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Canadian Royalties Inc

Thursday, January 10th, 2008

Canadian Royalties Inc.(TSX:CZZ) provides the following progress report in respect of its Nunavik Nickel Project, where scheduling and budget are on target, as outlined in the Company’s Bankable Feasibility Study (“BFS”) (1) dated June 2007.

Budget

It is anticipated that the Company will meet its target budget as defined in the BFS completed by SNC-Lavalin Group in June 2007.
The Company has purchased or ordered all long-lead-time items such as ball-mills, generator sets, and the mining fleet, as well as such items which have been determined to be critical for the timely start of construction, such as a camp which is to provide accommodations for up to 340 workers.

These account for approximately $92 million in expenses and represent 33% of the project’s direct costs of $280 million, and 20% of the aggregate project costs of $465 million. The Company expects both commitments and expenses to remain within the forecasted budget as development progresses.

Scheduling

Additionally, scheduling in relation to the project as detailed in BFS is on target.
Permitting is proceeding normally: the Environmental Impact Assessment Study (EIAS) has to date been reviewed by the relevant environmental authorities and frequent exchanges have taken place between the Company and such authorities where additional answers and / or engineering details have been provided by the Company. In early December the company held various open house meetings to inform the population inhabiting the communities in the vicinity of the project. Further, the Company advises that the public hearings which are to be presided by the environmental authorities have been scheduled for early February of 2008.

In anticipation of the timely start of the project’s construction phase, the Company continues to grow its project team through the addition, in the first quarter of 2008, of both site construction supervisors and managers.

To date a total of four (4) vessels comprising the majority of the camp’s modules, 80% of the mine fleet, a number of generators, and other materials essential for the initiation of construction have been delivered to site. Two additional vessels transporting construction materials have also been scheduled for early July-08 deliveries. Following the delivery of the environmental Certificate of Authorization (C.A.), it is anticipated that construction will commence during the second quarter of 2008.

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