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Canadian Royalties Inc.: Canadian Royalties/Nunavik Nickel Project Puimajuq Update: Drilling Intersects High-Grade Nickel, Copp

MONTREAL, QUEBEC--(Marketwire - Jan. 22, 2009) - Canadian Royalties Inc. (TSX:CZZ) (the "Company") reports composite assay results from seventeen (17) new drillholes from the 2008 delineation drill program at its recently discovered and 100% owned Puimajuq deposit. Significant widths of high-grade mineralization were returned from nine (9) near-surface holes including NF-08-10, which returned mineralization over 39.80 metres grading 1.51% Nickel, 4.72% Copper, 11.81 g/t Platinum and 25.79 g/t Palladium. This interval includes 8.35 metres of high-grade massive sulphides that graded 3.63% Nickel, 4.57% Copper, 1.47 g/t Platinum and 2.57 g/t Palladium plus an additional 8.60 metre interval of spectacular high-grade massive sulphide mineralization that ran 1.94% Nickel, 14.63% Copper, 52.05 g/t Platinum and 108.83 g/t Palladium.

Composite assays and collar locations for all 2008 drilling at Puimajuq are reported in the tables below.

Table 1 - Puimajuq Composite Assays

Hole From To Width Ni Cu Pt Pd
Number (m) (m) (m) (%) (%) (g/t) (g/t)
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NF-08-09 26.00 34.10 8.10 1.23 3.37 0.51 1.49
incl. 26.00 31.20 5.20 1.80 3.95 0.58 1.05
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NF-08-10 14.95 54.75 39.80 1.51 4.72 11.81 25.79
incl. 15.65 24.00 8.35 3.63 4.57 1.47 2.57
and 24.00 32.60 8.60 1.94 14.63 52.05 108.83
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NF-08-11 25.45 50.00 24.55 2.76 3.81 1.54 3.01
incl. 25.45 41.15 15.70 3.43 2.80 1.93 4.09
and 45.10 50.00 4.90 2.63 9.43 1.32 1.07
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NF-08-12 66.00 69.90 3.90 1.83 2.74 0.38 2.41
and 75.25 79.90 4.65 0.65 0.80 0.30 1.51
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NF-08-13 38.00 50.80 12.80 2.41 3.99 1.44 9.85
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NF-08-14 51.50 53.85 2.35 2.72 2.48 0.91 1.57
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NF-08-15 28.40 35.85 7.45 2.84 1.81 0.89 1.67
incl. 31.05 35.85 4.80 3.81 2.27 1.11 2.05
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NF-08-16 52.40 54.40 2.00 0.39 0.33 0.27 1.18
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NF-08-17 15.00 26.40 11.40 0.56 0.98 0.37 1.57
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NF-08-18 24.80 32.80 8.00 0.59 0.95 0.30 1.40
and 36.00 42.85 6.85 0.38 0.47 0.13 0.95
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NF-08-19 No significant results
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NF-08-20 No significant results
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NF-08-21 No significant results
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NF-08-22 No significant results
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NF-08-23 49.75 63.00 13.25 1.45 2.27 0.68 2.12
incl. 53.20 60.00 6.80 2.30 2.97 0.95 3.02
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NF-08-24 42.55 44.85 2.30 3.88 4.76 1.05 1.74
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NF-08-25 No significant results
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Sulphide mineralization at Puimajuq is hosted within a near-vertically dipping pyroxenite dyke having a more or less regular shape. The mineralization is generally tabular and vertically dipping but certain drillholes indicate an irregular bulbous thickening close to surface on at least three 25 metre spaced sections. Given the magmatic nature of the mineralization, true widths are difficult to determine but are believed to range from between 60 and 70 percent of the reported composite core widths.

Table 2 - Puimajuq Drillhole Locations

Hole Easting Northing Azimuth Dip Final Depth
Number (UTM NAD83, Zone 18) (o) (o) (m)
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NF-08-09 602778E 6827670N 360.0 -46 75.00
NF-08-10 602778E 6827669N 360.0 -60 90.00
NF-08-11 602754E 6827658N 360.0 -45 75.00
NF-08-12 602754E 6827658N 360.0 -63 117.00
NF-08-13 602802E 6827705N 180.0 -45 72.00
NF-08-14 602802E 6827706N 180.0 -68 75.00
NF-08-15 602703E 6827705N 180.0 -45 60.00
NF-08-16 602703E 6827705N 180.0 -69 102.00
NF-08-17 602677E 6827666N 360.0 -45 66.00
NF-08-18 602677E 6827665N 360.0 -64 90.00
NF-08-19 602828E 6827661N 360.0 -51 93.00
NF-08-20 602678E 6827600N 360.0 -62 240.00
NF-08-21 602755E 6827675N 360.0 -45 42.00
NF-08-22 602755E 6827674N 360.0 -49 19.00
NF-08-23 602757E 6827728N 180.0 -45 75.00
NF-08-24 602803E 6827657N 360.0 -45 66.00
NF-08-25 602828E 6827681N 360.0 -50 45.00
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Discovered during the 2007 campaign, Puimajuq is located approximately 7.4 kilometres east of the Allammaq deposit on the 100% Canadian Royalties-owned New Foreurs East property. The delineation of the Puimajuq deposit comprised one of the Company's 2008 exploration objectives and these drill results suggest near-surface resource potential. The Company is currently planning to initiate a resource estimate during the course of 2009. Puimajuq's eventual integration in an updated mine plan is an objective that will depend upon the demonstration of its economic viability.

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 Company 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.

Qualified Persons

W. Grant Arnold (P.Geo.), Vice-president Exploration for Canadian Royalties Inc., 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 identified Indicated resources totalling 19,437,000 tonnes grading 0.97% Ni, 1.18% Cu, 0.56 g/t Pt, and 2.27 g/t Pd, in addition to 4,102,000 tonnes of Inferred resources at its Nunavik Nickel Project, located 20 kilometres south of Xstrata Nickel's Raglan Mine in Nunavik, Quebec. Canadian Royalties has received its Environmental Certificate of Authorization and Mine Leases for the Expo, Mesamax, Ivakkak and Mequillon sites.

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 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 and should one or more of these risks and uncertainties materialize, or should the underlying assumptions 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 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 law. Accordingly, readers should not place undue reliance on such forward-looking statements.

For additional information, including this release posted with an accompanying location map and core photograph, please visit our website at: [ www.canadianroyalties.com ].