CALGARY, April 7 /CNW/ - Karnalyte Resources Inc. ("Karnalyte" or the "Corporation") (TSX: KRN) today announced that it has received seven drilling licenses from the Province of Saskatchewan, permitting additional drilling and exploration of the Corporation's potash resources on the area covered by the Corporation's Subsurface Mineral Permit KP 360A ("Permit KP360") and the Subsurface Mineral Lease KLSA 010, located near Wynyard Saskatchewan (the "Karnalyte Property").  The seven targets have been selected based on existing 3D seismic information and are located outside of the current development area expected to produce 2 million tonnes of potash per year. 

"Karnalyte intends to delineate its lease and permit holdings as it progresses towards construction of a potash facility.  These seven drilling licenses enable Karnalyte to explore high-potential targets and potentially enhance our resource base," said Robin Phinney, President and CEO of the Corporation.  "We believe the new drilling and exploration activities could help identify significant potash resources in addition to the mineral resource estimates already indentified in the preliminary assessment."

To date, the Corporation has conducted advanced exploration on an area covering only approximately 7.5% of the Karnalyte Property.  In 2010, the Corporation received a technical report entitled "Preliminary Assessment Study, Wynyard Carnallite Project, Subsurface Mineral Permit KP 360, Saskatchewan, Canada" (the "Preliminary Assessment") prepared by ERCOSPLAN Ingenieurgessellschaft Geotechnik und Bergbau mbH, North Rim Exploration Ltd. and Foster Wheeler USA Corporation in accordance with National Instrument 43-101 ("NI 43-101").  In the Preliminary Assessment, it was estimated that the Karnalyte Property has Indicated Mineral Resources and Inferred Mineral Resources of approximately 56.2 million tonnes of KCl (13% - 17% grade range) and 186.3 million tonnes of KCl (13% - 19% grade range), respectively.  Karnalyte intends to proceed immediately with the drilling of the seven holes and expects a new NI 43-101 compliant report to follow.  The Corporation is concurrently conducting an environmental impact statement as well as a feasibility study where two drill cores, completed in early 2011, are currently undergoing dissolution testing, rock mechanics and assaying to further characterise the mineralization of deposits on the Karnalyte Property.

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.  The Corporation plans to construct and operate a solution mining facility capable of producing 2 million tonnes of potash per year.  Karnalyte owns a 100% interest in Permit KP 360 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. 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, 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


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