Kallisto Spuds Crossfield and Pembina Wells

CALGARY, March 7, 2012 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that it has spudded its well at 11-26-027-01 W5M to test the Lower Manville formation. The well is expected to cost approximately $1.05 million, exclusive of the costs of the ERCB hearing to secure the drilling license.

Kallisto previously confirmed commercial productivity of the Lower Manville formation with the drilling of a well located at 10-34-027-1 W5M. Should the 11-26 well be successful, management anticipates completing an expanded 3D seismic program on its lands to identify additional drilling locations.  Kallisto holds more than 5,000 net acres of land in the Crossfield area it believes to be prospective for this geological target.

In addition, drilling operations are underway on the tenth well of the Company's Pembina, Alberta Cardium oil play, located at 13-04-048-03 W5. The horizontal leg of the 13-04 well is currently being drilled and it is expected to reach total depth by the end of this week.

Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas 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, 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 Short Form Prospectus dated February 7, 2011 and Annual Information Form which are filed on SEDAR at www.sedar.com.

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.

Robyn Lore
President and Chief Executive Officer
Telephone: [phone]