Canadian Royalties Inc.: Raglan South Nickel Project Changes Name to Nunavik Nickel Project and Formation of Project Development Team

MONTREAL, QUEBEC–(July 12, 2007) – Canadian Royalties Inc. (TSX:CZZ) announces the change of the name of its “Raglan South Nickel Project” to “Nunavik Nickel Project” , the appointment of Mr. Robert Menard, P.Eng. as Vice President Construction and Engineering, and the formation of a Project Engineering and Construction team , the mandate of which is to manage the detailed engineering and the development of the project.Nunavik Nickel Project

The new name “Nunavik Nickel Project” better identifies the project in that it takes into account the project’s main commodity, its location, as well as the heritage of the Inuit of Northern Quebec. In conjunction with this name change, Canadian Royalties is pleased to unveil the project’s logo (available at the following address: http://www.ccnmatthews.com/docs/nunaviknickel.pdf), which incorporates the bilingual English – French name Nunavik Nickel, with its translation in Inuktitut.

Appointment of Vice-President, Construction and Engineering

Canadian Royalties further announces the appointment of Mr. Robert Menard, P.Eng. as the Company’s Vice-President, Construction and Engineering. Mr. Menard was Vice-President, Projects and Construction for Cambior Inc. for over 12 years. In that capacity, he was responsible for all of Cambior’s development projects, from engineering studies through to site construction, start-up and reclamation. Mr. Menard participated in the development of the following mining projects: Bouchard Hebert, Gonzague Langlois, Omai Gold Mines, Rosebel Gold Mines, Omai Bauxite Mining, Ressources Orleans, Mine Chimo and Doyon.

Project Team

Under Mr. Menard’s supervision, Canadian Royalties has begun assembling a project development team for the development of its Nunavik Nickel Project. The team will be based in Montreal, Quebec; its core members include:

– Mr. Robert Menard, P.Eng. – VP, Construction and Engineering

– Mr. Glen Schlyter, P.Eng. – Project Manager

– Mr. Yves Tremblay, P.Eng. – Electrical Engineer

– Mr. Louis Plourde – Piping and Mechanical Technician

– Mr. Remi Provencher, CMA – Project Controller

– Mr. Martin Boucher, Tech. – Manager Environment and Permitting

Mr. Glen Schlyter has been with Canadian Royalties since 2001. His accomplishments include managing the contracts for the Company’s Preliminary Economic Assessment, completed by P&E Mining Consultants Inc., and for the Bankable Feasibility Study, completed by SNC Lavalin Inc.

Messr. Yves Tremblay and Louis Plourde each have over 20 years of experience in the mining and contracting industries and have been involved in significant mill construction projects, including plant start-up and commissioning, namely the construction of the Raglan Mine and the Rosebel Gold Mine

Mr. Remi Provencher will join the team as the project’s Controller. While reporting directly to the Company’s CFO Mr. Gerald Price, Mr. Provencher’s will first act in the capacity of Project Controller; thereafter he shall ensure the Project’s transition from development to operations. Mr. Provencher has previously been involved in two mine projects, acting in similar capacity.

Mr. Martin Boucher has more than 20 years of experience in the mining industry. He has acted as Environmental Superintendent on site at the Falconbridge Raglan project (now owned by Xstrata) during its construction and start-up, managing all aspects of permitting and compliance with regulations. Mr. Boucher was also the Manager, Environmental Services on the Koniambo project in Caledonia, and has until more recently acted in the capacity of Site Manager responsible for reclamation of the Gaspe Mine and Smelter Complex.

Canadian Royalties is currently seeking a variety of staff to join the project team. For further information, please visit www.canadianroyalties.com/jobs.

About Canadian Royalties and the Nunavik Nickel Project

Canadian Royalties has initiated the development of the Nunavik Nickel Project (formerly the Raglan South Nickel Project) which is anticipated to be an independent, stand-alone Ni-Cu-PGE mining and milling operation in the general vicinity of Xstrata Nickel’s Raglan Mine in Nunavik, Quebec. Canadian Royalties is proceeding with permitting applications, as well as with 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 Amended and Restated Annual Information Form for the year ended December 31, 2006 and dated July 10, 2007. 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 and the Company does not undertake any obligation to update or publicly release any revisions to such forward-looking statements to reflect events, circumstances, or changes in expectations after the date hereof. Accordingly, readers should not place undue reliance on forward-looking statements.

For additional information please visit our website at www.canadianroyalties.com

For more information, please contact

Canadian Royalties Inc.
Richard R. Faucher
President & CEO
Toll free: 877-879-1688
faucher@canadianroyalties.com

or

Canadian Royalties Inc.
C. Jens Zinke
VP Business Development
Toll free: 877-879-1688
zinke@canadianroyalties.com