Nunavik Nickel Project Exploration Update: Crews to Mobilize to Site June 30th; 25,000 Metres of Drilling Planned

MONTREAL, June 19 /CNW Telbec/ - Canadian Royalties Inc. (TSX: CZZ.TO) today announced that exploration crews will mobilize to the site on June 30th, where three new Duralite heli-portable drills are being delivered. The three new drills replace rigs that have outlived their service lives and have significant depth capacity in both BQ and NQ core sizes. Approximately 25,000 metres of diamond drilling is planned using an average of four (4) drill rigs.

The company is also pleased to announce that it has successfully and conclusively detected the Allammaq deposit using advanced electromagnetic geophysical techniques (SQUID sensors). A production SQUID survey between the Allammaq and Mesamax deposits, commenced earlier this winter, is nearly complete with several anomalies of merit already identified. Furthermore, SQUID surveying will continue at other select target locations over the course of the summer. All valid targets generated will be drill tested.

The exploration program is designed to explore for new resources having the greatest potential to impact the project while at the same time supporting mine development activities. The principal objectives of the 2008 program are as follows:

    
    - Evaluate and drill test selected "grass-roots" exploration targets on
      100% Canadian Royalties-owned eastern properties.
    - Delineate extensions of the Allammaq deposit; perform infill drilling
      to upgrade resource classifications.
    - Fully delineate the Puimajuq discovery and perform a resource estimate.
    - Continue SQUID geophysical surveys during the summer.
    - Drill test geophysical anomalies and conceptual geological targets.
    - Infill drilling to confirm and add to reserves within specific mining
      envelopes.
    - Drill test for deeper deposit extensions (Mesamax).
    - Support the development of the Nunavik Nickel Project.
    

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 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 Nunavik, Québec. Canadian Royalties has now received its Environmental Certificate of Authorization and Mine Lease for the Expo site and is proceeding to construction.

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, including, without limitation, the expectation and beliefs of management, the assumed long term price of nickel, that the 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 labour. 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.

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

Contacts

W. Grant Arnold
Vice-President Exploration
(514) 879-1688
Toll free: (877) 879-1688
grant.arnold@canadianroyalties.com

Richard R. Faucher
President & CEO
(514) 879-1688
Toll free: (877) 879-1688
richard.faucher@canadianroyalties.com

Renmark Financial Communications Inc.: Jason Roy: jroy@renmarkfinancial.com

Dan Symons: dsymons@renmarkfinancial.com

Media - Adam Ross: aross@renmarkfinancial.com
(514) 939-3989
Fax: (514) 939-3717

www.renmarkfinancial.com