Canadian Royalties Inc.

Canadian Royalties Inc.

March 17, 2005 14:40 ET

Canadian Royalties Inc. Announces Two Private Placements for $4,140,000 and $900,000


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN ROYALTIES INC.

TSX SYMBOL: CZZ

MARCH 17, 2005 - 14:40 ET

Canadian Royalties Inc. Announces Two Private
Placements for $4,140,000 and $900,000

MONTREAL, QUEBEC--(CCNMatthews - March 17, 2005) - THIS PRESS RELEASE IS
NOT FOR DISTRIBUTION TO ANY U.S. NEWS WIRE SERVICE OR DISSEMINATION IN
THE UNITED STATES.

Canadian Royalties Inc. (TSX:CZZ) announces that it has entered into a
letter of engagement with First Associates Investments Inc. (the
"Agent"), to act as agent in respect of a private placement of up to
2,300,000 units of the Company at a price of $1.80 per unit, resulting
in gross proceeds of up to $4,140,000. Each unit is comprised of one
common share of the Company and one-half of one share purchase warrant.
Each whole share purchase warrant will entitle the holder thereof to
acquire one additional common share of the Company at a price of $2.00
for a period of 24 months from the closing date, and thereafter at a
price of $2.40, expiring 48 months from the closing date. The securities
will be offered to residents of Alberta and Ontario only.

The Agent will be paid a commission of 10% of the gross proceeds raised
in the offering. In addition, the Agent will receive an option to
acquire such number of Units (the "Agent's Units") equal to 10% of the
total number of units sold under the offering, at a price per Agent's
Unit of $1.80 for a period of four years from the closing date. Each
Agent's Unit will consist of one common share and one half share
purchase warrant; each whole share purchase warrant entitling the Agent
to acquire one additional common share of the Company at a price of
$2.00 for a period of 24-months from the closing date, and thereafter at
a price of $2.40, expiring 48-months from the closing date. All
reasonable costs and expenses pursuant to the offering will be borne by
Canadian Royalties.

Additionally, the Company announces that it has entered into an
agreement to complete a private placement with a Quebec based investment
fund (the "Fund") of up to 500,000 units at a price of $1.80 per unit,
resulting in gross proceeds of up to $900,000. Each unit is comprised of
one common share of the Company and one half share purchase warrant.
Each whole share purchase warrant will entitle the holder thereof to
acquire one additional common share of the Company at a price of $2.00
for a period of 24-months from the closing date, and thereafter, at a
price of $2.40, expiring 48-months from the closing date. An
administration fee equal to 3% of the first $400,000 of the gross
proceeds raised shall be paid by the Company to the Fund. In addition,
the Company will pay to the Fund an administration fee of 2% with
respect to all additional funds raised in excess of $400,000.

The closing of both private placements is anticipated to occur on or
before April 11th, 2005, or such other date as may be agreed upon by the
Agent and the Company, or the Company and Fund, as applicable. The
private placements are subject to the receipt of all the required
regulatory approvals. All the securities issued pursuant to the offering
and shares which may be acquired upon the exercise of the share purchase
warrants shall be subject to a hold period of four months from the date
of closing. The Company anticipates that neither one of the fair market
value of the shares issued, nor the fair market value of the proceeds
acquired, when issued, will exceed twenty-five (25) percent of the
Company's market capitalization.

Canadian Royalties shall use the proceeds raised from the sale of the
offered securities to implement its exploration and corporate strategy,
and in particular, to maximize the value of its operations and
exploration activities on its Raglan South Trend Nickel project, and a
portion of the proceeds raised will be allocated to finance other
general corporate activities.

Canadian Royalties is a mining exploration company primarily focused on
nickel exploration, with over 200 property interests in Quebec, Ontario,
and Manitoba. Canadian Royalties has discovered significant
nickel-copper-platinum-palladium deposits on its extensive Raglan South
Trend Nickel project near Falconbridge's Raglan Mine complex in northern
Quebec.

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

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