Canadian Royalties Inc./Nunavik Nickel Project Allammaq Update: Deposit Expansion Continues; 3.63% Nickel and 3.21% Copper Intersected over 9.80 Metres

    MONTREAL, Jan. 21 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ)
reports composite assay results for four (4) drillholes at the company's
recent Allammaq discovery that confirm and extend the thick core of
mineralization, previously identified on eastern drill fans, a further
50 metres westwards on section 2250E. Hole MX-07-57 intersected 44.15 metres
of predominantly net-textured mineralization that ran 1.19% Nickel and 1.06%
Copper, including 8.45 metres of higher-grade sulphides that averaged 2.10%
Nickel and 1.85% Copper with significant Platinum and Palladium values. The
thick intercept returned by this hole bodes well for future southward
expansion of the zone, an area that will be drill tested in 2008.
    Of particular note is the presence of a traceable basal zone of
high-grade Nickel, Copper and Platinum group element (PGE) mineralization,
also present in previously reported hole MX-07-55, the initial hole from this
fan of drilling (see news release dated November 20th, 2007). An example of
this mineralization is highlighted in the results from hole MX-07-58 which
intersected 18.35 metres of net-textured and massive sulphide mineralization
grading 2.52% Nickel and 2.41% Copper, including a 9.80 metre zone of massive
sulphides that ran 3.63% Nickel and 3.21% Copper with enriched Platinum and
Palladium values.
    High-grade mineralization has been intersected on five (5) 50-metre
spaced sections which can now be projected over 250 metres of strike length.
The company plans to produce an initial NI43-101 compliant resource estimate
of the Allammaq deposit by the end of the Q1 2008.

    Table 1 - Composite Assays

    Hole          From        To    Width      Ni     Cu       Pt         Pd
    Number          (m)       (m)      (m)     (%)    (%)    (g/t)      (g/t)
    MX-07-56    101.65    138.10    36.45    1.32   1.90     0.62       3.23
    incl.       129.90    137.80     7.90    2.75   2.77     0.82       4.29
    MX-07-57    106.00    150.15    44.15    1.19   1.06     0.74       3.92
    incl.       141.70    150.15     8.45    2.10   1.85     0.97       4.36
    MX-07-58    119.55    137.90    18.35    2.52   2.41     1.06       3.35
    incl.       122.05    131.85     9.80    3.63   3.21     1.48       3.34
    MX-07-59    133.00    143.70    10.70    0.76   2.04     0.29       1.26

    Table 2 - Drillhole Locations

    Hole          Easting   Northing     Azimuth        Dip      Final Depth
    Number       (UTM NAD83, Zone 18)    (degree)   (degree)              (m)
    MX-07-56     595407E    6827592N         178        -57           180.00
    MX-07-57     595407E    6827592N         178        -46           150.75
    MX-07-58     595407E    6827592N         178        -79           201.00
    MX-07-59     595407E    6827592N         178        -89           180.00

    Mr. Richard Faucher, President and CEO comments on the latest results:
"The discovery of Allammaq is an extremely positive development for the
Nunavik Nickel project as it is favourably located close to planned
infrastructure, has thick high-grade intercepts and demonstrable tonnage
potential. The integration of Allammaq in the mine plan with Mesamax and
Ivakkak will provide many years of high-grade mill feed having excellent
returns. Exploration for further extensions of Allammaq mineralization will be
a significant component of the 2008 exploration plan as well as the complete
delineation of our second 2007 discovery, Puimajuq".
    The company would like to invite interested parties to its new website
where a revised Allammaq presentation, including geological sections, is now

    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. The company 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 Persons

    W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian
Royalties Inc., is a Qualified Person in accordance with National Instrument
(NI) 43-101, and is responsible for the geological information presented in
this news release.

    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

For further information:

For further information: Canadian Royalties Inc.: Richard R. Faucher,
President & CEO, Toll free: (877) 879-1688,;; W. Grant
Arnold, Vice-President Exploration, (514) 879-1688, Toll free: (877) 879-1688,; C. Jens Zinke, Vice-President Business
Development, (514) 879-1688, Toll free: (877) 879-1688,; Renmark Financial Communication: Jason Roy,
Account Manager, (514) 939-3989,

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