Canadian Royalties Inc.

Canadian Royalties Inc.

November 15, 2007 11:07 ET

Canadian Royalties Announces Financial Results Quarter Ended September 30, 2007

MONTREAL, QUEBEC--(Marketwire - Nov. 15, 2007) - Canadian Royalties Inc. (TSX:CZZ) ("Canadian Royalties" or the "Company") announces that it filed on November 14, 2007 its third quarter financial results.

Third Quarter Financial Results and Progress Report

The highlights from the financial statements reflect the Company's transition from exploration to mining development. During the quarter ended September 30, 2007 the company commenced engineering work and purchased a number of long lead time items such as ball mills, generator sets, and construction housing units in support of building a Nickel, Copper and PGM mine and processing facility, at its Nunavik Nickel Project (NNP) located in the Raglan region of Nunavik, Quebec. The development of the NNP has to date been funded through a $75,050,000 public issue of equity in July 2007, and a private placement offering subsequent to quarter end of $25,000,000 with Norilsk Nickel ("Norilsk"). Subsequent to quarter end, the Company entered into a letter of engagement with BMO Capital Markets and Commonwealth Bank of Australia for a $250,000,000 debt facility; discussions are on going with the co-leads for additional project financing.

All key project management personnel have been engaged and are located in the Company's Longueuil, Quebec operations office. During the quarter, the Company hired a Vice President of Operations and General Mine Manager; other key positions are currently in the process of being filled.

The permit application is progressing, and included the filing of the Environmental Impact Study.

The mine and processing facilities are planned for commissioning mid 2010, and in anticipation of production; an offtake agreement for nickel concentrates was executed subsequent to quarter end with Norilsk.

Income Statement Highlights
2007 2006 2007 2006
(3 months) (3 months) (9 months) (9 months)
Net earnings (loss) 874,328(i) (249,565) (900,700)(i) (3,864,643)
Net earnings (loss)
per share 0.010 (0.004) (0.013) (0.064)

(i) includes a future income tax credit of $ 1,824,525

Balance Sheet Highlights

September 30 December 31
2007 2006
Cash and cash equivalents 45,736,720 3,524,540
Working Capital (excluding cash 7,829,373 11,267,404
and cash equivalents)
Total Assets 136,177,309 52,708,066
Long term debt 4,354,596 -
Shareholders Equity 120,336,153 44,738,398

All amounts are in Canadian dollars unless otherwise indicated. The information herein should be read in conjunction with the Company's financial statements for the third quarter ended September 30, 2007, as well as the Management Discussion and Analysis for the same period, copies of which are available for public viewing via the internet at

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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