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Press release from CNW Group

Karnalyte enters into engineering services agreement with Whiting Equipment Canada Inc.

Monday, June 17, 2013

Karnalyte enters into engineering services agreement with Whiting Equipment Canada Inc.

07:00 EDT Monday, June 17, 2013

CALGARY, June 17, 2013 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced that it has entered into an agreement (the "Agreement") with Whiting Equipment Canada Inc. ("Whiting"), for the engineering and design of evaporators, potash crystallizers and auxiliary equipment at Karnalyte's planned solution mining facility located near Wynyard, Saskatchewan.

"Whiting and its sister company Swenson are recognized leaders in the development and engineering of potash processing equipment and methodologies, with extensive Canadian and international experience," said Robin Phinney, President and CEO of Karnalyte. "The signing of this agreement, paired with an expected project finance facility of up to US$300 million, represents a significant step towards construction of the first phase of our planned potash plant."

Under the terms of the Agreement, Whiting will provide engineering and design services related to the major equipment components used in Karnalyte's planned potash processing operations, including evaporators and crystallizers.

About Whiting Equipment Canada Inc.

Whiting Equipment Canada Inc. engineers and manufactures high quality custom designed equipment for chemical & metallurgical industries, materials handling & railways, mass transit, and other sectors across North America and around the world. Whiting Equipment Canada Inc. is a subsidiary of Whiting Corporation (Monee, Illinois).

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.

For further information:

Robin Phinney, President & Chief Executive Officer
Ron Love, Executive Vice-President Finance & Chief Financial Officer
Telephone: (403) 995-6560
E-mail: info@karnalyte.com
Website: www.karnalyte.com

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