Karnalyte Resources Inc. Welcomes Canada -India Collaboration to Secure Long -Term Potash Supply
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KARNALYTE RESOURCES INC. WELCOMES CANADA -INDIA
COLLABORATION TO SECURE LONG -TERM POTASH SUPPLY
Not for distribution to U.S. news wire services or dissemination in the United States.
SASKATOON, SK (CNW - February 4, 2026) – Karnalyte Resources Inc. (" Karnalyte" or the " Company")
(TSX: KRN) welcomes recent announcements by the Government of Canada and the Government of India
regarding the shared commitment to enhance collaboration in the fertilizer sector and strengthen the
partnership between the two nations for long-term food and agriculture security. As a Canadian potash
developer, Karnalyte believes these commitments will strengthen demand for Canadian potash and
support the sector’s long-term growth.
"This renewed interest in deepening collaboration between Canada and India in mining, exploration and
potash is a positive step for our industry and for trade between our two nations," said Danielle Favreau,
Chief Executive Officer of Karnalyte. "We are encouraged by the Government’s recognition of Canadian
potash and the value our sector brings to international trade."
Karnalyte recently filed an updated feasibility study for its flagship Wynyard Project, confirming a
projected 70-year mine life and strong project economics. The project is well positioned to meet rising
potash demand in India and North America, supported by a strategic offtake agreement with Gujarat
State Fertilizers and Chemicals Limited (“GSFC”), Karnalyte’s largest shareholder and a leading Indian
fertilizer company. This partnership ensures reliable supply to India and highlights Karnalyte’s role in
supporting global food security.
ABOUT KARNALYTE RESOURCES INC.
Karnalyte Resources Inc. is a development stage potash company. Karnalyte owns the Wynyard Potash Project,
with planned phase 1 production of 6 75,000 tonnes per year (“ t/a”) of high grade granular potash, and two
subsequent phases of 750,000 t/a each, taking total production up to 2.1 75 million t/a. 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 GUJARAT STATE FERTILIZERS & CHEMICALS LIMITED
GSFC is a leading Indian Fortune 500 fertilizer and chemical company that has been in business for more than
60 years with current revenue in range of USD 1 Billion . GSFC is a leading manufacturer of various bulk
fertilizers like urea, di -ammonium phosphate, ammonium phosphate sulphate, ammoni um sulphate and
various grades of NPK fertilizers at its manufacturing plants situated in the state of Gujarat, India. GSFC also
manufactures various petrochemicals like caprolactam, melamine, nylon -6 chips etc. GSFC’s integrated
manufacturing plants of fertilizer and petrochemical makes it one of the most efficient manufacturing
facilities. In 2013, GSFC invested in Karnalyte as a strategic partner to off-take potash for production of NPK
fertilizers. GSFC continues to be a strategic partner and supports the potash project.
For further information, please contact:
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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.
Forward-looking statements in this press release include statements regarding: the Company's ability to
commence production of 675,000 t/a, and increase it to 1.425 million t/a and thereafter to 2.175 million t/a
of potash; the production of potash, nitrogen fertilizer, or magnesium compounds; the costs related to the
operation of the plant and facilities will be consistent with other solution mining operations subject to
differences in the Company's mineral body and processing; the implementation and ongoi ng use of solution
mining process; further seismic exploration and drilling; global fertilizer demand and consumption; CAPEX and
OPEX estimates; anticipated results of development and extraction activities and estimated future
developments; the Company's a bility to produce sufficient potash to meet its obligations under the Offtake
Agreement; the Company's ability to obtain additional financing on satisfactory terms; the market prices for
potash, nitrogen fertilizer, and magnesium compounds; the Company's ability to pump the waste underground
to eliminate any requirement for surface salt tailings piles; the Company's ability to economically extract and
process mineralized material into potash; and the improvements that the Company has developed for the
solution mining process are as effective as expected by the Company.
Such forward-looking statements are based on a number of material factors and assumptions, including: the
stabilization of the global potash industry and market; the Company obtains additional financing in the future;
the Company executes its project devel opment plans in a manner consistent with the technical report; the
Company executes its discounted cash flow model assumptions as described in the technical report; estimates
of Mineral Resources and Mineral Reserves are accurate; full potash production is reached; that the Company
continues to have title to the Karnalyte Property, and such title is not challenged or impacted in any material
manner; that the Company is able to obtain required approvals, licences and permits, in a timely manner; the
Company is able to successfully develop and market magnesium -based products; the Company's key senior
management continue in their respective roles with the Company; the Company's intellectual property is not
challenged; the Company does not become subject to litigation; the Company's ability to meet its obligations
under the Offtake Agreement; environmental and other applicable law and other regulations are not amended,
repealed or applied in a manner that impacts the development and operation of the Wynyard Project and the
Proteos Nitrogen Project as currently anticipated; there are no adverse changes to price of potash, nitrogen
fertilizer, or magnesium compounds that would adversely affect the prospects for developing and operating
the Wynyard Project and the Pr oteos Nitrogen Project, or making it inadvisable or uneconomic to proceed
with development; the future mining facilities operate as anticipated; the Company's ability to maintain and
develop positive relationships with foreign governments and future business partners; the Company is able to
develop and maintain the infrastructure required to export, store and transport its potash, nitrogen fertilizer,
or magnesium compounds production; there are no comparable mining companies targeting carnallite in North
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America; and the continued existence and operation of the primary potash or nitrogen fertilizer production
facility.
Forward-looking statements involve significant risks and uncertainties; however, Karnalyte believes the
expectations and assumptions upon which the forward -looking information is based are reasonable.
Notwithstanding the foregoing, 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. Such statements should not be read as guarantees of future
performance or results and will not necessarily be accurate indications of whether or not such results will be
achieved. A number of factors could cause actual results to differ materially from the results discussed in the
forward-looking statements, including, but not limited to, the following factors, which are discussed in greater
detail in the Company’s Annual Information Form for the year ended December 31, 2024 and dated March 21,
2025 and available for review on the Company’s profile on SEDAR+ (www.sedarplus.ca) (the “AIF”) under the
heading "Description of the Business - Risk Factors": exploration, development and operation risks related to
the Wynyard Project and the Proteos Nitrogen Project; the ability to secure adequate financing to implement
the Company's strategic and development objectives; the ability to maintain adequate capital to meet the
Company's financial commitments; the successful execution of the Company's project plans; the uncertainty
regarding the estimation of Mineral Resou rces and Mineral Reserves; the lack of current revenues and
uncertainty about future revenues; the risks associated with the limited operating history of the Company;
the lack of developed markets for the Company's magnesium-based products; the unproven nature of solution
mining of carnallite in Saskatchewan; no assurance of titles, leases, or maintenance of existing permits; permit
and licensing requirements related to exploration and development activities; the Company's ability to satisfy
its material agreements, including the Offtake Agreement; the risks associated with the enforcement of the
Company's material agreements, including the Offtake Agreement; the potential loss of key employees,
technical experts or key suppliers; the potential for a volatil e market for the Common Shares; the potential
dilution of shareholders through future financings; failure to protect the Company's intellectual property
rights; litigation and tax matters; adequacy of the Company's insurance coverage; adequacy of the Company's
internal controls over financial reporting; environmental and regulatory risks; the volatility of potash and
magnesium compounds prices; the cyclical nature of the potash and magnesium compounds industries;
availability and cost of labour and materials required for the construction of Phase I; competition; and currency
exchange rate fluctuations.
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 releas e. 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 Compa ny’s profile on the SEDAR
Plus website (www.sedarplus.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.