Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

October 24, 2007 16:00 ET

Canadian Royalties-Nunavik Nickel Project Allammaq Update: Deposit Expanded On-Strike With Significant Intersections of High-Grade Mineralization

MONTREAL, QUEBEC--(Marketwire - Oct. 24, 2007) - Canadian Royalties Inc. (TSX:CZZ) reports composite assay results from nine (9) new drillholes from its delineation drill program at the recently discovered Allammaq deposit (refer to news releases dated September 4th and 19th, 2007). Intervals of high-grade mineralisation were returned from several holes including MX-07-38, which intersected mineralization over 22.30 metres grading 2.62% Nickel and 1.81% Copper, including 13.40 metres of high-grade massive sulphides that graded 3.55% Nickel and 1.71% Copper. Substantial widths of mineralisation occur throughout as evidenced by hole MX-07-45 where mineralization grading 1.48% Nickel and 1.46% Copper is reported over 48.55 metres. Significant Platinum and Palladium values continue to be reported in all mineralized drillholes.

These and previous drill results demonstrate that the deposit has been traced along strike for a minimum of 150 metres, and over a minimum dip length of 100 metres. The mineralization remains open in all directions. Geological sections and plans are being prepared and will be posted on the website in the near-future. The company will continue to report additional results as they become available.



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-07-37 No Significant Assays
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MX-07-38 (UZ) 138.25 148.90 9.75 0.55 1.26 0.21 0.92
and 200.00 222.30 22.30 2.62 1.81 0.64 2.12
incl. 203.00 216.40 13.40 3.55 1.71 0.69 1.64
-------------------------------------------------------------------------
MX-0 (UZ) 94.00 103.00 9.00 0.35 1.17 0.17 0.75
and 185.15 190.95 5.80 1.07 1.60 0.35 1.13
-------------------------------------------------------------------------
MX-07-40 (UZ) 118.20 148.50 30.30 0.69 0.83 0.45 1.86
incl. 143.65 148.50 4.85 1.60 0.89 0.65 2.70
-------------------------------------------------------------------------
MX-07-41 (UZ) 72.50 87.15 14.65 0.85 0.86 0.60 2.33
and 105.00 130.95 25.95 0.99 1.54 0.48 1.98
incl. 114.70 130.95 16.25 1.48 1.94 0.64 2.35
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MX-07-42 107.00 144.15 37.15 1.67 2.20 1.11 4.20
incl. 131.00 144.15 13.15 2.03 4.20 1.13 4.62
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MX-07-43 133.00 141.00 8.00 1.53 1.47 0.86 4.53
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MX-07-44 138.20 147.00 8.80 0.42 1.23 0.16 6.93
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MX-07-45 93.50 142.05 48.55 1.48 1.46 1.02 3.52
incl. 115.00 142.05 27.05 1.91 1.92 1.23 3.90
-------------------------------------------------------------------------

UZ = Upper Zone


Table 2 Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (degrees)(degrees) (m)
------------------------------------------------------------------------
MX- 595609E 6827514N 358 -88 210.00
MX-07-38 595609E 6827514N 358 -62 270.00
MX-07-39 595609E 6827514N 358 -70 285.00
MX-07-40 595609E 6827514N 358 -57 255.00
MX-07-41 595510E 6827495N 178 -88 177.00
MX-07-42 595457E 6827590N 178 -70 237.00
MX-07-43 595457E 6827590N 178 -80 186.00
MX-07-44 595457E 6827590N 178 -89 195.00
MX-07-45 595457E 6827590N 178 -60 195.00
------------------------------------------------------------------------


Delineation was carried out on 50 metre spaced sections using multiple fanned holes from each drill set-up. Shallowly inclined hole MX-07-40 is interpreted to have over-shot the basal contact of the favourable ultramafic and as a consequence did not intersect the mineralized zone. Four of the new drillholes reported (holes MX-07-37 to 40) complete an initial drill fan 50 metres east of the discovery section (holes MX-07-30 to 33). Hole MX-07-41 complements drilling on and confirms the continuity of mineralization established 50 metres west of the discovery section (holes MX-07-34 to 36). In addition, three holes are reported from a new drill fan located 100 metres west of the discovery section (holes MX-07-42 to 45).

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.

For additional information please visit our website at www.canadianroyalties.com.

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