Canadian Royalties/Nunavik Nickel Project Exploration Update: Extension of High-Grade Mesamax Deep Zone; Anomalous Rhodium Detected at Allammaq



    MONTREAL, June 17 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ)
("Canadian Royalties" or the "Corporation") is pleased to report the
down-plunge extension of a zone (the "Deep Zone") of high-grade nickel,
copper, platinum, and palladium mineralization, which commences approximately
100 metres below the bottom of the proposed Mesamax open pit. The extension of
the Deep Zone includes a 6.85 metre interval of predominantly net-textured
mineralization in diamond drill hole MXNW-07-156 that assayed 1.15% Nickel,
1.01% Copper, 0.55 g/t Platinum and 2.42 g/t Palladium.

    Mesamax Deep Zone

    During 2006 Canadian Royalties tested for the existence of additional
mineralization at depth along a northeast dipping fault. Several holes were
drilled near the centre of the Mesamax deposit, intersecting the interpreted
fault at depths ranging from 100 metres to 250 metres below surface
(approximately 20 to 170 metres immediately below the bottom of the proposed
Mesamax open pit). Follow-up testing during 2007 consisted of four (4) holes
of which only one attained its target (MXNW-07-156). The drilling focused on
section 1000W, located 50 metres east of section 1050W where several 2006
drillholes intersected mineralization over substantial widths (i.e.: 3.22% Ni
and 2.68% Cu over 4.50 metres, and in a second lower zone: 1.04% Ni and
0.52% Cu over 7.95 metres in hole MXNW-06-145).
    Composite assay values and drill locations from the 2007 drillholes at
the Mesamax Deep Zone are summarized in the tables below:

    
    Table 1 - Mesamax Deep Zone Composite Assays

    Hole            From        To    Width      Ni      Cu      Pt      Pd
    Number            (m)       (m)      (m)     (%)     (%)   (g/t)   (g/t)
    -------------------------------------------------------------------------
    MXNW-07-154                             Frozen hole; target not attained
    -------------------------------------------------------------------------
    MXNW-07-155    198.50    200.10     1.60    1.53    1.99    0.85    2.20
                               Vein assay; Frozen hole & target not attained
    -------------------------------------------------------------------------
    MXNW-07-156    244.80    251.65     6.85    1.15    1.01    0.55    2.42
    -------------------------------------------------------------------------
    MXNW-07-157                      Incomplete hole; to be deepened in 2008
    -------------------------------------------------------------------------


    Table 2 - Mesamax Deep Zone Drillhole Locations

    Hole            Easting   Northing     Azimuth        Dip    Final Depth
    Number       (UTM NAD83,   Zone 18)    (degree)   (degree)            (m)
    -------------------------------------------------------------------------
    MXNW-07-154     592683E   6828160N       208.7        -62         117.00
    MXNW-07-155     592683E   6828159N       208.7        -62         320.45
    MXNW-07-156     592637E   6828082N       208.7        -70         309.00
    MXNW-07-157     592674E   6828050N       208.7        -81         132.00
    -------------------------------------------------------------------------
    

    Inadequate drill data exists to fully complete the evaluation of the
Mesamax Deep Zone. Further delineation of the zone is proposed as a component
of the 2008 exploration program.

    Allammaq Rhodium

    Canadian Royalties recently re-analyzed four (4) Allammaq drillholes for
rhodium content. Anomalous rhodium values were returned from all four (4)
holes including MX-07-58, which intersected 18.35 metres of mineralization
that graded 0.254 g/t rhodium; of particular note: individual samples from
hole MX-07-32 ran up to 0.848 g/t.
    Rhodium consumption is dominated by catalytic applications where it is
used with platinum and palladium to control exhaust emissions in gasoline and
diesel-powered vehicles. As of June 16th the price of rhodium was
$9,730 US/oz, or more than $312 per gram (source: www.kitco.com).

    
    Table 3 - Allammaq Composite Assays
    (Ni, Cu, Pt and Pd previously reported)

    Hole           From       To    Width    Ni     Cu     Pt    Pd      Rh
    Number           (m)      (m)     (m)    (%)    (%)  (g/t) (g/t)   (g/t)
    -------------------------------------------------------------------------
    MX-07-32      145.15   170.90   25.75   2.10   2.29   0.61  2.97   0.232
    -------------------------------------------------------------------------
    MX-07-35      125.00   149.85   24.85   1.45   1.02   1.06  3.65   0.093
    incl.         135.00   149.85   14.85   1.85   1.29   1.44  4.53   0.080
    -------------------------------------------------------------------------
    MX-07-42      107.00   144.15   37.15   1.67   2.20   1.11  4.20   0.165
    -------------------------------------------------------------------------
    MX-07-58      119.55   137.90   18.35   2.52   2.41   1.06  3.35   0.254
    -------------------------------------------------------------------------


    Table 4 - Allammaq Drillhole Locations (previously reported)

    Hole            Easting   Northing     Azimuth        Dip    Final Depth
    Number       (UTM NAD83,   Zone 18)    (degree)   (degree)            (m)
    -------------------------------------------------------------------------
    MX-07-32        595559E   6827515N         358        -62         244.10
    MX-07-35        595509E   6827513N         358        -75         240.00
    MX-07-42        595457E   6827590N         178        -70         237.00
    MX-07-58        595407E   6827592N         178        -79         201.00
    -------------------------------------------------------------------------
    

    The economic significance of elevated rhodium content at Allammaq has yet
to be ascertained, but suggests that further analytical and metallurgical work
is warranted. The Corporation intends to continue its rhodium re-sampling
program and anticipates expanding it to other deposits forming part of the
Nunavik Nickel project.

    Sampling and Assays

    Core samples are either split or sawn on-site, individually sealed in
bags and shipped off-site on a regular basis to the ALS Chemex laboratory in
Val-d'Or, Quebec for sample preparation. Analyses are performed at the ALS
Chemex laboratory in Vancouver, British Columbia. Base metal analyses
including nickel and copper are determined by sodium peroxide fusion with
ICP-AES analysis. Platinum, palladium and gold analyses are determined by fire
assay and ICP-AES finish. Where requested, rhodium analyses were obtained
using ALS Chemex's Rh-MS25 fire assay with gold collection and ICPMS finish
analytical method. The Corporation's quality control (QA/QC) program includes
regular insertions of blanks and standards. Reported values are uncut and
composite intervals are reported as length along the core axis.

    Qualified Person

    W. Grant Arnold (P.Geo.), Vice-President, Exploration for Canadian
Royalties, is a Qualified Person (as such term is defined in National
Instrument 43-101-Standards of Disclosure for Mineral Projects), and is
responsible for the geological information presented herein.

    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 Mine Lease for the Expo site and is proceeding to
construction.

    Forward-looking Statement

    This news release contains certain forward-looking statements or forward
looking-information. These forward looking statements are subject to a variety
of risks and uncertainties beyond the Corporation'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
Corporation's Annual Information Form for the year ended December 31, 2007 and
dated March 31, 2008. Further, forward-looking information is in addition
based on various assumptions, including, without limitation, the expectation
and beliefs of management, the assumed long term price of nickel, that the
Nunavik Nickel project is a technical viable and economic operation, that it
can be successfully completed by the Corporation, that the Corporation will
receive the required permits and access to surface rights, and that the
Corporation can access financing, appropriate equipment, and sufficient
labour. Should one or more of these risks and uncertainties materialize, or
should the underlying assumption prove incorrect or different, actual results
may vary materially from those described in the forward-looking statements.
All forward looking statements speak only as of the date of this news release,
accordingly, readers should not place undue reliance on forward-looking
statements.
    For additional information please visit our website at
www.canadianroyalties.com




For further information:

For further information: Canadian Royalties Inc.: W. Grant Arnold,
Vice-President Exploration, (514) 879-1688, Toll free: (877) 879-1688,
grant.arnold@canadianroyalties.com; Richard R. Faucher, President & CEO, (514)
879-1688, Toll free: (877) 879-1688, richard.faucher@canadianroyalties.com,
www.canadianroyalties.com; Renmark Financial Communication: Jason Roy, Account
Manager, (514) 939-3989, jroy@renmarkfinancial.com

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