Nunavik Nickel Project Exploration Update: New Zone of High-Grade Massive Sulphides Intersected at Giraffe

    MONTREAL, Oct. 17 /CNW Telbec/ - Canadian Royalties Inc. (TSX: CZZ)
("Canadian Royalties" or the "Corporation") is pleased to announce the
discovery of a new high-grade Nickel-Copper-PGE (platinum group element)
showing on its 100% owned Giraffe property, located in the eastern portion the
extensive Nunavik Nickel land package. High-grade sulphides were intersected
in two (2) near-surface holes including GRN-08-05, which returned 1.80 metres
of mineralization that ran 5.22% Nickel, 0.32% Copper, 2.30 g/t Platinum and
5.58 g/t Palladium within a 6.25 metre zone grading 2.44% Nickel, 1.01%
Copper, 1.02 g/t Platinum and 3.09 g/t Palladium.
    The Giraffe property harbours at least three (3) large outcropping
ultramafic intrusions: The F1 intrusion with 3.4 kilometres of strike length;
the 2.7 kilometre long F2 intrusion; the G1 (Giraffe) intrusion with
2.6 kilometres of exposed strike length, with a further possible 1.4
kilometre-long buried northeast extension. The "Gurn" showing, located along
the F2 intrusion, was discovered during drill follow-up of a geophysical
target on the Giraffe North grid.
    Over a sixty kilometre strike length, eight (8) deposits and numerous
showings have been discovered or expanded since exploration by Canadian
Royalties began in 2001. The results obtained at "Gurn" demonstrate clearly
that the multiple and voluminous Giraffe ultramafic intrusions are indeed
fertile and that magmatic sulphide accumulations could be present elsewhere on
this little-worked property, located twenty kilometres east of previous

    Table 1 - Gurn Showing Composite Assays

    Hole             From        To    Width       Ni      Cu      Pt     Pd
    Number             (m)       (m)      (m)      (%)     (%)   (g/t)  (g/t)
    GRN-08-04       42.20     46.00     1.80     0.14    1.74    0.41   3.04
     and            67.15     68.80     1.65     2.64    0.87    0.55   3.37
    GRN-08-05       86.30     92.55     6.25     2.44    1.01    1.02   3.09
    including       89.50     91.30     1.80     5.22    0.32    2.30   5.58
    GRN-08-06 to 09, 12                    No significant results

    Table 2 - Gurn Showing Drillhole Locations

    Hole           Easting   Northing      Azimuth       Dip     Final Depth
    Number       (UTM NAD83,Zone 18)            (o)       (o)             (m)
    GRN-08-04      618101E   6823222N        360.0       -50          111.00
    GRN-08-05      618101E   6823222N        360.0       -64          130.00
    GRN-08-06      618101E   6823222N        360.0       -73          150.00
    GRN-08-07      618053E   6823235N        360.0       -50          111.00
    GRN-08-08      618152E   6823234N        360.0       -50          132.00
    GRN-08-09      618152E   6823234N        360.0       -67          150.00
    GRN-08-12      618046E   6823342N        180.0       -45          132.00

    Holes GRN-08-10 (617578E; 6823805N) and GRN-09-11 (617497E; 6823225N) were
drilled on conductors located elsewhere on the property and did not return
significant results.
    The Corporation will continue reporting additional exploration results
during Q4-2008 and Q1-2009, as results become available, on a project area

    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 Corporation 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.

    Other Developments

    The Corporation also announces that Robert Menard, VP Construction and
Engineering, and Marc Chaput, VP Investor Relations and Communications, have
left the Corporation following an Asset Conservation Plan (ACP) restructuring.
Mr. Menard will however remain a consultant with the Corporation to assist in
carrying out the shutdown of construction activities on its Nunavik Nickel
Project (the "Project") and to help ensure an efficient future start-up of the
Project. "We wish to thank Mr. Menard and Mr. Chaput for their efforts and
wish them well in their future endeavours" said Glenn J. Mullan, President and

    Qualified Persons

    W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian
Royalties, 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 now received its Environmental Certificate of Authorization and
Mine Lease for the Expo site.

    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; W. Grant Arnold, Vice-President Exploration, (514)
879-1688, ext. 1254, Toll free: (877) 879-1688,; Renmark Financial Communications Inc.:
Jason Roy:; Dan Symons:; Media - François Trépanier:, (514) 939-3989;

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