KALLISTO ANNOUNCES $4 MILLION BOUGHT DEAL FINANCING

CALGARY, Nov. 1 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that is has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by Acumen Capital Finance Partners Limited and including Canaccord Genuity Corp. and Clarus Securities Inc. pursuant to which the Underwriters have agreed to purchase on a bought deal basis for resale 5,063,292 Units at a price of $0.79 per Unit for aggregate proceeds of $4,000,000 (the "Offering"). Each Unit shall be comprised of one common share of the Company (the "Common Shares") and one-half common share purchase warrant (the "Warrant"). Each whole Warrant shall be exercisable into one Common Share at a price of $0.84 for a period of eighteen (18) months from the date of closing of the financing. If, commencing thirty (30) days after closing of the Offering, the Common Shares of Kallisto trade at $1.01 or more for a minimum of twenty (20) consecutive trading days, the Company shall have the right to give notice of early expiry of the Warrants. Insiders of the Company will be subscribing for a minimum of $500,000 of the Offering.

The Company has granted the Underwriters an over-allotment option (the "Over-Allotment") exercisable in whole or in part for a period of 30 days following closing of the Offering, to increase the Offering by an additional 759,494 Units at a price of $0.79 per Unit for further gross proceeds of $600,000, which would increase the Offering to approximately $4,600,000, if fully exercised. Assuming the Over-Allotment and all Warrants are exercised, a total of 8,734,179 Common Shares will be issued under the Offering.

The Company will use reasonable best efforts to file a final prospectus qualifying the Common Shares issued pursuant to National Policy 11-202 and obtain a final passport receipt (the "Receipt") evidencing a receipt for the Prospectus on behalf of each of the securities regulatory authorities in each of the provinces of British Columbia, Alberta and Ontario, pursuant to Multilateral Instrument 11-102 no later than November 15, 2010.

The Offering is scheduled to close on or about November 25, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Proceeds of the Offering will be used to fund Kallisto's Viking oil exploration and development program and for general corporate purposes.

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

This press release contains forward-looking statements which include, but are not limited to equity financings, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas drilling, production and transportation, loss of market, volatility of oil and gas prices, imprecision of reserve estimates, environmental risks, competition from other producers. As a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

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 CEO
Telephone: [phone]
Facsimile: [phone]