Canadian Royalties Inc.: Nunavik Nickel Project Progress Update



    MONTREAL, Jan. 9 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ)
provides the following progress report in respect of its Nunavik Nickel
Project, where scheduling and budget are on target, as outlined in the
Company's Bankable Feasibility Study ("BFS")(1) dated June 2007.

    Budget

    It is anticipated that the Company will meet its target budget as defined
in the BFS completed by SNC-Lavalin Group in June 2007. The Company has
purchased or ordered all long-lead-time items such as ball-mills, generator
sets, and the mining fleet, as well as such items which have been determined
to be critical for the timely start of construction, such as a camp which is
to provide accommodations for up to 340 workers. These account for
approximately $92 million in expenses and represent 33% of the project's
direct costs of $280 million, and 20% of the aggregate project costs of
$465 million. The Company expects both commitments and expenses to remain
within the forecasted budget as development progresses.

    Scheduling

    Additionally, scheduling in relation to the project as detailed in BFS is
on target. Permitting is proceeding normally: the Environmental Impact
Assessment Study (EIAS) has to date been reviewed by the relevant
environmental authorities and frequent exchanges have taken place between the
Company and such authorities where additional answers and / or engineering
details have been provided by the Company. In early December the company held
various open house meetings to inform the population inhabiting the
communities in the vicinity of the project. Further, the Company advises that
the public hearings which are to be presided by the environmental authorities
have been scheduled for early February of 2008.
    In anticipation of the timely start of the project's construction phase,
the Company continues to grow its project team through the addition, in the
first quarter of 2008, of both site construction supervisors and managers.
    To date a total of four (4) vessels comprising the majority of the camp's
modules, 80% of the mine fleet, a number of generators, and other materials
essential for the initiation of construction have been delivered to site. Two
additional vessels transporting construction materials have also been
scheduled for early July-08 deliveries. Following the delivery of the
environmental Certificate of Authorization (C.A.), it is anticipated that
construction will commence during the second quarter of 2008.

    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.

    (1) A bankable (full) feasibility study is a comprehensive analysis of a
    project's economics (+/- 15% precision) and is used by the banking
    industry for financing purposes.




For further information:

For further information: Canadian Royalties Inc.: Richard R. Faucher,
President and CEO, (514) 879-1688, Toll free: (877) 879-1688,
richard.faucher@canadianroyalties.com; C. Jens Zinke, Vice-President Business
Development, (514) 879-1688, Toll free: (877) 879-1688,
jens.zinke@canadianroyalties.com; www.canadianroyalties.com; Renmark Financial
Communication: Jason Roy, Account Manager, (514) 939-3989,
jroy@renmarkfinancial.com

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CANADIAN ROYALTIES INC.

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