May 15, 2008 11:15 ET

eResearch Issues Update Report on Royal Roads Corp.; Lowers Target Price

TORONTO, ONTARIO--(Marketwire - May 15, 2008) - Royal Roads Corp. is engaged in the exploration of mineral properties in south-central Newfoundland. The Company owns 100% of the Tulks North property, hosting the Daniels Pond zinc, lead and silver deposit. In addition, it owns 26.4% of Buchans River Ltd., which owns 100% of the Buchans Property, comprising 512 mineral claims at the renowned Buchans base metal camp in Newfoundland.

Despite lowering our 12-months Target Price, essentially reflecting the difficulties being experienced in the junior mining sector, our Recommendation remains Speculative Buy.

The Company has announced its intention to merge with Buchans River. We believe that this merger makes good strategic sense as there will be exploration synergies in the Buchans camp, administrative cost savings and regulatory efficiencies, improved shareholder liquidity as one larger entity rather than two smaller companies, and the potential for a strengthening of the combined financial position.

On the exploration front, the Company released results from several drill holes on the Tulks North property, and announced the discovery of new base metal sulphide mineralization. The next priorities include reviewing previous exploration results to determine additional target areas, as management expands its exploration program throughout the large Tulks North property.

Regarding the Daniel Ponds deposit, the Company indicated that it will focus its efforts on investigating the potential for an open-pit mine in partnership with other resources in the region, to gain economies of scale.

This Press Release was prepared by eResearch and was not vetted by Royal Roads Corp. Further, the Recommendation and Target Price contained in this Press Release and in the Update Report are strictly those of eResearch and, due to securities laws, are not endorsed by Royal Roads Corp.

eResearch is Canada's primary source for independent, quality, investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential of reaching millions of global investors through our extensive electronic distribution network.

Royal Roads Corp. paid eResearch a fee of $20,000 + GST to conduct research on the Company, on an Annual Continuous Coverage basis.

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