Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Engaged Karri Howlett Consulting Inc. to prepare an ESG strategy report analyzing key focus areas and providing practical recommendations.

Social Achievements

• Successful rights offering raising $3,862,000, with participation from Gujarat State Fertilizers and Chemicals Limited (GSFC).

Governance Achievements

• Preparation of an ESG Strategy Report; reviewing recommendations to enhance existing policies and practices.

Climate Goals & Targets

Environmental Challenges

• Delays in updating the NI 43-101 Compliant Technical Report due to unforeseen challenges, increased commodity prices, and supply chain constraints.

Mitigation Strategies

• Investigating capital cost efficiencies and opportunities to enhance sustainability; working towards getting more comfort on assumptions used given current market and economic conditions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Engaged Karri Howlett Consulting Inc. to prepare an ESG strategy report, analyzing key focus areas and providing recommendations to enhance existing policies and practices.

Social Achievements

• Not disclosed

Governance Achievements

• Engaged Karri Howlett Consulting Inc. to prepare an ESG strategy report, analyzing key focus areas and providing recommendations to enhance existing policies and practices. Successful completion of a Rights Offering, raising $3,862,000 in proceeds.

Climate Goals & Targets

Environmental Challenges

• Delays to the update of the NI 43-101 compliant technical report due to potash supply constraints following Russia’s invasion of Ukraine and overall supply chain constraints impacting suppliers worldwide.

Mitigation Strategies

• Karnalyte will look to maximize the benefits of the current market conditions and provide a further update as appropriate when the technical report is finalized.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Engaged Karri Howlett Consulting Inc. to prepare an ESG strategy report analyzing key focus areas and providing practical recommendations.

Social Achievements

• Not disclosed

Governance Achievements

• Engaged Karri Howlett Consulting Inc. to prepare an ESG strategy report analyzing key focus areas and providing practical recommendations. Successful completion of a rights offering raising $3,862,000.

Climate Goals & Targets

Environmental Challenges

• Unforeseen challenges and delays in updating the NI 43-101 Compliant Technical Report due to increased potash prices, significant growth in Western Canada’s economic activity, and supply chain constraints.

Mitigation Strategies

• Diligent progress on updating the NI 43-101 Compliant Technical Report, engaging industry-leading firms like Wood PLC and ERCOSPLAN, and confirming the validity of the 2013 Environmental Impact Study approval.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Governance Achievements

• Engaged Karri Howlett Consulting Inc. to prepare an ESG strategy report.

Climate Goals & Targets

Environmental Challenges

• Delays in updating the NI 43-101 Compliant Technical Report due to unforeseen challenges, including supply chain constraints and changes to Saskatchewan’s tax regime.

Mitigation Strategies

• Diligent progress on the Technical Report update, engaging industry-leading firms like Wood PLC and ERCOSPLAN.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Exploration, development and operation risks related to the Wynyard Potash Project and the Proteos Nitrogen Project
• Ability to secure adequate financing to implement the Company's strategic and development objectives
• Uncertainty regarding the estimation of Mineral Resources and Mineral Reserves
• Lack of current revenues and uncertainty about future revenues
• Risks associated with the limited operating history of the Company
• Lack of developed markets for the Company's magnesium-based products
• Unproven nature of solution mining of carnallite in Saskatchewan
• Permit and licensing requirements related to exploration and development activities
• Company's ability to satisfy its material agreements, including the Offtake Agreement
• Risks associated with the enforcement of the Company's material agreements, including the Offtake Agreement
• Potential loss of key employees, technical experts or key suppliers
• Potential for a volatile market for the Common Shares
• Potential dilution of shareholders through future financings
• Failure to protect the Company's intellectual property rights
• Litigation and tax matters
• Adequacy of the Company's insurance coverage
• Adequacy of the Company's internal controls over financial reporting
• Volatility of potash and magnesium compounds prices
• Cyclical nature of the potash and magnesium compounds industries
• Availability and cost of labour and materials required for the construction of Phase I
• Competition
• Currency exchange rate fluctuations
• Environmental regulations
• Governmental and regulatory requirements
• Risks associated with foreign operations
• Weather patterns

Supply Chain Management

Climate-Related Risks & Opportunities