Karnalyte Resources Inc.

Karnalyte Resources Inc.

February 06, 2012 16:01 ET

Karnalyte Resources Inc. Provides Update on Comments from Securities Regulators

CALGARY, ALBERTA--(Marketwire - Feb. 6, 2012) - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX:KRN) today announced that, further to Karnalyte's press release of December 13, 2011, the Corporation provided a written response to the comments received from the Alberta Securities Commission ("ASC") in respect of its Technical Report titled "Reserve and Resource Estimate for the Wynyard Carnallite Project, Subsurface Mineral Permit KP 360A and Subsurface Mineral Lease KLSA 010, Saskatchewan, Canada" effective October 21, 2011 (the "Technical Report"). Karnalyte has now received a further comment letter from the securities regulators.

"We are pleased with the progress we have made and will continue to work with the ASC to resolve the outstanding comments on the Technical Report," said Robin Phinney, President and CEO of Karnalyte.

Karnalyte remains committed to advancing its Wynyard Carnallite Project and will provide a further update when 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 dealings with the ASC. Karnalyte advises investors that undue reliance should not be placed on the forward-looking statements because Karnalyte can give no assurance that Karnalyte will secure a favourable outcome in resolving the comments on the Technical Report. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. 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.

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