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SASKATOON, SK, May 13, 2026 /CNW/ – Karnalyte Resources Inc. (“Karnalyte” or the “Company“) (TSX:KRN) today announced its financial results and corporate highlights for the first quarter ended March 31, 2026.
Q1 2026 HIGHLIGHTS
During the quarter, Karnalyte advanced key initiatives supporting the continued development of the Wynyard Project.
On January 7, 2026, the Company filed an updated National Instrument 43-101 technical report (the “Technical Report” or “Feasibility Study“) on SEDAR+, marking an important milestone in advancing the Wynyard Project and supporting future development and financing activities.
The Company also progressed its review of its development strategy including the evaluation of proposals to advance the magnesium opportunity associated with the Wynyard deposit. This includes consideration of a concept study for potential magnesium metal production, reflecting efforts to enhance and optimize the value of its resource base.
The Company is encouraged by developments in the quarter with respect to commitments made by the Governments of Canada and India to collaborate in the fertilizer sector and strengthen partnerships supporting long-term food and agriculture security. The Company believes these commitments will strengthen the demand for Canadian potash and support the sector’s long-term growth.
To support the development planning and operational readiness of the Wynyard Project, the Company initiated a rail study to evaluate infrastructure requirements, including advancing the design of a rail spur connecting the project site to the Canadian Pacific Kansas City Limited (“CPKC”) main line.
In parallel, the Company is reviewing proposals to enhance business development activities in support of advancing project financing initiatives.
ASSET SALES
Subsequent to the quarter end, Karnalyte sold two parcels of land in the Wynyard area for net proceeds of approximately $1.09 million. The Company also obtained options on these parcels to plan, develop and lease areas necessary for the development of well pads and related facilities to support the planned solution mining operations.
These activities are part of the Company’s ongoing efforts to optimize its asset portfolio and ensure that land holdings align with development requirements.
The Company intends to sell additional parcels of farmland in compliance with an updated exemption order the Company received from the Saskatchewan Farm Land Security Board on March 24, 2026.
OUTLOOK FOR 2026
In 2026, Karnalyte will continue to advance the development of the Wynyard Project through ongoing technical, infrastructure, and strategic initiatives. The key priorities for the Company include:
- further refinement of its development plans.
- advancing supporting studies, including infrastructure planning such as rail access.
- progressing the development strategy review for magnesium-related opportunities.
- pursuing strategic partnerships, financing initiatives and business development opportunities to support project advancement; and
- continuing to optimize operations and capital allocation.
Karnalyte remains committed to advancing its projects in a manner that supports long-term value creation for stakeholders, while aligning with evolving market conditions and global demand for fertilizer and critical minerals.
2026 FIRST QUARTER RESULTS
At March 31, 2026, the Company had cash of $0.1 million and negative working capital of $0.4 million and no debt. Karnalyte’s First Quarter 2026 Financial Statements and Managements’ Discussion and Analysis are available at www.sedarplus.com and on Karnalyte’s website at www.karnalyte.com.
The following information has been summarised from the Company’s Condensed Interim Unaudited Financial Statements.
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March 31, 2026 |