Update from Canadian Royalties Regarding Jien Offers

MONTREAL, QUEBEC -- (Marketwire) -- 11/09/09 -- Canadian Royalties Inc. (the "Company", or "Canadian Royalties") (TSX: CZZ) reminds securityholders that the amended offers (the "Jien Offers") made by Jien Canada Mining Ltd. ("Jien") to acquire all of the issued and outstanding common shares (the "Shares") and all of the 7% Convertible Senior Unsecured Debentures due March 31, 2015 (the "Debentures") of Canadian Royalties for $0.80 per Share (the "Share Offer") and $800 per $1,000 principal amount of Debentures, plus accrued and unpaid interest up to, but excluding, the date the Debentures are taken up under the Jien Offers (the "Debenture Offer") are scheduled to expire at 5:00 p.m. (Toronto time) on November 10, 2009.

As described in the Notice of Change to the Directors' Circular of the Company dated October 19, 2009 (the "Notice of Change"), when Jien announced its intention to make the original Jien Offers on August 7, 2009, the board of directors (the "Board") of Canadian Royalties appointed a special committee (the "Special Committee") consisting of independent directors to consider the Jien Offers and the response of the Company. The Special Committee retained financial and legal advisors to assist it.

The Company engaged in a thorough canvas of potential value-maximizing alternative transactions. The Company had contact with a number of third parties who expressed an interest in considering alternative transactions; a number of which, subject to confidentiality agreements, were provided with access to an electronic data room. This process did not ultimately result in any definitive third-party proposals regarding a potential value maximizing alternative transaction.

The Special Committee and Board considered the matters outlined under the heading "Reasons for Recommendation" in the Notice of Change including, among other things, the improved offer terms, lack of alternative transactions, continued ability to respond to superior proposals under the support agreement and advice of the Special Committee's financial advisor, and agreed to support the amended Jien Offers.

The Company had a cash balance, as a result of ongoing costs of operations and response to the Jien Offers, of $15,751,000 on September 30, 2009 and of $12,898,000 on October 31, 2009.

The Company encourages its securityholders to review the Notice of Change, 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.

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 publiques NATIONAL inc.
Roch Landriault

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