Canadian Royalties Inc.

Canadian Royalties Inc.

May 22, 2006 08:30 ET

Canadian Royalties Inc.: Private Placement Financing of CDN$6.6 Million Closed

MONTREAL, QUEBEC--(CCNMatthews - May 22, 2006) - Canadian Royalties Inc. (TSX:CZZ) announces, further to its news release of May 16, 2006, the closing of a private placement financing of 3,333,333 common shares at a price of $2.00 per common share for gross proceeds of $6,666,666. One investor purchased the entire offering. The shares are subject to a four month hold period from the date of issuance. No commission or fee was paid in connection with the placement. The proceeds will be used to fund the company's activities on the Raglan South Nickel Project and for general corporate purposes.

About Canadian Royalties and the Raglan South Nickel Project

Canadian Royalties is evaluating the potential of establishing an independent, stand-alone mining and milling operation in the general vicinity of Falconbridge's Raglan Mine in northern Quebec, where significant infrastructure is in place. Canadian Royalties recently announced a positive preliminary economic assessment on the Raglan South Nickel Project and is currently proceeding with permitting applications, a bankable feasibility study and an environmental and social impact analysis.

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