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Karnalyte Resources Announces New Transfer Agent and Addition of Nominating Function to Compensation and Corporate Governance Committee

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KARNALYTE.COM

TSX: KRN

KARNALYTE RESOURCES ANNOUNCES NEW TRANSFER AGENT

AND ADDITION OF NOMINATING FUNCTION TO COMPENSATION

AND CORPORATE GOVERNANCE COMMITTEE

Not for distribution to U.S. news wire services or dissemination in the United States.

SASKATOON, SK (CNW- February 14, 2022) – Karnalyte Resources Inc. (“Karnalyte” or the “Company”)

(TSX: KRN), is pleased to announce today two updates as part of the Company’s efforts to enhance its

financial position, governance, and shareholder value.

OLYMPIA TRUST TO SERVE AS NEW TRANSFER AGENT

In line with the Company’s goal of identifying cost efficiencies, Karnalyte has engaged Olympia Trust

Company ( “Olympia”) as its new transfer agent at a very competitive rate. As of February 1, 2022,

Olympia has taken over responsibility for maintenance of shareholder records.

NOMINATING FUNCTION ADDED TO GOVERNANCE COMMITTEE

In keeping with the goal of advancing governance, Karnalyte is pleased to announce that the

Compensation and Corporate Governance Committee has updated its Charter, and now includes a

nominating function. As such, the name has been changed to the Compensation, Corporate Governance

and Nominating Committee (the “ Committee”). This change will further assist the Board of Directors

(the “Board”) in fulfilling its obligations and oversight responsibilities.

As a result of the new nominating function, the Committee will be responsible for:

 Considering the skills and competencies that should be possessed by the Board as a whole, as

well as assessing those of each existing director;

 Identifying individuals who are qualified to become new directors based on outlined criteria; and

 Reviewing and recommending to the Board approval of any proposed candidate(s) for nomination

for election or appointment.

Danielle Favreau, Interim CEO of Karnalyte, commented, “These are important steps that keep

shareholder value front of mind. Engaging Olympia is one of several cost-saving measures Karnalyte is

taking to improve its financial position, while adding a nominating function will support good governance

and development of a strong Board that acts in the best interests of Karnalyte and its shareholders.”

ABOUT 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 production 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

[email protected]

www.karnalyte.com