Canadian Royalties Receives Receipt for its Final Short Form Prospectus


    MONTREAL, March 13 /CNW Telbec/ - Canadian Royalties Inc. (TSX:CZZ) (the
"Company" or "Canadian Royalties") announces that it has obtained a receipt
for its final short form prospectus delivered by the regulatory authorities in
each of the provinces of Canada in respect of an offering of $125 million
aggregate principal amount of convertible senior unsecured debentures due
March 31, 2015 (the "Debentures"). BMO Capital Markets acted as lead
underwriter in connection with the offering on behalf of a syndicate of
underwriters which included Raymond James Ltd. and Desjardins Securities Inc.
(the "Underwriters").
    In connection with the offering, Canadian Royalties has granted the
Underwriters an option to purchase up to an additional $12,500,000 in
principal amount of Debentures on the same terms and conditions, exercisable
up to 30 days following closing of the offering to cover over-allotments and
for market stabilization purposes.
    The Company plans to use the net proceeds from the offering to pursue the
development of the Nunavik Nickel Project and for general corporate and
administrative purposes.
    The Offering is anticipated to close on or about March 18, 2008, and is
subject to certain standard conditions.
    This press release is not an offer to sell or the solicitation of an
offer to buy the securities, nor shall there be any sale of the securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful
prior to qualification or registration under the securities laws of such
jurisdiction. The securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended, and
such securities may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons absent registration or an
applicable exemption from U.S. registration requirements.

    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 a 70%
interest in the Expo-Ungava property; its interest therein shall increase to
80% simultaneously with the creation of a joint venture. Further, Canadian
Royalties holds an underlying 2% NSR on the Expo-Ungava property.

    Forward-looking Statements

    This news release contains certain forward-looking statements or forward
looking-information. 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 for the year ended December 31, 2006 and
dated July 10, 2007. Further, forward-looking information is in addition based
on various assumptions, including, without limitation, the expectation and
beliefs of management, the assumed long term price of nickel, that the Nunavik
Nickel Project is a technical viable and economic operation, that it can be
successfully completed by the Company, that the Company will receive the
required permits and access to surface rights, and that the Company can access
financing, appropriate equipment, and sufficient labor. Should one or more of
these risks and uncertainties materialize, or should the underlying assumption
prove incorrect or different, actual results may vary materially from those
described in the forward-looking statements. All forward looking statements
speak only as of the date of this news release. Accordingly, readers should
not place undue reliance on forward-looking statements.

For further information:

For further information: Canadian Royalties Inc.: Richard R. Faucher,
President & CEO, Toll free: (877) 879-1688,; C.
Jens Zinke, VP Business Development, Toll free: (877) 879-1688,;

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