Ms. Danielle Favreau reports

KARNALYTE RESOURCES INC. ANNOUNCES 2023 THIRD QUARTER RESULTS

Karnalyte Resources Inc. has released its financial results and corporate highlights for the third quarter ended Sept. 30, 2023.

Karnalyte continues to work on the update to its National Instrument 43-101 compliant technical report, a critical step toward capital investment in and eventual construction of the Wynyard potash project. During the quarter, the company and leading global consulting and engineering company Wood PLC, the independent lead author of the updated technical report, made progress in the continuing evaluation of additional cost savings to ensure maximum value for investors.

The progress Karnalyte made during the quarter demonstrates the company's commitment to developing its Wynyard potash project and continued focus on increasing value for investors.

Outlook

For the balance of 2023, the company plans:

• To continue progress on the update to its NI 43-101 technical report;
• To continue to work on identifying cost-efficiencies, optimizing construction costs and operation plans as well as enhancing project sustainability;
• To increase business development activities to seek out and attract investment and strategic partners to move one or both of the company's projects forward to development.

2023 third quarter results

At Sept. 30, 2023, the company had cash of $2.4-million and positive net working capital of $2.4-million with no debt. Karnalyte's third quarter 2023 financial statements and management discussion and analysis are available on SEDAR+ and on Karnalyte's website.

The information in the attached table has been summarized from the company's condensed interim unaudited financial statements.

About Karnalyte Resources Inc.

Karnalyte Resources is a development-stage company focused on two fertilizer products -- potash and nitrogen -- to be produced and manufactured in Saskatchewan. Karnalyte owns the Wynyard potash project, with planned phase 1 production of 625,000 tonnes per year of high-grade granular potash and two subsequent phases of 750,000 tonnes per year each, taking total production up to 2,125,000 tonnes per year. 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 of ammonia and approximately 1,200 metric tonnes per day of urea, and a target customer market of independent fertilizer wholesalers in central Saskatchewan.

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