Update Regarding Stated Intentions of Debentureholders

Canadian Royalties Stands Behind Clear Disclosure

MONTREAL, QUEBEC -- (Marketwire) -- 10/23/09 -- Canadian Royalties Inc. (the "Company", or "Canadian Royalties")(TSX: CZZ) has reviewed the intentions of certain investors in relation to the offers (the "Jien Offers") made by Jien Canada Mining Ltd. ("Jien") to holders of its common shares (the "Shares") and 7% Convertible Senior Unsecured Debentures due March 31, 2015 (the "Debentures"). Jien has confirmed that it has entered into lock-up agreements dated October 15, 2009 with Colonial First State Asset Management (Australia) Limited, Colonial First State Investments Limited and fonds de solidarite des travaileurs du Quebec, holding a total of 271,667 Shares (0.26% of the issued and outstanding Shares) and $38,873,000 principal amount of Debentures (28% of the outstanding principal amount of Debentures). All lock-up agreements have been publicly filed by Jien and are available at www.sedar.com. In addition, Jien, has received verbal indication from Caisse de depot et placement du Quebec of its intention to tender $40 million principal amount of Debentures (29% of the outstanding principal amount of Debentures). Collectively, the lock up agreements and verbal indication account for $78,873,000 principal amount of Debentures (57% of the outstanding principal amount of Debentures).

Canadian Royalties has received a copy of a press release issued October 22, 2009 by Jaguar Financial Corporation ("Jaguar"). This release contains, what can most charitably be referred to as a selective reading of the Company's disclosure. As the Notice of Change to the Directors' Circular dated October 19, 2009 (the "Notice") states clearly, "Debentureholders that have entered into lock-up agreements with Jien, or that have otherwise confirmed their intention, intend to tender an aggregate of $78,873,000 principal amount of Debentures, 57% of the outstanding principal amount of Debentures."

The Company directs its securityholders to review the Notice, and other disclosure of Jien and the Company which is available on www.sedar.com and provides full details of the Jien Offers and the recommendation of the Company's Board of Directors.

The Company understands that Jien has put out a press release that discloses further details about the lock-up agreements that have been entered into between Jien and certain directors, officers and Debentureholders.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties, based in Val-d'Or - Quebec, is a mineral exploration company whose principal active area is along the South Trend located in the Raglan mining district of Northern Quebec's Nunavik Region. Since 2001, the Company has discovered and delineated several potentially mineable nickel-copper-cobalt-platinum-palladium-gold deposits which collectively form the Nunavik Nickel Project (the "Project"). The Company has completed a Bankable Feasibility Study and has received its Environmental Certificate of Authorization; it has also received mine leases for four sites, namely the Ivakkak, Mequillon, Expo, and Mesamax deposits. An Impact and Benefits Agreement ("IBA") has been entered into between the Company, three (3) Inuit communities, and Makivik Corporation, the non profit legal representative of the Inuit; the IBA constitutes the Company's formal commitment to ensure a fair and sustainable distribution of the economic benefits stemming from the Project. Development of the Project was initiated in 2007; the Project was subsequently put on care and maintenance as a result of the 2008 financial crisis. The Company's objective is to develop and exploit the mineral resources comprising the Project either independently or through a partnership.

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 Company's ability and control, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Some of these risks and uncertainties are identified and disclosed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008. Accordingly, all of the forward-looking information contained in this press release is qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company, as expressed or implied by the forward-looking information, will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business operations,. All forward-looking statements speak only as of the date of this news release and the Company 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 applicable securities law. Accordingly, readers should not place undue reliance on forward-looking statements.

Canadian Royalties Inc.
Glenn J. Mullan
Chairman of the Board, and Chief Executive Officer
1-514-879-1688, ext. 1222

Shareholders / Debentureholders:
Laurel Hill Advisory Group
North American Toll Free Number: 1-888-298-1523
Outside of North America: 1-416-637-4661

Media Relations:
NATIONAL Public Relations Inc./Cabinet de relations publique
Roch Landriault

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