Abstract: The catalyst exhibiting hydrogen spillover effect relates to the composition of a catalyst exhibiting hydrogen spillover effect and to a process for preparing the catalyst. The catalyst has a reduced transition base metal of Group VIB or Group VIIIB, such as cobalt, nickel, molybdenum or tungsten, supported on a high porous carrier, such as saponite, the base metal being ion-exchanged with at least one precious metal of Group VIIIB. The process includes the steps of loading the base metal onto the support, reducing the base metal, preferably with H2 at 600° C., and thereafter ion-exchanging the precious metal with the base metal. Preferred examples of the catalyst include a saponite support loaded with about 10-20 wt % cobalt and about 0.1-1 wt % precious metal. The catalyst is optimized for reactions that occur in commercial processes at about 360-400° C., such as in hydrocracking.