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Karnalyte Resources Inc. Announces 202 5 Third Quarter Results and Corporate Highlights

Financials

KARNALYTE.COM

TSX: KRN

KARNALYTE RESOURCES INC. ANNOUNCES 202 5 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 13, 2025) – Karnalyte Resources Inc. ("Karnalyte" or the

"Company") (TSX: KRN) today announced its financial results and corporate highlights for the third

quarter ended September 30, 2025.

Q3 2025 HIGHLIGHTS

UPDATE TO NATIONAL INSTRUMENT 43-101 COMPLIANT TECHNICAL REPORT

During the quarter, Karnalyte continued to advance its NI 43-101 compliant technical report, which remains a

key milestone in demonstrating the value of the Company’s assets and advancing toward mine development.

The Company remains actively engaged with i ts team of qualified professionals to review and refine the key

technical sections, ensuring the report meets the highest industry standards for accuracy and completeness.

The report remains on track for completion in 2025, positioning Karnalyte to pursue future corporate

development opportunities. The Company remains committed to advancing its potash project, underpinned

by strong global demand and a robust offtake agreement. Potash’s role as a vital agricultural input continues

to reinforce the Company’s long-term value proposition.

REVIEW OF DEVELOPMENT STRATEGY

Karnalyte’s review of its development strategy, initiated in 2024, continues to move forward. This strategic

review focuses on assessing the economic potential of expanding magnesium chloride production at the

Wynyard Project by developing magnesium resources alongside the Potash Project.

The Company is actively assessing the co-production of magnesium chloride and potassium chloride through

conventional solution mining technologies. The underlying resource, carnallite (hydrated potassium

magnesium chloride), is abundant within Karnalyte’s mineral deposit. This ongoing analysis is aimed at

unlocking additional value through the potential integration of alternate magnesium compounds into the

existing project framework. Although the review was initially expected to be completed by the end of 2025,

the timeline has been extended to prioritize the update to the NI 43-101 compliant technical report.

OUTLOOK FOR 2025

In 2025, Karnalyte Resources Inc. is focused on several key initiatives:

• completing the update to its NI 43-101 technical report;

• advancing its development strategy review; and

• continuing to optimize operations.

KARNALYTE.COM

TSX: KRN

The Company will continue to optimize its asset portfolio, ensuring efficient resource allocation to support

project development. Additionally, the Company will continue to intensify its business development

activities, seeking strategic partnerships and investment opportunities to advance its projects and move

them forward to development. Karnalyte is committed to delivering value to its stakeholders through

strategic initiatives, disciplined financial management, and sustainable growth.

2025 THIRD QUARTER RESULTS

At Sept 30, 2025, the Company had cash of $600,000 and positive net working capital of $624,000 and no debt.

Karnalyte’s Third Quarter 2025 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, 2025 Sept 30, 2024

Total revenue - -

Net and comprehensive loss (509) (267)

Basic and diluted per share (0.01) (0.01)

Total current assets 1,075 1,537

Total assets 6,295 7,190

Total liabilities 2,255 1,942

Total shareholders’ equity 4,040 5,248

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 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 development stage 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.

KARNALYTE.COM

TSX: KRN

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

[email protected]

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 Plus website (www.sedarplus.com).

KARNALYTE.COM

TSX: KRN

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.