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SASKATOON, SK, March 27, 2026 /CNW/ – Karnalyte Resources Inc. (“Karnalyte” or the “Company“) (TSX:KRN) today announced its financial results and corporate highlights for the financial year ended December 31, 2025.
2025 HIGHLIGHTS
- Completion of updated feasibility study and National Instrument 43-101 (“NI 43-101”) technical report entitled “NI 43-101 Technical Report on the Feasibility Study of the Wynyard Project, Saskatchewan, Canada” (the “Feasibility Study”) confirming a 70-year projected mine life for the Wynyard Project
- After-tax NPV of $2.04 billion (8% discount rate) and IRR of 12.5% demonstrating strong project economics
- Planned production of 2.175 million tonnes per year of potash and 104,000 tonnes per year of hydromagnesite at full production
- NI 43-101 technical report filed on SEDAR+ on January 7, 2026
- Sale of non-core farmland assets generating approximately $1.4 million in net proceeds
- Resolved outstanding legal matters, eliminating previously disclosed contingent liabilities.
“In 2025, Karnalyte achieved a major milestone with the completion of the updated feasibility study for the Wynyard Project,” said Danielle Favreau, Chief Executive Officer of Karnalyte Resources. “The study confirms the strength of our resource, the long life of the project and the positive economics supporting its development. With a strong technical foundation and our strategic partnership with GSFC, Karnalyte is well positioned to advance the project and pursue opportunities that create long-term value for our shareholders.”
COMPLETION OF THE FEASIBILITY STUDY
In 2025, the Company completed its Feasibility Study, a major milestone in demonstrating the value of Karnalyte’s mineral assets and advancing the project toward development. The Feasibility Study, effective November 26, 2025, was prepared by Wood Canada Limited, ERCOSPLAN Ingenieurgesellschaft, RESPEC Consulting Inc., and March Consulting Associates Inc.
The Feasibility Study, effective November 26, 2025, and filed on SEDAR+ on January 7, 2026, confirmed a projected 70-year mine life and positive project economics, providing a strong foundation for the future development of the Wynyard Project. The study demonstrated an after-tax net present value of $2.04 billion at an 8% discount rate and an after-tax internal rate of return of 12.5%, supporting the long-term value proposition of the Company’s potash and magnesium-bearing resource.
The Feasibility Study includes updated mineral resource and mineral reserve estimates for the Wynyard deposit. Proven and probable mineral reserves were estimated at 777.1 million tonnes grading 53.8% carnallite and 5.2% sylvite, equivalent to average grades of 12.4% K₂O and 7.8% MgO.
The Feasibility Study outlines planned production of 142.2 million tonnes of potash over the life of mine, equivalent to 2.175 million tonnes per annum at full production, together with 7.0 million tonnes of hydromagnesite, equivalent to 104,000 tonnes per annum. The study contemplates total capital costs of $4.19 billion, including potash processing facilities developed in three phases and a hydromagnesite production facility.
The study highlights the strategic advantages of the Wynyard Project, including its location in Saskatchewan, access to infrastructure and established potash transportation routes, and the support of the Company’s secured offtake agreement with Gujarat State Fertilizers and Chemicals Limited (“GSFC”). The Company believes the completion of the Feasibility Study marks a pivotal step in advancing the Wynyard Project toward development and supporting future corporate development, financing and partnership opportunities.
POTASH MARKET UPDATE
Global fertilizer markets have been experiencing volatility in 2026 due to geopolitical developments and supply chain disruptions. Escalating conflict in the Middle East has affected global fertilizer trade and contributed to increases in natural gas prices, an important input in fertilizer production. The region plays a significant role in global fertilizer markets and disruptions to exports and shipping routes, such as the Strait of Hormuz, have raised concerns about supply availability during a critical agricultural period.
While these developments primarily affect nitrogen and phosphate fertilizer supply chains, they underscore the importance of stable potash supply from jurisdictions such as Saskatchewan. Potash remains an essential nutrient for crop production and global food security. Long-term demand continues to be supported by population growth, the need to increase agricultural productivity, and the ongoing requirement to replenish soil nutrients.
In February 2026, the Governments of Canada and India announced a renewed commitment to strengthen collaboration in the fertilizer sector to support long-term agricultural and food security objectives. Karnalyte believes this collaboration highlights the strategic importance of Canadian potash in global markets and reinforces the long-term demand outlook for potash, including supply to key markets such as India. The Company believes its strategic relationship with GSFC, a leading Indian fertilizer company and major shareholder of Karnalyte, positions the Wynyard Project to participate in this growing demand.
REVIEW OF DEVELOPMENT STRATEGY
Karnalyte’s review of its development strategy, initiated in 2024, continued throughout 2025. This strategic review focuses on assessing the economic potential of expanding magnesium-related production at the Wynyard Project by developing magnesium resources alongside the potash project.
The Feasibility Study confirms the Wynyard Project’s ability to produce hydromagnesite from a portion of the magnesium chloride-rich end brine generated through potash production, with planned capacity of up to 104,000 tonnes per annum of hydromagnesite. In addition, the Company continues to evaluate the potential for other magnesium-based products, including magnesium chloride brine, magnesium chloride hexahydrate, magnesium hydroxide and magnesium oxide, and …