Karnalyte Resources Inc. Announces 2019 Second Quarter Results
1
KARNALYTE RESOURCES INC. ANNOUNCES 2019 SECOND QUARTER RESULTS
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- August 9, 2019) – Karnalyte Resources Inc. (“ Karnalyte” or the
“Company”) (TSX: KRN) today announced its financial results and operational and corporate highlights
for the second quarter ended June 30, 2019.
Wynyard Potash
We continue to monitor the potash price environment, which shows some positive signs for price
improvement, as we continue our process to update initial capital costs and operating costs during the
balance of 2019 in order to position the Company to advance the development of Wynyard Potash when
feasible.
Proteos Nitrogen
Progress on the development of Proteos Nitrogen continues at a steady pace as land assembly for the project
site continues, to be followed by environmental baseline field work, technology provider selection and the
preparation of an independent feasibility study to solidify the technical project and establish initial project
economics. We are continuing our discussions with local agricultural industry partners regarding their
potential participation in Proteos Nitrogen.
Appointment of Independent Director
Mr. D.C. Anjaria has been appointed as an independent director of Karnalyte effective as of August 8, 2019.
Mr. Anjaria is an independent director of Gujarat State Fertilizers and Chemicals Limited and brings to
Karnalyte a wealth of experience in international business, capital markets and financial risk management,
having worked with Citibank in India, Africa, the Middle East and Europe. Mr. Anjaria has also been
appointed to the Audit Committee and the Governance and Compensation Committee of Karnalyte. Mr.
Wheatley commented “We welcome Mr. Anjaria to the Karnalyte Board and look forward to benefiting
from his many years of international capital markets experience as Karnalyte pursues the development of
both Wynyard Potash and Proteos Nitrogen.”
2019 Second Quarter Results
At June 30, 2019, the Company had cash of $8.6 million, a positive working capital of $8.7 million and no
debt. The Company has adequate cash to fund any existing commitments in 2019, as well as to meet short
term operating and capital requirements. Karnalyte’s Second Quarter 2019 Financial Statements and
Managements’ Discussion and Analysis are available at www.sedar.com and on Karnalyte’s website at
www.karnalyte.com.
The information has been summarized from the Company’s Condensed Interim Unaudited Financial
Statements.
2
Outlook for 2019
During the third quarter of 2019, the Company will continue its work to update initial capital and operating
costs for Wynyard Potash. The Company will also focus on land assembly for site acquisition,
environmental baseline field work, technology provider selection, initial technical work and discussions
with local agricultural industry partners regarding their potential participation in Proteos Nitrogen.
About Karnalyte Resources Inc.
Karnalyte Resources Inc. is an advanced development stage company focused on two fertilizer products,
potash and nitrogen, to be produced and manufactured in Saskatchewan. Karnalyte owns the construction
ready 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 tonnes per year (Mtpy). Karnalyte is also exploring the development of the Proteos 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.
About the Wynyard Potash Project
The Wynyard Potash Project is a construction ready solution mining potash project located in Wynyard,
Saskatchewan, with planned phase 1 production of 625,000 tpy of high grade granular potash, and two
subsequent phases of 750,000 tpy each, taking total production up to 2.125 Mtpy. All environmental
permits remain valid, preliminary detailed engineering is complete, and the existing offtake agreement with
Gujarat State Fertilizers & Chemicals Limited remains in effect. Further development is dependent on
improved potash prices.
About the Proteos Nitrogen Project
The Proteos Nitrogen Project is an advanced stage development project consisting of a proposed small-
scale nitrogen fertilizer plant to be located in Central Saskatchewan, having a nameplate production
capacity of approximately 700 mtpd of ammonia and approximately 1,200 mtpd of urea, and designed to
produce two products – anhydrous ammonia (82-0-0) and granular urea (46-0-0). Karnalyte’s primary
target market is independent local Saskatchewan fertilizer wholesalers within a 400-kilometer radius of
Saskatoon, Saskatchewan. A secondary target market is the US Midwest fertilizer wholesalers near to the
Canadian – United States border. The proposed plant would be the first greenfield nitrogen fertilizer plant
built in Canada in the last 26 years.
3
About Gujarat State Fertilizers & Chemicals Limited
Gujarat State Fertilizers & Chemicals Limited (“GSFC”) is a leading Indian Fortune 500 chemicals and
fertilizer company that has been in business for more than 50 years. GSFC currently operates one ammonia
plant of 445,000 Mtpy nameplate capacity, which was commissioned in the year 2000 based on Linde’s
technology (after the two old ammonia plants established in 1969 were retired due to higher energy
consumption), and two urea plants, with a total of 370,590 Mtpy nameplate capacity which were established
in 1969, at its fertilizer production complex in Vadodara, Gujarat State, India. GSFC’s urea plants have
consistently operated at optimum capacity over the past five decades.
As t he Company’s strategic partner and single largest shareholder, GSFC remains committed to the
Company and the Wynyard Potash Project and is fully supportive of the Company pursuing the
development of the Proteos Nitrogen Project. GSFC has also confirmed to the Company that it will continue
to support the structuring of the most cost-effective financing package for the development of the Wynyard
Potash Project, as GSFC has consistently offered to the Company since becoming a shareholder in 2013.
For further information, please contact:
Frank D. Wheatley
Chief Executive Officer
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 production facility, the confirmation in an independent feasibility study of
Karnalyte’s assumptions regarding the technical and economic viability of the Proteos 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 Company’s board of directors,
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 Proteos Nitrogen Project.
4
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.