SOURCE: Kat Exploration Inc.

December 21, 2009 08:00 ET

Kat Exploration Inc. Announces Option Agreement to Purchase 100% of the "Twi-Lite" High Grade Gold Property

MOUNT PEARL, NL--(Marketwire - December 21, 2009) - Kat Exploration Inc. ("Kat") (PINKSHEETS: KATX)

The company is pleased to announce that further to its news release on December 9, 2009 of a LOI it has now completed the signing of an option agreement with Steve Courtney, a senior prospector for the Twi-Lite gold property consisting of 48 claims, located 14 kilometers southwest of Grand Falls-Windsor, Newfoundland.

Kat has agreed to acquire a 100 percent interest in the Twi-Lite property during a three-year period in consideration of total cash payments of $144,000, which includes a payment of $18,000 on signing $30,000 on first anniversary of the option agreement, $46,000 second anniversary and $50,000 third anniversary. No shares of Kat Exploration are involved in the deal.

Kat Exploration will be the operator of the project during the option period.

"We are very pleased to have the Twi-Lite property as part of our gold portfolio. It provides us with greater opportunity to expand our position as a real gold player. The company's field crews will now build on past work and examine high priority targets which offer excellent potential for the discovery of new gold mineralization.

"Our management team believes that Twi-Lite is a highly prospective property based on strong exploration results to date, its favorable geology and strategic location," said Ken Stead, President and CEO of Kat Exploration.

Some results to date:

The Discovery Prospect: Zone of quartz veining and associated silicification, high of 202 g/t Au (Visible Gold).

The Spring Pit prospect: bedded pyrite/mafic fault gouge (high of 14.9 g/t).

The 320 Vein: zone of quartz veining and quartz breccias (high of 16.6 g/t).

The Paddy's Pitt prospect: silicified and brecciated siltstone (high of 23.80 g/t).

Information pertaining to the Twi-Lite property will be posted to the website in the very near future.

About Kat Exploration

Kat Exploration's principal objective is to locate, stake, prove up and sell mineral properties throughout the province of Newfoundland. It is the Company's objective to take advantage of increased activity to generate joint venture clients, and sales of our existing and yet to be acquired properties.

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Kat Exploration to be materially different from the statements made herein.

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