KALLISTO ANNOUNCES INCREASE IN BOUGHT DEAL FINANCING

/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, Nov. 1 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that the Company has agreed to increase the previously announced bought deal financing by up to an additional 2,531,646 Units at a price of $0.79 per Unit for additional gross proceeds of approximately $2,000,000. In addition, the over-allotment option has also been increased by 379,747 Units. The total offering is now 7,594,938 Units plus an over-allotment option of 1,139,241 Units for gross proceeds of approximately $6,900,000, if the over-allotment is fully exercised. Assuming the over-allotment option and warrants are fully exercised, a total of 13,101,268 common shares will be issued under the offering.

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, and 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 the 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]