Karnalyte Resources Inc. Announces 202 2 Third Quarter Results and Other Corporate Highlights
KARNALYTE.COM
TSX: KRN
KARNALYTE RESOURCES INC. ANNOUNCES 202 2 THIRD
QUARTER RESULTS AND OTHER CORPORATE HIGHLIGHTS
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- November 15, 2022) – Karnalyte Resources Inc. ("Karnalyte" or the
"Company") (TSX: KRN) is announcing today its financial results and a number of key corporate
highlights for the third quarter ended September 30, 2022.
UPDATE TO THE NI 43-101 COMPLIANT TECHNICAL REPORT
The Company is providing a status report on the update to the NI 43-101 Compliant Technical Report
(“Technical Report” or “Report”), led by global consulting and engineering firm Wood PLC (“Wood”).
Karnalyte has made diligent progress on this important step toward construction of its Wynya rd Potash
Project, despite unforeseen challenges that have resulted in delays.
In the later part of October, Wood provided Karnalyte with preliminary capital cost and operating cost
estimates, using budgetary pricing for mechanical equipment, mechanical bulks, and tanks that take
into account the changes to Saskatchewan’s tax regime, currency exchange rates and cost of labour.
Karnalyte is reviewing these capital and operating cost quotes, while Wood works toward the
completion of a financial model and final compilation of the report, expected in the new year.
The recent increase in potash prices has resulted in significant growth in Western Canada’s economic
activity, and this, in conjunction with supply chain constraints impacting suppliers worldwide is, among
other factors, causing delays to the update to the Technical Report. Karna lyte will provide a further
update as appropriate once the Technical Report is finalized.
“Karnalyte remains focused on advancing the update to the NI 43-101 Compliant Technical Report and
has continued making steady progress, despite challenges the mining industry is facing beyond our
control” said Danielle Favreau, interim Chief Executive Officer of Karnalyte. “The Company is
committed to following best practices as we work through this critical step, which will ultimately serve
as a strong foundation for our Wynyard Potash Project.”
To date, Karnalyte has achieved a number of key milestones in relation to the update to the Report.
This includes engaging industry leading solution mining and engineering firm ERCOSPLAN
ingenieurgesellschaft Geotechnik und Bergbau mbH (“ERCOSPLAN”), which provided Karnalyte with a
positive review of core samples, and confirmation from Saskatchewan’s Ministry of Environment that
Karnalyte’s previous Environmental Impact Study approval from 2013 remains valid .
RIGHTS OFFERING
On June 22, 2022, the Company announced the launch of a rights offering (the “ Rights Offering”) as
part of its capital raise strategy in order to provide a viable and attractive investment opportunity for
existing shareholders. On August 3rd, the Company announced the successful completion of this Rights
Offering, following its expiry on July 29, 2022, raising a total of $3,862,000 in proceeds as additional
capital for, among other things, the development of the Potash Project.
Karnalyte is pleased to announce the participation of Gujarat State Fertilizers and Chemicals Limited
(“GSFC”) in the Rights Offering, a major agriculture sector business in India, providing additional
investment in Karnalyte and further demonstrating its ongoing commitment and support for the
Company and the Potash Project.
ESG STRATEGY DEVELOPMENT
In line with Karnalyte’s environmental advantages and governance advancements, the Company
engaged with Karri Howlett Consulting Inc. (“Karri Howlett Consulting” or “KHCI”) earlier this year to
prepare an Environmental, Social and Governance (“ESG”) strategy report. In October 2022, Karnalyte
received a first draft of the report analyzing key focus areas per Karnalyte stakeholders, with practical
recommendations under each of the Environmental, Social and Governance categories.
Karnalyte is in the process of reviewing the recommendations as it seeks to enhance its existing
policies and practices, ensuring the Company is up to date and in line with current and peer ESG
trends. Karnalyte maintains its ultimate goal of operating the business in the best interest of
shareholders and relevant stakeholders to further strengthen its strategic position in the potash sector.
2022 THIRD QUARTER RESULTS
At September 30, 2022, the Company had cash of $4.1 million and positive net working capital of $4
million and no debt. The following information has been summarized from the Company's Condensed
Interim Unaudited Financial Statements.
September 30, 2022 September 30, 2021
Total revenue - -
Net and comprehensive loss (432) (279)
Basic and diluted per share (0.01) (0.01)
Total current assets 4,628 2,793
Total assets 10,306 8,695
Total liabilities 1,976 2,438
Total shareholders’ equity 8,330 6,257
Karnalyte’s Third Quarter 2022 Financial Statements and Managements’ Discussion and Analysis are
available at www.sedar.com and on Karnalyte’s website at www.karnalyte.com.
OUTLOOK FOR Q4 2022
In the fourth quarter of 2022, the Company will continue to focus on the completion of the update to
the NI 43-101 compliant technical report and efforts to further support the raising of project financing
and project development.
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 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 TPY. 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.
For further information, please contact:
Karnalyte Resources Inc.
1(639) 638-2537
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 expectation s
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 a nd 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.
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.