Karnalyte Resources Inc. Announces 202 3 First Quarter Results
KARNALYTE.COM
TSX: KRN
KARNALYTE RESOURCES INC. ANNOUNCES 202 3 FIRST
QUARTER RESULTS
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- May 11, 2023) – Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX:
KRN) today announced its financial results and corporate highlights for the first quarter ended March
31, 2023.
During the first quarter of 2023, Karnalyte continued to work diligently to advance the Company’s Potash
Project toward development.
Karnalyte remains focused on the update to its NI 43-101 compliant technical report, a key precursor to any
mine construction. In the most recent quarter, this included work done by Karnalyte and its advisors to
identify cost efficiencies, optimize construction and operation plans, and enhance project sustainability.
Wood PLC, a leading global consulting and engineering company, is the independent lead author of the
update. Industry leading solution mining and engineering firm ERCOSPLAN ingenieurgesellschaft Geotechnik
und Bergbau mbH (“ERCOSPLAN”) is assisting with the project, including the update of the mineral resource
estimation and the mine plan for brine field development as the basis for the mineral reserve estimate.
In addition, the Company’s Proteos Nitrogen Project remains under consideration as part of Karnalyte’s
future and may diversify our business by adding a second fertilizer product line.
OUTLOOK FOR 2023
In 2023, the Company plans to complete the update to its NI 43-101 technical report; to continue to work on
identifying cost efficiencies, optimizing construction and operation plans, and enhancing project
sustainability; and to increase business development activities to seek out and attract investment and
strategic partners to move one or both of the Company’s projects forward to development.
2023 FIRST QUARTER RESULTS
At March 31, 2023, the Company had cash of $3.5 million and positive net working capital of $3.2 million and
no debt. Karnalyte’s First Quarter 202 3 Financial Statements and Managements’ Discussion and Analysis are
available at www.sedar.com and on Karnalyte’s website at www.karnalyte.com.
The following information has been summarised from the Company's Condensed Interim Unaudited Financial
Statements.
March 31, 2023 March 31, 2022
Total revenue - -
Net and comprehensive loss (386) (419)
Basic and diluted per share (0.01) (0.01)
Total current assets 4,069 1,934
Total assets 9,740 7,826
Total liabilities 2,246 2,468
Total shareholders’ equity 7,494 5,358
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.
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 million TPY. 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 the
continued strength of potash prices and obtaining financing.
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.
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 that was commissioned in the year 2000, and two urea plants that were established in 1969, at its
fertilizer production complex in Vadodara, Gujarat State, India.
As the 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:
Danielle Favreau
Interim CEO
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 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.
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.