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KRN.TO ·

Received Statement of Claim Filed BY Former Employee

Legal & Disputes

KARNALYTE RESOURCES INC.

RECEIVED STATEMENT OF CLAIM FILED BY FORMER EMPLOYEE

Saskatoon, SK (CNW–October 30 , 2017) – Karnalyte Resources Inc. (“Karnalyte” or the

“Company”) (TSX: KRN) announced today that the Company has received a statement of

claim filed by Mr. Siu Ma, the Company ’s former Chief Operating Officer, in the amount of

$728,750. Mr. Ma ’s claim is for an alleged breach of contract for the Company ’s failure to

provide payments to Mr. Ma after he terminated the employment agreement alleging a change of

control had occurred.

The Company is thoroughly assessing the claim with legal counsel and is considering all

available recourse.

The full statement of claim may be accessed by reviewing the Court of Queen ’s Bench of

Alberta’s file number 1703-20972.

For further information, please contact:

Karnalyte Resources Inc.

1 (306) 986-1486

[email protected]

www.karnalyte.com