GSFC Confirms Receipt of Common Shares of Karnalyte

Gujarat State Fertilizers & Chemicals Limited (GSFC) confirmed the issuance of 5,55,555 common shares (Adjustment Shares) of Karnalyte Resources (Karnalyte or the Company) pursuant to the terms of the subscription agreement dated 10^th January, 2013 between GSFC and Karnalyte.

On 7^th March 7, 2013, GSFC acquired 5,490,306 of the issued and outstanding common shares of Karnalyte at a price of 8.15 dollars per share in a non-brokered private placement pursuant to the Subscription Agreement. The issue price was subject to adjustment if commercial production had not begun at the Company's potash mine at Wynyard, Saskatchewan on or before 1^st October, 2016, which would be satisfied by the issuance of the Adjustment Shares to GSFC by Karnalyte at that time.

Commercial production has not started at the Wynyard Project resulting in the issuance on 1^st October, 2016 of the Adjustment Shares to GSFC, representing about 2.2 per cent of the outstanding Shares. Immediately before the issuance of the Adjustment Shares, GSFC owned both directly and indirectly, or exercised control or direction over 5,490,306 Shares, representing about 19.98 per cent of the then outstanding Shares. Upon issuance of the Adjustment Shares, GSFC owns both directly and indirectly, or exercises control or direction over 6,045,861 Shares, representing about 22 per cent of the outstanding Shares.

Meanwhile, GSFC share price hit 52-week high of Rs.93.50 on the NSE on 7^th October, 2016.

GSFC acquired the Shares for investment reasons as a long term strategic investor. The company may from time to time dispose of, or acquire, additional securities of Karnalyte.

About GSFC:

GSFC is an organization with a net worth of approximately USD 725 million. The Government of Gujarat is its biggest single shareholder and A. M. Tiwari, an experienced bureaucrat from the IAS - Indian Administrative Services, is at its helm. It has been in existence and operations for close to 60 years and has been commended for numerous path breaking achievements in implementing the large scale industrial projects.

For more details, visit GSFC share price history.