Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

April 16, 2009 14:23 ET

Canadian Royalties/Nunavik Nickel Project Allammaq Update: Multiple High-Grade Sulphide Intercepts at Allammaq; Delineation Drilling Results Released

MONTREAL, QUEBEC--(Marketwire - April 16, 2009) - Canadian Royalties Inc. (the "Company")(TSX:CZZ) announces the following suite of Allammaq drilling results from its 2008 Nunavik Nickel exploration program. Highlights include the thick zone-expanding intercept of high-grade mineralization returned by hole MX-08-88 on section 2400E, which intersected 30.35 metres grading 1.45% Nickel, 2.21% Copper, 0.54 g/t Platinum and 2.35 g/t Palladium. Other results include those from hole MX-08-83 which returned a 7.60 metre intercept running 2.19% Nickel, 2.24% Copper, 0.88 g/t Platinum and 5.38 g/t Palladium within an 11.30 metre zone of mineralization grading 1.76% Nickel, 2.10% Copper, 0.70 g/t Platinum and 4.51 g/t Palladium, and those from hole MX-08-107 that intersected a 10.40 metre zone grading 1.75% Nickel, 1.26% Copper, 0.47 g/t Platinum and 2.01 g/t Palladium.

The Allammaq deposit was discovered in 2007 and is favourably located approximately 3 kilometres east of the road-accessible Mesamax deposit. As part of the Company's 2008 exploration objectives, the Allammaq deposit was the target of drilling to delineate deposit extensions and definition drilling to upgrade resource classifications.

Drilling results are reported for a total of twenty-eight (28) delineation drillholes; this completes the Company's reporting of the 2008 drill results from Allammaq. As a result, the Company anticipates completing a revised NI 43-101 compliant resource estimate for Allammaq that incorporates all recent results. The following table contains the details of the final 28 delineation drillholes pertaining to the 2008 Allammaq drill program:



Table 1 - Allammaq Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
-------------------------------------------------------------
MX-08-81 145.75 152.45 6.70 0.57 2.79 0.35 1.60
including
MX-08-81 148.55 152.45 3.90 0.84 4.39 0.47 2.26
-------------------------------------------------------------
MX-08-82 145.55 144.85 0.30 2.59 3.07 0.63 8.73
-------------------------------------------------------------
MX-08-83 152.60 163.90 11.30 1.76 2.10 0.70 4.51
including
MX-08-83 155.40 163.00 7.60 2.19 2.24 0.88 5.38
-------------------------------------------------------------
MX-08-84 149.30 150.75 1.45 2.74 5.32 0.79 5.04
-------------------------------------------------------------
MX-08-85 140.00 144.80 4.80 1.35 3.58 0.41 2.38
-------------------------------------------------------------
MX-08-86 141.60 158.05 16.45 0.87 2.11 0.49 1.87
including
MX-08-86 142.30 150.00 7.70 1.14 0.95 0.55 1.96
-------------------------------------------------------------

MX-08-87 146.40 154.55 8.15 1.01 1.93 0.58 2.63
-------------------------------------------------------------
MX-08-88 131.45 161.80 30.35 1.45 2.21 0.54 2.35
and
MX-08-88 167.25 170.30 3.05 1.68 3.79 0.42 2.58
-------------------------------------------------------------
MX-08-89 152.50 155.75 3.25 1.20 0.41 0.32 1.43
and
MX-08-89 178.00 202.60 24.60 1.10 0.96 0.56 2.57
including
MX-08-89 192.50 202.60 10.10 1.89 0.79 0.76 3.87
-------------------------------------------------------------
MX-08-90 211.50 213.15 1.65 0.70 0.63 0.25 1.30
-------------------------------------------------------------
MX-08-91 and MX-08-92 No significant results
-------------------------------------------------------------
MX-08-93 176.00 181.00 5.00 0.63 1.06 0.24 1.13
and
MX-08-93 190.30 195.10 4.80 1.03 1.37 0.21 1.19
-------------------------------------------------------------
MX-08-94 148.35 150.25 1.90 1.81 2.03 0.78 4.18
-------------------------------------------------------------
MX-08-95 166.65 177.40 10.75 1.11 0.75 0.43 1.79
-------------------------------------------------------------

MX-08-96 125.24 130.75 5.51 1.29 4.20 0.72 2.23
-------------------------------------------------------------
MX-08-97 123.85 128.15 4.30 1.39 0.87 0.55 1.55
-------------------------------------------------------------
MX-08-98 99.00 103.20 4.20 0.76 0.54 0.26 1.59
-------------------------------------------------------------
MX-08-99 157.00 164.90 7.90 0.35 0.49 0.31 1.33
-------------------------------------------------------------
MX-08-100 139.65 140.30 0.65 1.80 0.30 0.24 2.21
-------------------------------------------------------------
MX-08-101 112.00 129.85 17.85 0.74 0.88 0.61 2.66
including
MX-08-101 124.00 127.25 3.25 1.63 0.43 0.65 3.09
-------------------------------------------------------------
MX-08-102 117.70 124.90 7.20 0.95 1.38 0.56 4.88
including
MX-08-102 120.70 124.90 4.20 1.21 1.87 0.72 7.48
-------------------------------------------------------------
MX-08-103 No significant results
-------------------------------------------------------------
MX-08-104 120.00 141.10 20.10 0.84 1.65 0.42 2.14
including
MX-08-104 127.50 141.10 12.60 1.11 2.13 0.56 2.68
and
MX-08-104 144.95 165.55 20.60 0.63 0.60 0.28 1.21
-------------------------------------------------------------
MX-08-105 167.40 181.85 14.45 0.32 0.41 0.23 1.08
-------------------------------------------------------------
MX-08-106 139.20 146.00 6.80 0.66 1.53 0.47 2.45
-------------------------------------------------------------

MX-08-107 156.30 162.70 6.40 0.86 2.46 0.27 1.35
and
MX-08-107 173.40 183.80 10.40 1.75 1.26 0.47 2.01
-------------------------------------------------------------
MX-08-108 Hole abandoned
-------------------------------------------------------------

Table 2 - Allammaq Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (o) (o) (m)
--------------------------------------------------------------
MX-08-81 595457E 6827643N 178.0 -76 174.30
MX-08-82 595457E 6827643N 178.0 -86 171.00
MX-08-83 595506E 6827644N 178.0 -64 180.00
MX-08-84 595506E 6827645N 178.0 -81 177.00
MX-08-85 595506E 6827645N 178.0 -89 180.00
MX-08-86 595555E 6827645N 178.0 -63 201.00
MX-08-87 595555E 6827645N 178.0 -71 201.00
MX-08-88 595555E 6827645N 178.0 -85 213.00
MX-08-89 595608E 6827672N 178.0 -67 231.00
MX-08-90 595608E 6827672N 178.0 -79 237.00
MX-08-91 595608E 6827672N 178.0 -88 237.00
MX-08-92 595555E 6827695N 178.0 -77 228.00
MX-08-93 595660E 6827510N 358.0 -66 351.00
MX-08-94 595410E 6827580N 178.0 -81 171.00
MX-08-95 595660E 6827510N 358.0 -60 231.00
MX-08-96 595383E 6827539N 178.0 -83 150.00
MX-08-97 595383E 6827539N 178.0 -72 141.00
MX-08-98 595383E 6827539N 178.0 -60 174.00
MX-08-99 595660E 6827510N 358.0 -73 210.00
MX-08-100 595660E 6827510N 358.0 -53 186.00
MX-08-101 595582E 6827621N 178.0 -59 174.00
MX-08-102 595582E 6827621N 178.0 -65 201.00
MX-08-103 595632E 6827623N 178.0 -69 201.75
MX-08-104 595582E 6827621N 178.0 -77 192.00
MX-08-105 595632E 6827623N 178.0 -76 210.00
MX-08-106 595581E 6827621N 178.0 -86 201.00
MX-08-107 595632E 6827623N 178.0 -85 210.00
MX-08-108 595632E 6827623N 178.0 -89 108.00
--------------------------------------------------------------


Section 2225E: Holes MX-08-96 to 98 were collared as part of a fan of drilling that targeted the extension of Allammaq mineralization west of section 2250E. All three holes intersected significant mineralization but indicate a waning of mineralization westwards of the section.

Section 2250E: Hole MX-08-94 was drilled to test for a northern extension of Allammaq mineralization on section 2250E. The 1.90 metre high-grade intercept returned by the hole indicates a northward extension of high-grade mineralization on that section.

Section 2300E: Hole MX-08-81 and 82 were drilled to test for extensions of Allammaq mineralization northwards along section 2300E. A significant width of mineralization was returned by hole 81, while a narrow interval of high-grade vein-type PGE-rich mineralization was returned by hole 82.

Section 2350E: Similar to drilling executed on other sections, holes MX-08-83 to 85 were drilled to test for northern extensions of Allammaq mineralization on section 2350E. All three holes intersected high-grade Nickel and Copper-rich mineralization, with significant widths returned in holes 83 and 85.

Section 2400E: Holes MX-08-86 to 88 were drilled as part of a fan that targeted Allammaq mineralization on section 2400E. The drilling was conducted at an azimuth of 178 degrees and was designed to complement drilling conducted at 358 degrees during 2007. All three holes intersected substantial thicknesses of high-grade mineralization, including hole MX-08-88, which extended the limits of the zone northwards on that section with a thick, high-grade intercept. Hole MX-08-92 was drilled at a collar location north of the previous fan; the hole intersected neither the favourable ultramafic nor significant sulphides and appears to have established the northern limit of the Allammaq deposit mineralization on section 2400E.

Section 2425E: Holes MX-08-101 and 102, 104 and 106 were drilled as part of a fan of infill holes that were designed to increase drilling density in view of upgrading resource classifications in the eastern portion of the deposit. The grades and thicknesses intersected helped to confirm the continuity of the mineralization returned by wide-spaced holes in 2007.

Section 2450E: Holes MX-08-89 to 91 inclusive were drilled as part of the program that was designed to increase drilling density in view of upgrading resource classifications in the eastern portion of the deposit. All holes were drilled along an azimuth of 178 degrees and were designed to complement drilling at 358 degrees, conducted during 2007.

Section 2475E: Holes MX-08-103, 105 and 107 were drilled as a fan of holes that were designed to test for an eastern extension of Allammaq mineralization while at the same time increasing drill density in order to upgrade resource classifications in the eastern portion of the deposit. All drilling was conducted along an azimuth of 178 degrees, the preferred drilling orientation. The best results were obtained in hole MX-08-107, which returned a 10.40 metre intercept grading 1.75% Nickel and 1.26% Copper. Further drill follow-up is required in order to determine the northern limits of the mineralized zone on this section.

Section 2500E: Holes MX-08-93, 95, 99 and 100 were drilled to test for eastern extensions of Allammaq mineralization on section 2500E. Due to logistical considerations, all holes were drilled along an azimuth of 358 degrees. The best results on this section were obtained in hole MX-08-95, which returned a 10.75 metre intercept grading 1.11% Nickel and 0.75% Copper.

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.

Corporate Developments

Canadian Royalties Inc. is pleased to announce the appointment of Hugh Blakely, C.A. as Interim Chief Financial Officer (CFO). Prior to joining Canadian Royalties, he held the position of Senior Vice-President and Chief Financial Officer of Heico's Canadian Steel operations, operating under the name of Ivaco (formerly Ivaco Inc, a public company).During his tenure at Ivaco Inc, Mr. Blakely held a number of senior financial positions and more recently, he worked in tandem with the Chief Restructuring Officer and the Company's financial advisors in managing the restructuring and sale of the businesses to Heico.

The Corporation would like to thank Daniel Poisson for his dedication and exemplary performance while acting as Interim CFO. The Corporation looks forward to working with Mr. Poisson in the future in his new role as a financial consultant and wishes him well in his future endeavours.

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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