KAT Exploration Inc (KATX)

[jayree]

Kat Exploration will distribute to its stockholders an aggregate of 261,474,694 shares of our common stock to the holders of record of share of common stock of our parent company on December 21, 2011 (the “ Record Date ”). These shares will constitute approximately 88% of our issued and outstanding shares. Immediately following the Spin-Off, Kat Exploration will own 34,525,306 of our shares of common stock, or approximately 12% of all our issued and outstanding shares of common stock. Of the 261,474,694 shares of our common stock to be spun off, 83,360,325 (31.9%) will be received by officers and directors of Kat Exploration by virtue of their ownership of shares of common stock of Kat Exploration, all of whom are also officers and directors of our company.