CALGARY, ALBERTA--(Marketwired - July 24, 2013) - Kallisto Energy Corp. (TSX VENTURE:KEC) ("Kallisto" or the "Company") is pleased to announce that its application to drill an Elkton oil test at 16-26-027-01W5 ("16-26") has been approved by the Alberta Energy Regulator ("AER").

In August, 2012, Kallisto applied for a license to drill the 16-26 well. The owners of the Crossfield gas storage facility, CrossAlta Gas Storage & Services Ltd., TransCanada Pipelines Limited and TransCanada Energy Ltd. (collectively "TransCanada"), filed an objection to Kallisto's license application due to a concern over proximity of the 16-26 well to their gas storage facility. The AER conducted a public hearing on the application, commencing on February 12, 2013 and concluding on April 4, 2013. The AER announced its decision to grant Kallisto the drilling license on July 23, 2013. Conditions of the license require certain measurements systems to be put in place as well as certain drilling and abandonment requirements, none of which are considered by the Company to be onerous. The Company expects to spud the 16-26 well in mid-August, subject to weather conditions and rig availability. Should the 16-26 well be successful, management anticipates drilling additional locations.

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 Geological Review"). Kallisto filed the Elkton Geological Review with the AER in support of its 16-26 well license application. The Elkton Geological 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 Geological Review have been highlighted in yellow on the map found on page 6 of the Company's Annual Information Form. 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 Company's Elkton oil development activities are focused on recovering oil from an assumed oil leg to a previously prolific Elkton natural gas reservoir. The interpreted oil leg is on the same trend as multiple reservoirs that have similar characteristics. 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.

The complete Elkton Geological Review and the Annual Information Form are available on the Company's website at www.kallistoenergy.com.

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 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 well production and performance, potential reserves and timing of well development and operations including the anticipated dates for the drilling of wells. 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 and Annual Information Form dated April 30, 2013 which is filed under the Company's SEDAR profile at www.sedar.com.

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