Canadian Royalties Inc./Nunavik Nickel Project: Drilling Confirms Further Mineral Potential of Allammaq-Mesamax Dyke System

    MONTREAL, Feb. 7 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ) reports
composite assay results from twelve (12) exploration drillholes along the
ultramafic dyke system which hosts the Mesamax and Allammaq deposits. The
majority of these drillholes returned significant results including several
high-grade intercepts (see drillholes MX-07-60 & 62). These results
demonstrate further exploration potential along this highly prospective
geological trend. Upcoming exploration campaigns will be designed to unlock
additional mineral potential in this area that could become a key mining
centre of the Nunavik operation.

    Table 1 -Composite Assays

    Hole             From        To     Width     Ni      Cu      Pt     Pd
    Number             (m)       (m)       (m)    (%)     (%)   (g/t)   g/t)
    MX-07-25        10.75     16.70      5.95   0.35    0.88    0.17   0.87
    MX-07-26        24.00     26.00      2.00   0.39    0.64    0.32   1.47
    MX-07-27        82.00     93.00     11.00   0.49    0.53    0.24   0.98
    MX-07-28        81.00     86.40      5.40   0.60    1.43    0.24   1.40
                    83.75     86.40      2.65   0.90    2.07    0.36   2.28
    MX-07-29                                       No significant results
    MX-07-53                                       No significant results
    MX-07-54                 End of season blizzard; core unexamined
    MX-07-60       107.00    109.70      2.70   0.48    0.79    0.19   1.05
    and            144.55    146.25      1.70   2.82    1.89    0.65   1.48
    MX-07-61       139.40    139.70      0.30   1.50    2.00    0.28   0.92
    MX-07-62       117.95    119.90      1.95   1.04    0.54    0.78   2.48
    and            134.65    145.75     11.10   0.76    0.54    0.26   1.05
    incl.          137.70    139.70      2.00   1.72    1.30    0.40   1.19
    MX-07-63             Drill capacity reached; target not attained
    MX-07-64                        Frozen hole; target not attained

    Table 2 - Drillhole

    Hole          Easting      Northing    Azimuth        Dip   Final Depth
    Number         (UTM NAD83,  Zone 18)  (degrees)  (degrees)           (m)
    MX-07-25      595064E      6827367N        178        -45         66.00
    MX-07-26      595064E      6827367N        178        -85         78.00
    MX-07-27      595059E      6827450N        178        -88        119.60
    MX-07-28      595059E      6827450N        178        -60        138.00
    MX-07-29      595562E      6827343N        178        -45        135.00
    MX-07-53      595358E      6827566N        178        -89        225.00
    MX-07-54      595358E      6827566N        178        -62        300.00
    MX-07-60      595057E      6827546N        178        -71        212.55
    MX-07-61      595057E      6827546N        178        -83        240.00
    MX-07-62      595057E      6827546N        178        -57        252.45
    MX-07-63      595631E      6827697N        160        -70        301.20
    MX-07-64      595631E      6827697N        164        -65        195.00

    Section 1900E: Holes MX-07-25 to 28 were drilled early in the season from
two set-ups targeting the favourable Mesamax Main ultramafic where historical
drilling on-strike gave indications of further potential. All four (4) holes
returned highly anomalous mineralization with composite assays up to
11.00 metres of 0.49% Nickel and 0.53% Copper. The best grades were
intersected in hole MX-07-28 which returned 5.40 metres grading 0.60% Nickel
and 1.43% Copper, including a higher-grade 2.65 metre interval that ran 0.90%
Nickel and 2.07% Copper.
    Given the success of the earlier drilling, three additional holes were
planned and executed from a location 94 metres north of the MX-07-27 &
28 set-ups. Hole MX-07-60 returned a 1.70 metre interval of high-grade massive
sulphides within sediments below the ultramafic that ran 2.82% Nickel and
1.89% Copper. At the base of the ultramafic hole MX-07-62 intersected
11.10 metres of predominantly net-textured mineralization that graded 0.76%
Nickel and 0.54% Copper, of which 2.00 metres ran 1.72% Nickel and 1.30%
    The high-grade intercepts from section 1900E provide much impetus for
further exploration in the area. Additional drilling is planned for 2008.
    Section 2200E: Holes MX-07-53 and 54 were collared as part of a new drill
fan that targeted the western strike extension of Allammaq mineralization.
Hole MX-07-53 intersected a favourable ultramafic unit between 174.45 metres
and 189.65 metres but did not yield significant results. Hole MX-07-54 was
drilled at the close of the exploration season as a follow-up to hole 53.
Blizzard conditions prevented access to the drill and transportation of the
core for geological examination. The core will be examined when crews return
to the site to execute the 2008 exploration campaign. Regardless of results,
the drill fan remains incomplete and further drilling is planned for this
    Section 2400E: Hole MX-07-29 was drilled to test a shallow magnetic and
HLEM anomaly approximately 200 metres south of the Allammaq discovery hole.
The conductor was explained by the presence of graphite while the magnetic
anomaly appears to have been explained by the veneer of peridotite overlying
conductive sediments.
    Section 2500E: Holes MX-07-63 and 64 were drilled as part of a new drill
fan of off-section drilling targeting the eastern strike extension of Allammaq
mineralization, and direct follow-up of mineralization intersected in hole
MX-07-38 (22.30 metres grading 2.62% Ni, 1.81% Cu, 0.64 g/t Pt and
2.12 g/t Pd). Hole MX-07-63 was drilled to the maximum depth capacity of the
diamond drill and was abandoned in the favourable ultramafic at 301.20 metres.
Subsequent borehole EM surveys indicate the presence of an off-hole anomaly at
hole bottom. MX-07-64 was targeted somewhat up dip from hole 63 but
unfortunately froze prior to attaining the target. Sections east of and
adjacent to 2450E remain prime exploration targets; holes 63 and 64 will be
re-drilled as part of a complete drill fan that will be executed during 2008
upon the arrival of higher-capacity, heli-portable drills.

    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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