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Press release from Marketwire

Kallisto Announces SEDAR Filings and Comments on Cumberland Acquisition

Tuesday, August 21, 2012

Kallisto Announces SEDAR Filings and Comments on Cumberland Acquisition09:00 EDT Tuesday, August 21, 2012CALGARY, ALBERTA--(Marketwire - Aug. 21, 2012) - Kallisto Energy Corp. (TSX VENTURE:KEC) ("Kallisto" or the "Company") is pleased to announce it has filed its Condensed Interim Consolidated Financial Statements for the six months ended June 30, 2012 and the accompanying Management's Discussion and Analysis on SEDAR. These documents are available for viewing under Kallisto's profile at www.sedar.com. Further to the August 15, 2012 joint press release with Cumberland Oil & Gas Ltd. ("Cumberland"), Kallisto continues to move towards the closing of the acquisition of Cumberland. There will be immediate benefits of the transaction, including:•Cumberland's expected cash on hand of $1.5 million at closing; additional cash flow from 75 boe/day of current production, approximately 50 bbls of which is oil, with no expected additions to overhead; and•the addition of two experienced oil executives to the Kallisto board of directors. The combination of the two companies will jointly benefit both shareholder groups and provide a platform for accretive growth. 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 InformationThe 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 results and benefits of the proposed acquisition of Cumberland by Kallisto. 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 May 22, 2012 which is filed on SEDAR at www.sedar.com.Barrels of oil equivalent (boe) are calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.FOR FURTHER INFORMATION PLEASE CONTACT: Robyn LoreKallisto Energy Corp.President and Chief Executive Officer(403) 237-9996NEITHER 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.