Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

December 01, 2009 09:00 ET

New Directors Appointed to Canadian Royalties' Board

MONTREAL, QUEBEC--(Marketwire - Dec. 1, 2009) - Canadian Royalties Inc. (the "Company", or "Canadian Royalties") (TSX:CZZ) today announced the appointment of Wu Shu, Wang Xing Rui, Xu Guang Ping, David Baker and Brian Grant to its board of directors. The new directors have been appointed in connection with the acquisition by Jien Canada Mining Ltd. of 85.4% of the issued and outstanding common shares and 72.7% of the 7% Convertible Senior Unsecured Debentures due March 31, 2015 of Canadian Royalties. In connection with these appointments, each of Glenn J. Mullan, R. Bruce Durham, Bryan A. Coates, Dr. Philippe Couillard, Bernard J. Guarnera, Michael H. Wilson, Andrew T. Pepper and the Hon. Dr. Arthur T. Porter has resigned as a director of Canadian Royalties.

Canadian Royalties also announced the resignation of Glenn J. Mullan as Chairman and Chief Executive Officer and the appointments of Wu Shu as Chief Executive Officer and C. Jens Zinke as Interim Chief Financial Officer. Grant Arnold remains the President of the Company.

Canadian Royalties also confirms that a special meeting of the shareholders of the Company will be held on December 31, 2009 at 10:00 a.m. (Vancouver time) where shareholders of the Company will be asked to approve a plan of arrangement with Jien Canada Mining Ltd.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties, based in Val-d'Or - Quebec, is a mineral exploration company whose principal active area is along the South Trend located in the Raglan mining district of Northern Quebec's Nunavik Region. Since 2001, the Company has discovered and delineated several potentially mineable nickel-copper-cobalt-platinum-palladium-gold deposits which collectively form the Nunavik Nickel Project (the "Project"). The Company has completed a Bankable Feasibility Study and has received its Environmental Certificate of Authorization; it has also received mine leases for four sites, namely the Ivakkak, Mequillon, Expo, and Mesamax deposits. An Impact and Benefits Agreement ("IBA") has been entered into between the Company, three (3) Inuit communities, and Makivik Corporation, the non profit legal representative of the Inuit; the IBA constitutes the Company's formal commitment to ensure a fair and sustainable distribution of the economic benefits stemming from the Project. Development of the Project was initiated in 2007; the Project was subsequently put on care and maintenance as a result of the 2008 financial crisis.

Forward-looking Statement

This news release contains certain forward-looking statements or forward-looking information. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008. Accordingly, all of the forward-looking information contained in this press release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations,. All forward-looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by applicable securities law. Accordingly, readers should not place undue reliance on forward-looking statements.

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