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Canadian Royalties Inc.: Nunavik Nickel Project Exploration Update

Posted on: Thursday, 13 December 2007, 09:00 CST

Canadian Royalties Inc. (TSX: CZZ) outlines the objectives for an expanded 2008 exploration program and near-term milestones related to the compilation of 2007 exploration results. The following objectives and plans are based on the excellent results obtained during the 2007 exploration season, which was likely the most successful drill campaign ever conducted on the property.

(1) Pending Assays: A substantial assay backlog remains from the 2007 drill program. The Company will continue to release assay results from Allammaq, exploration drilling, and other zones in batches as they become available.

(2) Allammaq Resource Estimate: The Company intends to produce an initial resource estimate for this new high-grade deposit by the end of March 2008. Receipt of all assay data is required before this exercise can begin.

(3) Expo Resource Update: A revision to the Expo resource estimate is planned and will incorporate 2007 data obtained on sections previously identified as lacking adequate drilling information. The results will be used to refine and optimize Whittle open-pit shells in view of positively impacting strip ratios initially estimated in the June 2007 feasibility study.

(4) Winter Geophysics Program: A winter geophysics program is planned to be performed on high priority target areas in advance of the 2008 drill program.

(5) 2008 Exploration Program

Allammaq: Delineation drilling thus far has outlined substantial thicknesses of high-grade mineralization over a minimum of 200 metres of strike length, with dip length exceeding 150 metres on certain sections. Delineation diamond drilling was conducted at 50 metre centres and is incomplete as the deposit remains open. Further delineation is planned for the Allammaq deposit in order to expand known resources, and to upgrade most of the resource to the Measured and Indicated categories.

Puimajuq: Exploration drilling has returned significant Nickel and Copper values in four (4) drillholes that were drilled into this new, near-surface high-grade discovery. Delineation of the zone is required with sufficient drill density so as to permit a resource calculation with the majority of the tonnage classed in the Indicated category.

Perform in excess of 25,000 metres of diamond drilling in a program that balances both grass-roots exploration and resource drilling.

Mr. Richard Faucher, President and CEO, comments on exploration progress: "We are extremely pleased with our discovery rate and our ability to grow resources, which once again demonstrates value creation through exploration".

In light of the Company's continued exploration successes, the Company wishes to recognize the contributions of its exploration team by making a performance bonus payment to members thereof in the aggregate amount of $690,000, a portion of which will be paid to a non arm's length party to the Company. The foregoing bonuses shall be paid by the Company in cash on or before December 31, 2007 so as to ensure that payments are recorded by the Company prior to the end of fiscal year 2007.

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 in a 70% interest in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits), where its interest shall be increased to 80% simultaneously with the creation of the joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava Property.

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. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's 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.

 Contacts: Canadian Royalties Inc. W. Grant Arnold Vice-President Exploration 514-879-1688 or Toll free: 877-879-1688 grant.arnold@canadianroyalties.com  Canadian Royalties Inc. C. Jens Zinke Vice-President Business Development 514-879-1688 or Toll free: 877-879-1688 jens.zinke@canadianroyalties.comwww.canadianroyalties.com  Renmark Financial Communication Jason Roy, Account Manager 514-939-3989 jroy@renmarkfinancial.com

SOURCE: Canadian Royalties Inc.

Source: MARKET WIRE

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