KATX KAT Exploration Inc (CE)

Kat Exploration Inc. (KATX.PK) (www.katexploration.com) is pleased to announce that it has entered into a LOI with Canco Energy Corporation, a privately held oil and gas company.

Canco Energy Corp is a Delaware Corporation, involved in oil and gas exploration and recovery, from mature onshore and offshore Canadian and U.S. oil fields. The Company purchases mineral leases, explores, develops, produces, and sells crude oil and natural gas.

Canco Energy focuses on undervalued properties with high recovery potential for oil and gas, and specializes in continuing the operations of current producing oil and gas properties. It brings together qualified investors seeking high yield income with excellent tax benefits through lucrative investments in natural gas and oil development. Canco owns and operates over 100 wells in USA and holds about 20,000 acres in oil and gas leases.

Canco Energy Corp is an independent oil and natural gas exploration and production company headquartered in Blaine, Washington and with additional offices in White Rock, BC and Lafayette, Louisiana.

The LOI stipulates, the purchase of Canco Energy Corporation will be for a fixed amount of Kat shares and no cash. The transaction will take place through escrow whereby the amount of shares released will be determined by the amount of present and future projects.

Ken Stead–CEO of Kat Exploration states, "For some months now we have entertained offers for several high profile acquisitions from both the mining and oil and gas industries and decided Canco Energy Corporation to be the ideal choice for both the company and shareholders alike. In discussions with Manjit Singh Sahota, Founder and CEO of Canco Energy, we always felt a synergy that was worth pursuing. As a private company feeling that the timing was right to go public, Mr. Sahota seized the opportunity presented creating a huge milestone for both companies."

As further news becomes available with regards to this transaction, shareholders and public will be informed.

This release includes forward-looking statements on our current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding our anticipated gold production, our expected growth and our ability to compete within the African gold mining industry. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in our forward-looking statements include, among others, a failure of our new mine to produce the anticipated quantity of gold, our failure to obtain the necessary funding to conduct our anticipated operations, our ability to successfully integrate the new management and other factors described in our report on Form 10-K for the year ended December 31, 2011 and any other filings with the SEC. The information in this release is provided only as of the date of this release, and Synthetic Biologics undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.

CONTACT: Ken Stead
         President & CEO
         Kat Exploration Inc.
         www.katexploration.com