Karnalyte Resources Inc. Announces 202 4 Third Quarter Results and Corporate Highlights
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KARNALYTE RESOURCES INC. ANNOUNCES 202 4 THIRD
QUARTER RESULTS AND CORPORATE HIGHLIGHTS
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- November 6, 2024) – Karnalyte Resources Inc. ("Karnalyte" or the "Company")
(TSX: KRN) today announced its financial results and corporate highlights for the third quarter ended
September 30, 2024.
Q3 2024 HIGHLIGHTS
UPDATE ON NATIONAL INSTRUMENT 43-101 COMPLIANT TECHNICAL REPORT
The Company continued to make progress on its NI 43-101 compliant technical report, a key precursor to any
mine construction. In the third quarter, this included work on the equipment sourcing initiative that the
Company previously announced. In pursuit of cost savings, the Company is analyzing cost efficiencies from
sourcing certain equipment from overseas and expects to provide an update in the fourth quarter of the
year. This initiative is being supported by our strategic partner, Gujarat State Fertilizers and Chemicals
(“GSFC”). The cost savings initiative is being led by Wood PLC, a leading global consulting and engineering
company that is the independent lead author of the update.
As previously announced, industry leading solution mining and engineering firm ERCOSPLAN
ingenieurgesellschaft Geotechnik und Bergbau mbH (“ERCOSPLAN”) is assisting with the technical report,
including the update of the mineral resource estimation and the mine plan for brine field development as
the basis for the mineral reserve estimate.
REVIEW OF DEVELOPMENT STRATEGY
During the quarter, the Company announced it will begin a review of its development strategy to evaluate
the economic potential of increasing magnesium chloride production at the Company’s Wynyard Project by
developing the magnesium assets at the same time as the development of the potash project.
Carnallite, also known as hydrated potassium magnesium chloride, is abundant within the Company’s mineral
deposit. As part of its review, the Company has begun preliminary studies to evaluate the economic
opportunity of developing carnallite for the co-production of magnesium chloride and potassium chloride.
The aim is to significantly increase magnesium chloride production, compared to previous studies, through
the use of advanced solution mining technologies.
Magnesium is listed as one of Canada’s 34 critical minerals and is a key mineral in the clean technologies and
advanced manufacturing value chains. Additionally, Magnesium chloride serves as a key raw material in the
production of various chemicals, including magnesium metal, magnesium hydroxide, magnesium oxide, and
magnesium carbonate. These chemicals are used in high-tech applications such as semiconductor
manufacturing, lithium-ion battery production, and in industries including metallurgy, pharmaceuticals,
agriculture and wastewater treatment, driving the demand for magnesium chloride.
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Permanent Appointments of CEO and CFO
On August 14, the Company announced the appointment of Danielle Favreau as permanent Chief Executive
Officer and Christie Gradin as permanent Chief Financial Officer of the Company.
Strategic Asset Sale of Surplus Equipment
During the quarter, the Company sold certain non-essential assets from its Wynyard Project as part of its
ongoing efforts to optimize its business operations and advance the project. As a result of this sale, the
company realized net proceeds of $261,000.
OUTLOOK FOR 2024
In 2024, the Company’s plans are as follows:
• Continue to make progress on the update to its NI 43-101 technical report;
• Continue to work on identifying cost efficiencies; and
• Continue work on its development strategy review.
2024 THIRD QUARTER RESULTS
At Sept 30, 2024, the Company had cash of $ 1 million and positive net working capital of $ 882,000 and no
debt. Karnalyte’s Third Quarter 202 4 Financial Statements and Managements’ Discussion and Analysis are
available at www.sedarplus.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.
Sept 30, 2024 Sept 30, 2023
Total revenue - -
Net and comprehensive loss (280) (229)
Basic and diluted per share (0.01) (0.00)
Total current assets 1,537 2,904
Total assets 7,190 8,568
Total liabilities 1,942 1,679
Total shareholders’ equity 5,248 6,889
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-
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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. GSFC is the Company’s
strategic partner and single largest shareholder.
For further information, please contact:
Danielle Favreau
Chief Executive Officer
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.
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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.