Karnalyte Resources Inc. Provides Update ON the Proteos Nitrogen Project and Announces Director Changes
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KARNALYTE RESOURCES INC. PROVIDES UPDATE ON THE PROTEOS NITROGEN
PROJECT AND ANNOUNCES DIRECTOR CHANGES
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW- December 23, 2019) – Karnalyte Resources Inc. (“ Karnalyte” or the
“Company”) (TSX: KRN) provided today an update on its Proteos Nitrogen Project and announced
director changes.
Proteos Nitrogen
Karnalyte is pleased to announce that it has received a first draft of the pre-feasibility study for the Proteos
Nitrogen Project which the Company announced it was developing on November 5 th, 2019. The study
includes investigation and analysis of project location and site selection, an evaluation of the production
process and technology options, a project description, analysis of process selection for both the ammonia
and urea plants, an analysis of raw material, utility and product specifications, an analysis of environmental
implications, financial analysis, and identification and analysis of the risks inherent in the project. The study
also contemplates a project implementation plan and time schedule. The report is still in a draft stage and
the Company plans to finalize the report before the end for the first quarter of 2020.
Director Changes
The Company is also pleased to announce that it has appointed Gerald Scherman of Saskatoon,
Saskatchewan as an independent director. Mr. Scherman, a CPA, CA, is currently retired, after more than
15 years with AREVA Resources Canada Inc. “ AREVA” (now ORANO Canada Inc.). He retired from
AREVA as its Senior Vice President & Chief Financial Officer and a member of its Board of Directors.
Prior to joining AREVA, Mr. Scherman was a partner with Coopers & Lybrand (now Pricewaterhouse
Coopers LLP) a national accounting firm. Mr. Scherman brings to the board a wealth of experience in the
mining sector.
With the appointment of Mr. Scherman, incumbent director Mr. W. Todd Rowan has retired from the Board.
“Todd has been a valuable member of the Board of Directors and we wish to express our sincere thanks to
him for his significant contributions. It has been a pleasure working with him,” said Danielle Favreau,
Karnalyte’s Interim CEO and CFO. “The Board and management look forward to working with Gerald. He
is an excellent addition to our Board. His experience in the mining sector and his involvement in the
development of mining projects in Saskatchewan will help guide Karnalyte as we look to move forward
with development of the Wynyard Potash and Proteos Nitrogen Projects.”
About Karnalyte Resources Inc.
Karnalyte Resources Inc. is an advanced 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 tonnes per year (Mtpy). 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
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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 Mtpy. 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
improved potash prices.
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.
For further information, please contact:
Danielle Favreau
Interim Chief Executive Officer and Chief Financial Officer
Karnalyte Resources Inc.
1(306) 986-1486
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.
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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.