Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

January 04, 2007 09:22 ET

Canadian Royalties Inc.: 2006 Exploration Results, Tootoo Zone

Nickel-Copper-PGE Mineralization Extended at Depth, Mineralization Intersected 4 kilometres Northeast

MONTREAL, QUEBEC--(CCNMatthews - Jan. 4, 2007) - Canadian Royalties Inc. (TSX:CZZ) reports significant nickel-copper-platinum-palladium (Ni-Cu-PGE) mineralization from drill holes completed at the Tootoo zone, where the mineralization has now been traced in a dike-like intrusion to a vertical depth of approximately 250 metres. The expansion at depth has been highlighted by several drill holes such as drill hole TT-06-75 where a 3.4 metre (11.2 foot) high-grade massive sulphide interval assayed 3.54% Ni, 1.02% Cu and 4.35 g/t PGE. This high grade interval is contained within a wider 29 metre (95.1 foot) intersection with average grades of 1.08% Ni, 1.12% Cu and 2.93 g/t PGE. The zone remains open at depth and along strike to the east. Exploration will resume in summer of 2007 once larger drills are delivered to the property.

The "Annie" showing area, located 4 kilometres northeast of the Tootoo zone, was tested with two drill holes, both of which intersected favourable mineralization. The Tootoo and Annie mineralized zones are associated with the same peridotite-pyroxenite body. Current interpretation of geological data indicates that mineralization continues at depth and to the northeast where, at the other end of the geological unit (the Annie showing) mineralization has been discovered over significant intervals in both drill holes completed in summer of 2006.

A planned Fugro MEGATEM deep-penetrating airborne geophysical survey may provide additional information in early 2007 to help identify mineralization along the 4 kilometre interval between the Annie and Tootoo zones.

Composite assay values from the recently completed holes in the Tootoo zone are summarized below:



Tootoo From To Width Ni Cu Co Au Pt Pd PGE
DDH (m) (m) (m) (%) (%) (%) (g/t) (g/t) (g/t) (g/t)
06-66 133.70 149.50 15.80 1.31 0.81 0.07 0.05 0.36 1.84 2.26
incl. 134.40 138.50 4.10 3.07 0.81 0.15 0.02 0.67 3.31 3.99
06-67 173.10 192.05 18.95 0.83 0.56 0.04 0.03 0.23 0.97 1.23
incl. 184.60 192.05 7.45 1.64 0.76 0.08 0.02 0.30 0.80 1.12
incl. 184.60 188.50 3.90 2.78 1.24 0.14 0.02 0.52 1.24 1.77
06-68 182.00 184.53 2.53 1.00 2.20 0.05 0.06 0.56 2.82 3.45
06-71 158.60 159.20 0.60 2.97 0.64 0.15 0.02 0.37 1.69 2.08
06-73 162.00 165.00 3.00 0.45 0.68 0.03 0.04 0.25 0.98 1.26
06-74 132.00 136.10 4.10 0.49 1.05 0.03 0.06 0.31 1.46 1.83
incl. 134.45 136.10 1.65 0.74 1.20 0.04 0.07 0.38 1.85 2.30
06-75 151.20 180.20 29.00 1.08 1.12 0.06 0.06 0.38 2.50 2.93
incl. 160.80 164.20 3.40 3.54 1.02 0.18 0.02 0.59 3.74 4.35
06-76 212.40 212.80 0.40 2.63 0.87 0.13 0.11 0.43 3.01 3.55
06-79 119.00 131.35 12.35 0.61 0.84 0.03 0.05 0.24 1.31 1.61
incl. 130.10 131.35 1.25 1.69 1.18 0.09 0.02 0.36 1.70 2.08
06-81 196.00 203.10 7.10 2.35 1.19 0.12 0.03 0.47 2.14 2.64
incl. 196.00 198.00 2.00 3.49 0.24 0.17 0.02 0.68 2.92 3.61
06-82 168.00 176.75 8.75 1.42 1.30 0.08 0.05 0.41 2.08 2.54
incl. 168.50 171.60 3.10 3.30 2.12 0.17 0.05 0.77 3.47 4.29
06-83 193.00 199.00 6.00 1.56 1.72 0.07 0.04 0.51 2.34 2.90
incl. 193.50 195.80 2.30 3.35 2.90 0.15 0.04 0.94 3.96 4.94
06-84 255.90 261.10 5.20 1.34 0.61 0.06 0.04 0.37 1.76 2.17
06-88 207.00 228.00 21.00 0.52 0.70 0.03 0.03 0.31 1.28 1.62
incl. 224.00 226.00 2.00 1.05 0.52 0.05 0.02 0.46 1.63 2.10


Notes:

- Lengths are drill intersected core lengths, composite intervals 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;
- 10 holes (TT-06-69-70, 72, 77, 78, 80, 85-87, 89), located within or
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 0.20 to 1.85 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.


Composite assay values from the recently completed holes in the Annie
zone are summarized below:

Annie From To Width Ni Cu Co Au Pt Pd PGE
DDH (m) (m) (m) (%) (%) (%) (g/t) (g/t) (g/t) (g/t)
06-02 135.00 145.00 10.00 0.35 0.61 0.02 0.05 0.28 1.19 1.51
06-04 176.50 192.00 15.50 0.41 0.60 0.02 0.07 0.36 1.24 1.67

Notes:

- 1 hole (AN-06-03), was not completed.
- The diamond drill core is sampled on lengths varying between 0.32 to
1.63 meters.


Additional assay results will be reported over the next month from exploration drilling completed at or near Mesamax, Mequillon and Expo. Those assays will provide the basis for updated resource estimates for those deposits.

The 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 Tootoo Zone, refer to http://www.canadianroyalties.com/tootoo

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 proceeding with permitting applications, a bankable feasibility study (1) (BFS) and an environmental and social impact analysis (ESIA).

(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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