Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

October 25, 2007 13:58 ET

Canadian Royalties Closes $25 Million Financing

MONTREAL, QUEBEC--(Marketwire - Oct. 25, 2007) - Canadian Royalties Inc. (TSX:CZZ) announces the closing of a non brokered private placement offering of an aggregate 7,246,377 common shares at a price of $3.45 per common shares for aggregate gross proceeds of C$ 25 million with Norilsk Nickel Harjavalta Oy, a wholly owned subsidiary of MMC Norilsk Nickel (refer to news release dated October 1st, 2007). The common shares issued pursuant to the offering are subject to a hold period of four months and one day from the date of issuance of the shares. The proceeds of the offering will be used by the Company to continue the development of its Nunavik Nickel Project.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.

Canadian Royalties currently holds a 100% interest in the Ivakkak deposit, subject to a net smelter royalty ("NSR", refer to news release dated September 21, 2005). Additionally, Canadian Royalties has vested in a 70% interest in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits), where its interest shall be increased to 80% simultaneously with the creation of the joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava Property.

Forward-looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's Amended and Restated Annual Information Form dated July 10, 2007 for the year ended December 31, 2006. Accordingly, readers should not place undue reliance on forward-looking statements.

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