Canadian Royalties Inc.

Canadian Royalties Inc.

March 23, 2006 12:15 ET

Canadian Royalties Initiates Permitting Process for the Raglan South Nickel Project

MONTREAL, QUEBEC--(CCNMatthews - March 23, 2006) - Canadian Royalties Inc. (TSX:CZZ) announces the delivery today of a Project Notice to Quebec's Ministry of Sustainable Development, Environment and Parks (MDDEP). The Project Notice is the document that describes the proposed project for the development and exploitation of the Raglan South Nickel Project in Nunavik, northern Quebec.

The Project Notice is distributed by the MDDEP to the various provincial authorities involved in the permitting process, most notably, the Kativik Environmental Quality Commission and the Quebec Ministry of Natural Resources and Wildlife (MRNF). The Project Notice will also be circulated to the federal Ministry of Environment via the federal Environmental Assessment Agency.

The permitting process is comprehensive with respect to federal, provincial and municipal authorizations for the development of a mining and processing facility. In addition, Canadian Royalties will seek to complete agreements with local Inuit communities in parallel.

A scoping study, including a preliminary economic assessment, is currently being completed by Roche Ltd., Consulting Group of Quebec City and P&E Mining Consultants Inc., of Toronto on the Raglan South Nickel Project. The study is due for completion in mid-April, and will provide the initial definition of the scope and preliminary economics of the mining project. The scoping study will be followed up by an engineering feasibility study, to be initiated in mid-2006, if warranted.

Canadian Royalties' objective is to work closely with the communities of Nunavik and demonstrate that its project is in full compliance with environmental regulations and that it will have lasting benefits for all of its stakeholders.

About Canadian Royalties Inc.: Canadian Royalties is evaluating the potential of establishing an independent, stand-alone mining and milling operation in the general vicinity of Falconbridge's Raglan Mine in northern Quebec, where significant infrastructure is in place. Excluding the discovery of the Ivakkak zone and all 2005 diamond drill results, the indicated resources on the project total 10,568,000 tonnes with weighted average grades of 1.0% nickel, 1.2% copper, 0.04% cobalt, 0.2 g/t gold, 0.6 g/t platinum and 2.3 g/t palladium (3.0 g/t PGE).

Bruce Durham, P.Geo., is the designated Qualified Person and is the person responsible for the geological information presented in this release.

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