/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./ SASKATOON, SK, May 10, 2024 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX:KRN) today announced its financial results and corporate highlights for the first quarter ended March 31, 2024. Q1 2024 HIGHLIGHTS The Company continued to make progress on its NI 43-101 compliant technical report, a key precursor to any mine construction. In the most recent quarter, this included work done by Karnalyte and its advisors to Identify cost efficiencies, Optimize construction and operation plans; and Enhance project sustainability. In pursuit of cost savings, the Company began an analysis that includes a review of the costs of certain equipment from overseas. This initiative is being supported by our strategic partner, Gujarat State Fertilizers and Chemicals. This cost savings initiative is being led by Wood PLC, a leading global consulting and engineering company that is the independent lead author of the update. As previously announced, industry leading solution mining and engineering firm ERCOSPLAN ingenieurgesellschaft Geotechnik und Bergbau mbH ("ERCOSPLAN") is assisting with the technical report, including the update of the mineral resource estimation and the mine plan for brine field development as the basis for the mineral reserve estimate. The Company is also exploring product diversification related to the development of the Magnesium operations given that this mineral is on the critical minerals list in Canada and worldwide. The Company's Proteos Nitrogen Project also remains under consideration as part of Karnalyte's future and may diversify our business by adding a second fertilizer product line. Business Development During the first quarter, Karnalyte took part in business development activities including meeting with providers of funding to explore capital raising opportunities. The Company also explored other potential cash-generating activities, such as asset sales and securing debt facilities. Outlook for 2024 In 2024, the Company's plans are as follows: Complete the update to its NI 43-101 technical report; Continue to work on identifying cost efficiencies, optimizing construction and operation plans, and enhancing project sustainability; and Increase business development activities to seek out and attract investment and strategic partners to move the Company's projects forward to development. 2024 first quarter results At March 31, 2024, the Company had cash of $2 million and positive net working capital of $1.6 million and no debt. Karnalyte's First Quarter 2024 Financial Statements and Managements' Discussion and Analysis are available at www.sedar.com and on Karnalyte's website at www.karnalyte.com. The following information has been summarised from the Company's Condensed Interim Unaudited Financial Statements.