Canadian Royalties Inc.

Canadian Royalties Inc.

April 26, 2007 12:37 ET

Canadian Royalties Directors Bruce Durham and Glenn Mullan Defeat Ungava Minerals Law Suit

MONTREAL, QUEBEC--(CCNMatthews - April 26, 2007) - Canadian Royalties Inc. (TSX:CZZ) is pleased to announce that it has been advised by two of its directors, Mr. Bruce Durham and Mr. Glenn Mullan, that a claim filed by Ungava Minerals against each of them in the Quebec Superior Court, seeking $50,000,000 in damages and alleging trespass and concealment, among other related things (see Press Release of Ungava Minerals Corp. dated August 11, 2006), has been dismissed, with costs to be paid by Ungava Minerals.

Madame Justice Helene Langlois of the Quebec Superior Court relied on the December 20, 2004 decision of Arbitrator Maitre Max Mendelsohn and dismissed all claims made against Mr. Bruce Durham and Mr. Glenn Mullan on the ground that all of the substantive matters raised by Ungava Minerals in its proceedings had been previously litigated and decided upon on multiple occasions in a myriad of proceedings instituted by Ungava Minerals and by parties related to Ungava Minerals in Ontario and Quebec.

Madame Justice Helene Langlois' decision, being yet another judicial decision favouring Canadian Royalties' position, has the effect, again, of re-affirming Canadian Royalties entitlements under the option and joint venture agreement with Ungava Minerals in respect of its interests in the Expo-Ungava Property. Canadian Royalties currently holds a 70% interest in the Expo-Ungava Property and after the completion of a bankable feasibility study ("BFS" (1)) Canadian Royalties will hold an 80% interest in this particular property, which is part of Canadian Royalties Raglan South Nickel Project.

About Canadian Royalties and the Raglan South Nickel Project

Canadian Royalties is evaluating the potential of establishing an independent, stand-alone Ni-Cu-PGE mining and milling operation in the general vicinity of Xstrata Nickel's Raglan Mine in Nunavik, Quebec. Canadian Royalties is currently proceeding with permitting applications and a bankable feasibility study ("BFS" (1)), as well as with exploration for additional resources near existing Ni-Cu-PGE deposits and new areas of mineralization.

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 Annual Information Form dated March 31, 2007. Accordingly, readers should not place undue reliance on forward-looking statements.

(1) A bankable (full) feasibility study is a comprehensive analysis of a projects economics (+/- 15% precision) and is used by the banking industry for financing purposes.

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