Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

March 13, 2008 17:58 ET

Canadian Royalties Receives Receipt for its Final Short Form Prospectus

MONTREAL, QUEBEC--(Marketwire - March 13, 2008) - NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Canadian Royalties Inc. (TSX:CZZ) (the "Company" or "Canadian Royalties") announces that it has obtained a receipt for its final short form prospectus delivered by the regulatory authorities in each of the provinces of Canada in respect of an offering of $125 million aggregate principal amount of convertible senior unsecured debentures due March 31, 2015 (the "Debentures"). BMO Capital Markets acted as lead underwriter in connection with the offering on behalf of a syndicate of underwriters which included Raymond James Ltd. and Desjardins Securities Inc. (the "Underwriters").

In connection with the offering, Canadian Royalties has granted the Underwriters an option to purchase up to an additional $12,500,000 in principal amount of Debentures on the same terms and conditions, exercisable up to 30 days following closing of the offering to cover over-allotments and for market stabilization purposes.

The Company plans to use the net proceeds from the offering to pursue the development of the Nunavik Nickel Project and for general corporate and administrative purposes.

The Offering is anticipated to close on or about March 18, 2008, and is subject to certain standard conditions.

This press release is not an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties has initiated the development of an independent, stand-alone nickel-copper mine on its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.

Canadian Royalties currently holds a 100% interest in the Ivakkak deposit, subject to a net smelter royalty ("NSR", refer to news release dated September 21, 2005). Additionally, Canadian Royalties has vested a 70% interest in the Expo-Ungava property; its interest therein shall increase to 80% simultaneously with the creation of a joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava property.

Forward-looking Statements

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 to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's Amended and Restated Annual Information Form for the year ended December 31, 2006 and dated July 10, 2007. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the Nunavik Nickel Project is a technical viable and economic operation, that it can be successfully completed by the Company, that the Company will receive the required permits and access to surface rights, and that the Company can access financing, appropriate equipment, and sufficient labor. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. All forward looking statements speak only as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.

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