Karnalyte Resources Inc. Announces Receipt of Originating Application

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SASKATOON, SK, Feb. 1, 2021 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Company") (TSX: KRN) announced today that the Company has received an originating application (the "Originating Application") filed by Messrs. Peter Matson and Gregory George Szabo (collectively, the "Applicants") against Karnalyte, Gujarat State Fertilizer and Chemicals Limited ("GSFC"), each of the current directors of the Company, the Interim CEO of the Company, and a former director of the Company (collectively, the "Respondents").

Among other things, the Applicants are seeking a declaration that Karnalyte oppressed its shareholders; the removal of all current directors; fixing the size of Karnalyte's board at six; appointing Messrs. Joe Vidal, Neil Yelland, Joe Clavelle, Todd Rowan, and two GSFC nominees; reimbursing all costs incurred by the Applicants and Mr. Mark Zachanowich in connection with requisitioning the special meeting of shareholders held on December 15, 2020; and damages in the amount of $3.25 million.

The Company is thoroughly assessing the Originating Application with legal counsel and is considering all available recourse.

The full Originating Application may be accessed by reviewing the Court of Queen's Bench of Alberta's file number 2101-00313.

SOURCE Karnalyte Resources Inc.

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