Update on proposed combination with Buchans River Ltd.



    Trading Symbol: RRO - TSX-V
    Shares Outstanding: 73,681,909

    HALIFAX, March 27 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads" or
"Company") announces that management has reported to the Board of Directors
that it has completed its analysis and concluded that there is a strong
business case for considering the combination of the assets and operations of
the Company with those of Buchans River Ltd. ("Buchans River") for the
ultimate purpose of enhancing shareholder value in both companies.
    Following this report, the Board of Directors formed an independent
committee whose mandate is to investigate a possible combination of the two
companies. The independent committee has, however, decided to defer
discussions until such time as Buchans River is in a position to announce a
resource on its Lundberg Zone, currently subject to a 6,000 metre drill
program designed to define an inferred resource. Buchans River expects to be
in a position to announce the resource later this year.
    It is important to note that there can be no assurances that any
transaction may arise from these considerations. Also, should the Board of
Directors, on the advice of the Independent Committee, decide to proceed with
the combination, it would be subject to receipt of all necessary regulatory,
court and shareholder approvals.

    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 central
Newfoundland and Labrador, Canada. Royal Roads and Buchans River, its 26.39%
owned affiliated company, together control a total of 33,700 hectares within
central Newfoundland and Labrador's Victoria Lake and Buchans mining camps,
including the historic Buchans mine (owned by Buchans River) and the Daniels
Pond deposit (owned by Royal Roads). Royal Roads is 44.40% controlled by
Acadian Mining Corp., 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 the Company 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 the Company 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 the Company's control, and that future events and results
may vary substantially from what the Company currently foresees. The Company's
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: Warren G. MacLeod, President & CEO or David
Felderhof, Vice-President, (902) 444-3637, Halifax, Nova Scotia

Organization Profile

ROYAL ROADS CORP.

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