Canadian Royalties Vends Certain James Bay Property Interests.

MONTREAL -- Canadian Royalties Inc. (TSX:CZZ) announces that it has entered into an agreement for the sale of certain property interests in the James Bay region of QuE[umlaut]bec, in consideration for the receipt of 1,500,000 common shares of Sirios Resources Inc. (TSX-V : SOI), 1,500,000 purchase warrants of Golden Valley Mines Ltd. (TSX VENTURE:GZZ), and the reservation of a net smelter return royalty on 374 mineral claims in the area.

Canadian Royalties acquired a position in the James Bay region of QuE[umlaut]bec in late 2004 after Virginia Gold Mines began announcing interesting high-grade drill intersections from its EelE[umlaut]onore gold project. In order to maintain an interest in this new area play without diverting exploration focus from its key projects and core commodities (nickel-copper-platinum-palladium), Canadian Royalties has entered into a transaction to: i) transfer and convey in favour of Golden Valley all of its rights and obligations in and to the mining option agreement between Sirios Resources Inc. ("Sirios") and Canadian Royalties in respect of the Sharks Property (the "Sharks Agreement"). For further information, refer to the press release dated December 16, 2004; and ii) transfer and convey in favour of Golden Valley all of its right, title and interest in and to 374 mineral claims in the James Bay area, held as to a 100% interest (the "CZZ Properties").

In consideration for this vending, Canadian Royalties shall receive from Golden Valley: i) 1,500,000 common shares of Sirios that are currently held by Golden Valley; ii) 1,500,000 share purchase warrants of Golden Valley, entitling Canadian Royalties to acquire up to 1,500,000 common shares of Golden Valley at a price of $0.35 per share, for a period of two years; iii) reimbursement in full by Golden Valley in respect of all funds previously paid by Canadian Royalties for staking and exploration expenditures incurred to date; and iv) a 1.5% net smelter return royalty on the CZZ Properties defined above.

The above noted transactions have been approved by the independent directors of Canadian Royalties, and are subject to any and all necessary approvals and acceptances as required by the policies of the Toronto Stock Exchange and all other securities regulatory authorities having jurisdiction over the Corporation's securities.

Canadian Royalties is a mining exploration company focused primarily on nickel exploration, particularly on its extensive Raglan South Trend Nickel project located in Nunavik, QuE[umlaut]bec, near Falconbridge's Raglan Mine, where it has discovered significant nickel-copper-platinum-palladium deposits. Canadian Royalties anticipates commencing its 2005 summer exploration program mid-June. For additional information please visit our website at www.canadianroyalties.com or contact:

The Statements contained in this press release may contain statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

CANADIAN ROYALTIES INC. (TSX:CZZ)