Nunavik Nickel Project - Appointment of Lead Arrangers for Project Financing Facility

Montr�al, Qu�bec - October 31th, 2007 - Canadian Royalties Inc. (TSX: CZZ) has mandated Bank of Montreal Capital Markets (BMO), and Commonwealth Bank of Australia (CBA), whereby BMO and CBA will act as Co-Lead Arrangers for a Project Finance facility of approximately CDN $250 million to fund the development of the Nunavik Nickel project in northern Quebec. This lending facility is in addition to a CDN $15 million equipment financing facility provided by Caterpillar Financial Services.

BMO is a major Canadian bank and a leading financier for the mining industry. CBA is one of Australia's largest banks and a major source of finance for the global natural resources industry. Caterpillar Financial Services is a specialized business support group and part of Caterpillar Inc., a major world construction and mining equipment supplier.

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.

Canadian Royalties currently holds a 100% interest in the Ivakkak deposit, subject to a net smelter royalty ("NSR", refer to news release dated September 21, 2005). Additionally, Canadian Royalties has vested in a 70% interest in the Expo-Ungava property (which hosts the Mesamax, Mequillon and Expo deposits), where its interest shall be increased to 80% simultaneously with the creation of the joint venture. Further, Canadian Royalties holds an underlying 2% NSR on the Expo-Ungava Property.

Forward-looking Statement
This n ews release contains certain forward-looking statements. 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 dated July 10, 2007 for the year ended December 31, 2006. Accordingly, readers should not place undue reliance on forward-looking statements.

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

Gerald Price, CFO
800 Ren�-L�vesque Blvd. West, Suite 1525
Montr�al, Qu�bec H3B 1X9
Tel.: (514) 879-1688
Toll free: (877) 879-1688
E-mail: gerald.price@canadianroyalties.com

C. Jens Zinke, Vice-President Business Development
800 Ren�-L�vesque Blvd. West, Suite 1525
Montr�al, Qu�bec H3B 1X9
Tel.: (514) 879-1688
Toll free: (877) 879-1688
E-mail: jens.zinke@canadianroyalties.com

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