Canadian Royalties Inc.

Canadian Royalties Inc.

September 19, 2007 12:02 ET

Canadian Royalties Inc./Nunavik Nickel Project Allammaq Update: High-Grade Massive Sulphides and Substantial Widths of Mineralization Intersected

MONTREAL, QUEBEC--(Marketwire - Sept. 19, 2007) - Canadian Royalties Inc. (TSX:CZZ) is pleased to report significant composite assay results from five (5) new drillholes from its ongoing drill program at the recently discovered Allammaq deposit (refer to news release dated September 4, 2007). Some of the highest grades encountered to date were returned from hole MX-07-32, which intersected mineralization over 25.75 metres grading 2.10% Nickel and 2.29% Copper within a first interval, plus 14.45 metres grading 2.95% Nickel and 1.38% Copper in a second interval. Included within the latter interval are 7.00 metres of high-grade massive sulphides that graded 3.80% Nickel and 1.89% Copper. The thickest intercept reported to date was intersected in hole MX-07-36, where mineralization occurs over 55.70 metres, and grades 1.18% Nickel and 1.11% Copper. Significant Platinum and Palladium values occur in all reported holes.

Two of the five new drillholes reported (MX-07-32 and 33) complete an initial drill fan on the discovery section (holes MX-07-30 to 33). On-section, the continuity of the mineralization has been established along apparently shallow dips over a minimum of 125 metres. The first three holes of a second section, drilled parallel to the first section but located 50 metres to the west, also intersected significant mineralization (holes MX-07-34 to 36). Assay results from the remaining drillholes on this section, and from adjacent sections, will be released as soon as they become available. The Allammaq deposit remains open in all directions, and the company's delineation drill program to expand this high-grade deposit is ongoing using two (2) dedicated diamond drills.

Mr. Richard Faucher, President and CEO, comments on the results: "We are building resources at Allammaq. Together with the recently updated mineral resources at Mequillon we are coming closer to achieving our near-term goal of doubling the mine life through quality resource additions, which have the potential to improve the economics of this exciting project."

Composite assays and locations for five (5) drillholes are reported in the tables below.

Table 1 - Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
MX-07-32 137.40 170.90 33.50 1.68 2.14 0.50 2.47
incl. 145.15 170.90 25.75 2.10 2.29 0.61 2.97

and 180.95 195.40 14.45 2.95 1.38 1.11 3.30
incl. 188.40 195.40 7.00 3.80 1.89 1.43 3.50
MX-07-33 No Significant Assays
MX-07-34 162.40 171.40 9.00 1.65 1.56 0.61 3.48
MX-07-35 125.00 149.85 24.85 1.45 1.02 1.06 3.65
incl. 135.00 149.85 14.85 1.85 1.29 1.44 4.53
MX-07-36 84.30 140.00 55.70 1.18 1.11 0.77 3.68
incl. 117.00 140.00 23.00 1.47 1.29 0.91 4.35

Table 2 - Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (o) (o) (m)
MX-07-32 595559E 6827515N 358 -62 244.10
MX-07-33 595559E 6827515N 358 -48 171.00
MX-07-34 595509E 6827513N 358 -62 219.60
MX-07-35 595509E 6827513N 358 -75 240.00
MX-07-36 595509E 6827513N 358 -88 168.00

Delineation of the zone is being carried out on 50 metre spaced sections
using multiple fanned holes from each drill set-up. Shallowly inclined hole
MX-07-33 was stopped short and intersected neither the favourable
ultramafic nor the mineralized zone.

Sampling and Assays

Core samples are either split or sawn on-site, individually sealed in bags and shipped off-site on a regular basis to the ALS Chemex laboratory in Val d'Or, Quebec for sample preparation. Analyses are performed at the ALS Chemex laboratory in Vancouver, British Columbia. Base metal analyses including Nickel and Copper are determined by sodium peroxide fusion with ICP-AES analysis. Platinum, Palladium and Gold analyses are determined by fire assay and ICP-AES finish. The company quality control (QA/QC) program includes regular insertions of blanks and standards. Reported values are uncut and composite intervals are reported as length along the core axis.

Qualified Persons

W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian Royalties Inc., is a Qualified Person in accordance with National Instrument (NI) 43-101, and is responsible for the geological information presented in this news release.

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 in a 70% interest in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits), where its interest shall be increased to 80% simultaneously with the creation of the joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava Property.

Forward-looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's Amended and Restated Annual Information Form dated July 10, 2007 for the year ended December 31, 2006. Accordingly, readers should not place undue reliance on forward-looking statements.

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