Ms. Danielle Favreau reports

KARNALYTE RESOURCES INC. WELCOMES CANADA-INDIA COLLABORATION TO SECURE LONG-TERM POTASH SUPPLY

Karnalyte Resources Inc. has welcomed recent announcements by the government of Canada and the government of India regarding the shared commitment to enhance collaboration in the fertilizer sector and strengthen the partnership between the two nations for long-term food and agriculture security. As a Canadian potash developer, Karnalyte believes these commitments will strengthen demand for Canadian potash and support the sector's long-term growth.

"This renewed interest in deepening collaboration between Canada and India in mining, exploration and potash is a positive step for our industry and for trade between our two nations," said Danielle Favreau, chief executive officer of Karnalyte. "We are encouraged by the government's recognition of Canadian potash and the value our sector brings to international trade."

Karnalyte recently filed an updated feasibility study for its flagship Wynyard project, confirming a projected 70-year mine life and strong project economics. The project is well positioned to meet rising potash demand in India and North America, supported by a strategic offtake agreement with Gujarat State Fertilizers and Chemicals Ltd., Karnalyte's largest shareholder and a leading Indian fertilizer company. This partnership ensures reliable supply to India and highlights Karnalyte's role in supporting global food security.

About Karnalyte Resources Inc.

Karnalyte is a development-stage potash company. Karnalyte owns the Wynyard potash project, with planned phase 1 production of 675,000 tonnes per year of high-grade granular potash and two subsequent phases of 750,000 tonnes per year each, taking total production up to 2,175,000 tonnes per year. All environmental permits remain valid, preliminary detailed engineering is complete, and the existing offtake agreement with Gujarat State Fertilizers & Chemicals remains in effect. Further development is dependent on the continued strength of potash prices and obtaining financing.

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