Ms. Danielle Favreau reports

KARNALYTE RESOURCES INC. FILES UPDATED FEASIBILITY STUDY FOR FLAGSHIP WYNYARD PROJECT

The National Instrument 43-101 technical report on the updated feasibility study for Karnalyte Resources Inc.'s Wynyard project has been filed and is now available on SEDAR+.

As described in more detail in the company's news release dated Nov. 26, 2025, the updated study confirms the strong fundamentals of the Wynyard project, highlighting its long-term potential to deliver stable returns and meet growing market demand. Key highlights include:

• Projected 70-year mine life with positive project economics;
• After-tax NPV (net present value) of $2.04-billion at a discount rate of 8 per cent and an IRR (internal rate of return) of 12.5 per cent;
• Annual production of 2,175,000 tonnes of potash and 104,000 tonnes of hydromagnesite;
• Secured offtake agreement for a portion of production supporting reliable cash flow.

"The filing of the updated feasibility study marks an important milestone as we advance the Wynyard project towards development," said Danielle Favreau, chief executive officer of Karnalyte Resources. "With a strong foundation, positive market outlook and clear strategy, Karnalyte is well positioned to create long-term value for our stakeholders."

The full technical report is available on SEDAR+ under Karnalyte's profile.

The following individuals are each qualified persons (QPs), as defined under NI 43-101, and have reviewed and approved the scientific and technical information in the technical report:

• Tabetha Stirrett, PGeo, president, RESPEC;
• Dr. Sebastiaan van der Klauw, EurGeol, consulting geologist, ERCOSPLAN;
• David Mitchell, PEng, senior process engineer, Wood;
• David Myers, PEng, technical director, mining and minerals (Saskatoon), Wood;
• Kyle Krushelniski, PEng, senior project manager, MARCH.

About Karnalyte Resources Inc.

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

About Gujarat State Fertilizers & Chemicals Ltd. (GSFC)

GSFC is a leading Indian Fortune 500 chemicals and fertilizer company that has been in business for more than 60 years. GSFC currently operates one ammonia plant that was commissioned in the year 2000 and two urea plants that were established in 1969, at its fertilizer production complex in Vadodara, Gujarat state, India. GSFC is the company's strategic partner and single largest shareholder.

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