On January 20, 2015, Robin L. Phinney urged the incumbent Board of Directors of Karnalyte Resources Inc to heed the call for change to the Company's Board in order to restore shareholder confidence in the Company's leadership and avoid the unnecessary delays, distractions and costs of a proxy contest. In addition, Robin L. Phinney expressed his disappointment with the incumbent Board's failure to call the requisitioned meeting in a timely manner, and instead chose to delay the requisitioned meeting until May 12, 2015, 3 months later than the requested date of February 13, 2015. Furthermore, Robin L. Phinney has submitted a shareholder proposal to the Company and has requested that the proposal and related supporting statement be included in the requisitioned meeting materials.

The shareholder proposal contains proposed amendments to the Company's general by-laws which, if adopted, would allow shareholders to have a say on certain material transactions of the Company such as the proposed US$700 million financing.