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SASKATOON, SK, Aug. 13, 2025 /CNW/ – Karnalyte Resources Inc. (“Karnalyte” or the “Company“) (TSX:KRN) today announced its financial results and corporate highlights for the second quarter ended June 30, 2025.
Q2 2025 HIGHLIGHTS
During the quarter, Karnalyte continued to advance its NI 43-101 compliant technical report, which remains a key milestone in demonstrating the value of the Company’s assets and advancing toward mine development. While there have been no material changes since the last update, steady progress has continued on the review and refinement of key technical sections. The Company remains actively engaged with its team of qualified professionals to finalize the report’s technical inputs, ensuring accuracy and alignment with industry standards.
The review team continues to validate and update core assumptions, including price forecasts and market entry strategies, to reflect current market conditions and strategic business objectives.
The report remains on track for completion in 2025, positioning Karnalyte for future corporate development opportunities. The Company remains committed to advancing its potash project, underpinned by strong global demand and a robust offtake agreement. Potash’s role as a vital agricultural input continues to reinforce the Company’s long-term value proposition.
REVIEW OF DEVELOPMENT STRATEGY
Karnalyte’s review of its development strategy, initiated in 2024, remains on schedule and is expected to conclude in 2025. This strategic review focuses on assessing the economic potential of expanding magnesium chloride production at the Wynyard Project by developing magnesium resources alongside the Potash Project.
The Company is continuing its evaluation of the co-production of magnesium chloride and potassium chloride through advanced solution mining technologies. The underlying resource, carnallite (hydrated potassium magnesium chloride), is abundant within Karnalyte’s mineral deposit. This ongoing analysis is aimed at unlocking additional value through the potential integration of magnesium chloride production into the existing project framework.
Magnesium is recognized as one of Canada’s 34 critical minerals and is an essential mineral in the clean technologies and advanced manufacturing value chains.
ASSET SALES
In April 2025, the Company closed on the sale of three parcels of farmland that are not core to the focus on advancing the Potash Project. These three parcels sold for net proceeds totaling $1,408,000. The proceeds from the sale will be directed towards supporting the company’s development activities, advancing its project plans and to fund working capital requirements.
CORPORATE & GOVERNANCE MATTERS
Election of two highly qualified directors
During the quarter, at its most recent annual meeting, Karnalyte shareholders elected Ms. Jennifer Haskey and Mr. Larry Long to the board as independent directors of the Company.
Ms. Haskey brings over 20 years of domestic and international experience in the energy sector, spanning both technical and commercial roles. She has served in advisory capacities with Deloitte LLP and BMO Capital Markets, where she focused on mergers and acquisitions, corporate strategy, value creation, and financial advisory. Her investment and business development expertise includes portfolio management roles at Passport Capital LLC and St Peter Port Capital, as well as corporate development at Repsol Oil & Gas Canada (formerly Talisman Energy Inc.). Earlier in her career, Ms. Haskey worked as a Reservoir Evaluations Engineer at McDaniel & Associates Consultants, primarily evaluating assets in the Western Canadian Sedimentary Basin. Ms. Haskey holds a Bachelor of …