Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

September 21, 2005 10:17 ET

Canadian Royalties Inc.: New Nickel-Copper-Platinum Palladium Discovery-Ivakkak Zone

MONTREAL, QUEBEC--(CCNMatthews - Sept. 21, 2005) - Canadian Royalties Inc. (TSX: CZZ) reports the discovery of a new zone of nickel-copper-platinum-palladium mineralization on its Raglan South Nickel project in Nunavik, northern Quebec. The discovery hole, IV-05-01, intersected 12 metres (from 31 to 43 metres) of net-textured and massive-sulphide mineralization with average grades of 2.34% nickel (Ni), 3.25% copper (Cu), 0.10% cobalt (Co), 0.5 g/t gold (Au), 1.6 g/t platinum (Pt) and 6.2 g/t palladium (Pd) (8.3 g/t combined Au + Pt + Pd). With this new discovery, Canadian Royalties has now extended its discovery horizon to 50 kilometers along the host Raglan South ultramafic rocks.

The Ivakkak(i) Zone is now the sixth and westernmost known significant sulphide zone on the Raglan South Nickel project, in addition to the Mesamax, TK, Expo, and Mequillon deposits, as well as the Tootoo Ni-Cu-PGE zone. The Ivakkak Zone is situated on land that, by year end will be held 100% by Canadian Royalties.

Massive and net textured sulphides have been intersected in the first eight drill holes completed at Ivakkak along a 50 metre strike distance and to a depth of 50 metres. A horizontal loop EM geophysical anomaly associated with the mineralization has been traced for 200 metres. Maps, sections and additional information describing the new zone have been made available at www.canadianroyalties.com/ivakkak.



Highlights

- The new zone is located approximately 50 kilometres west of the
Mesamax deposit, 40 km west of the Expo deposit, and 23 km west of
the Mequillon deposit. Discoveries further west of the Canadian
Royalties properties include the West Shoot Out discovery (Golden
Valley Mines - 26 km west) and the Getty Zone (Goldbrook Ventures /
Anglo American Exploration - 48 km west);

- Geophysics and prospecting indicates that the zone is at least 200
metres long. The zone remains open and drilling is continuing.

- Additional drill holes have intersected the mineralized zone, and
additional assays will be released as they become available;

- The Ivakkak zone was identified as a surface showing by the
Canadian Royalties exploration team while following up on recent
airborne geophysics survey results.

- High to very high PGE values are reported in all eight holes;

- Composited assay values from the first eight holes assayed from the
Ivakkak zone follow:

IV From To Width Ni Cu Co Au Pt Pd PGM
DDH (m) (m) (m) % % % g/t g/t g/t g/t
-----------------------------------------------------------------
05-01 31.0 43.0 12.0 2.34 3.25 0.101 0.5 1.6 6.2 8.3
incl. 37.0 40.6 3.6 3.56 4.72 0.151 0.7 2.2 8.0 10.9
05-02 36.0 46.0 10.0 1.70 2.34 0.075 0.1 0.9 4.3 5.3
incl. 39.4 42.6 3.2 3.72 4.19 0.156 0.3 1.9 8.3 10.5
05-03 42.0 49.0 7.0 1.04 1.80 0.048 0.1 0.4 3.3 3.9
incl. 47.8 48.2 0.4 3.23 7.95 0.142 0.7 1.1 19.0 20.8
05-04 43.0 56.0 13.0 2.09 2.68 0.088 0.2 1.0 4.4 5.5
incl. 46.9 53.6 6.7 3.50 3.96 0.141 0.3 1.5 6.4 8.2
05-05 49.0 56.0 7.0 1.71 1.97 0.073 0.2 0.7 3.0 3.8
incl. 51.0 53.4 2.4 3.69 3.73 0.151 0.2 1.3 5.0 6.4
05-06 58.0 65.0 7.0 0.74 1.25 0.035 0.1 0.5 2.0 2.6
05-07 24.0 44.0 20.0 1.24 2.08 0.054 0.2 0.7 3.3 4.2
incl. 31.0 34.2 3.2 2.95 5.30 0.118 0.2 1.4 6.9 8.5
05-08 26.0 44.0 18.0 0.98 1.68 0.043 0.1 0.6 2.8 3.5
incl. 35.8 36.1 0.3 2.15 11.50 0.088 0.7 1.2 18.1 20.0


Notes:
- Lengths are drill intersected core lengths, composite lengths are
length weighted;
- PGE equals gold + platinum + palladium;
- 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 length given in the table


Canadian Royalties' Raglan South Nickel project

The current $9,000,000 exploration program has resulted in this new Ni-Cu sulphide discovery, while at the same time expanding the resource base of the existing Ni-Cu-PGE deposits and mineralized zones. In addition, the company has environmental studies, road construction and metallurgical bulk sampling underway at the Mesamax Deposit. A 25,000 metre drill program is currently underway with diamond drilling at five locations - i) the Ivakkak Zone, ii) the Expo Deposit ; iii) the Mequillon Deposit; iv) the Tootoo Zone (discovered in 2003); and v) Mesamax Deposit (the collection of a mini-bulk sample of 50 tonnes of HQ sized diamond drill core).

The discovery of the Ivakkak further enhances the potential for Canadian Royalties to establish an independent, stand-alone mining operation in the general vicinity of Falconbridge's Raglan Mine where significant infrastructure already exists. Scoping, pre-feasibility and environmental studies are currently underway in support of this goal. Total indicated resources on Canadian Royalties' Raglan South Nickel project currently stand at 10,568,000 tonnes with a weighted average grade of 1.0% Ni, 1.2% Cu, 0.04% Co, 0.2 g/t Au, 0.6 g/t Pt and 2.3 g/t Pd (3.1 g/t PGE).

Todd Keast, P.Geo, is Canadian Royalties South Nickel Project Exploration Geologist and has managed the onsite exploration and resource development activities on the Raglan South project since Canadian Royalties' first exploration program in 2001. Management wishes to recognize the contribution of the entire exploration team and exploration contractors over the past four seasons for the discoveries and accomplishments to date.

The discovery that is the subject of this press release is located on the South Trend property. On November 18th, 2002 Canadian Royalties was granted an option to acquire a 100% interest in Montoro Resources Inc. South Trend property, provided that Canadian Royalties paid a $30,000 cash fee and incured exploration expenditures of $500,000 over 4 years. If the option is exercised, Canadian Royalties' interest would be 100%, subject to a 1% net smelter return "NSR" royalty in favour of Montoro (that is subject to a buyout option in favour of Canadian Royalties) and a 2% NSR in favour of 862539 Alberta Ltd., a related party. Canadian Royalties intends to execute the option to acquire the 100% interest in the property.

Bruce Durham, P.Geo., and President of Canadian Royalties Inc. is the designated Qualified Person responsible for the preparation of this release. All assaying was completed by ALS Chemex with sample preparation completed in Val-d'Or, QC and analyses completed at ALS Chemex in Vancouver, BC. Base metal determined by sodium peroxide fusion with ICP-AES analysis. Platinum, palladium and gold values are determined by 30 gram fire assay with ICP-AES finish.

(i) The new discovery has been named the Ivakkak zone, the meaning of which can be found at www.canadianroyalties.com/ivakkak.

The Statements contained in this press release may contain statements that may involve a number of risks and uncertainties. Actual events or results could defer materially from the Company's expectations and projections.

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