Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

September 30, 2005 13:11 ET

Canadian Royalties: New Results Reported from Expo Deposit Area; New Area of Nickel-Copper-PGE Mineralization Identified

MONTREAL, QUEBEC--(CCNMatthews - Sept. 30, 2005) - Canadian Royalties Inc. (TSX:CZZ) reports initial assay results from diamond drilling within the Expo deposit and the surrounding area. A new area of mineralization has been discovered adjacent to, but outside the main Expo deposit resource area, where 4,445,000 tonnes of indicated resources grading 0.8% nickel (Ni), 0.8% copper (Cu), 0.04% cobalt (Co), 0.1 g/t gold (Au), 0.3 g/t platinum (Pt) and 1.5 g/t palladium (Pd), and 645,000 tonnes of inferred resources grading 1.8% Ni, 1.5% Cu, 0.08% Co, 0.1 g/t Au, 0.7 g/t Pt and 2.5 g/t Pd have already been delineated by drilling to the end of the 2004 season. The limits of the main Expo deposit resource area (870 metres horizontal distance) have been defined in sufficient detail that geotechnical studies can now be initiated. To date this year, 32 holes representing 6,200 metres have been completed within and proximal to the Expo deposit.

Expo Deposit - Northeast Area and Eastern Limit

- Five holes (EX-05-117 to 121) were completed near the eastern margin of the Expo deposit. Sulphide mineralization intersected in holes EX-05-118 and 119, beyond the current deposit limits, suggest potential for new areas of nickel-copper mineralization further to the east.

- Nine holes (EX-05-107, 108, 115, 116, 122 to 125, and 136) on the Expo Northeast zone have expanded the dimensions of this mineralization. Holes EX-05-115 and 116 extend the shallow portions of the NE mineralization to the east. Holes EX-05-122 to 125, and 136 extend the NE mineralization to the west.

- Nickel-copper-PGE mineralization intersected in holes EX-05-122 and 123 are some of the deepest sulphide intersections to date in the Expo deposit area.

- Maps and additional information describing the 2005 drilling at Expo have been made available at www.canadianroyalties.com/expo.



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EX From To Width Ni Cu Co Au Pt Pd PGM
DDH Area (m) (m) (m) % % % g/t g/t g/t g/t
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05-107 NE 27.30 73.50 46.20 0.53 0.52 0.03 0.07 0.21 1.10 1.38
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incl. NE 114.00 122.00 8.00 0.49 1.26 0.02 0.13 0.50 1.65 2.27
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05-108 NE 29.00 144.70 115.70 0.52 0.56 0.03 0.09 0.23 1.05 1.37
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incl. NE 29.00 82.00 53.00 0.58 0.60 0.03 0.06 0.24 1.19 1.50
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incl. NE 119.00 144.70 25.70 0.77 0.83 0.04 0.25 0.36 1.43 2.05
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05-115 NE 57.00 69.80 12.80 0.87 0.71 0.04 0.08 0.50 2.02 2.60
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05-116 NE 51.20 54.95 3.75 1.11 1.40 0.05 0.06 0.31 1.01 1.38
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05-118 East 52.90 54.50 1.60 1.46 1.54 0.07 0.04 4.14 3.35 7.53
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05-119 East 85.40 87.10 1.70 0.59 1.54 0.03 0.08 0.25 1.96 2.29
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05-122 NE 23.00 30.65 7.65 0.85 0.69 0.04 0.06 0.37 1.57 1.99
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05-122 NE 54.10 63.00 8.90 0.43 0.57 0.03 0.05 0.22 1.13 1.40
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05-122 NE 125.10 165.05 39.95 0.90 0.78 0.05 0.09 0.41 2.03 2.52
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05-123 NE 23.00 35.00 12.00 0.81 0.72 0.04 0.07 0.27 1.36 1.69
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05-123 NE 86.00 93.80 7.80 1.37 2.45 0.07 0.05 0.53 1.18 1.76
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05-123 NE 223.50 230.45 6.95 1.52 1.60 0.06 0.05 0.25 0.64 0.93
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05-124 NE 21.00 35.40 14.40 0.73 0.72 0.04 0.05 0.28 1.24 1.57
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05-124 NE 134.95 138.60 3.65 1.02 0.61 0.06 0.03 0.31 1.35 1.68
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05-124 NE 134.95 154.40 19.45 0.84 0.89 0.05 0.03 0.27 1.27 1.57
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05-125 NE 26.00 37.00 11.00 0.82 0.70 0.04 0.07 0.29 1.84 2.20
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05-125 NE 53.25 60.00 6.75 0.60 0.93 0.03 0.11 0.36 2.58 3.05
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05-125 NE 118.00 127.35 9.35 0.65 1.43 0.03 0.29 0.38 2.76 3.42
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05-136 NE 30.00 38.00 8.00 0.88 1.56 0.06 0.31 0.27 0.54 1.12
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Expo Deposit - Main Body

- Seven holes (EX-05-110 to 114, 133 and 134) in the main Expo body further define the north and south limits of the mineralization. Assays are available for two holes, additional results will be reported as received.



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DDH Area From To Ni Cu Co Au Pt Pd PGM
(m) (m) Width % % % g/t g/t g/t g/t
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04-110 Main 49.70 73.50 23.80 0.67 0.80 0.04 0.08 0.31 1.26 1.65
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04-110 Main 94.60 96.10 1.50 2.96 1.11 0.16 0.03 0.98 4.48 5.49
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05-111 Main 52.30 67.00 14.70 0.46 0.46 0.03 0.12 0.18 1.46 1.77
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05-111 Main 121.00 130.00 9.00 1.39 1.96 0.05 0.15 0.40 1.53 2.08
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Expo Deposit - New South Zone

- Nine holes (EX-05-126 to 132, 139 and 140) have been drilled approximately 300 metres south of the Expo deposit, and a new area of sulphide mineralization has been identified in this under-explored part of the Expo complex. Holes EX-05-128 and 131 intersected sulphide mineralization indicating a new target area in an under-explored part of the Expo ultramafic complex in this part of a large trough shaped ultramafic body. Two holes intersected sulphide mineralization, and assay results have not yet been received for holes EX-05-139 and 140.



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DDH Area From To Ni Cu Co Au Pt Pd PGM
(m) (m) Width % % % g/t g/t g/t g/t
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05-128 South 184.10 190.00 5.90 0.57 1.45 0.04 0.05 0.05 0.69 0.80
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05-131 South 286.00 293.10 7.10 0.33 0.46 0.02 0.03 0.16 0.73 0.92
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Notes to tables:

- Lengths are drill intersected core lengths, composite lengths are length weighted;

- PGE = gold + platinum + palladium;

- g/t = grams per metric tonne;

- True widths have not yet been determined but are thought to be generally 70% or more of the core length given in the table

Canadian Royalties' Raglan South Nickel Project

The ongoing $9,000,000 exploration program has resulted in new nickel-copper sulphide discoveries, while at the same time expanding the limits of the existing Ni-Cu-PGE deposits and mineralized zones. In addition, the Company has environmental studies and road construction underway, as well as bulk sampling programs at the Mesamax deposit. More than 28,000 meters of diamond drilling has now been completed with drilling continuing.

Diamond drilling on the newly discovered Ivakkak zone, initially reported September 21, 2005 continues with one diamond drill. The discovery hole, IV-05-01, intersected 12 metres of net-textured and massive-sulphide mineralization with average grades of 2.34% Ni, 3.25% Cu, 0.10% Co, 0.5 g/t Au, 1.6 g/t Pt and 6.2 g/t Pd.

Todd Keast, P.Geo, is the designated Qualified Person responsible for the preparation of this release and is the Canadian Royalties Project Exploration Geologist. Mr. Keast has managed the onsite exploration and resource development activities on the Raglan South project since Canadian Royalties' first exploration program in 2001.

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 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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