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Press release from CNW Group

Karnalyte submits Environmental Impact Statement for Wynyard Carnallite Project

Monday, October 31, 2011

Karnalyte submits Environmental Impact Statement for Wynyard Carnallite Project16:00 EDT Monday, October 31, 2011CALGARY, Oct. 31, 2011 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced that it has submitted the Environmental Impact Statement ("EIS") for its proposed Wynyard Carnallite Project (the "Project") to the Saskatchewan Ministry of Environment ("MOE"). The EIS was prepared by Dillon Consulting Limited, under contract to a subsidiary of Foster Wheeler AG's Global Engineering and Construction Group ("FW"), with the support and participation of FW subcontractors ERCOSPLAN Ingenieurgesellschaft Geotechnik und Bergbau mbH, North Rim Exploration Ltd, ENVIRON EC (Canada), Inc., GeoEngineers, Inc., RPS Energy, Clifton Associates Ltd., Canada North Environmental Services and Glen Veikle, M.A."Karnalyte considers strong environmental stewardship as a prime objective in the design, construction and operation of the Wynyard Carnallite Project," said Robin Phinney, President and CEO of Karnalyte. "Submission of the EIS is an important milestone for Karnalyte and we are confident the intensive two year preparation leaves us well positioned to move the Project forward."The EIS considers the environmental impact of constructing a solution mining facility that will produce 625,000 tonnes of potash per year. The MOE will review the EIS in consideration of granting environmental approval for the Project, which is required under the Saskatchewan Environmental Assessment Act before Karnalyte may proceed with the required licenses, permits and environmental protection measures associated with the construction of its proposed potash facility.The EIS will be released for public comment by the MOE once the document has been reviewed and deemed complete. Karnalyte expects this to occur in the first quarter of 2012.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 impact.  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.Reader AdvisoryThis press release contains forward-looking statements. More particularly, this press release contains statements concerning the Corporation's future operations, including the timing and review process of the EIS by the MOE. 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. 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.For further information: Robin Phinney, President & Chief Executive Officer Ron Love, Chief Financial Officer & Vice-President Finance Julius Brinkman, Vice-President Corporate Development Telephone: (403) 995-6560 E-mail: info@karnalyte.com Website: www.karnalyte.com