Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

January 21, 2008 09:41 ET

Canadian Royalties Inc./Nunavik Nickel Project Allammaq Update: Deposit Expansion Continues; 3.63% Nickel and 3.21% Copper Intersected over 9.80 Metres

MONTREAL, QUEBEC--(Marketwire - Jan. 21, 2008) - Canadian Royalties Inc. (TSX:CZZ) reports composite assay results for four (4) drillholes at the company's recent Allammaq discovery that confirm and extend the thick core of mineralization, previously identified on eastern drill fans, a further 50 metres westwards on section 2250E. Hole MX-07-57 intersected 44.15 metres of predominantly net-textured mineralization that ran 1.19% Nickel and 1.06% Copper, including 8.45 metres of higher-grade sulphides that averaged 2.10% Nickel and 1.85% Copper with significant Platinum and Palladium values. The thick intercept returned by this hole bodes well for future southward expansion of the zone, an area that will be drill tested in 2008.

Of particular note is the presence of a traceable basal zone of high-grade Nickel, Copper and Platinum group element (PGE) mineralization, also present in previously reported hole MX-07-55, the initial hole from this fan of drilling (see news release dated November 20th, 2007). An example of this mineralization is highlighted in the results from hole MX-07-58 which intersected 18.35 metres of net-textured and massive sulphide mineralization grading 2.52% Nickel and 2.41% Copper, including a 9.80 metre zone of massive sulphides that ran 3.63% Nickel and 3.21% Copper with enriched Platinum and Palladium values.

High-grade mineralization has been intersected on five (5) 50-metre spaced sections which can now be projected over 250 metres of strike length. The company plans to produce an initial NI43-101 compliant resource estimate of the Allammaq deposit by the end of the Q1 2008.



Table 1 - Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
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MX-07-56 101.65 138.10 36.45 1.32 1.90 0.62 3.23
incl. 129.90 137.80 7.90 2.75 2.77 0.82 4.29
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MX-07-57 106.00 150.15 44.15 1.19 1.06 0.74 3.92
incl. 141.70 150.15 8.45 2.10 1.85 0.97 4.36
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MX-07-58 119.55 137.90 18.35 2.52 2.41 1.06 3.35
incl. 122.05 131.85 9.80 3.63 3.21 1.48 3.34
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MX-07-59 133.00 143.70 10.70 0.76 2.04 0.29 1.26
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Table 2 - Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (degree) (degree) (m)
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MX-07-56 595407E 6827592N 178 -57 180.00
MX-07-57 595407E 6827592N 178 -46 150.75
MX-07-58 595407E 6827592N 178 -79 201.00
MX-07-59 595407E 6827592N 178 -89 180.00
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Mr. Richard Faucher, President and CEO comments on the latest results: "The discovery of Allammaq is an extremely positive development for the Nunavik Nickel project as it is favourably located close to planned infrastructure, has thick high-grade intercepts and demonstrable tonnage potential. The integration of Allammaq in the mine plan with Mesamax and Ivakkak will provide many years of high-grade mill feed having excellent returns. Exploration for further extensions of Allammaq mineralization will be a significant component of the 2008 exploration plan as well as the complete delineation of our second 2007 discovery, Puimajuq".

The company would like to invite interested parties to its new website where a revised Allammaq presentation, including geological sections, is now posted.

Sampling and Assays

Core samples are either split or sawn on-site, individually sealed in bags and shipped off-site on a regular basis to the ALS Chemex laboratory in Val d'Or, Quebec for sample preparation. Analyses are performed at the ALS Chemex laboratory in Vancouver, British Columbia. Base metal analyses including Nickel and Copper are determined by sodium peroxide fusion with ICP-AES analysis. Platinum, Palladium and Gold analyses are determined by fire assay and ICP-AES finish. The company quality control (QA/QC) program includes regular insertions of blanks and standards. Reported values are uncut and composite intervals are reported as length along the core axis.

Qualified Persons

W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian Royalties Inc., is a Qualified Person in accordance with National Instrument (NI) 43-101, and is responsible for the geological information presented in this news release.

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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