Canadian Royalties Inc.

Canadian Royalties Inc.

August 15, 2006 09:53 ET

Canadian Royalties Inc.: Bankable Engineering Feasibility Study and Environmental and Social Impact Assessment Study Awarded

MONTREAL, QUEBEC--(CCNMatthews - Aug. 15, 2006) - Canadian Royalties Inc. (TSX:CZZ) announces the awarding of the Bankable Engineering Feasibility Study (BFS) to SNC-Lavalin Group Inc. and the awarding of the Environmental and Social Impact Assessment Study (ESIA) to Genivar Limited Partnership for its Raglan South Nickel Project (RSNP).

Bankable Engineering Feasibility Study awarded to SNC-Lavalin Group Inc.

After a due bidding and selection process, SNC-Lavalin Group Inc. was awarded the Bankable Engineering Feasibility Study (BFS). The mandate covers the engineering of all mine site infrastructures and processing facilities to treat a minimum of 2,500 tonnes per day and up to 3,500 tonnes per day of ore through the milling complex. Road access as well as diesel power generating capacity and employee accommodations are part of the mandate. The contract is estimated at approximately CDN $1,000,000 and the BFS should be delivered during the second quarter of 2007. Some additional engineering may be required from SNC-Lavalin to satisfy permitting requirements.

Environmental and Social Impact Assessment Study awarded to Genivar Limited Partnership

After a due bidding and selection process, Genivar Limited Partnership was awarded the Environmental and Social Impact Assessment Study (ESIA), which, once accepted by the Environmental Authorities of Quebec, will lead to the issuance of Certificates of Authorization (CA) for the construction and exploitation of a mine on the RSNP. Genivar has been involved in the completion of many projects in the region of Nunavik where the RNSP is located. The award is in excess of CDN $1,200,000 and provides for the delivery of the ESIA to the Environmental Authorities by the end of the first quarter of 2007. Genivar will then continue to be involved in ensuing exchanges and discussions with the Environmental Authorities, which should lead to the delivery of a CA by November 2007 as per initial discussions with the Environmental Authorities.

Bruce R. Durham is the Qualified Person pursuant to National Instrument 43-101-Standards for Disclosure of Mineral Projects and is responsible for the preparation of the technical information presented in this news release.

About Canadian Royalties and the Raglan South Nickel Project

Canadian Royalties' main focus remains evaluating the potential of establishing an independent, stand-alone Ni-Cu-PGE mining and milling operation in the general vicinity of Falconbridge's Raglan Mine in northern Quebec. Canadian Royalties is currently proceeding with permitting applications, a bankable feasibility study and an environmental and social impact analysis, as well as with the exploration for additional resources near existing Ni-Cu-PGE deposits and new areas of mineralization. The Company has three diamond drills operating on the RSNP.

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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