Analyst Actions: Clarus Keeps Buy Rating on Karnalyte Resources

Strategic Partnership and Off-Take Agreement with GSFC Closed. "The closing of its strategic partnership and off-take agreement with GSFC of India de-risks the Wynyard project and puts Karnalyte in an enviable position among potash developers. With a bankable feasibility study complete, a strategic and off-take partnership in effect and environmental approval obtained, Karnalyte is the most advanced junior potash developer, and it is now in good stead to secure debt financing, transitioning it into a real, emerging producer. This also puts KRN in an excellent position to pursue additional strategic or financing partners.

Financing will be an important next step, and we see the successful takeor-

pay off-take arrangement now in place to be highly supportive. We have long singled out KRN as the best potash (MOP) junior and we believe the market will begin to recognize and reward this as well. We reiterate our BUY rating and $20.00 per share target price."

KRN Validated As Most Advanced Junior Potash Developer. "Karnalyte's strategic and off-take partnership is now in effect, as it has closed the $45 million private placement with GSFC and added a GSFC-appointed director to its board. In addition to the environmental approval received last month, this is a monumental step in bringing KRN closer to production with Karnalyte situated in the world’s best potash-producing region. With about $65-70 million in cash and all

development studies complete, Wynyard remains the most advanced greenfield potash project with ample pre-financing funds and the shortest time to production."

Reiterate BUY. "We believe that Karnalyte's shares will benefit from the achievement of recent financing, partnership and regulatory milestones, and we see this as an opportune time to invest. Karnalyte continues to be a bestin-

class developer with a proven management team and a potash project that possesses various differentiating strengths."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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