Canadian Royalties Inc.

Canadian Royalties Inc.

January 16, 2008 09:06 ET

Canadian Royalties Inc./Nunavik Nickel Project Allammaq Update: Drilling Expands Deposit Further to the South

MONTREAL, QUEBEC--(Marketwire - Jan. 16, 2008) - Canadian Royalties Inc. (TSX:CZZ) reports composite assay results for three (3) drillholes that expand the Allammaq deposit considerably. Thick intervals of high-grade mineralization were returned from drillholes MX-07-50 and MX-07-51, which intersected 53.95 metres grading 1.17% Nickel and 1.13% Copper, including 29.25 metres that ran 1.50% Nickel and 1.33% Copper with significant Platinum and Palladium grades. The holes were drilled from a new set-up located approximately 77 metres south of previously reported holes MX-07-42 to MX-07-46 (see news releases dated October 24th and November 20th, 2007).

Table 1 - Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
MX-07-50 78.50 119.85 41.35 1.29 1.10 0.77 3.50
incl. 93.00 117.90 24.90 1.52 1.32 0.82 3.83
MX-07-51 79.10 133.05 53.95 1.17 1.13 0.61 2.65
incl. 100.00 129.25 29.25 1.50 1.33 0.57 2.81
MX-07-52 80.70 102.65 21.95 0.26 1.50 0.22 0.83
incl. 84.10 91.60 7.50 0.32 2.79 0.35 1.06

Table 2 - Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (degree) (degree) (m)
MX-07-50 595458E 6827513N 178 -78 182.50
MX-07-51 595458E 6827513N 178 -66 164.15
MX-07-52 595458E 6827513N 178 -56 213.00

The assay backlog has been reduced considerably. Additional results from Allammaq, exploration drilling and other zones will be reported in a timely manner as they become available, with assay completion for all drilling expected during the first quarter of 2008. The company would like to invite interested parties to its website where an Allammaq presentation 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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