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Karnalyte Resources Inc. (TSX: KRN) today announced that they are proceeding to the construction permitting process for their Wynyard Carnallite Project in Saskatchewan.

The company says the have the backing of their Indian strategic partner to move forward regardless of conflict in the the potash markets.

"Gujarat State Fertilizers and Chemicals ("GSFC") is of the opinion that the current downtrend in the potash sector is a result of the combined impact of the global recession and economic uncertainty, despite the importance of this commodity in providing food supply to the developing world," said Vishvesh D. Nanavaty, General Manager of Finance of GSFC and a Director of Karnalyte. "While short-term variability will always be a reality in the commodity sector, the medium- and long-term fundamentals support strong potash demand and growth in the future. GSFC's investment in Karnalyte is a strategic one and we remain fully committed to the future potential of the Wynyard Carnallite Project, the most advanced potash greenfield project. Much progress has been made to date to move the Project forward and we are very pleased with the milestones Karnalyte has achieved."

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News release: Karnalyte Resources Inc. authorized to proceed to construction permitting process for Wynyard Carnallite Project