Canadian Royalties Inc.

Canadian Royalties Inc.

July 16, 2007 09:54 ET

Canadian Royalties Inc./Nunavik Nickel Project: Award of Detailed Engineering Contracts

MONTREAL, QUEBEC--(Marketwire - July 16, 2007) - Canadian Royalties Inc. (TSX:CZZ) announces that the Board of Directors has given authorization for the start of project development, which includes detailed engineering and ordering of long-lead equipment in order to meet or shorten the development timeline.

Detailed Engineering Contracts Awarded for the Mineral Processing Facility and Power Plant

Following a competitive bidding process, Canadian Royalties has awarded detailed engineering contracts for the mineral processing facility, and the main and secondary power generation facilities.

GENIVAR Consulting Group has been awarded the detailed engineering contract for the mineral processing facilities, the scope of which includes verification of the process flow sheets, confirmation of technical specifications for the procurement of mechanical equipment, engineering designs for the plant including crushing, grinding, flotation and dewatering of concentrates, and the fresh water pickup and pipeline to the plant. GENIVAR will also support the construction of the plant.

Jerry Kaehne Consulting Inc. and GENIVAR Consulting Group will cooperate in the detailed engineering of the power generation facilities. The contract includes the integration of the diesel power generation equipment with the mineral processing facility, and all related engineering leading to the construction of the power generation modules.

Procurement of long-lead equipment is underway. Canadian Royalties expects to announce purchase orders for the diesel power generators, ball mills, mine camp, structural steel / piling, and the crushing system during the upcoming weeks.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties has initiated the development of the Nunavik Nickel Project (formerly the Raglan South Nickel Project) which is anticipated to be 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 proceeding with permitting applications, as well as with exploration for additional resources.

Forward-looking Statements

This news release contains certain forward-looking statements or forward looking-information. 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 for the year ended December 31, 2006 and dated July 10, 2007. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Nunavik Nickel Project is a technical viable and economic operation, that it can be successfully completed by the Company, that the Company will receive the required permits and access to surface rights, and that the Company can access financing, appropriate equipment, and sufficient labor. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof. Accordingly, readers should not place undue reliance on forward-looking statements.

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