Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

December 04, 2006 16:34 ET

Canadian Royalties Inc.: 2006 Exploration Results-Ivakkak Deposit 'Part 2' Further Expansion of High-grade Deposit

MONTREAL, QUEBEC--(CCNMatthews - Dec. 4, 2006) - Canadian Royalties Inc. (TSX:CZZ) reports continued success from diamond drilling at the Ivakkak deposit. Following the recently announced expansion (refer to press release November 7, 2006), the latest holes expand the deposit further along strike by an additional 100 metres for a total of 425 metres, and to a depth of 175 metres. The expansion is highlighted by holes such as ST-06-85, which includes a 4.80 metre (15.75 feet) interval with average grades of 4.05% nickel (Ni), 2.13% copper (Cu) and 5.10 g/t combined platinum (Pt) + palladium (Pd) + gold (Au) (PGE). This high-grade intersection is contained within a wider interval of mineralization that averaged 2.32% Ni, 1.67% Cu and 4.00 g/t PGE over 12.85 metres (36 feet). The deposit remains open at depth and along strike to the northwest.

A total of 58 holes were drilled at the Ivakkak deposit in 2006, of which 30 holes are reported in this release. In addition, over the next two months, assays will be reported from exploration drilling completed at or near Mesamax, Mequillon, Expo and Tootoo. Those assays will provide the basis for updated resource estimates for those deposits.

Mineralization in the Ivakkak deposit is very continuous and consists of massive, net-textured and disseminated sulphides hosted in a sill of pyroxenite-gabbro. Composite assay values from the recently completed holes in the Ivakkak deposit are summarized below:



Ivakkak From To Width Ni Cu Co Au Pt Pd PGE(i)
DDH (m) (m) (m) (%) (%) (%) (g/t) (g/t) (g/t) (g/t)
06-42 10.00 22.00 12.00 1.74 2.06 0.07 0.21 1.05 5.14 6.40
incl. 13.40 21.30 7.90 2.15 2.58 0.09 0.28 1.37 6.80 8.46
06-43 32.60 44.60 12.00 1.34 0.83 0.05 0.93 1.88 10.32 13.12
06-44 43.00 55.00 12.00 1.75 2.79 0.07 0.37 1.14 6.81 8.32
incl. 46.55 51.90 5.35 3.37 4.79 0.14 0.65 2.17 11.51 14.33
06-47 37.90 49.60 11.70 0.93 1.41 0.04 0.39 1.36 5.33 7.07
incl. 44.00 48.00 4.00 1.69 1.57 0.07 0.13 0.87 4.11 5.11
06-48 29.00 30.00 1.00 0.58 1.22 0.03 1.96 2.87 9.29 14.12
06-51 90.00 91.10 1.10 0.53 0.86 0.03 0.05 0.33 1.39 1.77
06-53 97.00 111.20 14.20 0.83 1.60 0.04 0.43 0.77 2.68 3.89
incl. 105.50 109.00 3.95 1.36 2.28 0.05 0.61 0.98 4.27 5.86
06-57 73.00 78.70 5.70 0.98 1.00 0.04 0.10 0.37 2.68 3.16
incl. 76.00 78.70 2.70 1.52 1.38 0.06 0.18 0.47 4.14 4.79
06-62 87.00 94.10 7.10 1.21 1.64 0.06 0.15 0.58 3.08 3.82
incl. 89.05 93.15 4.10 1.79 2.28 0.08 0.22 0.81 4.39 5.43
06-70 112.15 117.00 4.85 1.42 2.64 0.06 0.33 0.74 4.16 5.23
incl. 112.50 116.00 3.50 1.84 2.93 0.08 0.42 0.90 5.10 6.42
06-76 151.50 153.55 2.05 2.28 1.84 0.10 0.27 0.91 3.92 5.09
incl. 152.50 153.55 1.05 3.87 3.08 0.16 0.47 1.61 6.92 9.00
06-77 153.80 156.50 3.00 3.66 3.07 0.15 0.25 2.12 5.97 8.35
06-79 161.00 162.50 1.50 2.26 4.71 0.09 2.48 1.07 12.74 16.29
06-80 164.86 165.63 0.77 2.28 4.91 0.09 0.59 1.26 6.90 8.75
06-81 169.00 174.50 5.50 0.68 0.60 0.03 0.04 0.47 2.31 2.82
incl. 173.80 174.50 0.70 1.47 0.89 0.07 0.02 0.89 3.42 4.33
06-82 173.00 176.17 3.17 1.43 2.29 0.06 0.43 1.02 3.83 5.28
incl. 174.60 175.51 0.91 3.75 2.45 0.15 0.25 2.65 8.79 11.69
06-83 133.00 139.00 6.00 0.78 0.83 0.04 0.08 0.67 3.18 3.93
06-85 151.00 162.00 11.00 2.32 1.67 0.10 0.08 0.84 3.08 4.00
incl. 154.60 159.40 4.80 4.05 2.13 0.16 0.09 1.30 3.71 5.10
06-86 169.75 174.60 4.85 1.36 2.15 0.06 0.13 0.62 3.52 4.27
incl. 173.40 174.60 1.20 4.01 3.45 0.17 0.27 1.57 8.84 10.68
06-87 163.00 166.60 3.60 1.37 1.43 0.06 0.34 0.77 9.27 10.38
06-88 182.00 185.00 3.00 1.10 1.93 0.05 0.21 0.51 4.87 5.59
incl. 184.00 185.00 1.00 2.13 3.63 0.09 0.45 0.79 7.75 8.99
06-90 159.00 162.00 3.00 0.43 0.94 0.02 0.08 0.30 1.48 1.86


Notes:

- Lengths are drill intersected core lengths, composite lengths are
length weighted;

- PGE equals platinum + palladium+ gold;

- g/t equals grams per metric tonne;

- True widths have not yet been determined but are thought to be
generally 70% or more of the core lengths given in the table;

- 7 holes (ST-06-46, 49, 50, 55, 78, 84, 89), located outside the
mineralized zone, had no significant values and are not presented
in the attached table;

- According to a pre-established sampling protocol, half of the
diamond drill core is sampled on lengths varying between 0.25 to
1.60 meter, sealed in bags, and sent to ALS CHEMEX Laboratory with
sample preparation completed in Val-d'Or (QC) and analyses
completed at ALS CHEMEX in Vancouver (BC). Base metal values were
determined by sodium peroxide fusion with ICP-AES analysis.
Platinum, palladium and gold values were determined by 30 gram fire
assay with ICP-AES finish. A quality control program (QA/QC) was
established by the Company to insure the precision of the
analytical method and results. Gold, platinum and palladium grades
are uncut and assay interval lengths are measured along the core
axis.


These final results for the 2006 Ivakkak drilling program confirm the homogeneity of the Ivakkak deposit, and its potential for further extension both laterally and at depth.

The Ivakkak deposit is 100% owned by Canadian Royalties subject to a net smelter royalty (refer to press release September 21, 2005). The Ivakkak deposit was discovered in late 2005 based on a surface showing. Based on limited exploration drilling completed in 2005, an initial indicated resource was estimated at 520,000 tonnes grading 1.6% Ni, 2.1% Cu and 4.4 g/t PGE (refer to press release March 30, 2006). Canadian Royalties expects to provide an updated resource estimate in early 2007. Pending the update of resources at Mesamax, Ivakkak, Expo and Mequillon, Canadian Royalties' total indicated mineral resources on the Raglan South Nickel Project are estimated at 11,088,000 tonnes with a weighted average grade of 1.0% Ni, 1.2% Cu and 3.1 g/t PGE.

The Ivakkak exploration program was supervised by Mr. Bertrand Brassard, M.Sc., P.Geo. (OGQ), a Qualified Person under National Instrument 43-101. This press release has been prepared and revised under the supervision of Mr. Bruce Durham, Vice-President Exploration and Business Development. For further information and a drilling plan map for the Ivakkak deposit, refer to www.canadianroyalties.com/ivakkak.

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, a bankable feasibility study ("BFS"; (1)) and an environmental and social impact analysis ("ESIA").

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

(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.

The statements contained in this press release may contain statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

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