Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

November 07, 2006 10:47 ET

Canadian Royalties Inc.: Initial 2006 Exploration Results-Ivakkak Deposit 'Part 1' High-grade Deposit Extended to the West and at Depth

MONTREAL, QUEBEC--(CCNMatthews - Nov. 7, 2006) - Canadian Royalties Inc. (TSX:CZZ) reports continued success from drilling at the Ivakkak deposit in 2006. Significant mineralization has expanded the deposit along strike by 100 metres for a total of 325 metres, and at depth by 50 metres for a total of 150 metres. The expansion is highlighted by holes such as ST-06-54, the deepest and most westerly drill hole released to date, which includes a 3.75 metre (12.3 foot) interval with average grades of 3.32% nickel (Ni), 4.46% copper (Cu) and 9.31 g/t combined platinum (Pt), palladium (Pd) + gold (Au) (PGE). This high-grade intersection is contained within a wider interval of mineralization that averaged 1.47% Ni, 1.99% Cu and 4.36 g/t PGE over 12.85 metres (42.2 feet). The deposit remains open at depth and along strike to the west.

A total of 58 holes were drilled at the Ivakkak deposit in 2006, of which 28 holes are reported in this release. The assays from the remaining 30 holes will follow as soon as they are received. In addition, over the next three 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.

The first results of this program confirm the homogeneity of the Ivakkak deposit, and its extension both laterally and at depth. The mineralization consists of massive, net-textured and disseminated sulphides that are hosted in a sill of pyroxenite-gabbro. Composite assay values from the Ivakkak deposit for holes ST-06-34 to ST-06-74 follow:



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Ivakkak From To Width Ni Cu Co Au Pt Pd PGE(i)
DDH (m) (m) (m) (%) (%) (%) (g/t) (g/t) (g/t) (g/t)
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06-34 15.10 30.00 14.90 1.21 1.17 0.05 0.27 0.95 5.76 6.98
06-37 48.00 52.00 4.00 0.55 2.18 0.03 0.14 0.37 2.42 2.93
06-38 34.00 36.00 2.00 0.79 0.67 0.04 0.02 0.51 1.89 2.42
06-38 41.00 43.00 2.00 0.79 0.66 0.04 0.04 0.40 1.51 1.95
06-39 4.90 23.00 18.10 1.65 2.00 0.07 0.13 0.78 3.93 4.84
incl. 15.20 20.80 5.60 3.80 4.05 0.16 0.28 1.72 8.64 10.64
06-40 6.80 17.70 10.90 0.87 1.03 0.04 0.05 0.61 2.88 3.55
06-41 10.00 21.00 11.00 1.11 1.63 0.05 0.12 0.79 5.70 6.60
06-52 87.40 92.00 4.60 0.59 1.63 0.03 0.27 0.40 1.50 2.17
06-54 131.20 144.05 12.85 1.47 1.99 0.06 0.17 0.79 3.40 4.35
incl. 140.30 144.05 3.75 3.32 4.46 0.13 0.41 1.75 7.15 9.30
06-56 62.60 68.40 5.80 0.74 2.77 0.04 0.28 0.36 2.05 2.69
incl. 62.60 64.10 1.50 1.87 7.79 0.08 0.87 0.76 4.85 6.47
06-58 89.00 99.00 10.00 0.77 2.05 0.04 0.08 0.36 2.65 3.09
06-60 67.10 75.60 8.50 1.43 2.33 0.06 0.19 0.67 3.22 4.09
incl. 67.10 69.30 2.20 2.68 4.91 0.11 0.56 1.14 5.15 6.85
06-61 81.00 88.10 7.10 0.57 0.85 0.03 0.07 0.30 1.82 2.20
06-63 81.50 82.60 1.10 0.90 1.03 0.04 0.05 0.43 2.91 3.39
06-65 98.10 103.50 5.40 2.10 2.41 0.08 0.18 1.16 4.91 6.24
incl. 99.50 101.95 2.45 3.60 3.54 0.14 0.28 1.96 8.10 10.35
06-66 100.90 101.90 1.00 0.70 1.00 0.03 0.07 0.39 2.59 3.04
06-68 99.00 108.30 9.30 1.76 2.51 0.07 0.13 0.77 3.17 4.06
incl. 102.50 106.00 3.50 3.46 5.11 0.14 0.25 1.42 5.35 7.02
06-69 108.00 114.00 6.00 0.77 2.21 0.03 0.09 0.46 2.26 2.81
06-71 111.20 122.00 10.80 1.97 2.73 0.08 0.21 1.15 5.37 6.73
incl. 115.00 119.70 4.70 3.61 4.41 0.14 0.24 2.12 9.37 11.73
06-72 119.75 125.00 5.25 0.85 2.19 0.04 0.08 0.48 2.45 3.01
incl. 121.40 122.40 1.00 2.12 5.48 0.08 0.10 1.09 5.25 6.44
06-73 126.00 131.00 5.00 2.05 2.49 0.09 0.10 0.98 4.40 5.48
incl. 127.35 129.55 2.20 3.85 3.06 0.16 0.13 1.60 6.04 7.78
06-74 146.00 150.80 4.80 2.24 2.92 0.10 0.18 1.16 5.27 6.61
incl. 147.40 150.10 2.70 3.51 3.66 0.15 0.19 1.70 7.32 9.21
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Notes:

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

- (i) PGE = platinum + palladium + gold;

- g/t . = grams per metric tonne;

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

- 7 holes (# ST-06-33, 35, 36, 45, 59, 64 and 67), located outside the mineralized zone, had no significant values and are not presented in the attached table;

- Assays pending for holes ST-06-42-44, 46-51, 53, 55, 57, 62, 70 and 75-90;

- According to a pre-established sampling protocol, half of the diamond drill core is sampled on lengths varying between 0.3 to 1.35 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. Grades are uncut and assay interval lengths are measured along the core axis.

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. With the 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 once all the assays have been reported. Pending the update of resources at Mesamax, Ivakkak, Expo and Mequillon, Canadian Royalties' total indicated 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 is 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' main focus remains 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"; (ii)) and an environmental and social impact analysis ("ESIA").

(ii) 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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