Canadian Royalties Inc.: Private Placement Syndicate of Flow Through Shares Increased to $8,500,000.

MONTREAL -- Canadian Royalties Inc. (TSX:CZZ) announces that the private placement financing of flow through common shares announced on September 27, 2004 has been increased by $2,200,000, resulting in aggregate gross proceeds of $8,500,000.

Over the past three years, Canadian Royalties has discovered, and released resource evaluations for three mineral deposits; Mesamax, Mequillon, and TK. In addition, a resource evaluation for the Expo area is being completed. Canadian Royalties has rapidly evolved into an advanced-stage exploration company, and is currently undertaking pre-feasibility work, with the aim of establishing a stand-alone nickel-copper-platinum-palladium mine.

Key activities ongoing with the Raglan South Trend project include:

- Over 20,000 meters of exploration and definition drilling completed to date this exploration season, and drilling is continuing with three drills;

- Metallurgical test work is underway for the purpose of determining metallurgical characteristics of the Mesamax and Mequillon Deposits, and of the Expo area - particularly for pre-feasibility economic and engineering studies;

- Environmental baseline studies (which commenced in 2003) and selected administration and logistics projects; and

- Scoping level studies are expected to commence shortly.

The proceeds from this financing are expected to finance the Raglan South Trend Project activities to at least the end of 2005, with a portion of the funds available to for selected other projects, including the TNB South (Thompson Nickel Belt) option/joint venture with Inco Ltd.

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Canadian Royalties Inc. (TSX:CZZ)