Canadian Royalties Inc.

Canadian Royalties Inc.

November 20, 2007 17:00 ET

Nunavik Nickel Project Allammaq Update: Mineralization Extended On-Strike and Significant Thicknesses Intersected

MONTREAL, QUEBEC--(Marketwire - Nov. 20, 2007) - Canadian Royalties Inc. (TSX:CZZ) reports composite assay results from five (5) drillholes from the delineation drill program at its Allammaq discovery. Drillhole MX-07-55, the first drillhole from the fifth section to be tested, intersected 20.60 metres of predominantly net-textured mineralization, thus demonstrating a minimum 200 metre deposit strike length. The interval ran 1.56% Nickel and 1.55% Copper, including 13.65 metres of higher-grade sulphides that averaged 1.70% Nickel and 2.01% Copper with significant Platinum and Palladium values.

Thick intervals of high-grade mineralization were also returned from drillhole MX-07-46, which intersected 49.50 metres grading 1.28% Nickel and 1.46% Copper, including 13.15 metres that graded 1.94% Nickel and 1.59% Copper, before being lost in sulphides. The results from this hole reinforce indications of a thick core of mineralization as evidenced by previously reported holes MX-07-35, 36, 41, 42 and 45.

Table 1 - Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
MX-07-46 103.50 153.00 49.50 1.28 1.46 0.72 2.97
incl. 136.40 151.15 13.15 1.94 1.59 0.86 3.21
MX-07-47 122.10 127.55 5.45 1.33 2.66 0.50 1.27
MX-07-48 125.65 127.00 1.35 1.86 0.60 0.48 1.28
MX-07-49 (UZ) 68.00 74.30 6.30 0.26 1.02 0.60 3.10
125.95 130.20 4.25 0.64 2.92 0.31 1.57
MX-07-55 114.40 135.00 20.60 1.56 1.55 0.65 3.82
incl. 121.00 134.65 13.65 1.70 2.01 0.71 4.48
UZ equals Upper Zone

Table 2 - Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (degree) (degree) (m)
MX-07-46 595457E 6827594N 178 -49 153.00
MX-07-47 595510E 6827486N 178 -81 159.00
MX-07-48 595510E 6827486N 178 -71 176.00
MX-07-49 595559E 6827509N 178 -85 207.00
MX-07-55 595407E 6827592N 178 -68 144.00

Delineation was carried out on 50 metre spaced sections using multiple fanned drillholes from each drill set-up. Given that drilling during this phase of the program was executed using multiple drills, the drillhole numbers were attributed in batches to each drill thus resulting in "out of sequence" reporting. Drillhole MX-07-55 was the first hole of a new drill fan 50 metres west of previous Allammaq drilling.

Hole MX-07-46 was drilled up-dip from hole MX-07-45 (48.55 metres grading 1.48% Ni and 1.46% Cu) and the results obtained demonstrate that the continuity of mineralisation and substantial thicknesses extend south on that section. Holes MX-07-47 and MX-07-48 were drilled at approximately 25 metre spacings, respectively, south of MX-07-41 (25.95 metres grading 0.99% Ni and 1.54% Cu) on the same section. Hole MX-07-49 was a 25 metre step-out south of discovery hole MX-07-30 (6.60 metres grading 1.68% Ni and 2.34% Cu).

The 2007 exploration season came to a close on October 5th, 2007. The company executed 150 drillholes totalling 26,348 metres during its highly successful 2007 program. A substantial assay backlog remains and the company will continue to report additional results from Allammaq, exploration drilling, and other zones as they become available, with assay completion for all drilling expected during the first quarter of 2008.

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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