Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

November 16, 2009 18:34 ET

Canadian Royalties Announces Third Quarter 2009 Results

MONTREAL, QUEBEC--(Marketwire - Nov. 16, 2009) - Canadian Royalties Inc. (the "Company") (TSX:CZZ) announces that it has filed today its financial results for the quarter ended September 30th, 2009.

During the third quarter of 2009, the Company incurred a net loss of $6.2 million or $0.06 per share compared to a net loss of $8.8 million or $0.09 per share in the corresponding period of 2008. For the first nine months of fiscal 2009, the Company recorded a net loss of $15.6 million or $0.15 per share. The net loss for the three quarters of 2008 was $12.8 million or $0.13 per share. The higher loss for the nine months can be attributed to accrued interest on the convertible debentures, issued in late March 2008, and site maintenance expenses, offset by reduced professional and legal fees and the recognition of a $1.2 million future tax recovery following the renunciation of its exploration expenditures to subscribers of a June 30, 2008 $6.1 million flow through share issue. The higher loss before future income taxes in the third quarter 2009 is a result of the accrued interest and the seasonal site maintenance expenses.



Highlights for the Company's financial position are as follows:

September 30, 2009 December 31, 2008

Cash $15,751,000 $24,570,000
Working Capital $24,419,000 $44,367,000
Total Assets $102,865,000 $125,644,000
Long term debt $92,239,000 $98,812,000


About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties is a mineral exploration company whose principal active area is along the South Trend, in the Raglan mining district of Northern Quebec's Nunavik Region. Since 2001, the company has discovered and delineated several potentially mineable nickel-copper-cobalt-platinum-palladium-gold deposits which collectively form the Nunavik Nickel Project. The Company has completed a Bankable Feasibility Study (BFS) and has received its Environmental Certificate of Authorization and Mine Leases for four sites. An Impact Benefits Agreement (IBA) was negotiated and constitutes a formal commitment by the Company to ensure the fair distribution of the economic benefits arising from the Project with the three (3) Inuit communities impacted as well as Makivik Corporation, the non-profit legal representative of the Inuit. Development was initiated in 2007, but the Project was put on care and maintenance during the 2008 global financial crisis. The Company's goal is to develop and exploit the mineral resources of the Nunavik Nickel Project either independently or in partnership.

Forward-looking Statement

This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008 and dated March 31, 2009. Accordingly, all of the forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations. All forward-looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.

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