Canadian Royalties Inc.

Canadian Royalties Inc.

September 05, 2007 14:48 ET

CORRECTION FROM SOURCE/Canadian Royalties Inc.: Nunavik Nickel Project Exploration Update: Allammaq-A New Discovery

MONTREAL, QUEBEC--(Marketwire - Sept. 5, 2007) - Canadian Royalties Inc. (TSX:CZZ): On the news release issued by the Company on September 4th, 2007, Table 1 - Composite Assays was misaligned. The news release originally issued on September 4th, 2007 with the correctly aligned Table 1 - Composite Assays follows:

Canadian Royalties reports the discovery of a new zone of mineralization located approximately 3 kilometres east of the road-accessible Mesamax deposit, discovered by Canadian Royalties Inc., and slated for development by 2010.

The discovery hole, MX-07-30, intersected 8.30 metres (91.70m to 100.00m) of ultramafic-hosted, predominantly net-textured mineralization in an upper zone that graded 0.60% Ni and 1.22% Cu. Mineralization was intersected again over 6.60 metres (129.10m to 135.70m) in a basal zone which graded 1.68% Ni and 2.34% Cu.

Composite assays for the discovery drillhole and a follow-up hole are reported in the table below. Delineation of the zone is ongoing, and additional assay results will be reported in batches as they become available. The continuity of the mineralisation has now been confirmed with several additional drillholes, and the zone remains open in all directions.

Table 1 - Composite Assays

Hole From To Width Ni Cu Pt Pd
MX-07-30 91.70 100.00 8.30 0.60 1.22 0.44 1.74
129.10 135.70 6.60 1.68 2.34 0.91 2.71
MX-07-31 116.00 141.30 25.30 1.09 2.15 0.82 3.30
incl. 116.00 125.25 9.25 1.33 0.59 0.72 3.46
incl. 125.25 132.40 7.15 0.14 0.86 0.87 4.13
incl. 132.40 141.30 8.90 1.61 4.79 0.89 2.48

Table 2 - Drillhole Location

Hole Easting Northing Azimuth Dip Final Depth
MX-07-30 595559E 6827515N 358 -88 177.00
MX-07-31 595559E 6827515N 358 -75 170.00

The new zone was named Allammaq. This Inuktitut word means "clear sky", reflecting the clear blue skies and warm weather our crews have enjoyed in Ungava this summer, including the day of the discovery. Commenting on the results, Grant Arnold, Canadian Royalties' Vice President of Exploration stated "This new discovery is favourably located close to planned infrastructure and we will accelerate the delineation drilling program in order to ascertain the economic impact Allammaq could have on the entire Nunavik Nickel project. Our extensive properties remain under-explored and the potential for further near-surface discoveries remains excellent".

Exploration drilling on the Canadian Royalties Inc. land package is continuing with a minimum of four (4) operating diamond drills. As of the end of August, Canadian Royalties had completed in excess of 17,000 metres of diamond drilling, which already exceeds the minimum target for the exploration season.

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.

Qualified Persons

Grant Arnold (P.Geo.), 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 press release.

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 kilometers 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 press release dated September 21, 2005) and a 70% interest and a 2% NSR in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits).

Forward-looking Statement

This news release contains certain forward-looking statements. 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. Incorporated herein by reference is the Company's forward looking statement as disclosed in its amended and restated Annual Information Form dated July 10, 2007 for the year ended December 31, 2006. Accordingly, readers should not place undue reliance on forward-looking statements.

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