Karnalyte Resources Inc. Issues Letter to Shareholders Warning of Threats to Value Creation from Self-Interested Individuals
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KARNALYTE RESOURCES INC. ISSUES LETTER TO SHAREHOLDERS
WARNING OF THREATS TO VALUE CREATION
FROM SELF-INTERESTED INDIVIDUALS
Not for distribution to U.S. news wire services or dissemination in the United States.
Shareholders urged to vote FOR all management nominees to the Board of Directors prior to proxy
vote deadline of 9:30 a.m. (Saskatoon time) on Tuesday, June 5, 2018
SASKATOON, SK (CNW- May 25, 2018) – Ahead of the Annual and Special Meeting (“AGM”) of
Karnalyte Resources Inc.’s (“Karnalyte” or “the Com pany”) (TSX:KRN) shareholders on June 7, 2018, the
President of Karnalyte today issued a letter to shareholders which includes important information regarding
a serious threat to the value of shareholders’ investment in Karnalyte as a result of the reckless actions of a
number of self-interested individuals. Shareholder s are urged to review the letter and then vote FOR all
management nominees to Karnalyte’s Board of Directors. The letter has been mailed to registered and non-
objecting beneficial Karnalyte shareholders, and is available on Karnalyte’s website at www.karnalyte.com
and on SEDAR at www.sedar.com.
The letter highlights the opportunity that sharehol ders have to turn the page to a better future for t heir
investment in Karnalyte and to break with the Compa ny’s troubled past. In the letter, Karnalyte
shareholders are also provided with the alarming facts regarding the conduct, scheming and dubious track
record of certain shareholders who are actively see king to take control of the Company and its Board o f
Directors, at the expense of other shareholders. Specifically, the letter presents the facts in connection with:
• the self-interested scheming and coercive actions o f shareholder Dan Brown, who has sought to
enrich himself at the expense of Karnalyte shareholders, demanding 7 million shares and upwards
of $240,000 cash in exchange for an unproven mining concept; and
• former Karnalyte President Robin Phinney’s track re cord of shareholder value destruction,
including the scuttling of a US$700 million financi ng of the Company’s flagship mining project
through his flagrant breach of Company agreements, and his outrageous demand for several million
dollars in compensation and related personal entitlements.
Karnalyte has written the letter to shareholders as Mr. Phinney and Mr. Brown are actively continuing their
efforts to again take control of Karnalyte and its Board of Directors while flagrantly ignoring basic corporate
and securities laws, as well as long established Karnalyte corporate policies.
Evidence of the transgressions of these self-intere sted individuals are all comprehensively documented in
Karnalyte’s corporate records.
Vote FOR all management nominees
Karnalyte shareholders are urged to read the complete letter to shareholders and vote FOR all management
nominees before the deadline of 9:30 a.m. (Saskatoon time) on Tuesday, June 5, 2018.
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Shareholders can vote their shares by telephone by contacting AST Trust Company (Canada), Karnalyte’s
Registrar and Transfer Agent toll-free at: 1-888-489-7352.
For further information, please contact:
Frank D. Wheatley
President
Karnalyte Resources Inc.
+1 (306) 986-1486
www.karnalyte.com
Detailed information regarding the AGM is contained in Karnalyte’s Management Information Circular
dated May 14, 2018 which has been mailed to shareholders and is also available on Karnalyte’s website at
www.karnalyte.com and on SEDAR at www.sedar.com.
About Karnalyte Resources Inc.
Karnalyte Resources Inc. is an advanced fertilizer development company focused on two products to be
developed in Saskatchewan: potash and nitrogen. Karnalyte owns the construction ready Wynyard Potash
Project, with planned Phase 1 production of 625,000 tonnes per year of high grade granular potash, and two
following phases taking total production up to 2.12 5 million tonnes per year. Karnalyte is also pursu ing
the Proteos Nitrogen Project, which is a proposed n itrogen fertilizer plant with a nameplate productio n
capacity of approximately 700 metric tonnes per day ammonia and approximately 1,200 metric tonnes per
day urea, and a target customer market of proximate independent fertilizer wholesalers in Saskatchewan.
FORWARD-LOOKING STATEMENTS
Certain information included in this press release is forward-looking, within the meaning of applicabl e
Canadian securities laws. Forward-looking informati on is often, but not always, identified by the use of
words such as “anticipate”, “believe”, “could”, “es timate”, “expect”, “plan”, “intend”, “forecast”, “f uture”,
“guidance”, “may”, “predict”, “project”, “should”, “strategy”, “target”, “will” or similar words or ph rases
suggesting future outcomes or language suggesting an outlook.
The forward-looking statements contained in this pr ess release are based on certain key expectations a nd
assumptions made by Karnalyte, including, without limitation, assumptions as to: projected economics for
the Company’s planned potash production facility, t he confirmation in a 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 appro vals 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 u ndue reliance on the forward-looking statements and
information contained in this press release. Withou t limiting the generality of the foregoing, readers are
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cautioned that the Company has not received a feasi bility study prepared by a third party with respect to
the Proteos Nitrogen Project.
Actual results may vary from the forward-looking in formation presented in this press release, and such
variations could be material. Risk factors and unce rtainties could cause actual results to vary from t he
forward-looking information in this press release. Additional information on forward-looking statement s
and other factors that could affect Karnalyte’s ope rations and financial results are included in docum ents
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.