Canadian Royalties Inc.

Canadian Royalties Inc.

October 30, 2007 17:17 ET

Canadian Royalties Inc./Nunavik Nickel Project: Puimajuq-A Second New High-Grade Nickel Discovery

MONTREAL, QUEBEC--(Marketwire - Oct. 30, 2007) - Canadian Royalties Inc. (TSX:CZZ) announces its second high-grade nickel discovery for the 2007 exploration season. Composite assays reported include: 2.40% Ni, 1.88% Cu, 0.49 g/t Pt and 1.51 g/t Pd over 7.05 metres in hole NF-07-04, and 3.02% Ni, 3.81% Cu, 1.75 g/t Pt and 7.45 g/t Pd over 6.65 metres in hole NF-07-08. This new, near-surface zone is located approximately 7.4 kilometres east of the recently discovered Allammaq deposit (refer to news releases dated September 4th & 19th, 2007, and October 24th, 2007), on the 100% Canadian Royalties-owned New Foreurs West property, which further demonstrates the vast exploration potential of Canadian Royalties' under-explored land package.

The new zone was appropriately named Puimajuq, which in the Inuktitut language means "near-surface". Composite assays and collar locations for all 2007 New Foreurs drilling are reported in the tables below.

Table 1 - Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
NF-07-02 37.35 56.65 19.30 0.55 1.68 0.44 1.67
incl. 37.35 44.90 7.55 0.97 1.95 0.55 1.68
NF-07-03 No Significant Assays
NF-07-04 68.30 75.35 7.05 2.40 1.88 0.49 1.51
incl. 70.20 73.45 3.25 3.27 2.62 0.31 1.24
NF-07-05 No Significant Assays
NF-07-06 86.80 92.00 5.20 0.56 0.71 0.30 0.82
NF-07-07 No Significant Assays
NF-07-08 28.20 43.25 15.25 1.77 2.97 0.98 4.01
incl. 35.10 41.75 6.65 3.02 3.81 1.75 7.45

Table 2 - Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (degrees) (degrees) (m)
NF-07-02 602738E 6827687N 090 -50 127.00
NF-07-03 602828E 6827637N 360 -50 104.50
NF-07-04 602728E 6827638N 360 -50 108.00
NF-07-05 602728E 6827639N 360 -63 120.00
NF-07-06 602778E 6827635N 360 -50 165.00
NF-07-07 602628E 6827627N 360 -50 108.00
NF-07-08 602728E 6827663N 360 -50 81.00

The discovery hole, NF-07-02, was drilled to test a suspected ultramafic intrusion displaying a strong magnetic signature coincident with electro-magnetic responses. This hole was longitudinally drilled and intersected 19.30 metres (37.35m to 56.65m) of ultramafic-hosted, dominantly net-textured mineralization. A total of six additional delineation holes (NF-07-03 to NF-07-08) were drilled to provide basic information about the morphology of the new zone. Current interpretations suggest that the mineralization is near-vertically dipping with a moderate to steep westerly plunge. Complete delineation of the Puimajuq zone will be executed as part of the 2008 exploration program, which will be designed to ascertain the resource potential of the zone. For further reference, a longitudinal section will be prepared and posted on our website in the near future.

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.

Contact Information