Karnalyte Resources Inc. announces third quarter 2013 results; appointment of new Director

CALGARY, Nov. 14, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced its financial results and operational highlights for the quarter ended September 30, 2013.

"During the third quarter, Karnalyte drilled and successfully tested full-production disposal and source water wells, satisfying two conditions of EIS approval," said Robin Phinney, President and CEO of Karnalyte. "As a result, Karnalyte met a major development milestone by receiving the main Wynyard Carnallite Project development permit, clear of all conditions, from the Saskatchewan MOE."

Karnalyte also announced that it has appointed Martin Hall to serve as Director of the Corporation. Mr. Hall is a Chartered Accountant who first qualified in the U.K in 1975. He spent eight years with PricewaterhouseCoopers in London and then Calgary prior to joining a group of small oil and gas and mineral exploration companies where he held various financial positions latterly as CFO. Between 1994 and 2003, Mr. Hall served as CFO of Tesco Corporation, an oilfield service company. Since his retirement from full time employment in 2003, Mr. Hall has been active as a financial consultant and company director for a number public and private Canadian companies.

As at September 30, 2013, the Company had net working capital of $49,319,380 compared to $28,051,904 at September 30, 2012, including $51,512,033 and $28,853,216, respectively, in cash. Karnalyte's Third Quarter 2013 Financial Statements and Management's Discussion and Analysis (MD&A) are available at www.sedar.com.

Key Project Development Highlights

Since July 1, 2013, Karnalyte has achieved the following key milestones in the development of the Wynyard Carnallite Project (the "Project"):

• Drilled and successfully tested a full-production capacity disposal well;
• Drilled and successfully tested a second production-size source water well;
• Received the main Wynyard Carnallite Project development permit, clear of all conditions, from the Saskatchewan MOE;
• Continued detailed engineering on the potash plant and underground development; and
• Continued preparing the plant site for construction upon further financing.

Achievement of these milestones constitutes the majority of capital spending related to preparing for plant construction. Expenditures related to these activities occurred throughout the third quarter and extended into the first half of the fourth quarter. As of the date of this press release, the Company does not expect to spend further material amounts on Capital or Intangible Assets until further financing is available.

About Karnalyte Resources Inc.

Karnalyte is engaged in the business of exploration and development of high quality agricultural and industrial potash and magnesium products. Karnalyte intends to develop and extract a carnallite - sylvite mineral deposit through a known solution mining process at competitive costs and with minimal environmental impacts. Using a staged approached to potash plant construction, the Corporation plans to operate a solution mining facility that will initially produce 625,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year. Karnalyte owns a 100% interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Saskatchewan, comprising a total of 85,126 acres.

Forward-Looking Statements

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Corporation's future operations. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Karnalyte, including with respect to the Corporation's future operations. Although Karnalyte believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Karnalyte can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the mining industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Karnalyte's operations and financial results are included in documents on file with Canadian Securities regulatory authorities and maybe accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Karnalyte undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Karnalyte Resources Inc.