Canadian Royalties Inc.

Canadian Royalties Inc.

November 03, 2005 12:17 ET

Canadian Royalties Inc.: Raglan South Nickel Project 2005 Exploration Program Progress

MONTREAL, QUEBEC--(CCNMatthews - Nov. 3, 2005) - Canadian Royalties Inc. (TSX: CZZ) reports on the 2005 Raglan South Nickel exploration program. Of particular importance, the program generated a new nickel-copper-PGE discovery (the Ivakkak zone, see press release September 21, 2005), and has provided the Corporation with sufficient information to commence a preliminary economic analysis, in order to lead into permitting and feasibility studies. Additional exploration results are to be released regularly over the next two months.

Field work included the construction of a 15 kilometre road to the Mesamax deposit, environmental baseline field studies, over 30,000 metres of diamond drilling, including the collection of 40 tonnes of large diameter drill core from the Mesamax deposit to be used as a representative bulk sample for pilot plant metallurgical testing. The discovery and delineation of several shallow nickel-copper-PGE deposits (Mesamax, Expo, Mequillon and TK) over the past four years, close to existing mining infrastructure, are essential elements that enhance the potential for Canadian Royalties to establish an independent, stand-alone mining operation. Canadian Royalties wishes to recognize the significant contributions to the project by the office support staff, logistics department, construction crew, and exploration group.

Individual highlights from the 2005 program are as follows:

Exploration Highlights:

- Over 30,000 metres of diamond drilling was completed with five
diamond drills. Efforts were directed primarily at expanding the
Mequillon deposit, the systematic collection of the metallurgical
bulk sample at Mesamax, and exploration drilling which in part led
to the Ivakkak discovery (see press release September 21, 2005).
IV-05-01: 2.34% nickel (Ni), 3.25% copper (Cu), 8.3 g/t platinum-
palladium-gold (PGE) over 12 metres. Additional assay results are

- Expansion of the Tootoo zone (refer to press release October 14,
2005). TT-05-30: 3.20% Ni, 2.91% Cu, 4.52g/t PGE over 9.8 metres.
Additional assay results are pending.

- Mequillon deposit extended east (refer to press release October 27,
2005). MQN-05-105: 1.02% Ni, 1.32% Cu, 4.5 g/t PGE over 57.7
metres. Additional assay results are pending.

- 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 (3.0 g/t PGE), based on diamond drilling to the end
of the 2004 exploration season.

Advanced Operations Highlights:

- A 15 kilometre road from the Donaldson airport area on
Falconbridge's Raglan mine site to the Mesamax deposit was
constructed, allowing equipment access to the deposit area, and the
ground transportation of personnel and supplies.

- A 40 tonne bulk sample of Mesamax ore was collected. The sample was
transported to Douglas harbour by road, and is currently en route
to SGS Lakefield Limited. Pilot plant metallurgical test work is
scheduled to begin in January, 2006.

- A 20 person exploration camp was constructed at the Mequillon
deposit to improve project logistics and efficiency. Canadian
Royalties now operates four exploration camps in the area.

- Fuel and diamond drill supplies for the 2006 season have been
shipped to Douglas harbour. A logistics crew remains onsite
positioning supplies to the project for the next program.

- Environmental baseline field studies were conducted for the third
season. Refer to for further

- A temporary equipment and supply shelter was constructed to improve
project efficiency and extend the season.

Todd Keast, P.Geo, Canadian Royalties Raglan Exploration Project Manager/Geologist, is the designated Qualified Person responsible for the exploration program on the property and the 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.

The company website has been updated with new photographs from the 2005 program, refer to

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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