Canadian Royalties Inc.
TSX : CZZ

Canadian Royalties Inc.

June 12, 2008 15:00 ET

Nunavik Nickel Project Update: Canadian Royalties Receives its Mine Lease for the Expo Site

MONTREAL, QUEBEC--(Marketwire - June 12, 2008) - Canadian Royalties Inc. (TSX:CZZ) is pleased to announce that it has received its Mine Lease from the ministere des Ressources Naturelles et de la Faune du Quebec ("MRNF") for the Expo site of its Nunavik Nickel Project ("NNP").

The Mine Lease was issued following the delivery of the Certificat d'autorisation by the ministere du Developpement durable, de l'Environnement et des Parcs du Quebec which was previously delivered to Canadian Royalties on May 20, 2008.

These authorization certificates and construction permits cover most requirements now to develop, build and exploit the Nunavik Nickel Project. Individual Mine Leases on each of the Ni-Cu-PGE deposits at Mesamax, Ivakkak and Mequillon are expected shortly from the MRNF.

Project Update: Canadian Royalties continues to advance the Nunavik Nickel Project development with approximately $140 million now committed or spent toward advancing the project. An updated Mine Plan has been completed in preparation for discussions and finalization of terms on the debt portion of the project financing.

The first 2008 vessel carrying construction and supply materials for the Nunavik Nickel Project is expected to arrive during the first week of July, 2008. The employee/construction camp is already on site and is being assembled. It is expected to be operational by mid-August. Also, preparation of the Mill and Power Plant foundations has begun.

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 Nunavik, Quebec. Canadian Royalties has now received its Environmental Certificate of Authorization and is proceeding to construction.

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