Royal Roads announces that creditors of ScoZinc intend to challenge security granted to Royal Roads



    Trading Symbol: RRO - TSX-V
    Shares Outstanding: 112,127,490

    HALIFAX, Jan. 22 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads")
announces that the Supreme Court of Nova Scotia ("Court") has granted a
temporary lifting of the creditor protection order granted to ScoZinc Limited
("ScoZinc") pursuant to the Companies' Creditors Arrangement Act ("CCAA") to
allow certain unsecured creditors of ScoZinc to commence an action to
challenge the security granted by ScoZinc in favour of Acadian Mining
Corporation (ADA-TSX) and Royal Roads.
    As announced in the news release of Royal Roads dated December 1, 2008,
there were inter-company advances between Royal Roads and Acadian Mining
Corporation ("Acadian") and ScoZinc, a wholly-owned subsidiary of Acadian,
during the year 2008. At November 28, 2008, the intercompany advances stood at
an amount due to Royal Roads of $2,292,460. On November 28, 2008, the parties
entered into formal documentation with respect to the loan and, to secure the
loan, Royal Roads was granted a first, fixed and floating charge on all of the
assets of Acadian and its subsidiaries, including a fixed and floating charge
on all of the assets of ScoZinc. The loan bears interest at 10% per annum,
payable quarterly, and is due on November 30, 2009.
    On December 21, 2008, the Court granted ScoZinc a creditor protection
order for 30 days pursuant to the CCAA. On January 20, 2009, the court granted
ScoZinc an extension to its creditor protection for an additional period
expiring on March 20, 2009. During this time, ScoZinc will continue to review
the various alternatives for the restructuring of its affairs with the goal of
formulating a plan of arrangement or compromise that will be acceptable to its
creditors and to the Court.
    On January 20, 2009, the Court also granted certain creditors of ScoZinc
an order temporarily lifting the stay Order to permit them to commence an
action to challenge the security granted to Royal Roads. If the creditors were
not permitted to commence their action, there was a concern they would be
denied the statutory limitation/presumption period available under the
Assignments and Preferences Act (Nova Scotia), thereby causing them prejudice
or procedural hardship. The granting of the order to lift the stay Order is
not an adjudication on the merits of the claims and ScoZinc reserves all of
its defence rights in this regard. ScoZinc consented to the temporary lifting
of the stay Order, on the terms set out in the order relating to the above
noted circumstances. Both Royal Roads and ScoZinc reserve all of their
respective rights of defence in this regard.

    About Royal Roads
    -----------------

    Royal Roads is a resource company based in Halifax, Nova Scotia, Canada
and is focused on exploring and developing base metal properties in the famous
Buchans and Victoria Lake mining camps in central Newfoundland and Labrador,
Canada. Royal Roads controls mineral properties totaling 33,700 hectares,
including the historic Buchans mines, the Lundberg deposit in the Buchans camp
and the Daniels Pond deposit in the Victoria Lake camp. The Company also has
joint venture interests on various Newfoundland mineral properties with
Prominex Resource Corp., Playfair Mining Ltd., Benton Resources Corp., and
Golden Dory Resources Ltd. Royal Roads is 29.18% controlled by Acadian Mining
Corporation, a Halifax based resource company developing gold and base metal
properties, including the Scotia Mine (lead and zinc) in Nova Scotia.

    Forward Looking Statements
    --------------------------

    Certain information regarding Royal Roads contained herein may constitute
forward-looking statements within the meaning of applicable securities laws.
Forward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are not
statements of fact. Although Royal Roads believes that the expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such expectations will prove to have been correct. The Company
cautions that actual performance will be affected by a number of factors, many
of which are beyond Royal Roads' control, and that future events and results
may vary substantially from what both companies currently foresee. Royal
Roads' forward-looking statements are expressly qualified in their entirety by
this cautionary statement.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00008176E




For further information:

For further information: Will Felderhof, President & CEO of Royal Roads,
will@royalroadscorp.ca; David Felderhof, Vice-President of Royal Roads,
david@royalroadscorp.ca, (902) 444-3637

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ROYAL ROADS CORP.

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