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KRN.TO ·

Karnalyte Resources Inc. Announces Receipt of Requisition of Special Meeting

Shareholder Meetings Legal & Disputes

KARNALYTE.COM

TSX: KRN

KARNALYTE RESOURCES INC. ANNOUNCES RECEIPT OF

REQUISITION OF SPECIAL MEETING

Not for distribution to U.S. news wire services or dissemination in the United States.

SASKATOON, SK (CNW- July 13, 2020) – Karnalyte Resources Inc. (“Karnalyte” or the “Company”)

(TSX: KRN) announces that, less than two weeks after its annual meeting, it has received a requisition

for a special meeting of shareholders from a group of dissident shareholders comprising former

Karnalyte directors Peter Matson, Greg Szabo and Mark Zachanowich for the election of four individuals

to the Board of Directors of the Company.

There is no action for shareholders to take at this time. Karnalyte is currently reviewing the latest

dissident shareholder documents and will update shareholders in due course. The Company’s priority

continues to be the completion of the previously announced prefeasibility study and the work to

engage a strategic consultant.

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:

Danielle Favreau

CFO & Interim CEO

Karnalyte Resources Inc.

1(306) 986-1486

[email protected]

www.karnalyte.com