Canadian Royalties Announces Financial Results Year Ended December 31, 2007

MONTREAL, QUEBEC--(Marketwire - March 31, 2008) - Canadian Royalties Inc. ("Canadian Royalties" or the "Company") (TSX:CZZ) announces that it has filed today its financial results for the year ended December 31, 2007.

Financial Results Year Ended December 31, 2007:

During the year the Company's primary focus has been the exploration and development of the Nunavik Nickel Project (the "Project") as an independent, stand-alone Nickel, Copper, PGM mining and milling operation. In June of 2007 SNC-Lavalin completed a feasibility study in respect of the Mesamax, Expo and Ivakkak deposits. The total Project costs were estimated at $465.6 million including an allowance of 3.5% for inflation.

In order to commence funding the Project's development the Company complete a $ 75,050,000 public equity issue in July 2007, followed by a non brokered private placement issue of $25,000,000 in October 2007 with Norilsk Nickel Harjavalta Oy ("Norilsk"), a strategic partner with whom the Company entered into an off-take agreement for the sale of its nickel concentrate. In addition, to further develop the Project, the Company established an equipment financing facility of $ 15,000,000 with Caterpillar Financial LLC to finance the acquisition of both mobile and power generating equipment.

The Company engaged Project management personnel, commenced engineering work and purchased long lead time items such as ball mills, generator sets and construction housing units. It also completed the construction of an 18-kilometre exploration access road to the Expo Ungava deposit. As of December 31, 2007 the Company had used $66,800,000 of the net proceeds of the equity raised in 2007 for development of the Project.

To further finance the Project, the Company has also entered into a letter of engagement with BMO Capital Markets and Commonwealth Bank of Australia for the establishment of a $250,000,000 debt facility. Subsequent to the year end, on March 18, 2008 the Company closed a short form prospectus offering of debentures for aggregate gross proceeds of $137,500,000.

The Company has filed an Environment Impact Study and applications for the key permits.

Finally, a re-evaluation of its interest in its Richard (located in Nunavik, Quebec) and Thompson Nickel Belt South (located in Thompson, Manitoba) properties, the Company has written-off an aggregate $1,899,372 in exploration expenses in respect of same.

The Income Statement Highlights for the period ending December 31, 2007 are as follows:


2007 2006 2005


Net loss: ($5,642,104) ($4,820,645) ($1,628,297)

Net loss per share: (0.07) (0.08) (0.03)

Balance Sheet Highlights

December 31, 2007 December 31, 2006


Cash and cash equivalents: 37,007,890 3,524,540

Working Capital (excluding cash

and cash equivalents): 6,317,297 11,267,404

Total Assets: 163,301,199 11,267,404

Long term debt: 7,775,992 124,096

Shareholders Equity: 141,290,241 44,738,398


The Company's audited financial statements for the year ended December 31, 2007 and Management's Discussion and Analysis thereon are available for public viewing via the internet at

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 northern Quebec. Canadian Royalties is proceeding with permitting applications, as well as exploration for additional resources.

Forward-looking Statements

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 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 Company'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 Company, that the Company will receive the required permits and access to surface rights, and that the Company can access financing, appropriate equipment, and sufficient labor. 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. Accordingly, readers should not place undue reliance on forward-looking statements.

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