Canadian Royalties Inc.

Canadian Royalties Inc.

April 27, 2009 11:57 ET

Canadian Royalties Inc.: Nunavik Nickel Project Exploration Kehoe Update

Additional Endah Showing Results Reported

MONTREAL, QUEBEC--(Marketwire - April 27, 2009) - Canadian Royalties Inc. (the "Company") (TSX:CZZ) announces additional results from the "Endah" showing at Kehoe, located approximately 10 kilometres west-southwest of the Expo complex. Hole KH-08-21 intersected 11.50 metres of predominantly net-textured mineralization that ran 0.80% Nickel, 0.94% Copper, 1.03 g/t Platinum and 2.14 g/t Palladium, including 2.90 metres of high-grade sulphides that averaged 1.96% Nickel, 1.30% Copper, 1.69 g/t Platinum and 2.62 g/t Palladium.

Thick intervals of disseminated to net-textured mineralization were also cut in drillhole KH-08-27, which intersected 19.95 metres grading 0.54% Nickel, 0.75% Copper, 0.44 g/t Platinum and 1.99 g/t Palladium of which 8.90 metres graded 0.61% Nickel, 0.90% Copper, 0.52 g/t Platinum and 2.55 g/t Palladium. Updated results are also reported for eight (8) additional holes.

The "Endah" showing is a new zone of mineralization identified at a location that is roughly equidistant between the Expo and Mequillon deposits, and 5.5 kilometres northeast of Tootoo. The zone is favourably located close to the planned road that is proposed to link the Expo complex with the Mequillon and Ivakkak deposits.

Table 1 - Endah Showing and Kehoe Exploration Drilling Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
KH-08-21 208.50 220.00 11.50 0.80 0.94 1.03 2.14
KH-08-21 216.10 219.00 2.90 1.96 1.30 1.69 2.62
KH-08-22 34.25 36.20 1.95 2.26 1.00 0.42 3.79
KH-08-23 No significant results
KH-08-24 No significant results
KH-08-25 167.65 168.10 0.45 0.49 2.72 0.05 1.59
KH-08-26 227.30 228.60 1.30 0.57 0.47 0.27 0.77
KH-08-26 245.40 246.40 1.00 1.76 0.42 1.10 2.76
KH-08-27 366.75 386.70 19.95 0.54 0.75 0.44 1.99
KH-08-27 374.60 384.90 8.90 0.61 0.90 0.52 2.55
KH-08-28 304.80 311.00 6.20 0.34 0.48 0.39 1.34
KH-08-29 No significant results
KH-08-30 245.85 246.40 0.55 1.27 0.70 0.42 1.38

Table 2 - Endah Showing and Kehoe Exploration Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (o) (o) (m)
KH-08-21 573231E 6822610N 360.0 -73 336.00
KH-08-22 573134E 6822635N 360.0 -45 372.00
KH-08-23 573134E 6822635N 360.0 -73 159.00
KH-08-24 573186E 6822553N 360.0 -50 230.00
KH-08-25 573285E 6822809N 180.0 -45 201.00
KH-08-26 573285E 6822809N 180.0 -56 267.00
KH-08-27 573285E 6822809N 180.0 -63 387.00
KH-08-28 573286E 6822532N 360.0 -62 390.00
KH-08-29 572917E 6823108N 320.0 -60 174.00
KH-08-30 572917E 6823108N 320.0 -78 267.00

Better than anticipated results are reported for holes KH-08-25, 26, 28 and 30 (see news release dated October 29th, 2008). Exploration holes KH-08-29 and 30 were drilled on targets unrelated to the Endah showing. This release completes the reporting of 2008 drill results from Kehoe.

The delineation of the Endah showing was conducted on a north-south oriented grid at 50 metre line spacing. Preliminary interpretation of the data suggests that a different drill grid orientation may be better suited in order to properly define the geometry, and to test for possible extensions of the mineralization. True widths are therefore difficult to determine but are believed to range from between 60 and 80 percent of the reported composite core widths. The Company is encouraged by the extent of the thick halo of disseminated mineralization, evident in these results and those of October 29th, 2008. Further exploration work is warranted on this potential deposit.

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. Below detection limit assays are considered zero values when calculating composites for release purposes.

Qualified Persons

W. Grant Arnold (P.Geo.), COO and 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 been actively exploring and delineating magmatic sulphide related nickel, copper, cobalt, platinum, palladium and gold mineralization in the Raglan area of the Province of Quebec since the summer of 2001. The Company has identified eight (8) nickel-copper-platinum-palladium deposits, with resource estimates for six (6) deposits totalling 19,437,000 tonnes in the Indicated category at a grade of 0.97% Ni, 1.18% Cu, 0.56 g/t Pt, and 2.27 g/t Pd, in addition to 4,102,000 tonnes of Inferred resources at its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in Nunavik, Quebec. Further, the Company has received its Environmental Certificate of Authorization and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon sites.

Forward-looking Statement

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 and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008 and dated March 31, 2009. Accordingly, all of the forward-looking information contained in this news release is qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations. 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 disclose any revisions to such forward-looking statements to reflect events, circumstances or changes in expectations after the date hereof, except as required by law. Accordingly, readers should not place undue reliance on forward-looking statements.

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