Canadian Royalties Inc./Nunavik Nickel Project Allammaq Update: Drilling Expands Deposit Further to the South

    MONTREAL, Jan. 16 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ)
reports composite assay results for three (3) drillholes that expand the
Allammaq deposit considerably. Thick intervals of high-grade mineralization
were returned from drillholes MX-07-50 and MX-07-51, which intersected
53.95 metres grading 1.17% Nickel and 1.13% Copper, including 29.25 metres
that ran 1.50% Nickel and 1.33% Copper with significant Platinum and Palladium
grades. The holes were drilled from a new set-up located approximately
77 metres south of previously reported holes MX-07-42 to MX-07-46 (see news
releases dated October 24th and November 20th, 2007).

    Table 1 - Composite Assays

    Hole          From        To    Width      Ni      Cu       Pt        Pd
    Number          (m)       (m)      (m)     (%)     (%)    (g/t)     (g/t)
    MX-07-50     78.50    119.85    41.35    1.29    1.10     0.77      3.50
    incl.        93.00    117.90    24.90    1.52    1.32     0.82      3.83
    MX-07-51     79.10    133.05    53.95    1.17    1.13     0.61      2.65
    incl.       100.00    129.25    29.25    1.50    1.33     0.57      2.81
    MX-07-52     80.70    102.65    21.95    0.26    1.50     0.22      0.83
    incl.        84.10     91.60     7.50    0.32    2.79     0.35      1.06

    Table 2 - Drillhole Locations

    Hole          Easting   Northing     Azimuth        Dip      Final Depth
    Number       (UTM NAD83, Zone 18)    (degree)   (degree)              (m)
    MX-07-50     595458E    6827513N         178        -78           182.50
    MX-07-51     595458E    6827513N         178        -66           164.15
    MX-07-52     595458E    6827513N         178        -56           213.00

    The assay backlog has been reduced considerably. Additional results from
Allammaq, exploration drilling and other zones will be reported in a timely
manner as they become available, with assay completion for all drilling
expected during the first quarter of 2008. The company would like to invite
interested parties to its website where an Allammaq presentation 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.: 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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