Nunavik Nickel Project Exploration Update: New Mineralized Zone Discovered; High-Grade Massive Sulphides Intersected at Kehoe

    MONTREAL, Oct. 29 /CNW Telbec/ - Canadian Royalties Inc. (TSX: CZZ) is
pleased to announce the discovery of a significant new zone of high-grade
Nickel-Copper-PGE (platinum group element) mineralization at Kehoe, located
approximately 10 kilometres west-southwest of the Expo complex. Thick
intervals of high-grade mineralization were cut in drillhole KH-08-16, which
intersected 38.15 metres grading 1.23% Nickel and 1.21% Copper, 0.56 g/t
Platinum and 1.99 g/t Palladium, including an 11.90 metre portion that graded
2.96% Nickel, 1.61% Copper, 1.02 g/t Platinum and 3.54 g/t Palladium.
Significant results are also reported for seven (7) additional holes.
    The "Endah" showing was discovered in late July, 2008 by diamond drilling
beneath a surface showing following a campaign of testing geophysical targets
elsewhere on the Kehoe intrusion. These results place a new zone of
mineralization roughly equidistant between the Expo and Mequillon deposits,
and 5.5 kilometres northeast of Tootoo. The zone is favourably located close
to the planned road that is proposed to link the Expo complex with the
Mequillon and Ivakkak deposits. These exploration results further attest to
the mineral potential of the Expo Intrusive Suite.

    Table 1 - Endah Showing Composite Assays

    Hole                               Width                      Pt      Pd
    Number           From (m)  To (m)     (m)  Ni (%)  Cu (%)   (g/t)   (g/t)
    KH-08-06 to KH-08-10                              No significant results
    KH-08-11          100.25  137.00   36.75    0.43    0.82    0.35    1.48
    KH-08-11          144.40  149.30    4.90    2.01    1.22    0.45    2.04
    KH-08-12 and KH-08-13                             No significant results
    KH-08-14          131.30  143.00   11.70    1.31    2.12    0.52    1.92
    KH-08-14          131.30  138.80    7.50    1.70    2.14    0.47    1.86
    KH-08-15           73.80   93.20   19.40    0.47    0.86    0.32    1.88
    KH-08-15           76.00   82.00    6.00    0.73    0.88    0.36    1.97
    KH-08-15          110.00  116.80    2.80    1.16    0.28    0.44    1.40
    KH-08-16           62.30  100.45   38.15    1.23    1.21    0.56    1.99
    KH-08-16           85.30   96.90   11.90    2.96    1.61    1.02    3.54
    KH-08-17          103.62  110.50    6.88    0.40    0.53    0.35    1.41
    KH-08-18          126.09  191.33   65.24    0.48    0.59    0.30    1.22
    KH-08-18          149.00  156.82    7.82    0.84    0.44    0.46    1.32
    KH-08-19          156.00  170.35   14.35    1.74    1.51    0.45    2.00
    KH-08-19          163.60  169.45    5.85    3.23    1.58    0.34    1.32
    KH-08-20          198.00  200.00    2.00    0.60    0.59    0.63    2.14
    KH-08-21                                                 Results pending
    KH-08-22                                                 Results pending
    KH-08-23                Results pending; no significant results expected
    KH-08-24                Results pending; no significant results expected
    KH-08-25                Results pending; no significant results expected
    KH-08-20                Results pending; no significant results expected
    KH-08-27                                                 Results pending
    KH-08-28                Results pending; no significant results expected
    KH-08-29                Results pending; no significant results expected
    KH-08-30                Results pending; no significant results expected

    Table 2 - Endah Showing Drillhole Locations

    Hole           Easting     Northing                 Dip
    Number         (UTM NAD83, Zone 18)   Azimuth (o)    (o)  Final Depth (m)
    KH-08-06       573605E     6823472N        140.0    -88           228.00
    KH-08-07       573340E     6823506N         69.0    -88           360.00
    KH-08-08       573342E     6823506N         69.0    -45            51.00
    KH-08-09       573113E     6822712N        140.0    -48           144.00
    KH-08-10       573112E     6822712N        140.0    -70           147.00
    KH-08-11       573183E     6822760N        180.0    -55           201.00
    KH-08-12       573183E     6822760N        180.0    -64           156.00
    KH-08-13       573188E     6822576N        360.0    -65           186.00
    KH-08-14       573188E     6822577N        360.0    -49           177.00
    KH-08-15       573185E     6822644N        360.0    -50           270.00
    KH-08-16       573185E     6822644N        360.0    -68           129.00
    KH-08-17       573231E     6822610N        360.0    -46           216.00
    KH-08-18       573231E     6822610N        360.0    -58           222.00
    KH-08-19       573231E     6822610N        360.0    -63           381.00
    KH-08-20       573231E     6822610N        360.0    -69           312.00
    KH-08-21       573231E     6822610N        360.0    -73           336.00
    KH-08-22       573134E     6822635N        360.0    -45           372.00
    KH-08-23       573134E     6822635N        360.0    -73           159.00
    KH-08-24       573186E     6822553N        360.0    -50           230.00
    KH-08-25       573285E     6822809N        180.0    -45           201.00
    KH-08-26       573285E     6822809N        180.0    -56           267.00
    KH-08-27       573285E     6822809N        180.0    -63           387.00
    KH-08-28       573286E     6822532N        360.0    -62           390.00
    KH-08-29       572917E     6823108N        320.0    -60           174.00
    KH-08-30       572917E     6823108N        320.0    -78           267.00

    Holes KH-08-06 to KH-08-10 and KH-08-29 to KH-08-30 were drilled on
geophysical targets located elsewhere on the property; these holes did not
yield significant results.
    Preliminary interpretation of the data suggests that a different drill
grid orientation may be better suited in order to properly define the geometry
of this potential deposit. The economic significance of the Endah showing has
yet to be determined and further exploration work is warranted.

    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, Québec 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. Below
detection limit assays are considered zero values when calculating composites
for release purposes.

    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 Nunavik, Québec. Canadian
Royalties has received its Environmental Certificate of Authorization and Mine
Leases for the Expo, Mesamax, Ivakkak and Mequillon sites.

    Forward-looking Statement

    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 Corporation'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
Corporation's Annual Information Form for the year ended December 31, 2007 and
dated March 31, 2008. 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 Corporation, that the Corporation will
receive the required permits and access to surface rights, and that the
Corporation can access financing, appropriate equipment, and sufficient
labour. 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
and the Corporation does not undertake any obligation to update or publicly
disclose any revisions to such forward-looking statements to reflect events,
circumstances or changes in expectations after the date hereof, except as
required by law. Accordingly, readers should not place undue reliance on
forward-looking statements.

For further information:

For further information: please visit our website at: or contact: W. Grant Arnold, Vice-President
Exploration, (514) 879-1688, ext. 1254, Toll free: (877) 879-1688,; Renmark Financial Communications Inc.,
Jason Roy:, Dan Symons:, (514) 939-3989, Media: François Trépanier:; Fax: (514) 939-3717,

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