crossfield, Alberta

Management completed a thorough technical review of the Elkton formation in the Crossfield area and believes that there is oil on the down dip flank of the Crossfield East Elkton D Pool, a prolific natural gas storage reservoir. Based on this review, the Company applied to the ERCB for a license to drill a 100% working interest Elkton oil test well at 16-26-027-01W5.

Kallisto engaged Sproule Associates Limited ("Sproule") to complete an independent review of the oil potential on section 26-027-01W5. On November 22, 2012 Sproule issued its report entitled "Geological Review of the Oil Potential within the Elkton Formation on Section 26-027-01W5, Crossfield East Elkton Pool D" (the "Elkton Review"). Kallisto filed the Elkton Review with the ERCB in support of its 16-26 well license application. The Elkton Review interpreted a down dip oil leg and estimated oil initially in place to be 8.462 million bbls. Kallisto's land holdings applicable to the Elkton Review have been highlighted in yellow on the map found on page 6 of the AIF. Management believes that the 16-26 well location, being at the lowest point in the interpreted oil leg, is well positioned to exploit the oil initially in place. The complete Elkton Review has been posted on the Company's SEDAR profile at www.sedar.com.

The ERCB commenced a public hearing on Kallisto's 16-26 application on February 12, 2013. The hearing was adjourned and final arguments were heard on April 4, 2013. A decision by the ERCB is expected within 90 days of completion of the hearing.

The interpreted oil leg is on the same trend as multiple reservoirs that have similar characteristics, as outlined in the Elkton Review. While the Company's evaluation and an independent evaluation suggest that there is oil initially in place, there can be no certainty that any portion of the oil will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the oil.

December 31, 2012 McDaniel Report - Technical Revisions

Included in the McDaniel Report were certain technical revisions that occurred during 2012, which are summarized below:

• Pembina, Alberta - Gross Proved and Gross Probable oil reserves decreased by 85.1 Mbbl and 38.4 Mbbl respectively (in addition to associated natural gas and natural gas liquids) as a result of a minor reduction in well performance, combined with the removal of two undrilled locations. The operator of the property has indicated that they are not expecting to drill additional wells at this time;
  
  
• Gross Proved and Gross Probable natural gas reserves decreased by 2,121.8 MMcf and 1,440.5 MMcf respectively (in addition to associated natural gas liquids) as a result of:
  
  
  • Lower reserves for the Corporation's Crossfield 10-34-027-01 W5 and 11-26-027-01 W5 Lower Mannville gas wells as a result of both lower commodity prices and lower forecast production volumes. These wells have yet to be tied in;
  • Loss of reserves from the Crossfield Elkton Z Gas Unit as a result of the permanent closing of the Balzac sour gas processing facility. Current commodity prices do not support the reconfiguring of transportation pipelines to another processing facility; and
  • The loss of natural gas reserves from several other minor properties as a result of low commodity prices.

Drilling Opportunities

Kallisto has a number of near term drilling opportunities including:

• Doe Creek light oil at Valhalla, Alberta;
  
  
• Elkton light oil and Lower Mannville liquids rich gas at Crossfield, Alberta; and
  
  
• Shaunavon medium oil at Chambery, Saskatchewan.
  

The Company has plans to drill up to five wells within the next 12 - 18 months, conditional on sufficient internally generated cash flow, the completion of satisfactory joint venture arrangements or additional financing.

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

Forward Looking Information

The reader is advised that some of the information contained herein may constitute forward looking statements within the meaning assigned by National Instrument 51-102 and other relevant securities legislation. It includes, but is not limited to, statements with respect to the estimated oil initially in place on its Crossfield Elkton oil play and the Company's future drilling plans. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "scheduled", "potential", or other similar words, or statements that certain events or conditions "may", "should" or "could" occur. Forward-looking information is based on the Company's expectations regarding its future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. Such forward-looking information reflects management's current beliefs and assumptions and is based on information currently available to it. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company 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.

Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information including risks associated with the impact of general economic conditions, industry conditions, governmental regulation, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the Corporation's ability to access sufficient capital from internal and external sources. Additional risks and uncertainties are described in the Company's Annual Information Form dated April 30, 2013 which is filed on the Company's SEDAR profile at www.sedar.com.