Karnalyte Resources Announces Corporate Update, Settlement of Lawsuit , and Election of Highly Qualified New Director
KARNALYTE.COM
TSX: KRN
KARNALYTE RESOURCES ANNOUNCES CORPORATE UPDATE,
SETTLEMENT OF LAWSUIT , AND ELECTION OF HIGHLY
QUALIFIED NEW DIRECTOR
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- July 4, 2023) – Karnalyte Resources Inc. (“Karnalyte” or the “Company”) (TSX:
KRN), is pleased to provide a corporate update , as well as announce the election of a highly qualified
new director to the board and the settlement of a lawsuit.
These developments demonstrate the Company’s commitment to optimizing the Wynyard Potash Project,
resolving legal matters and to ensuring excellence in corporate governance.
Corporate Update on NI 43-101 technical report
As previously announced, based on an improvement in potash commodity price trends that began in
2021, Karnalyte decided to proceed with an update to its NI 43-101 compliant technical report as part
of the Company’s strategic development plan. Karnalyte remains focused on the update to its NI 43-101
compliant technical report, a key precursor to any mine construction. Most recently, this included work
done by Karnalyte and its advisors to identify cost efficiencies, optimize construction and operation
plans, and enhance project sustainability.
In furtherance of these efforts, Karnalyte has now tasked Wood PLC, a leading global consulting and
engineering company and the independent lead author of the update, with undertaking additional
evaluation of cost savings related to the compaction, drilling and insulation areas of the potash
operation. A capital cost estimate workshop will also be held to identify further reductions in CAPEX.
Karnalyte will provide a further update as appropriate when the technical report is finalized.
Election of a highly qualified new director
The Company is pleased to announce that Karnalyte shareholders elected Ritu Malhotra to the board as
an independent director at the Company’s most recent annual general meeting . Ms. Malhotra is the
President and CEO of March Consulting Associates. She is an accomplished business leader with
experience in engineering, leadership and board governance. Ms. Malhotra’s experience in sponsoring
and strategic managem ent of projects in Canada’s industrial sector, specifically in mining and clean
energy, will bring valuable expertise to the Karnalyte board. Ms. Malhotra is a registered professional
engineer and was recognized as Engineer of the Year by the Saskatoon Engineering Society in 2020. She
was awarded the YWCA Women of Distinction Award in 2022 and the Queen Elizabeth II Platinum Jubilee
Award in 2023 for her contributions to business in Saskatchewan. She serves on the Board of Governors
at the University of Saskatchewan, is Chair of the Board of the Saskatchewan Industrial & Mining Suppliers
Association and is on the Board of Sasktel.
With the election of Ms. Malhotra and the concurrent retirement of incumbent director Mr. Gerald
Scherman, the board continues to consist of five directors, all of whom are independent for the purpose
of National Instrument 58-101 Disclosure of Corporate Governance Practices.
Mr. Scherman joined the Karnalyte board in 2019 and brought significant experience in the mining
industry having previously served as the CFO with AREVA Resources Canada Inc. (now Orano Canada Inc.).
Mr. Scherman has been an extremely valuable member of the Board of Directors and Karnalyte wishes to
express its sincere thanks to him for his significant contributions. The Company benefited greatly from
his leadership, guidance and wisdom.
Settlement of Lawsuits
After months of negotiations and diligent efforts, the Company is pleased to announce that in addition
to the settlement in November of 2022 with Mr. Dan Brown, the Company has now reached a settlement
with Messrs. Peter Matson and Gregory George Szabo who, on February 1 st, 2021 filed an originating
application against Karnalyte, Gujarat State Fertilizers and Chemicals Limited , each of the Company’s
directors at the time, the interim CEO of the Company, and a former director of the Company . This
settlement and others achieved during the past year demonstrate the Company’s commitment to
resolving legal disputes with a continuing objective to advance the Company’s initiatives.
ABO UT KARNALYTE RESOURCES INC.
Karnalyte Resources Inc. is a development stage company focused on two fertilizer products, potash and
nitrogen, to be produced and manufactured in Saskatchewan. Karnalyte owns the Wynyard Potash
Project, with planned phase 1 pr oduction of 625,000 tonnes per year (" TPY") of high -grade granular
potash, and two subsequent phases of 750,000 TPY each, taking total production up to 2.125 million TPY.
Karnalyte is also exploring the development of the Company’s Nitrogen Project, which is a proposed
small-scale nitrogen fertilizer plant with a nameplate production capacity of approximately 700 metric
tonnes per day (" MTPD") of ammonia and approximately 1,200 MTPD of urea, and a target customer
market of independent fertilizer wholesalers in Central Saskatchewan.
For further information, please contact:
Karnalyte Resources Inc.
+1 (306) 986-1486
www.karnalyte.com
FORWARD -LOOKING STATEMENTS
Certain information included in this press release is forward -looking, within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but not always, identified by the use of
words such as "anticipate", "believe", "could", "estimate", "expect", "plan", "intend", "forecast", "future",
"guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar words or phrases
suggesting future outcomes or language suggesting an outlook.
The forward-looking statements contained in this press release are based on certain key expectations
and assumptions made by Karnalyte, including, without limitation, assumptions as to: projected
economics for the Company's planned Potash Project , the confirmation in an indepen dent feasibility
study of Karnalyte's assumptions regarding the technical and economic viability of the Nitrogen Project,
the ability of Karnalyte to obtain financing on terms favourable to the Company, and the ability of
Karnalyte to receive, in a timely manner, the necessary approvals from the Board, shareholders,
regulatory authorities, and other third parties.
Karnalyte believes the expectations and assumptions upon which the forward -looking information is
based are reasonable. However, no assurance can be given that these assumptions and expectations will
prove to be correct. Accordingly, readers should not place undue reliance on the forward -looking
statements and information contained in this press release. Without limiting the generality of the
foregoing, readers are cautioned that the Company has not received a feasibility study prepared by a
third party with respect to the Nitrogen Project.
Actual results may vary from the forward -looking information presented in this press release, and such
variations could be material. Risk factors and uncertainties could cause actual results to vary from the
forward-looking information in this press release. Additional information on forward -looking statements
and other factors that could affect Karnalyte's operations and financial results are included in documents
on file with Canadian securities regulatory authorities and may be accessed through the Company's profile
on the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date hereof and are expressly qualified in their
entirety by this cautionary statement. Subject to applicable securities laws, the Company assumes no
obligation to update or revise them to reflect new events or circumstances.