SOURCE: KAT Exploration, Inc.

August 25, 2010 14:05 ET

KAT Exploration, Inc. and Bella Viaggio, Inc. Handcamp Drilling Intersects Very Encouraging Gold Mineralization at Shallow Depths

MOUNT PEARL, NL--(Marketwire - August 25, 2010) -  KAT Exploration, Inc. (PINKSHEETS: KATXwww.katexploration.com, Bella Viaggio, Inc. (OTCBB: BVIG

KAT Exploration, Inc. (PINKSHEETS: KATX) and Bella Viaggio, Inc. (OTCBB: BVIG) are pleased to announce that the drilling program at their Handcamp Project intersected very encouraging gold mineralization at shallow depths. Diamond drill hole DDH 004 intersected 6.3 g/t (0.18 oz./ton) gold and 111.6 g/t (3.3 oz./ton) silver over 1.9 m (1.4 m estimated true width) including 10.8 g/t (0.32 oz./ton) gold and 222.4 g/t (6.5 oz./ton) silver over 0.9 m (0.7 m estimated true width) within a wider interval grading 3.1 g/t gold and 42.6 g/t silver over 5.9 m (4.4 m estimated true width).

Diamond drill hole DDH 012 intersected 5.5 g/t (0.16 oz./ton) gold over 1.8 m (1.4 m estimated true width) within a wider interval grading 3.5 g/t gold (0.10 oz./ton) over 3.5 m (2.6 m estimated true width). Both intersections occur within an even broader mineralized zone defined by elevated gold that includes 1.2 g/t gold over 20.9 m (15.6 m estimated true width) in DDH 004 and 1.0 g/t gold over 17.8 m (13.3 m estimated true width). Three other holes (DDH-002, 003 and 005) also intersected strong gold mineralization over wide widths as shown in the summary table. The gold is typically accompanied by elevated silver, lead and zinc.

Results of the current exploration program indicate that the mineralized zone at Handcamp is outlined well by induced polarization geophysics. The current drilling program tested the mineralized zone for approximately 0.9 km along strike (trend) at 250m to 300m spaced intervals and to a maximum vertical depth of 200 m. DDH 012 is the southwestern most drill hole of the current program and is approximately 600m southwest of the main Handcamp showing. During the second phase of exploration, the mineralization in DDH 012 will be tested to depth and along strike to the northeast and southwest where the IP anomaly has been traced a further 500 m and remains open. Two other induced polarization anomalies subparallel to that delineating the Handcamp mineralized zone remain to be tested by diamond drilling. One, about 350 m to the northwest, has been traced for 1.2 km and remains open and the second is about 900m to the northwest, and has been traced for 700 m and remains open. The two anomalies are viable targets for testing in the second phase of exploration.

Trenching completed at four locations north and south of the Main Hand Camp prospect exposed disseminated sulphide mineralization in altered volcanic rock that contains anomalous gold, silver, lead and zinc concentrations over an approximate strike length of 600 m and over widths of up to 20 m in trenched rock exposures.

Ken Stead, President CEO, states, "The first phase of exploration, which included induced polarization geophysics, trenching and 1640m of diamond drilling in 12 drill holes, has now been completed on the Hand Camp Property. A second phase starting this fall is in planning and will include additional line cutting, induced polarization geophysics and diamond drilling. With data collected so far and the very encouraging results from this first phase, the company feels that this project warrants a full scale exploration program to determine the true significance of the deposit. With just four areas drilled at such wide intervals within such a large structure and the fact that we intersected gold in all 12 drill holes, we feel there is high potential for further encouraging results within this mineralized structure. Also the number of targets yet remaining to be tested outside this determined structure lends itself to a high degree of optimism that this project will be of great value to the company."

Phase 1 Handcamp Diamond Drill Results          
                   
Hole #   From (m) To (m) Length (m) Au (ppb) Ag (g/t) Zn (%) Pb (%) Cu (%)
DDH-004   29.10 50.00 20.90 1204 15.1 0.22% 0.13% 0.02%
  including 29.10 35.00 5.90 3148 42.6 0.51% 0.36% 0.04%
  including 29.10 31.00 1.90 6282 111.6 0.59% 0.43% 0.05%
  including 29.10 30.00 0.90 10813 222.4 0.60% 0.56% 0.07%
DDH-012   27.50 45.30 17.80 1028 6.3 0.51% 0.28% 0.02%
  including 36.00 42.30 6.30 2210 10.6 0.83% 0.36% 0.03%
  including 36.00 39.50 3.50 3480 16.8 1.34% 0.63% 0.05%
  including 36.80 38.60 1.80 5486 23.6 1.44% 0.91% 0.05%
  including 37.80 38.60 0.80 8523 36.8 1.35% 0.78% 0.06%
                   
DDH-002   93.00 101.00 8.00 1031 18.4 0.23% 0.28% 0.08%
  including 93.00 96.00 3.00 2114 31.1 0.17% 0.18% 0.12%
  including 95.00 96.00 1.00 4486 75.9 0.10% 0.21% 0.12%
DDH-003   36.80 46.00 9.20 817 20.2 0.30% 0.27% 0.10%
  including 36.80 41.00 4.20 1036 30.7 0.39% 0.41% 0.09%
  including 36.80 37.50 0.70 4579 134.2 0.80% 1.09% 0.24%
DDH-005   39.00 61.00 22.00 1162 10.0 0.27% 0.14% 0.03%
  including 39.40 42.40 3.00 2057 29.9 0.49% 0.14% 0.06%
                   
DDH-001   67.00 77.00 10.00 310 4.9 0.19% 0.11% 0.05%
  including 74.00 77.00 3.00 466 9.1 0.41% 0.22% 0.13%
DDH-006   116.00 125.00 9.00 506 6.3 0.47% 0.26% 0.06%
  including 116.00 120.00 4.00 806 11.7 0.87% 0.56% 0.12%
DDH-007   196.00 202.00 6.00 222 5.0 0.67% 0.13% 0.03%
  including 196.00 198.00 2.00 430 8.0 0.42% 0.04% 0.02%
DDH-008   40.00 41.00 1.00 500 1.2 0.62% 0.13% 0.14%
    48.00 50.60 2.60 644 17.2 0.35% 0.33% 0.12%
  including 49.80 50.60 0.80 1120 35.3 0.32% 0.67% 0.31%
DDH-009   61.50 63.30 1.80 431 3.1 0.27% 0.15% 0.04%
    69.00 70.50 1.50 1138 47.4 0.92% 0.36% 0.15%
DDH-010   91.20 93.20 2.00 619 13.1 0.08% 0.07% 0.03%
DDH-011   159.40 160.10 0.70 676 1.8 0.15% 0.01% 0.04%
    166.80 170.20 3.40 453 7.5 0.29% 0.12% 0.06%
  including 169.60 170.20 0.60 1974 32.2 0.53% 0.25% 0.13%

Geochemical analyses and assay data consistently and routinely return anomalous gold, silver, lead, zinc and copper values over considerable widths. As an added bonus the distribution of these elements is uniform in comparison to many gold deposits that are subject to the nugget effect enhancing the potential for the delineation of economic concentrations of polymetallic mineralization.

The Company's exploration work on the Handcamp Project is supervised by J. Wayne Pickett, M.Sc. P.Geo., a member of the Professional Engineers and Geoscientists of Newfoundland and Labrador and a Qualified Person as defined in NI 43-101. Mr. Pickett has verified that the results presented above have been accurately summarized from the official assay certificates provided to the Company.

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