Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

March 30, 2006 15:35 ET

Initial Resource Estimate for the Ivakkak Nickel-Copper-PGE Deposit

MONTREAL, QUEBEC--(CCNMatthews - March 30, 2006) - Canadian Royalties Inc. (TSX:CZZ) reports initial indicated resources at the Ivakkak deposit of 520,000 tonnes grading 1.62% nickel (Ni), 2.06% copper (Cu), 0.07% cobalt (Co), 0.17 g/t gold (Au), 0.78 g/t platinum (Pt) and 3.42 g/t palladium (Pd) (4.4 g/t Pt + Pd + Au (PGE)), and 105,000 tonnes inferred resources grading 1.66% Ni, 1.88% Cu, 0.07% Co, 0.16 g/t Au, 0.79 g/t Pt and 3.40 g/t Pd (4.3 g/t PGE). This increases the total indicated resources on Canadian Royalties' Raglan South Nickel project to 11,088,000 tonnes with a weighted average grade of 1.0% Ni, 1.2% Cu and 3.1 g/t PGE. Inferred resources now stand at 954,000 tonnes at 1.6% Ni, 1.5% Cu and 3.5 g/t PGE.



Highlights

- Total indicated resources on Canadian Royalties' Raglan South
Nickel Project now surpass 11 million tonnes, maintaining the
previous average grades, with the addition of the Ivakkak deposit
resources;

- The Ivakkak deposit was discovered in the latter part of the 2005
exploration season, and the zone remains open to expansion in
several areas. The Ivakkak area will be the subject of follow up
drilling in the 2006 exploration season. In addition, several
targets identified in the 2005 exploration season, in the vicinity
of the Ivakkak deposit and in the same geological setting, are to
be drill tested in the 2006 exploration season.

- The Ivakkak deposit exhibits relatively high average grades,
approaching those of the Mesamax deposit, and conceivably would be
mined by conventional open pit methods in a potential mining
scenario.

- The Raglan South Nickel Project preliminary economic analysis
(scoping study) is nearing completion, and is expected to be
released in April, 2006.

NI 43-101 Resources - Canadian Royalties Raglan South Nickel Project
Ni Cu Co Au Pt Pd PGE
tonnes % % % g/t g/t g/t g/t
Mesamax Deposit
Indicated 1,848,000 2.1 2.6 0.08 0.2 1.0 3.8 5.0
Inferred 30,000 1.6 1.8 0.08 0.1 0.6 5.5 6.2
Ivakkak Deposit
Indicated 520,000 1.6 2.1 0.07 0.2 0.8 3.4 4.4
Inferred 105,000 1.7 1.9 0.07 0.2 0.8 3.4 4.3
Expo Deposit
Indicated 4,445,000 0.8 0.8 0.04 0.1 0.3 1.5 1.9
Inferred 645,000 1.8 1.5 0.08 0.1 0.7 2.5 3.3
TK Deposit
Indicated 90,000 1.6 1.2 0.1 0.1 0.4 2.0 2.5
Inferred 7,000 1.6 1.0 0.11 0 0.4 1.6 2
Mequillon
Deposit
Indicated 4,185,000 0.6 0.9 0.03 0.2 0.7 2.4 3.3
Inferred 167,000 0.8 1.0 0.04 0.2 0.7 2.4 3.3
Weighted Average Total CZZ 43-101 Resources (March 30, 2006)
Indicated 11,088,000 1.0 1.2 0.04 0.2 0.6 2.3 3.1
Inferred 954,000 1.6 1.5 0.07 0.1 0.7 2.7 3.5


Note: The Mequillon resources are partially diluted (for details refer to the press release May 12, 2005).

Ivakkak Deposit Resources

The sulphide mineralization at Ivakkak is hosted in a relatively narrow sill of peridotite-pyroxenite-gabbro composition intruding mafic volcanic rocks and/or a mixed sequence of mafic volcanic rocks and sedimentary rocks. The mineralization consists of massive, net-textured and disseminated sulphides.

The Ivakkak deposit lies approximately 20 kilometres west of the Mequillon deposit, 40 kilometres west of the Expo deposit, and 55 kilometres southwest of Falconbridge's Raglan Mine.

There has been no metallurgical test work conducted on the Ivakkak deposit, however, based on macroscopic evaluations of the diamond drill core, recoveries are expected to be similar to the recoveries demonstrated for the Mesamax and Mequillon deposits. Metallurgical test work will be conducted on samples of Ivakkak drill core in the upcoming year.

The initial resource estimate is summarized in Table 2 below:



Ivakkak NI 43-101 Mineral Resource Estimate

Massive Sulphide Zone
---------------------------------------------------------------
Ni Cu Co Au Pt Pd
Classification tonnes (%) (%) (%) g/t g/t g/t
---------------------------------------------------------------
Indicated 237,000 2.90 3.26 0.12 0.27 1.29 5.22
---------------------------------------------------------------
Inferred 49,000 2.99 2.94 0.12 0.25 1.30 5.04
---------------------------------------------------------------

Net Textured Sulphide Zone
---------------------------------------------------------------
Ni Cu Co Au Pt Pd
Classification tonnes (%) (%) (%) g/t g/t g/t
---------------------------------------------------------------
Indicated 284,000 0.55 1.05 0.03 0.08 0.36 1.92
---------------------------------------------------------------
Inferred 56,000 0.52 0.96 0.03 0.08 0.34 1.98
---------------------------------------------------------------

All Zones
---------------------------------------------------------------
Ni Cu Co Au Pt Pd
Classification tonnes (%) (%) (%) g/t g/t g/t
---------------------------------------------------------------
Indicated 520,000 1.62 2.06 0.07 0.17 0.78 3.42
---------------------------------------------------------------
Inferred 105,000 1.66 1.88 0.07 0.16 0.79 3.40
---------------------------------------------------------------


The resource estimate reported for the Ivakkak deposit was subjected to economic constraints. The undiluted mineral resources are reported at a CDN$40/tonne NSR cut-off value.

Gerald Harron, P.Eng. of G.A. Harron & Associates Inc., and Eugene Puritch, P.Eng., Dr. Wayne D. Ewert, P.Geo, and Tracy Armstrong, P.Geo. of P&E Mining Consultants Inc. are the authors of this report on the estimate of mineral resources at the Ivakkak deposit, are Qualified Persons in accordance with National Instrument (NI) 43-101, and are responsible for the information presented in this press release. 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 values were determined by sodium peroxide fusion with ICP-AES analysis. Platinum, palladium and gold values were determined by 30 gram fire assay with ICP-AES finish. Additional information regarding the deposit will be available in the technical report, which is to be filed on SEDAR by March 31, 2006.

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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