Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

March 04, 2008 15:16 ET

Canadian Royalties Inc.: Convertible Senior Unsecured Debenture Offering

MONTREAL, QUEBEC--(Marketwire - March 4, 2008) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Canadian Royalties Inc. (the "Company" or "Canadian Royalties") (TSX:CZZ) is pleased to announce that it has obtained a receipt for its preliminary short form prospectus filed with securities regulatory authorities in each of the provinces of Canada in connection with the offering of convertible senior unsecured debentures due March 31, 2015 (the "Debentures"). The terms of the offering, including the aggregate principal amount, interest rate and conversion price, will be determined at the time of pricing.

The Debentures are being offered for sale on a marketed basis through a syndicate of underwriters led by BMO Capital Markets and including Raymond James Ltd. and Desjardins Securities Inc.

The Company plans to use the net proceeds from the offering to pursue the development of the Nunavik Nickel Project and for general corporate and administrative purposes.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.

Canadian Royalties currently holds a 100% interest in the Ivakkak deposit, subject to a net smelter royalty ("NSR", refer to news release dated September 21, 2005). Additionally, Canadian Royalties has vested a 70% interest in the Expo-Ungava property; its interest therein shall increase to 80% simultaneously with the creation of the joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava property.

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO PURCHASE SECURITIES OF THE COMPANY IN ANY JURISDICTION.

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